Sales Argos makes via
the internet.
Growth in internet
Check & Reserve sales.
Our key strengths
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Integrated multi-channel capability
As the leader in multi–channel retailing, we are well placed to respond to future consumer and retail trends. Consumers are changing how they order and buy goods. We offer many ways to meet their needs through our two retail brands, from in-store to shopping at home using catalogues and the internet. We are continually looking at new opportunities for innovation to enhance the retail experience.
The fully-integrated nature of the Argos offering, supported by highly developed supply chain systems, provides further differentiation and is a model for future retail business. Whether buying in-store, online or over the phone, for collection instore or home delivery, the experience is noticeably fast and efficient.
At Argos, over 14,000 product lines can be reserved from home for collection from the customer’s store of choice through Check & Reserve. By combining the efficiency of pre-ordering with the guarantee of immediate availability, this facility appeals to all time-pressed consumers. The convenience of Quick Pay Kiosks is helping to speed up the shopping process in-store, allowing customers to bypass the till. Quick Pay Kiosks transactions now account for around 17% of Argos store sales.
This same multi-channel capability is being used to provide competitive advantage to Homebase. Homebase’s transactional website is modelled on the successful Argos service. Customers can browse more than 10,000 Homebase products online, many of which are available for home delivery using our shared home delivery infrastructure.
The skills and experience behind the Argos catalogue are being applied to create catalogues for Homebase customers featuring furniture, furnishings, flooring, tiling, lighting and decorating products. The Homebase Spend & Save loyalty card provides a tool for direct marketing to four million customers active in home enhancement.
Purchasing, sourcing and supply chain strength
Group operations provide our retail brands with significant competitive advantages.
Due to the size of our procurement operation, the scale efficiencies we can generate and our longterm relationships with suppliers, we can deliver value for money to consumers across a broad range of products while improving profitability in a very competitive market place.
We have one of the largest UK sourcing offices in the Far East. Products we buy from overseas account for over £1.8bn of Group sales, more than half of which is now sourced directly from factories, generating significant savings by eliminating agents and other intermediaries.
Our supplier and stock management structure in the UK and overseas allow us to source low-cost products in sufficient quantities while containing our stock exposure risk. Argos customers, in particular, value our ability to locate exclusive products and advantageous quantities of in-demand items, especially at peak shopping periods.
Shared infrastructure and logistics expertise
The Group’s investment in a shared infrastructure and logistics expertise for both retail brands makes our business efficient and resilient in challenging market conditions.
Argos and Homebase derive significant competitive advantage from their ability to leverage a shared infrastructure that supports their brand propositions, improves cost efficiency and accelerates profitable routes to growth. This strength allows both brands to enter new product categories quickly and cost effectively and build market share more rapidly than their peers.
Over a number of years we have made significant investment in home delivery and believe that this gives us a unique advantage over competitors who do not have our scale or expertise. Argos Direct is the UK's largest ‘two-man’ delivery operation, making four million deliveries a year. All Argos products are available for home delivery, as is a growing proportion of the Homebase range. The scale of our operation means that our costs are low and we are therefore able to charge a highly competitive flat fee for delivery, regardless of size, quantity or destination.
By being flexible and efficient, our delivery operation gives our customers exactly what they want. We offer a choice of three daily delivery slots for bulky products, make weekend and evening deliveries and will also dispose of old appliances and beds. Our delivery success rate is 98% and we are targeting improvements to capture the balance.
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