Introduction
I am here to talk about Argos, a British home retail group which is acquired by
Sainsbury’s, one of the leading British supermarkets with 1.4 billion pounds in
September 2016. Argos was founded as the first UK’s catalog retailer in 1973 with only
17 stores. It is now running over 75o stores around the UK and Republic of Ireland. One
third of UK population is buying one thing or another in Argos shops annually and it is
predicted to be annual savings of 160 million pounds with acquisition of Sainsbury’s.
Superior Value to customers
Acquisition of Argos by Sainsbury’s is benefiting for the customers because
Sainsbury’s plans to have an Argos center at every Sainsbury’s branch to make
convenient for the customers in their shopping. It transforms Argos from tatty faux
wooden floorboards and display cabinets into tiled floors and LED display boards for
easy shopping. It also turns Argos stores into hi-tech outlets and digital stores although
the in-store catalogs are still in use. Strategically targeting all demographics instead of
focusing on working class ensure customer satisfaction and make staying loyal to Argos.
Moreover, Argos’s same day delivery service is a very popular strategy and considered as
a good gesture by customers because a customer could order the desired products and
get them immediately in the store or delivered at home on the same day through fast-
track option. Their digital transformation together with same day delivery also makes
the customers to be convenient and easy for shopping. Argos’s commitment in reducing
resources in operations and CO2 emissions for environment is also notable in local
community as a value creation. Therefore, the value created among customers after
acquisition is exponential in every phase of organization’s activities.
Following marketing landscape
To get customer satisfaction and brand positioning, Argos has made
modifications in their marketing strategies according to the changing marketing
landscape. They have done redesigning of their shops from tatty faux wooden
floorboards and display cabinets into tiled floors and LED display boards for easy
shopping. They also transformed into digital stores and hi-tech outlets while in-store
catalogs are still in use. Moreover, they have changed their focus to being on all
customer demographics from targeting on working class customers. Argos have also
increased their image among customers by giving commitment in reducing wastes and
CO2 emissions and supporting various charities.
Recommendations for Argos
After covid-19 pandemic, contactless businesses become popular among the
customers. Argos can also setup grocery lockers in their stores for their customers to
grab prepaid grocery orders. With the digital transformation, they should also introduce
“Sanp & Add” feature in their digital stores online. It is a feature that help customers to
search an item seen in their environment and add into their upcoming shopping list. It
is also good to put demo kitchens where a meal is prepared by a pro and customers can
taste it. If the customers like it, they can buy the ingredients to make up that recipe.
With a quick swipe on store’s app, all the necessary components can be added to the
digital shopping list.
With the aid of IT, Argos should use analytics of personalized customer
experiences in displaying items in their supermarkets. They should put together-bought
items in one place and make visible for the frequently bought items on each side of the
store’s pathways. Moreover, the store layouts should also be convenient for easy
shopping and finding the item in the store. To enhance the customers’ in-store
experience there should be some in-store popups, events, classes, and restaurants. So,
the customers would enjoy more shopping at Argos.
