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Argos sets sights on improved home delivery service

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Full year results for Home Retail Group (HRG) show sales at Argos up 0.6% for the 52 weeks ending 28 February. Operating and distribution costs for the Group fell by £14m to £1.9bn, and it is planning improved home delivery services, backed up by its transformation plan.
The nationwide transformation plan, to introduce a hub-and-spoke distribution model to Argos, has now been completed, HRG said in a statement issued this morning, enabling same day collection of around 20,000 products.

Argos now also has 60 digital stores trading across three different store formats.

Online orders accounted for 46% of total sales, 38% of those were placed via a mobile device meaning mobile commerce represented one-in-four of all orders placed with Argos. Online ‘Check & Reserve’ orders grew 7% year-on-year, and represented 34% of total sales. Home deliveries account for 20% of total sales.

Click-and-collect, which is offered by Argos in 750 locations was highlighted as a key pillar of the retail chain’s continued success. The transformation to the hub-and-spoke model will form the basis of an improved home delivery service in 2016, the Group said, centred around low costs and flexible slots.

Argos stores will also become increasingly used as collection points for goods ordered from Homebase.

Overall sales for HRG, in the year ending 28 February 2015, increased by 1% to £5.7bn, with like-for-like sales up 0.6% at Argos, and up 2.3% at its other major brand, Homebase.

John Walden, Chief Executive of HRG, said: “The Group performed well in FY15 and ahead of consensus profit expectations, achieving 14% growth in benchmark profit before tax and 25% growth in benchmark EPS. Both Argos and Homebase contributed positive like-for-like sales and profit growth for the second successive year. I believe the strategic plans we are pursuing across the Group will enable us to innovate and lead in a rapidly changing retail market.”

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