Argos business review —— As the UK’s leading multi channel retailer, Argos provides a highly successful and unique offer of choice, value and convenience.
Operational review Multi-channel leadership Multi-channel sales have continued to grow and now represent £1.9bn or 46% of Argos’ total sales. Internet orders represent 36% of Argos’ total sales, up from 32% last year, with the remaining 10% of multi-channel sales being products ordered either in-store or by telephone for home delivery. Argos continues to be the second largest internet retailer in the UK, with 400 million website visits during the year. The Spring/Summer 2011 catalogue launch was the first to fully integrate social media into the multi-channel offer. Through the growing Twitter and Facebook communities, customers can access the Argos products, share ideas and discover engaging content. More convenience through store-based collection Stores remain a key component of the Argos multi-channel model, operating with a national chain that provides convenient ‘pick up points’ for the customer. During the year under review 11 stores were opened and five stores were closed, the net six new stores grew the store portfolio to 751. In addition, seven stores were relocated to improved locations. In the 2011/12 financial year, there will be around 15 new store openings, while around five older stores are likely to be closed; there will also be a number of additional stores that are relocated to better sites. While the availability of suitable new out-of-town property developments continues to constrain store openings in the short-term, Argos’ store chain analysis over the long-term continues to support further years of growth in the store portfolio. The ‘voice put-away’ technology roll-out started in 2010 and will be completed in the first half of 2011. This technology automatically guides
