Argos Closing Stores To Grow Online ~ Wise Move?
Argos today announced that it is to close 75 retail stores as part of a “Five Year Transformation Plan” to concentrate on growing its online business. There is growing evidence in recent months that consumer attention is increasingly shifting from high street to online shopping. Argos may be a huge high street brand but the Argos brand name alone will not be enough to ensure online success. What does Argos have in mind then and will it succeed?
How will Argos Differ from Other Online Retailers?
From what I’ve heard from Argos head staff today, it seems Argos is trying to make the most of the growing success of its reserve & collect online feature. This allows customers to reserve a product online and collect it in store on the same day. The good news is Argos is not trying to move away from this side of the business but instead capitalize on it. So why are Argos closing stores you might ask? I would say it’s simply because in many towns Argos has a high street store as well as an out of town retail park store or superstore. I’ve not seen a list of the stores Argos is planning to close but I’d guess it’s the high street ones that will get the chop. Out of town stores are easier to access, often have free parking facilities and are usually bigger so can hold more stock, meaning customers can get what they want easily. If they’ve reserved online it’s also guaranteed to be in stock!
Good Move or Bad Move?
I think it’s a savvy move by Argos if they execute it properly. When it comes to online shopping delivery times have always been an issue for some customers. Many people are also impatient and want things now, not in 3 or 4 days time. I know supermarkets offer a reserve and collect facility but I don’t like having to battle with trolleys at the best of times, I’d much rather nip to a retail park.
Wan’t To Get Rich?
Woolworths, Ethel Austin & Zavvi. These are just a few of the names that have been lost from the high street during the recession. With Argos now closing some of its stores, it looks like this trend is going to continue. If you want to be a millionaire of the next decade, figure out a way to make money from all the empty high street stores!
What do you think, Is Argos online shift a good thing or a bad thing? How would you transform the high street?