Ok so we've done last orders - now surely it's time...

Today once again a really strikingly poor set of results from Argos.  Like for Like sales are down 9.1% - that is huge.  Below is my previous post from 9th June on their previous city update.  Surely all of the points I made then are valid today.  I maintain the view that there is no place in UK retail for the current Argos format and that a radical rethink is required.  Ditch the printed catalogue to enable ranges and prices to far more flexible and offer swifter delivery pick ups would be a start.  As it currently stands their profit levels represent a paltry return on their investment - they would be better off selling their assets and putting the money in the bank - less risk & a higher return!

Opinionated as always - but argue with me if you think this assessment is wrong!

9th June

Internet retailing has provided great opportunities and challenges to more traditional forms of retail commerce. Today's striking news that Argos' LFL sales are down some 9.6% surely will bring the company to fully examine their strategic options. Make no mistake, a 9.6% fall in sales is massive & even more difficult for a retailer such as Argos who cannot quickly flex their marketing to stimulate greater sales - after all their catalogue is printed with fixed prices etc...

For a long time I have thought that Argos has been too conservative in the face of a changing retail environment. E-commerce and the growth of supermarkets into non-food areas have introduced great challenges, but I believe also great opportunities for the company. What is it that Argos are great at?? They don't have a great product offer - that can be replicated by Tesco deliver or Amazon... Their real unique selling point lies in their ultra efficient store operations and selection of convenient locations around the UK. So how best to utilise this resource. Well in the face of growing e-commerce threat why not use these stores as collection hubs for the consumer - they could give their local store as their address and collect on a weekly basis all of their non-perishable on-line shopping. As a consumer there is nothing more annoying than to get home from work and find that three different couriers have tried to deliver packages & I now need to embark on a road trip to 3 different depots to collect my orders... far rather collated at a store of my choice with a simple customer focused collection method. This service could be free to the consumer with the on-line retailers giving Argos a cut and saving considerably on the otherwise increased courier costs. It does seem that there is a current gap in the market to better serve the on-line retailers and while the current Argos model is surely doomed in a few years they would be best placed to serve this new need. & while their at it what about an Argos drive through....

Light in a dark place

So the economic news doesn't improve does it.  We seem to constantly move from one crisis to the next with an ever increasing sense of eventual double recession or similar.  Just last week the UK unemployment rate increased by some 100,000 to the highest level in 17 years.  So we should all be really depressed right?  No, we have chosen to study in surely the most dynamic of industries and one in which graduates are in very short supply and thus high demand.  A week rarely goes by without at least one key retail company contacting me seeking good graduates to recruit, below is the latest from B&Q announcing a significant recruitment drive.  Studying Retail Management is surely one of the best ways to ensure strong and varied grad job opportunities come economic rain or shine!

Retail Management Graduate Programme

Have you graduated with the last two years?

Do you know any recent graduates who are looking to kick start a fantastic career in retail?

Yesterday, Euan Sutherland announced the launch of our ambitious new Retail Management Graduate Programme at B&Q’s MPs reception held at the Houses of Parliament.

We are looking for graduates with a genuine passion for retail, people and leadership that want to build a foundation for their career where it all happens…in store!

The scheme is open to both internal and external candidates from the 10^th October 2011 and an overview of the scheme can be viewed through the attached link.