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?

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3 Responses to Argos Closing Stores To Grow Online ~ Wise Move?

  1. So many people shop online now that in 10 years I think we are going to look back and think its a great move. I think brick and mortar stores are going to be in trouble as companies look to reduce overhead costs.
    Sean @ One Smart Dollar recently posted..Getting Your Credit Card Debt Under ControlMy Profile

  2. On-line shopping is the way to go for many now and like Canada in the 70’s they had Consumers Distributing Mrs.CBB said similar to Argos where you look through the catalogue, pick what you want, they get it, you pay. It was where many in her town shopped. Now, with the availability of the internet there’s no reason to leave home. The only downfall is if you want the product yesterday you may not be so happy. I think it’s the way to go and they would be saving money. Argos used to have small household appliances and alot of the time it was easier to get it from there but I never really got a great deal to be honest with you. In those days because there was no internet and if you had the Argo catalogue you could look at what they got before you went to the shop as opposed to just going to the other shops to see what they had. As for the high street well I have no ideas for that but I’m sure in time something will take over as the next big thing. Mr.CBB
    Canadianbudgetbinder recently posted..What Products To Stockpile For Maternity LeaveMy Profile

    • I think the concept is good and it obviously works. People can’t be bothered with the hassle of going to the shops, but don’t mind collecting their purchases because they don’t have to wait in for a delivery man and they get the product the same day.

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