Argos to close stores in move to digital
Argos is to cut up to 75 stores in a move to reposition itself from a catalogue-led business to a digital retailer
Argos is to cut up to 10% of its 750 stores in a move to reposition itself from a catalogue-led business to a digital retailer.
A spokeswoman from Argos said the store would wind down the existing branches as their leases expire over the next five years.
The news comes as the store, which is owned by Home Retail Group, reported pre-tax profits down by 37% to £18m for its first half results.
But according to the results, Argos's multi-channel sales grew 51%, while its online "Check & Reserve" offering is the fastest growing channel, representing 30% of total sales.
Terry Duddy, CEO of Home Retail Group, said: "Against a challenging consumer backdrop, Argos has had a solid first half of the year supported by its multi-channel performance, with sales growth driven most notably by an improvement in consumer electronics.
"We have also concluded a comprehensive business review of Argos which highlighted a clear opportunity to transform the business through increased investment in digital technologies.
"The transformation plan aims to deliver growth by repositioning Argos as a digitally-led business from a catalogue-led business, leading the market growth of digital commerce through online, mobile and tablet, and offering customers more products with the fastest, most convenient fulfilment options," he said.
The news comes as other retailers such as Tesco have started concentrate on its digital offering rather than building new stores.