Argos (retailer)
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| Argos Stores Ltd | |
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| Type | subsidiary of Home Retail Group |
|---|---|
| Founded | 1973 |
| Headquarters | Milton Keynes, England |
| Key people | Terry Duddy, Joe Phillips(founding Director), Michael Breakwell, Lisa Touhig, Keturah Gardner, Emily Dolphin Darren Marson, Sara Weller, Matt Nelson, Kyle Abell, Paul Furniss, Richard Tompkins (founder) |
| Industry | Retailer |
| Products | Consumer goods |
| Revenue | Sales - £3.652 billion (2005) |
| Employees | circa 51,000 |
| Slogan | "Don't shop for it, Argos it!" |
| Website | http://www.argos.co.uk |
Argos is the largest general-goods retailer in the United Kingdom and Republic of Ireland with over 680 stores. Argos is unique amongst major retailers in the UK because its primary means of displaying goods to customers is via a catalogue. Customers can browse through the catalogue, select items to buy, pay for the items, and then collect the items from the collections desk in store or have the item delivered to their home.
Argos own several brands including Elizabeth Duke[1] (jewellery, see below), Mikomi[2] and many others.[3]
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[edit] History
The original Green Shield Stamps 'catalogue' shops were rebranded Argos beginning in July 1973.
Argos launched in July 1973 with 1000 members of staff, taking £1,000,000 during a week in November.[4] Argos was purchased by BAT Industries in 1979 for a deal worth £32 million. The following year, Argos opened their Elizabeth Duke jewellery counter, and by 1982 were the UK's 4th biggest jewellery retailer.
1990 saw Argos demerging from BAT to form Argos plc and the launch of Argos Direct, the home delivery arm. 2000 saw another re-organisation for Argos with the Argos Retail Group being formed following the purchase of the business by GUS plc, the introduction of white goods to the Argos Direct arm of the business and the Argos Card being launched.
On 14 September 2006 Argos Retail Group demerged from GUS and was rebranded 'Home Retail Group'
[edit] Catalogues
Argos publishes catalogues twice a year (a Spring/Summer edition in January and an Autumn/Winter edition in July). The catalogues are constantly expanding, and current editions have well over 1500 pages. Each page of the catalogue contains photographs of items, along with a brief description of the item, the price (at the time the catalogue was printed), and a unique catalogue number.
Catalogues are also backed up by seasonal sales flyers, offering Non-Catalogue lines and price reductions on existing deals. Other items are sometimes available in stores, such as ex-catalogue goods at reduced prices (especially after the launch of a new catalogue) and also in certain stores, Managers Specials lines, usually delivery goods returned unused by other customers.
In early 2006 Argos trialed a new catalogue branded Argos Home in over 100 stores nationwide. This was proven to be successful and on Saturday 5 August 2006 it launched the second Argos Home catalogue this time in all 200 extra stores. The catalogue is aimed to pick out home furniture from the main catalogue and place a bigger emphasis on the fact that Argos sell furniture. Along with this it introduces styling tips for the current season along featured ranges.
Argos catalogues are fairly ubiquitous in British society, often there is one in every home. Infrequently, they are regularly used as household price guides and their sizes as used to explain objects, such as packet sizes.
[edit] Shopping in Argos
Traditionally, a customer will browse through the catalogue - either at the in-store browser points or at home with a catalogue, selecting items they wish to buy and writing down the catalogue numbers for those items. The customer then takes the shopping list of catalogue numbers to a till, where the cashier types them into the till, checks the stock levels, and sells the items, issuing the customer with a receipt. As soon as the items are sold, picking tickets are printed in the store's stockroom, and a member of staff picks the items from the shelves and takes them to the collection area in store. Meanwhile, the customer takes their receipt to the collection counter, and (sometimes after a few minutes' wait at busy times) is issued with their goods. Most stores have an automated "Call Forward" system in place, which issues customers with an order number and estimated collection time (based on the location on the stock room, however during busy times, tickets can be left for minutes before they are reached, making the timings inaccurate), and the customer is called forward to the collection counter automatically once the estimated collection time is reached, or sooner if staff override the system using touch screen keypads.
Recent developments in many stores are Quick Pay kiosks; touchscreen terminals where customers can enter their own shopping list of catalogue numbers, pay by credit or debit card and be issued with a receipt without the intervention of a cashier. This system allows people to avoid the sometimes lengthy till queues, however, currently only accepts most major credit & debit cards, as well as the 'Argos Store Card.' There are currently trials to extend this self service format to accept cash and the Argos gift card, however this is only currently in place in several concept stores.
To ensure that stock is available when a customer arrives in store, they are encouraged to use the Check & Reserve service before going into store, either using the Argos website, telephone or text message service. This allows a customer to reserve stock until the end of the next working day, or order it into that store, depending on the store format. Customers who reserve items are issued with a reservation number, which is either presented to the cashier or entered into the Quick Pay terminal, where the customer pays for the goods as normal. Customers can also check stock in store using the Stock Checker terminals, saving them from queuing for items that may be out of stock.
There are variants to this system - specifically the Elizabeth Duke jewelry counter, and also the customer view system - which allows for customers to see the goods prior to purchase. Also, Argos has a home delivery arm entitled Argos Direct, which allows delivery of most in-store items, and also a selection of larger goods in the catalogue which are delivery only; customers can order goods in-store (with the assistance of a cashier) or online for home delivery. Argos are currently trialling a new store system that allows Argos Direct orders to be placed from in-store terminals linked to the website.
[edit] Differences between Argos and traditional retailers
The method of shopping in Argos differs from most traditional British high street retailers. At peak trading times (the build-up to Christmas), queues at Argos collection counters can be very long. However, Argos' success shows that many customers are willing to put up with these drawbacks because of the advantages of shopping at Argos[citation needed].
Because most stock is held in stockrooms to which only staff have access, much more stock can be held per unit floor area than can be held in a traditional shop. Stock in Argos stockrooms is arranged to make most efficient use of the space - by range, as opposed to catalogue number order, meaning similar size items can be kept together, typically in 3 metre high racks with numbered aisles, bays and shelves for quick picking. In a traditional shop it must be displayed as to be appealing to the customer, however in Argos, as most customers shop from photographs of items in the catalogue or online. Argos often packages its goods in plain packaging or simple plastic bags, rather than smart packaging for shopfloor display. The fact that customers don't have direct access to most stock means that incidents of shoplifting and customers damaging stock are significantly reduced. When customers order certain products, the member of staff asks a question relating to the product - 'Would you like to order batteries for this', 'Would you like to purchase 3 years of warranty for this'. Sometimes there is an offer tied to with the product. For example, purchase a DVD recorder or player, the customer can purchase a SCART lead for half price. Many parents purchase their children's toys in Argos as they have not been touched by a large number of shoppers and their children. This allows Argos stores to hold a wider variety of items in stock than a traditional retailer.
Only a small selection of available items are placed on public display. Most products on sale are merely illustrated in the catalogue, similar to the sort previously issued only by mail order companies. Laminated catalogues are placed on display in premises on a prime retail street open during normal shopping hours. By this means, floorspace requirements and overheads can be minimised and cost savings passed on to customers through keener pricing[citation needed]. Most of the goods are available tightly packed over the counter, but larger items might be delivered straight to the customer's home a few days after their order is placed. Thus storage costs can also be kept to a minimum. Most Argos stores have small items stacked in the till area - such as water jug filters and light bulbs for customers to purchase at the tills.
Although the atmosphere of their shops is basic and functional, the catalogue normally reveals product details way beyond those that might not be legible in a traditional shop with ample display space and - perhaps - poorly briefed sales staff[citation needed]. The catalogues are also used as a price guide before shopping expeditions, enabling a shortlist of competing brands to be compared away from the bustle of the high street and the persuasive chatter of a salesman.
[edit] Store formats
There are 3 main formats of Argos stores:
- Call & Collect - these stores hold very little stock, and specially order in products for collection by customers at a later date.
- Traditional stores (referred to as Ordered In) - these stores hold the traditional Argos range (over 10,000 lines) and the Extra range can be ordered in from the warehouse within 3 working days, typically (depending on stock availability)
- Extra stores (referred to as Stocked In, formerly known as 'Argos Superstore') - these stores hold the full range of items (excluding Home Delivery items) from the catalogue, including the Extra range. The Extra range plus the traditional range is approximately a third larger than the traditional range alone, so most Extra stores tend to be in out of town retail parks, where more space is available at a lower cost.
Some town and city centre stores are now holding a partial allocation of all Extra lines, sometimes reducing their stock holdings of poorer selling Traditional stock.[citation needed]
[edit] Company information
In the financial year April 2003– March 2004, Argos had sales of over £3 billion. Argos was acquired by GUS plc in 1998, and has its head office at the Retail Centre of Excellence in Milton Keynes. Argos is part of the Home Retail Group, which also includes the Homebase DIY retailer.
Argos used to own Argos Additions, but this is now owned by the Shop Direct Group and is known as Additions Direct. In June 2005, Argos purchased the Index brand from Littlewoods along with 33 former Index stores. The purchased stores were rebranded to Argos and the Index brand has not been used by Argos. The remaining Index stores have all been closed down.
The Home Retail Group demerged from GUS plc on 11 October 2006. The other remaining company of GUS, Experian, is going to handle the financial services that were previously Mark Industries.
[edit] Controversies
[edit] Sunday trading
In 2001, Argos sparked a political controversy in Scotland, when it sacked several workers for refusing to work on a Sunday[5]. This action would have been illegal in the rest of the UK, as the Sunday Trading Act 1994 gave shopworkers in England and Wales the right to refuse Sunday work (unless they were employed to work solely on a Sunday). The 1994 Act did not apply to Scotland as there was no legislation regarding Sunday trading applicable to Scotland. Although Argos later retracted its decision to sack the workers and to enforce a Sunday working clause in Scottish employee contracts,[6] their actions led to the passing of the Sunday Working (Scotland) Act 2003 which extended the legal right of employees to refuse Sunday working to include shopworkers in Scotland.
[edit] Price fixing
In 2002, Argos, along with rival retailer Index were accused by the Office of Fair Trading of price fixing goods from toy manufacturer Hasbro[7]. The decision reached in 2003 resulted in Argos being fined £17.28 million[8], however, an appeal in 2005 led to that being reduced to £15 million[9]. Argos boss Terry Duddy gave evidence along with David Snow, Jacqui Wray, Jonathan Ward, Alan Cowley and Ian Thompson [10]. As of 2005, Argos deny price fixing and are appealing the decision.
[edit] References
- ^ "Elizabeth Duke" trademark registration, UK Patent Office website. Information retrieved 2007-03-04.
- ^ "Mikomi" trademark registration (electronics), UK Patent Office website. Information retrieved 2007-03-04.
- ^ Argos trademarks, UK Patent Office website. Information retrieved 2007-03-04.
- ^ Milestones and Memories, Argos. Article retrieved 2007-03-04.
- ^ "Sunday roasting for retailer", news.bbc.co.uk. Article dated 2002-07-01, retrieved 2007-03-04.
- ^ "Argos Sunday working climbdown", news.bbc.co.uk. Article dated 2002-07-01, retrieved 2006-11-06
- ^ "Inquiry into toy 'price fixing'", bbc.co.uk. Article dated 2002-05-01, retrieved 2007-03-04
- ^ oft.gov.uk, retrieved 2007-03-04
- ^ oft.gov.uk, retrieved 2007-03-04
- ^ Agreements between Hasbro U.K. Ltd, Argos Ltd and Littlewoods Ltd fixing the price of Hasbro toys and games, oft.gov.uk. Article dated 2002-02-19, retrieved 2007-03-04.
