Argos (part of the Home Retail Group) reported its’ results today, and they’re shocking. With 750 stores across the UK, Argos reported profits of approx £3.5m. Sounds okay on the face of it, right? But when you break this down, that equates to approx. £84 per week per store. Yikes!
Argos’ core markets have historically been electronics and gaming, however competition from online retailers, who don’t have the expensive real estate costs, has hit them hard. Plus, isn’t it more convenient to order from Amazon and have the good old postie deliver the stuff to your door? Saves you the trip to the busy retail park….
So to arrest this declilne, Argos plan to close between 50-75 stores, and ‘reposition the company for a digital future‘.
Are we seeing the dying throes of a broken business model, changing (too little) too late?