The Courier & Advertiser (Fife Edition)
Supermarket group to speed up Argos roll-out in stores
Retail: Argos chief expects further consolidation in sector
Sainsbury’s has pushed ahead with plans to launch more Argos stores in its supermarkets, opening its 50th outlet as it looks to better compete with rivals.
The move is part of integration plans between the two retailers following the grocery giant’s £1.4 billion takeover of Argos and Habitat owner Home Retail Group last year.
Sainsbury’s has committed to opening 250 Argos concessions over three years, with chief executive Mike Coupe saying every supermarket in the country will eventually have either a store-in-store or a click-and-collect point.
Argos also said it plans to transform 60 stand-alone Argos stores to a digital format.
Argos chief John Rogers said: “The opening of our 50th Argos Digital store just seven months after we acquired the company shows we are moving ahead at pace with our strategy.
“Our decision to transform 60 Argos stores by March next year moves our strategy on further.”
The takeover of Home Retail aims to deliver cost savings and give the firm greater firepower to take on the likes of Amazon.
In an update last month, Sainsbury’s said trading remained “very competitive” and warned over continuing price pressures related to the weakness of sterling as it saw supermarket sales slip back into reverse.
It posted a 0.5% fall in like-for-like supermarket sales, excluding fuel, in its fourth quarter to March 11, down from a rise of 0.1% in the previous three months.
Mr Rogers said he also expected to see more consolidation in the retail sector.
“The food retail market is relatively consolidated already, but general merchandising and clothing is more fragmented,” Mr Rogers said.
“I think we will see more consolidation in general merchandising and clothing markets over time and that will benefit consumers.”