Argos to close 75 stores in new digital strategy
Catalogue retailer Argos has announced its intent to close as many as 75 branches as it seeks to reposition itself as a direct rival to the likes of Amazon.
The digital first strategy will see the High Street staple increasingly shift to the digital realm over the next five years in the face of falling profits, most recently a 37% fall in pre-tax profits to £18m for the six months to September.
A review of the chains existing estate of 739 stores has already identified the poorest performing outlets, sounding their death knell when their leases expire.
Parent company Home Retail Group is also to reduce the print run of its famous catalogue to further trim costs with its chief exec, Terry Duddy saying: “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.
“This plan provides the right approach for Argos to achieve a long-term sustainable performance and profit recovery.”
Argos plans to increase sales to £4.5bn per year by 2018 and will invest £100m per year to do so.