Argos (retailer)

This article is about the catalogue retailer in the United Kingdom and Ireland. For the city in Greece, see Argos. For other uses, see Argos (disambiguation).
Argos Ltd
Subsidiary
Industry Retailer
Founded 13 November 1972[1]
Founder Richard Tompkins
Headquarters Milton Keynes, Buckinghamshire, England
Key people
 John Walden (CEO), David Robinson (COO), Bertrand Bodson (CDO)
Products Consumer goods
Revenue Sales billion (£4.282) (2009)
Number of employees
 circa 51,000
Parent Home Retail Group
Slogan Get Set, Go Argos.
Website www.argos.co.uk

Argos is a British catalogue retailer operating in the United Kingdom and Ireland, and a subsidiary of Home Retail Group. The company trades both through physical stores and online, with over 750 stores and 800 million website visits a year, making it one of the largest high street retailers online in the United Kingdom.[2]

Argos was established in 1973, by Richard Tompkins, the founder of the Green Shield Stamps scheme, who rebranded the existing Green Shield Stamps catalogue shops as Argos, before opening new Argos branded stores later in the year. BAT Industries purchased the company in 1979, and in 1990, it was listed on the London Stock Exchange, where it became a constituent of the FTSE 100 Index.

In April 1998, GUS plc bought the company, and it became part of the Home Retail Group, when GUS split in October 2006. In August 2013, it was estimated that 96% of the population of the United Kingdom was within 10 miles of an Argos branch.[3]

In April 2016, Argos' parent Home Retail Group agreed to a £1.4 billion takeover by the UK supermarket chain Sainsbury's. The acquisition is due to be completed by the third quarter of 2016. Sainsbury's intend to close a number of separate Argos stores and integrate them into its supermarkets.[4][5]

History

Former Argos logo introduced in 1999, until 23 January 2010

The company was founded by Richard Tompkins who had previously established Green Shield Stamps in the United Kingdom. Whilst on holiday in the Greek city of Argos, he came up with the idea that people could purchase goods from his "Green Shield Gift House" with cash rather than savings stamps. He rebranded the original Green Shield Stamps catalogue shops as Argos beginning in July 1973,[6] the first purpose-built store opening on the A28 Sturry Road, Canterbury in late 1973. Green Shield House was in Station Road, Edgware.

Argos was launched with thousands of staff, taking £1,000,000 during a week in November.[7] Argos was purchased by BAT Industries in 1979 for £32 million. In 1980, Argos opened its Elizabeth Duke jewellery counter (named after a director's wife) and by 1982 was the United Kingdom's fourth biggest jewellery retailer. The Elizabeth Duke brand has since been phased out, and replaced with the "Jewellery and Watches" brand.

The company was demerged from BAT Industries and listed on the London Stock Exchange in 1990. In April 1998, it was then acquired by GUS plc.[8] In October 2006, it subsequently became part of Home Retail Group which was demerged from its parent company, GUS plc, with effect from 10 October 2006.[9]

A rebranded Argos branch in Huddersfield, West Yorkshire

In October 2009, it was announced that the Argos visual branding would be undergoing changes from 2010. This began on 23 January, with the relaunch of the main shopping website, the websites claim to make shopping with Argos more accessible. The careers website, and the release of the spring/summer 2010 catalogue were also relaunched. The company expect that the rebranding process will take "an number of years",[10] at a cost of £70,000,000.

In September 2013, Argos announced a click and collect scheme, in partnership with eBay, which will allow customers to collect their eBay purchases from any Argos Store across the United Kingdom.

In January 2016, the sale of subsidiary Homebase for £340M was announced.[11]

In March 2016, after a bidding war for Argos between Steinhoff International and Sainsbury's, Sainsbury's was free to purchase for £1.4B.[12]

In April 2016, Home Retail Group agreed a £1.4bn takeover by Sainsbury's.,[4] making Sainsbury's the new owner after the acquisition completes.[13]

Operations

A Homebase branch incorporating a branch of Argos in Moor Allerton, Leeds. Since 2014, the Home retail group has been creating hybrid branches, within formerly solely Homebase branches.

Argos is the registered owner of a number of brands, which feature on a substantial number of products contained within the catalogue, including: Challenge,[14] Pro Action,[15] Visiq,[16][17] Cookworks,[18] Beanstalk,[19] Pro Fitness,[20] Opticom,[21] Grosvenor,[22] Steamworks,[23] Aquarius,[24] Coolworks,[25] Elevation, Acoustic Solutions and Mega Games.

In January 2009, Argos also struck a deal to take over the brands Alba, Bush,[26] and Chad Valley.[27] In January 2015, Argos took over the rights to sell the Cherokee clothing line from Tesco.[28]

Argos owns numerous brands including electronic brands Alba and Bush,[26] Chad Valley,[27] the now defunct Elizabeth Duke[29] (jewellery and watches), alongside many others.[30]

HomeStore&More

During 2007, Home Retail Group launched a trial of five stores, branded HomeStore&More, situated in Aylesbury, Abingdon, Cambridge, Harlow, and Cheltenham. These stores are operated by Argos[31] following Home Retail Group's acquisition of a stake in an Irish retail chain with the same name.[32] The Harlow store also included a "BedStore&More".[33] The trial was abandoned in February 2012, and the stores closed.[34]

The Irish stores still operate, with HRG's remaining interest sold in May 2013.

ArgosCompare

Argos operated a financial services price comparison website, in conjunction with BeatThatQuote.com.[35] In January 2012, ArgosCompare was taken offline, as it did not comply with new guidance issued by the UK Financial Service Authority.

Argos TV

On 15 June 2011, Argos TV was launched on Sky channel 642 and online.[36] On 25 October 2011, the channel was added to Freesat on channel 819.[37]

On 19 September 2012, Argos TV launched on Freeview nationwide on channel 55 for a limited set of hours, as well as full-time in Manchester on channel 59.[38] As part of a reshuffle of the Freeview EPG, the Manchester version moved to channel 54 on 17 October 2012. Argos had leased the Sky EPG slot from JML Direct TV for 12 months to trial the channel and also use JML's facilities in Kentish Town.[39]

The channel broadcast 24 hours daily, and was produced by ETV Media Group, with four hours of live programming each weekday, and eight hours a day at weekends.[40] Viewers were able to purchase items and collect them from local Argos stores through the retailer's "check and reserve" service.

The channel closed on 13 May 2013 in order for Argos to focus resources in other areas. Preceding this, the channel was removed from Freesat on 9 May. On Sky, it was immediately replaced with JML Living.[41]

Argos Credit Card

In August 2006, Barclays and Argos announced a joint venture to produce an Argos credit card (in the same year Barclays also joined with Thomas Cook).[42][43] Argos cancelled its contract with Barclaycard and a new Argos credit card was announced in 2012, this time in conjunction with Vanquis Bank.[44][45]

Catalogues

An out of town Argos in Craigavon, Northern Ireland, August 2009

Argos publishes catalogues twice a year (a spring/summer edition in January and an autumn/winter edition in July). Current editions have well over 1500 pages containing photographs of items, brief descriptions, prices and a catalogue number. Store copies are almost identical to home versions except for being ring-bound with individually laminated pages.

The in-store shopping process involves completing a small order form with the catalogue number(s) of the desired item(s). Argos provides unusually short blue pencils in stores for this purpose, to discourage theft. The order form is taken to the checkout and the items paid for, then the customer is given a receipt which indicates where they should wait for their items to be brought to them from the storeroom. On handover of the goods, the receipt is stamped by the store "received" so it cannot be re-used.

Catalogues are complemented by seasonal sales flyers, offering non-catalogue lines and price reductions on existing deals. Other items are sometimes available in stores, such as ex-catalogue goods at reduced prices (especially after the launch of a new catalogue).

In March 2006, Argos carried out a trial of a new catalogue branded Argos Home in over 100 stores in the United Kingdom. This proved successful, and on 5 August 2006, it launched the second Argos Home catalogue, this time in all 200 Argos Extra stores. The catalogue only contains home furniture and styling tips for the current season. Most items displayed in the Argos Home catalogue are also available in the main catalogue too. There are occasionally new lines in the Home catalogue which may have not been available at the time the main catalogue went to print.

As part of the Autumn/Winter 2010 rebrand, all stores will be branded simply as "Argos" when they are refitted. Former "Extra" marked lines will be available in all stores. However, stock levels will entirely depend on the area's demand for that particular line. If it does not sell, then the item will have to be ordered in to that store. (Argos stores in city centres will theoretically have a slightly different stocked-in range than those on retail parks.) In recent years, the stock-checkers in some stores have been modernised into a touch-screen digital display, offering more visibility on the catalogued items. Other stores continue to contain the original stock-checkers.

In October 2012, Argos announced that, as of 2013, that they would be closing a number of their catalogue stores, thus fewer catalogues will be made available nationwide, after a significant profit fall, and also to boost the popularity of their online store. Claims, however, from the media that the stores themselves would change from their[46] states are false.

International stores

In February 2007, Argos opened five stores in Mumbai, India. Argos had a franchise agreement, run in conjunction with HyperCity; its Indian retail partner. In January 2009, Argos closed all its stores in India due to poor sales.[47][48]

Controversies

Sunday trading

In July 2002, Argos sparked a political controversy in Scotland, when it sacked several workers for refusing to work on a Sunday.[49] This action would have been illegal in the rest of the United Kingdom, as the Sunday Trading Act 1994 gave shopworkers in England and Wales the right to refuse Sunday work (unless they were employed to work solely on a Sunday).

The 1994 Act did not apply to Scotland, as there was no legislation regarding Sunday trading applicable to Scotland. Although Argos later retracted its decision to sack the workers and to enforce a Sunday working clause in Scottish employee contracts,[50] its actions led to the passing of the Sunday Working (Scotland) Act 2003 which extended the legal right of employees to refuse Sunday working to include shopworkers in Scotland.

If an employee were to agree to work on a Sunday, they would be paid time and a half. This was then changed during 2010, when employees' pay went from time and a half to the normal hourly rate.

Price fixing

In May 2002, Argos, along with rival retailer Littlewoods Index, was accused by the Office of Fair Trading of price fixing goods from toy manufacturer Hasbro.[51] The decision reached in 2003 resulted in Argos being fined £17.28 million,[52] however, an appeal in 2005 led to that being reduced to £15 million.[53] Argos boss Terry Duddy gave evidence along with David Snow, Jonathan Ward, Alan Cowley, and Ian Thompson.[54] Argos and the other companies appealed to the Court of Appeal, which dismissed the case and ruled in favour of the Office of Fair Trading in October 2006.[55]

Furniture and skin burns

In February 2008, Chinese manufactured sofas from Argos and other retailers Land of Leather and Walmsleys were featured in a BBC Watchdog report on skin irritation.[56] The Chinese manufacturer, LinkWise, denies that the furniture is to blame for the incidents. Watchdog praised Argos for its speedy voluntary recall of the affected products, compared to the two other retailers involved. However, during a lengthy case ending in 2010, customers won compensation against the company.

Pricing in Ireland

In January 2009, the higher price that Argos charges for goods in Republic of Ireland, compared to the United Kingdom, attracted criticism.[57]

Charity partnerships

As of May 2015, main charity partner for Argos is Macmillan Cancer Support. Previously they partnered with Alzheimer's Society, which operates in England, Wales and Northern Ireland, and its sister charities Alzheimer Scotland and The Alzheimer Society of Ireland. All three charities will be Argos "Charity of the Year" in their respective territories in an arrangement scheduled to run until 2015.[58]

Previous major charity partnerships include the Teenage Cancer Trust, which began in July 2010, and ran until July 2012, the British Heart Foundation (July 2008 to July 2010) and Help The Hospices[59] (July 2006 to July 2008).

In another recent charity initiative, Argos teamed up with Barnardo's in a six-week campaign in the run up to Christmas 2012 that raised £700,000 (over million) for the children's charity.[60] Under the scheme customers brought in unwanted toys to Argos or Barnado's stores in return for £5 Argos vouchers.[61] Argos passed on the old toys it collected to Barnado's for sale in the charity's own chain of shops.

See also

References

  1. ↑ "Argos Limited". OpenCompany.co.uk. Retrieved 14 April 2014.
  2. ↑ "About Argos". Retrieved 24 October 2014.
  3. ↑ Paula Cocozza. "Argos: 40 years of catalogue shopping". The Guardian. Retrieved 24 October 2014.
  4. 1 2 "Sainsbury's wins battle to buy argos". Retrieved 1 April 2016.
  5. ↑ http://www.spectator.co.uk/2016/04/what-makes-argos-worth-1-4-billion-i-reckon-i-know/
  6. ↑ "Argos – www.argos.co.uk". argos.co.uk. Retrieved 13 October 2010.
  7. ↑ Milestones and Memories, Argos. Article. Retrieved 4 March 2007.
  8. ↑ "Argos attacks GUS offer". BBC News. 26 February 1998. Retrieved 13 October 2009.
  9. ↑ "GUS reveals demerger plans". Findarticles.com. 2 June 2009. Retrieved 13 October 2009.
  10. ↑ "Argos set to rebrand in 2010". Marketing Magazine. 22 October 2009. Retrieved 22 January 2010.
  11. ↑ "Homebase bought by Australia's Wesfarmers for £340m". BBC. 18 January 2016.
  12. ↑ "Sainsbury's free to buy Argos for £1.4bn". Theweek.co.uk. 21 March 2016.
  13. ↑ http://www.promovouchers.co.uk/argos/
  14. ↑ "Trademark 789922". ipo.gov.uk. Retrieved 13 October 2009.
  15. ↑ "Trademark 2130732". ipo.gov.uk. Retrieved 13 October 2009.
  16. ↑ "Trademark 2189886". ipo.gov.uk. Retrieved 13 October 2009.
  17. ↑ "Trademark 2189887". ipo.gov.uk. Retrieved 13 October 2009.
  18. ↑ "Trademark 2189939". ipo.gov.uk. Retrieved 13 October 2009.
  19. ↑ "Trademark 2189941". ipo.gov.uk. Retrieved 13 October 2009.
  20. ↑ "Trademark 2266276". ipo.gov.uk. Retrieved 13 October 2009.
  21. ↑ "Trademark 2346292". ipo.gov.uk. Retrieved 13 October 2009.
  22. ↑ "Trademark 2369535". ipo.gov.uk. Retrieved 13 October 2009.
  23. ↑ "Trademark 2446698". ipo.gov.uk. Retrieved 13 October 2009.
  24. ↑ "Trademark 2421779". ipo.gov.uk. Retrieved 13 October 2009.
  25. ↑ "Trademark 2471774". ipo.gov.uk. Retrieved 13 October 2009.
  26. 1 2 "Trademark 2498304". Ipo.gov.uk. Retrieved 13 October 2009.
  27. 1 2 "Trademark 1016513". Ipo.gov.uk. Retrieved 13 October 2009.
  28. ↑ "Argos takes over rights to sell Cherokee clothing". The Guardian. Retrieved 21 January 2015.
  29. ↑ "Elizabeth Duke" trademark registration, UK Patent Office website. Information. Retrieved 4 March 2007.
  30. ↑ Argos trademarks, UK Patent Office website. Information. Retrieved 4 March 2007.
  31. ↑ "HomeStore&More". Homestoreandmore.co.uk. Archived from the original on 15 April 2010. Retrieved 6 April 2010.
  32. ↑ "Home Retail Group – Our history". Homeretailgroup.com. Retrieved 6 April 2010.
  33. ↑ "BedStore&More". Bedstoreandmore.co.uk. Retrieved 6 April 2010.
  34. ↑ "HRG to close HomeStore & More". diyweek.net. 12 January 2012. Retrieved 14 March 2012.
  35. ↑ "We work in partnership with Beatthatquote.com...". Retrieved 24 October 2014.
  36. ↑ "Argos TV channel launching on Sky". Digital Spy. 15 June 2011.
  37. ↑ "Argos TV launches on Freesat in time for Christmas". Digital Spy. 25 October 2011.
  38. ↑ "Argos TV launching on Freeview". Digital Spy. 14 September 2012.
  39. ↑ "Argos to launch new TV shopping channel". Retail Gazette. 11 March 2011.
  40. ↑ "Argos gears up for TV channel launch". Marketing. 15 June 2011.
  41. ↑ "Argos TV comes to an end". a516digital. 12 May 2013.
  42. ↑ "Barclays Bank and Argos in credit card tie-up.". thefreelibrary.com. Retrieved 27 November 2015.
  43. ↑ "Barclaycard Timeline". barclaycard.com. Retrieved 27 November 2015.
  44. ↑ "The Sun Cashback Page is no longer available". thesuncashback.co.uk. Retrieved 27 November 2015.
  45. ↑ "Argos Credit & Insurance – Argos Credit Card". argos.co.uk. Retrieved 27 November 2015.
  46. ↑ "Daily Mail website. Information. Retrieved 19 July 2013.". Daily Mail. Retrieved 24 October 2014.
  47. ↑ "Argos pulls back its international plans". Retail Week. Retrieved 27 November 2015.
  48. ↑ James Hall (28 January 2009). "Argos quits India after two years". Telegraph.co.uk. Retrieved 27 November 2015.
  49. ↑ "Sunday roasting for retailer", BBC. Article dated 1 July 2002. Retrieved 4 March 2007.
  50. ↑ "Argos Sunday working climbdown", BBC. Article dated 1 July 2002. Retrieved 6 November 2006.
  51. ↑ "Inquiry into toy 'price fixing'", BBC. Article dated 1 May 2002. Retrieved 4 March 2007.
  52. ↑ "Record fines for toys price fixing". Office of Fair Trading. Archived from the original on 16 November 2006.
  53. ↑ oft.gov.uk. Retrieved 4 March 2007.
  54. ↑ Agreements between Hasbro U.K. Ltd, Argos Ltd and Littlewoods Ltd fixing the price of Hasbro toys and games, oft.gov.uk. Article dated 19 February 2002. Retrieved 4 March 2007.
  55. ↑ "Court of Appeal upholds OFT decisions in price fixing cases". www.theretailbulletin.com. The Retail Bulletin, Retail News. 20 October 2006. Retrieved 4 August 2015.
  56. ↑ "BBC Watchdog – Itchy Sofas", BBC. Article dated 18 February 2008. Retrieved 21 February 2008.
  57. ↑ "Pricewatch " Price is still not right". The Irish Times. 12 January 2009. Retrieved 6 April 2010.
  58. ↑ "Company website: Argos in the community". Retrieved 24 October 2014.
  59. ↑ "Help The Hospices". Retrieved 24 October 2014.
  60. ↑ "Third Sector "Barnardo's Toy Exchange scheme with Argos raises £700,000 in six weeks"". Retrieved 24 October 2014.
  61. ↑ "Argos Toy Exchange page. Retrieved 29 March 2013". Retrieved 24 October 2014.

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