Group growth strategy
Both Argos and Homebase will continue to extend their multi-channel routes to market by increasing sales via the internet and catalogues.
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Growth through extending and exploiting multi-channel leadership
- Driving incremental sales growth over and above that achieved through new store openings
- Applying a customer-focused, fully-integrated approach to ensure that whether customers shop with Argos in-store, online or over the phone, they are able to find, order and receive goods seamlessly across the different channels
- Leveraging Group skills, scale and infrastructure to support the Homebase proposition.
The leadership of Argos in fully integrated multichannel convenience continues to build, demonstrated by 37% of its sales now being transacted across more than one channel. In particular, Argos Check & Reserve is unique in its functionality, scale and efficiency. With its online presence being well established, well invested and generating £900m of sales in the last year, Argos sees the internet as a further key growth opportunity and one that is significantly enhanced by its physical store presence for additional customer convenience.
Homebase has embarked on further multichannel opportunities and continues to benefit from the scale and expertise of Argos. Homebase utilises the in-house cost advantage of Argos Direct, the UK’s largest home deliverer of bulky products. Its recently relaunched website will also provide customers with expanded choice and improved information and functionality, while the ‘Furniture and Home’ catalogue, which brings together many of the key elements of the Homebase customer proposition, was rolled out to all stores in January 2008.
Growth through expanding the store networks
- Opening approximately 30 Argos stores per year
- Opening approximately 10 Homebase stores per year.
Both Argos and Homebase regularly review their ‘extent of chain’ across the UK and Irish markets and will continue their new store opening programmes of around 30 Argos stores and 10 Homebase stores a year. Confidence in the Argos opening programme comes, in particular, because of its increased product choice that captures a wider share of customer spend in a catchment and its success in both high street and out-of-town locations. Confidence in the Homebase opening programme comes from its now broader home enhancement offer and its successful smaller store format which allows it to enter smaller catchments and frequently be the leading customer offer in categories including core DIY, garden and showroom. Growth is also expected to be achieved from continuing to develop formats and store presentations to meet the changing needs of customers.
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