In 1972, the company was founded. Argos was established in 1972. It is the first UK catalog retailer that serves customers in the United Kingdom and Ireland through multiple shopping channels. Over the course of its 50 years the store has gone through several changes and today serves as a renowned shopping destination with more than 130 million shoppers each year. Argos is the fourth most-popular on the internet in UK with more than $5.2 million US dollar sales until 2021. This case study reveals how Argos’ marketing strategy adapted from its humble origins as a catalogue retailer to a retailer that has an omnichannel approach.
A journey through the history of the world-renowned UK catalog retailer
As this Argos’ case study shows the company was founded in a small scale and has since adopted a variety of strategies, including omnichannel advertising, to grow. Over the years, Argos has been recognized by numerous awards for marketing and awards, including the Multichannel Retailer of the Year award from Retail Week. The Argos store was the first to be in the UK to reach the PS1 billion amount in sales.
Argos was founded in 1972 with the help of Richard Tompkins, a British entrepreneur who started Green Shield Stamps. These were promotional stamps customers purchased through participating merchants. Argos was initially referred to as the Green Shield Gift House, catalogues where customers could redeem stamps.
In 1973, he updated the catalog, calling it Argos which was later followed by an Argos store within the year. In its initial year the company raked in more than PS1 million of sales.
Development and expansion
UK tobacco company BAT Industries purchased Argos in 1979, and managed the brand up to 1990. Then, Argos opened a jewelry counter that eventually grew and was one of the biggest jewelry retailers across the UK. The company was sold several times from 1990 until 2016 but was true to its branding.
Argos its branding strategies are built around the concept of choice, value and ease of shopping — the exact features it’s offered to its customers since its catalog beginnings. It offered online-style shopping prior to the age of internet shopping, providing a wide array of products customers could purchase and get delivered directly to their homes.
This retail chain has withstood multiple recessions and later decided to modernize its products following the 2008 crash in the financial markets. Five years later, following the economic downturn, Argos had to close 75 stores across the country, as well as conducting tests of new technologies in its Camden store. Customers could browse the catalog via iPads inside the store, and then place an order when they were shopping for other products. Soon, this fast and easy method of shopping and delivery helped drive growth. Argos’ marketing strategy was instrumental in helping the company to sustain its growth and received praise from industry insiders who appreciated its omnichannel approach.
2016, Argos’ acquisition by Sainsbury
In the year 2016, Argos was acquired by the British retailer Sainsbury to the tune of PS1.3 billion. The acquisition broadened Argos customers and provided Sainsbury access to wider delivery network. Since 2016, Argos has continued to modify its website and mobile apps to ensure brand consistency and seamless shopping, regardless of which channel the customer uses.
Analyzing Argos’ marketing strategy
Argos has accomplished a huge accomplishment through its strategy for marketing, remaining competitive against eCommerce giants like Amazon. Argos market share has held steady in UK eCommerce, and has grown in its early days in the beginning, through expansion of its product offerings and opening retail locations to supplement catalog sales.
Visit this website for Argos Live Chat.
Argos’ online marketing strategy involves focusing on customers with specific offers based upon their geographical place of residence and designing a straightforward website that is sleek and user-friendly. While you continue reading this review, you will know more about the different elements of the Argos marketing strategy have played a role in the success of the company.
Argos target markets
Given that Argos is a general retailer that allows customers to purchase various items which is why its primary consumer is the household. The company ceased printing its catalogue in 2020, it did distribute this to millions of families throughout both the United Kingdom and Ireland. Additionally, Sainsbury frequently conducts Argos surveys of customer satisfaction to ensure they always target the correct customers with the appropriate products. Sainsbury offers affordable prices, which allows it to target price-conscious customers. Plus, it started its Homebase brand that offers home goods to more affluent customers.
Argos pricing strategies
The company stays on the lookout on the market to ensure affordable prices. In order to keep its name on the market and to provide value to its customers the retailer often offers sales and promotions, often offering discounts and coupons to those who sign up for its newsletter. Argos will also take into account production costs as well as location as well as other factors when determining prices.
Argos distribution channels
Its Argos advertising strategy based on the concept of delivering goods through different channels. Since the acquisition of the company by Sainsbury, many of the stores that were standalone were closed and replaced with outlets inside Sainsbury stores. The company still operates 253 standalone locations and 422 outlets.
Argos distribution is also available on its website, which permits customers to receive items to their residences. It also operates multiple warehouses throughout the United Kingdom, so customers can order items online and pick them up in a store.
Argos promotion strategies
In its early days the Argos’s marketing strategy consisted of sending out its catalog to the households within the area of service. As the company grew and became more competitive, it began running more targeted advertisements and advertising the retailer online. Argos is now using online ads, social media, videos as well as content marketing, to highlight its offerings and bring people into the store.
Argos”s approach to omnichannel retail
When Argos started using in-store technology in the mid-2000s, few stores had similar offerings. With iPad stations, customers could look through Catalogues for what they were looking for in the store or browse for items that were sold out, in addition to other purposes.
The company grew its omnichannel approach, focusing in particular on Argos website that has modern, user-friendly designs. For instance, shoppers on the site can get reservations numbers that allow them to purchase products in store without hassle. Each aspect of Argos’ omnichannel marketing strategy has helped lift the brand to its current standing.
How Argos disrupted in-store user experience
Part of Argo’s marketing strategy is offering a convenient shopping experience for customers. In 2013 Argos ditched its laminated in-store catalogs to iPads that customers could use to peruse and buy products. In the last 10 years, the retailer has significantly transformed its shopping experience.
Customers can now pull up the 3D model of their shops on Google Maps and walk through them virtual. In the shops they can even chat with virtual assistants on large screens. They can also purchase items at a self-checkout station and pick them up in the store.
In keeping with in line with Argos approach to marketing, every store serves as a digital hub with a simple layout, making it simpler for customers to locate the catalog station and search for items they are looking for. In addition, they offer free in-store WiFi, which customers can make use of to browse the catalog through their mobile apps to purchase products that aren’t sold in retail stores.
The latest technology will enhance the digital experience for users
Argos introduced its first self-service retail store in the year 2019. Currently all of its stores located in Sainsbury stores are self-service. Argos recently added visual search to its iOS app, allowing customers to search for products by using photos. In 2019, the Argos store also introduced Voice Shop that allowed customers to use voice searches to browse the catalog using Google Assistant. Google Assistant platform. It was one of the first retailers in the United Kingdom that had this feature, which added another layer of convenience to its customers.
Analyzing Argos eCommerce website
Argos is regularly praised for its multichannel shopping experience . Argos is one of the most highly evaluated brands in eCommerce. We have analyzed the four-page templates of their website to determine eCommerce best practices and mistakes that you must avoid.
A. Analyzing Argos’ home page
Argos the home page of Argos has undergone many changes over the years and now has an updated design that’s easy to navigate. The site is also undergoing a revamp in 2023.
What we liked about
Categories are simple to locate and prominently displayed on the site.
Banner ads on the homepage target the audience using geolocation as well as past purchase history.
Offers are prominently featured over the fold.
It’s simple to find something.
The website is mobile responsive and simple to navigate.
What we didn’t
Some of the advertisements on the homepage were irrelevant.
The variety of options is overwhelming. Since it was initially catalogs, there are many categories and ads to browse through.
B. Analyzing Argos’ category page
Argos category pages are like the online equivalent of walking through a big box retailer.
What we enjoyed about
Categories are easy to locate.
On the mobile app, every category page is divided into several subcategories that can help you filter product results.
The site is cut off when it gets too long making it less confusing.
The sticky cart function can help users to track the products they might need to buy.
What we didn’t know
Other statistics for items pop on the screen when you shop to create an impression of urgency which can distract the buyer from their shopping experience.
Subcategories aren’t visible in the main page.
C. Analyzing Argos’ product page
Since the first Argos marketing strategy was based around making their products look appealing in catalogs Argos creates attractive product pages.
We liked what we liked
Prices are prominently displayed under each item, helping customers get the best deal.
Users can easily add products to carts , without having to click on a product.
Key product features are well-illustrated and easy to follow.
Customers can view estimated delivery times dependent on their location.
What did we miss?
Every product page has an offer to apply to one of the Argos credit card, which is distracting.
You must scroll through a large amount of details to get information and reviews.
D. Examining Argos the checkout procedure
A checkout procedure is another way Argos simplifies shopping for customers.
What we liked:
The trolley is easy to access.
Storage of payment details speeds up the checkout process
It’s easy to track and manage existing orders
What did we miss?
A few of the deals that can be viewed on the website may have expired
The touch screen may not always work properly
The checkout page freezes at times
You need to create an account before you can check out.
The impressive stats from Argos that you need to be aware of
Despite all of its issues over the last couple of times, Argos has maintained some remarkable figures:
Argos Market share is high. The store made up the majority of digital purchases in United Kingdom in 2018 (Statista)
The majority of UK furniture-buyers shop at Argos (Statista)
About 40% of online furniture shoppers are likely to go to Argos (Statista)
Argos boasted 49.336 million visitors in January 2023 (Sem Rush)
Argos was the top retailer of sporting items and outdoor gear across the UK in 2020, beating competitors like Sports Direct and Nike (Computer Weekly)
Argos customers are able to read 35% emails from the company in 2016, which is quite high for the retail industry. (Internet Retailing)
Argos The top categories at Argos in 2021 were toys, hobbies, along with DIY (eCommerce DB)
Latest news on the UK retailer
With such high brand awareness, the Argos marketing strategy is believed to be working. Even a brand which has made itself a household name should be determined to maintain its brand. Part of that involves making the news. Here are some of the latest news stories about Argos.
Argos is closing all stores in Ireland
Since its inception, Argos has not picked up the same amount of momentum in Ireland. One reason is that the business isn’t shut on Sundays, which is common for Irish businesses. However, the most important reason behind closing companies in Ireland is the reason that the money needed to modernize or upgrade the stores wouldn’t be viable. Argos has kept locations open within Northern Ireland, which is part of the UK. Its remaining 34 Irish stores will be shut down in June 2023.
Bestway acquired an 3.45% stake in Sainsbury
The privately owned group Bestway acquired an 3.45% stake in Sainsbury which owns Argos. The move enabled the company’s stock price rise, which put management in a better position execute the Argos’s marketing strategy.
Argos customers are going wild over a fan heater
When winter brings cold snaps to in the UK, Argos sells multiple small fan heaters. These heatersthat cost PS40 are efficient in keeping customers warm and happy. They can be able to heat a room in minutes, making them ideal for UK families that are struggling to make ends meet due to inflation.
What we’ve learned from Argos”marketing strategy
Argos has been in business for over a half century, partly by recognizing what customers want and shifting with the trends. Argos’ retail innovation strategy has been to experiment with new ideas and roll them out when they’re effective, such as:
The company also opened stores to supplement its catalog business.
It was among the first users of technology used in retail stores which replaced large catalogs with iPads which allowed customers access to a vast catalog of items.
The Argos marketing strategy online involves tailoring ads to target the right customers based upon their location and preference.
Unlike some Argos competitors, the store is able to remain afloat during COVID-19 , and is now poised to rebound stronger. It’s not the time to be relaxing and unwinding.