eBay and Argos partner to launch UK “click and collect” service

eBay president Devin Wenig said the economic climate has put pressure on the high street and “eroded” traditional retail models, but that the UK is a “hotbed” for retail innovation and consumers now expect to be able to shop at any time and on any device.

Argos managing director John Walden, who co-announced the news this morning, said the ecommerce market continues to “explode” but there are knock-on effects including an erosion in UK wages and overall retail margins.

“These trends have structurally altered the retail landscape as well. With more business shifting from traditional stores to online and profit margins under pressure because of online prices, it becomes very hard for retailers to make money,” said Walden.

He said the rise of online shopping has changed the landscape fundamentally, but until now ecommerce has been complementary to offline shopping. Yet the last few years has seen this change with the result that ecommerce is now competitive to offline shopping, according to Walden.

“The role and configuration of physical retail space will change, to become more complementary and reflective of the online customer journey – rather than competitive,” he said.

The click and collect service will operate on a “hub and spoke” distribution network, and marks the latest step in Argos’ ongoing “transformation” strategy which centres on repositioning its channels to provide a digital-centric proposition, in which mobile and other digital-channel shopping plays a more prominent role.

Walden added that once the pilot has rolled out it may consider applying the fulfillment services to other retailers that don’t have the distribution network.

Meanwhile eBay also revealed a raft of other changes including the launch of eBay money back guarantee service in the UK. It is also preparing to roll out its eBay Now service to the UK, which lets people order an item with fast delivery to the device they have ordered from, be it mobile or desktop computer.

Wenig said: “For more than a decade ecommerce has been an important force. For many years ecommerce has been largely complimentary to retail – but in the last few years something has changed and we have begun to reshape the entire commerce landscape. I say commerce, not ecommerce, because it’s not a meaningful distinction anymore – it has all converged. If I walk into a shop and scan a product on my mobile and buy it, is that on or offline?"

eBay is on a mission to become a more engaging platform for users, having launched its personalised homepage, called the “feed”, in the UK this summer. Wenig added: “Response since launch has been incredible. ebay is becoming a destination. It’s a place you go to discover and be inspired.”

It is also planning a host of other changes to its homepage including more social integration, and personalisation and curation of content, according to Wenig.