. . . but Sainsbury’s plans fightback

Sainsbury’s is fighting back against the threat posed by Amazon by launching an Argos click and collect service across its convenience stores.

The firm, which snapped up Argos for £1.4bn last year, said the new service will be available in a 100 of its Sainsbury’s Local franchises so customers can order items online and collect purchases closer to where they live or work.

It’s the latest move by Sainsbury’s, which has been rapidly expanding, to fend off the threat posed by Amazon, which closed its £10.7bn deal to buy Whole Foods earlier this month.

Other UK supermarkets have also been pursing deals – Tesco’s bid to buy wholesaler Booker is being scrutinised by the Competition and Markets Authority while Morrisons earlier this month struck a deal with shop chain McColl’s to supply Safeway brand products.

Amazon this week enacted cuts at Whole Foods bringing prices down by up to 33pc.

Sainsbury’s boss Mike Coupe said: ‘Argos’ leading digital capability is an important differentiator for us and is key to our future strategy.’