Sainsbury's to close 60 Argos stores and stop mortgage lending

[Martin@AS Financial]

Link to the BBC report:

Sainsbury's to close 60 Argos stores as profit set to dip - BBC News

[BrilloPad]

Should they have stuck with green shield stamps?

[jds 1981]

But an actual net increase of argos outlets?
I actually find the outlet inside my local Sainsbury's very convenient, often cheaper than Amazon and quicker to access than Amazon prime.

[Martin@AS Financial]

Should they have stuck with green shield stamps?

Good question as it doesn't seem like an easy market to operate in at the moment what with Tesco's recently withdrawing from mortgage lending as well.

[PCTNN]

Wasn't it their objective since day 1 after they purchased Argos?

They want to close most of the Argos stores and create Argos collection points inside supermarkets to boost the sale of groceries.

Business wise makes perfect sense. I'm surprised they haven't closed all Argos already.

[ladymuck]

Wasn't it their objective since day 1 after they purchased Argos?

They want to close most of the Argos stores and create Argos collection points inside supermarkets to boost the sale of groceries.

Business wise makes perfect sense. I'm surprised they haven't closed all Argos already.

That would be a bit silly. There's lots you can get same day from Argos as it's held in stock in store. If it just becomes a collection point, hidden up the back of Sainsbury's past the frozen peas (yes, I know they're not really located there...yet), then Argos will lose some of its USP.

[Mordac]

Should they have stuck with green shield stamps?

I'm not sure the green shield model would work quite so well now, but back in the mid 1970's it was proper radical. We got our first soda stream thingy on stamps, along with some quite disgusting flavoured syrups which were a million miles from whatever the were supposed to taste like.

[NickFitz]

That would be a bit silly. There's lots you can get same day from Argos as it's held in stock in store. If it just becomes a collection point, hidden up the back of Sainsbury's past the frozen peas (yes, I know they're not really located there...yet), then Argos will lose some of its USP.

This. My usual pattern of purchasing from Argos is that I check stock in the store a couple of miles down the road and, if they have whatever I want (and they almost always do), I go and buy it. If they don't, I start looking on Amazon because if I'm ordering and waiting until the next day or whenever, I might as well avoid the hassle of collecting it. Unless the Big Sainsbury's is going to chuck all the food out of its warehouse, I don't see how they can match the immediate availability of the Argos store.

[BrilloPad]

I'm not sure the green shield model would work quite so well now, but back in the mid 1970's it was proper radical. We got our first soda stream thingy on stamps, along with some quite disgusting flavoured syrups which were a million miles from whatever the were supposed to taste like.

You had a great childhood! My family considered soda streams to be something for the plebs : I always looked longingly at the ads on TV.

I think I should sue my parents.....

[PCTNN]

That would be a bit silly. There's lots you can get same day from Argos as it's held in stock in store. If it just becomes a collection point, hidden up the back of Sainsbury's past the frozen peas (yes, I know they're not really located there...yet), then Argos will lose some of its USP.

Believe it or not, this is exactly Sainsbury's strategy.

They don't care much about Argos and its usp. Everything Sainsbury's group does has the ultimate goal of boosting the groceries sale.