Argos Revamp Likely to See 75 Stores Close, More Job Cuts On Way

Argos revamp likely to see 75 stores close, more job cuts on way

Written on:October 24, 2023

Analysts have said a revamped Argos needs to give consumers a top-notch online experience

Argos UK has announced that it would shut down 75 stores over the next five years as it uncovers a transformation plan for the business. The closure could lead to more job losses, adding pressure to the already disturbed UK economy.

Home Retail Group, the retailer’s parent company, made this proclamation as it reported a 37% dip in group pre-tax profit to £18m in the six months to the commencement of September. Argos attained merely £3.3m during the said period.

An assessment of the 739 stores of Argos had been conducted by Home Retail Group on the basis of factors such as appeal of location and lucrativeness. The parent company has remarked that the assessment leads it to the conclusion that the 75 stores have to be relocated or shut down as their leases expire over the next five years.

CEO of Home Retail Group, Terry Duddy, has voiced that the assessment presented the group with a ‘vivid picture’, which stated that the opportunity to invest more in digital technologies existed and should be taken advantage of.

Argos also intends to diminish the distribution of the conventional Argos catalogue, which was initiated in 1973.

Terry Duddy has stated that the Argos transformation plan would deliver growth for Argos as it would reposition Argos as a digitally-led business instead of the current catalogue-led business. Argos would head the market growth of digital commerce via tablet, mobile and online medium. The CEO has expressed that the revamped Argos would intend to present to the customers more products with rapider and easier fulfillment alternatives.

Retail analysts have remarked that a retail outlet must have a competent online service these days to survive and profit in the competitive retail industry. The commentators have remarked that a ‘renovated’ Argos would have to establish a first-class digital experience for customers. Online version of Argos would have to be attached permanently to the consumers’ minds. Its products must have uniqueness as well.