Partly Cloudy

Partly Cloudy

max temp: 16°C

min temp: 10°C

ESTD 1874 Search

UK: Argos to axe 75 stores under digital overhaul

11:01 24 October 2012

Argos is to get a digital overhaul, owner Home Retail Group revealed today

Argos is to get a digital overhaul, owner Home Retail Group revealed today

RETAILER Argos is to undergo a digital overhaul that will see its catalogue take a back seat and at least 75 stores closed or relocated over the next five years.

shares

Parent company Home Retail Group said today it would reduce the circulation of the traditional Argos catalogue, launched in 1973, as it refocuses the chain as a digital-led retailer.

It also plans to trim its 739-strong store estate and move shops into shorter leases to be able to relocate as part of a plan to use stores as pick-up points for online orders.

Home Retail stressed that having a “strong local presence” remained important but said that the role of its stores would “be adapted in order to support a digital offer”.

The news comes after a six-month review of the Argos chain to revive the business.

In half-year results also announced today, Home Retail said underlying earnings at Argos were 3% down at £3.3million with a return to like-for-like sales growth, up 0.6% in the six months to September 1.

Underlying earnings at the group’s DIY and gardening business Homebase also fell, by 18% to £24.5m, with like-for-like sales across the 340-store chain down 6.2% after being hit by the wash-out summer weather.

Overall, Home Retail’s profits for the half year were 37% down at £18m, although this was towards the upper end of City expectations.

Argos, which has already cut the print run for its twice-yearly catalogue by 18% over the past two years, will launch its first digital catalogue before Christmas.

However, it said it was unlikely the printed version would be axed entirely in the short term as around 85% of customers currently viewed its catalogue before buying.

shares

0 comments

Thomson's first flight from Stansted Airport to Cancun, using the Dreamliner, was today. Picture: Tony Pick Photography

The first Dreamliner plane jetted off from Stansted Airport yesterday as part of a new route to Mexico.

The Iron Throne featured in the Game of Thrones series, which is coming to Ipswich this month

Pretenders to the Iron Throne will have the opportunity to stake their claim as ruler of Westeros this month as the iconic seat used in the hit TV show Game of Thrones will be coming exclusively to Ipswich.

Cap David Marsden, Daisy Ip and Louisa Chung from the Hong Kong Trade Development Council, with Deputy Mayor of St Edmundsbury Cllr Patrick Chung, Leader of St Edmundsbury Cllr John Griffiths, St Edmundsbury Cabinet Member for Economic Growth Cllr Alaric Pugh, Nikkos Savvas, principal of West Suffolk College.

The “encouraging” interest shown by west Suffolk companies for business opportunities in Hong Kong has sparked a second seminar in Bury St Edmunds next Thursday.

Shell has seen profits plummet.

Shell’s first-quarter profits plummeted 58% to 1.6 billion US dollars (£1.1 billion) as the falling oil price continues to hammer the sector.

Sainsburys posted a 13.8% fall in underlying annual profits.

Sainsbury’s posted a 13.8% fall in underlying annual profits as it remained under pressure amid a supermarket price war and said there was little sign of an end to tough conditions.

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24