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Who Exactly Are Argos?

Established in 1972, Argos was established in 1972. It is an UK catalog retailer that serves customers in the United Kingdom and Ireland through various shopping channels. Over the course of its 50 years the retailer has experienced numerous changes, and is now known as a top shopping destination with more than 130 million customers each year. Argos ranks as the 4th most visited on the internet in UK with more than $5.2 millions US dollar sales by 2021. This case study examines the ways in which Argos’ marketing strategy was adapted from its humble beginnings as a catalogue retailer to become a major retailer using an omnichannel approach.

A trip through the past of the well-known UK catalog retailer

As this Argos case study demonstrates that the business was small when it first started and has since employed a variety of strategies, such as omnichannel marketing to expand. Over the years, Argos has been recognized with numerous marketing awards which include the Multichannel Retailer of the Year award from Retail Week. Argos is the first store to be in the UK to surpass the PS1 billion figure in sales.

The early days

Argos was established around 1972, in 1972 by Richard Tompkins, a British businessman who founded Green Shield Stamps. They were promotional stamps that customers could use to purchase merchandise at participating stores. Argos was originally known as”the Green Shield Gift House, an online catalog that allowed customers to use their stamps to purchase items.

The year 1973 was the first time he changed the name of the catalog, naming it Argos and later opened an Argos store that same year. In its initial year the company generated more than PS1 million of sales.

Development and expansion

UK tobacco firm BAT Industries purchased Argos in 1979 and ran the brand until the year 1990. In the years that followed, Argos opened a jewelry counter, which eventually expanded and was one of the biggest jewelry stores within the UK. The company was sold several times between 1990 until 2016, but remained loyal to its brand.

Argos brand strategies revolve on value, choice, and ease of use — exactly the features that it has provided its customers since the beginning of its catalog. It offered online-style shopping prior to the advent of the internet, and offered an array of goods customers could purchase and get delivered to their residences directly.

The retailer has fought several recessions, and then decided to upgrade its products after the 2008 financial crisis. Five years after the downturn in the economy, Argos had to close 75 stores in its physical locations, and was trying out new technology in its Camden store. Customers could browse the catalogue on iPads inside the store and place orders while browsing for other merchandise. Then, this quick and easy method of shopping and delivery boosted sales. Argos’ strategy for marketing helped the company to sustain its growth and earned praise from retail industry experts, who were impressed by its omnichannel strategy.

2016. Argos was acquired by Sainsbury

In the year 2016, Argos was acquired by the British retailer Sainsbury in exchange for PS1.3 billion. The acquisition widened Argos customers and also gave Sainsbury the benefit of a wider delivery network. Since the year 2016, Argos has continued to alter its website and mobile apps to ensure brand consistency and seamless shopping regardless of the channel the customer is shopping on.

Analyzing Argos’ marketing strategy

Argos has achieved a remarkable achievement through its marketing strategy and has managed to remain competitive with Amazon and other eCommerce giants such as Amazon. Argos shares of market have been steady throughout UK eCommerce, and has grown during its initial years with the expansion of its range of products and opening retail stores to complement the sales of its catalog.

Argos’ strategy for online marketing targets customers with targeted deals based on their geographical area and a custom website that is stylish and easy to use. When you read this review, you will discover more about the specific aspects of Argos’ marketing strategy has been instrumental in its success.

Argos target markets

Because Argos can be described as a broad store that allows customers to purchase various products and services, the target customers are households. Although the company stopped publishing its catalog in the year 2020, it mailed the catalog to households in millions across both the United Kingdom and Ireland. Additionally, Sainsbury frequently conducts Argos surveys of customer satisfaction to ensure that they are targeting the right customers with the appropriate products. Sainsbury has competitive pricing, which allows it to attract customers who are price conscious. Additionally, it launched its Homebase brand to provide items for the home to more wealthy customers.

Argos pricing strategies

The company is always keeping an eye at the market in order to provide prices that are competitive. To stay true to its brand and offer value to customers Argos frequently provides discounts and sales, frequently providing coupons and discount coupons for those who sign up to receive emails. Argos will also take into account production costs as well as location and other aspects when determining prices.

Argos distribution channels

Its Argos advertising strategy based on the concept of delivering goods through various channels. After its acquisition by Sainsbury, a number of the standalone stores have closed and been replaced by outlets within Sainsbury stores. In 2022, the company operates 253 standalone stores and 422 outlet stores.

Argos distribution is also available on the website that permits customers to get items delivered to their residences. Argos also has multiple warehouses across the United Kingdom, so customers can place orders online and pick them up at the store.

Argos promotion strategies

In the beginning the Argos’s marketing strategy consisted of sending out its catalog to the households within the area of service. As the business grew and was faced with increased competition, it began running more specific advertisements and advertising the shop online. Argos is now using online ads as well as social media, videos, and content marketing to advertise its products and draw customers to the shop.

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Argos is a pioneer in the concept of omnichannel retail

When Argos began using technology in stores in the early 2000s, only a handful of stores had similar offerings. With iPad stations customers could browse catalogues to locate the items they wanted in the store or purchase items that were unavailable, in addition to other things.

The company continued to expand its omnichannel strategyand focusing specifically on its Argos website, which has an easy-to-use and contemporary design. For instance, customers on the site can get reservations numbers that allow them to purchase products in store without hassle. Every aspect of Argos its omnichannel marketing strategy has contributed to elevating the brand to the current position.

How Argos disrupted the in-store customer experience

One of the key elements of Argo’s marketing plan is to provide a simple shopping experience for customers. Beginning in 2013, Argos removed its laminated in-store catalogs to iPads that customers could browse and purchase products. Over the past decade Argos has substantially improved its experience in stores.

Customers are now able to access the 3D model of their store through Google Maps and walk through the stores virtually. In the store customers can interact with virtual assistants via large screens. Customers can also pay for their purchases through a self-checkout machine and pick them up in the store.

In line with in line with Argos business model, every store functions as a digital hub that has a neat layout that makes it easy for customers to locate the catalog station and search for the items they want. The store also offers free Wi-Fithat customers can utilize to browse the catalog using their mobile app to buy items that aren’t available in the stores.

New technology is being added to the digital experience for users

Argos has launched its first self-service shop in the year 2019, and today the majority of its outlets located in Sainsbury stores have self-service. Argos recently introduced visual search in its iOS application, which allows users to look up items using a photograph. In the year 2019, the retailer also introduced Voice Shop which allowed customers to use voice search to browse the catalog using Google Assistant. Google Assistant platform. It was among the first stores within the United Kingdom that had this feature, which added an additional layer of convenience for its customers.

Analyzing Argos eCommerce website

Argos is consistently praised for its shopping experience across multiple channels and is among the brands that receive the highest ratings in eCommerce. We’ve looked at the four-page template of their website to determine eCommerce the best practices and errors to avoid.

A. Analyzing Argos the homepage

Argos homepage has seen many changes throughout its time and is now offering an updated design that’s simple to navigate. The site is also undergoing a revamp in 2023.

What we enjoyed about

The categories are easily found as well as prominently featured on the website.
Banner advertisements on the homepage are designed to target the audience using geolocation as well as past purchases.
The offers are prominently displayed in the upper right hand corner.
It’s simple to find the item you want to purchase.
The site is mobile-responsive and simple to navigate.

What did we miss?

A few of the offerings on the site’s homepage were not relevant.
The variety of options is overwhelming. Since it began as an online catalog, there are many categories and advertisements to browse through.

B. Analyzing Argos the category page

The Argos category pages are the online equivalent to walking through the aisles of a large box shop.

What we enjoyed about

Categories are easy to find.
The mobile app has every category page has several subcategories that can help you filter the results of a product.
The site is cut off when it becomes too long, making it less daunting.
The sticky cart feature helps customers track items they might like to purchase.

What did we miss?

Other information about the item pops in the course of shopping to give an impression of urgency which can distract users from their browsing experience.
Subcategories don’t show up in the main page.

C. Analyzing Argos’ product page

Since the initial Argos marketing strategy was based around making the products appear attractive in catalogs The retailer designs attractive product pages.

What we enjoyed about

The prices are clearly displayed under every product, allowing users to get the best deal.
The customer can put items in their shopping carts without having to click on the item.
The key features of the product are easily read and illustrated.
Customers can view estimated delivery times depending on where they live.

What did we miss?

Every product page has the opportunity to apply for the Argos credit card, which can be distracting.
It is necessary to go through a lot of details to get information and reviews.

D. Examining Argos the checkout procedure

Checkout is another method Argos helps customers shop more conveniently for its customers.

We liked this:

The trolley is easy to access.
The storage of payment information speeds up the checkout process
It’s simple to monitor and manage the status of your orders

What did we miss?

A few of the deals which are available on the site have expired
The touch screen may not always function correctly
The checkout page is frozen at times
You must create an account before you can check out.

Amazing Argos stats that you must be aware of

Despite all its difficulties in recent decades, Argos is still able to maintain some remarkable figures:

Argos Market share is substantial. Argos accounted for 59% of online retail sales across the United Kingdom in 2018 (Statista)
More than half of UK furniture buyers shop at Argos (Statista)
Around 40% of online furniture buyers are likely to shop at Argos (Statista)
Argos was home to 49.336 million visitors during January of 2023 (Sem Rush)
Argos was the top retailer of sporting items and outdoor gear across the UK in 2020, beating other retailers such as Sports Direct and Nike (Computer Weekly)
Argos customers have read 35% of the emails that the company sent out in 2016. This is a high percentage for the retail sector. (Internet Retailing)
Argos The top categories at Argos for 2021 included toys, hobbies, as well as DIY (eCommerce DB)

The latest news on the UK retailer

With this high level of brand recognition and brand recognition, this Argos marketing strategy appears to be working. Even an established brand that has become an iconic brand should be determined to maintain its brand. One of the ways to do that is by getting into the news. Here are a few of the latest news stories on Argos.

Argos has announced that it will close all Argos stores in Ireland

Since its beginning, Argos has not picked up the same amount of popularity in Ireland. One reason could be that the business isn’t shut on Sundays, as is typical for Irish companies. The main reason behind closing companies in Ireland is the fact that they required to modernize the stores would not be able to survive. Argos has kept locations operating within Northern Ireland, which is part of the UK. The remaining 34 Irish stores will be shut down in June 2023.

Bestway purchased an 3.45 percent stake in Sainsbury

The privately-owned group Bestway has taken the 3.45 percent stake in Sainsbury which is the owner of Argos. This allowed the price of its stock to increase, which put management in a better position implement the Argos’ marketing strategy.

Argos customers are swooning over a heater fan

When winter brings cold snaps across in the UK, Argos sells multiple small fan heaters. The heaters, which are priced at PS40 are efficient in keeping customers warm and content. They can warm a room within minutes, which makes them ideal for UK families who are struggling to save money due to inflation.

We’ve learned a lot from Argos”marketing strategy

Argos has been operating for more than half a century partially due to recognizing the needs of customers and changing to keep up with trends. Argos’ strategy for innovation in retail is to try out new ideas and then roll them out once they’re successful. For instance:

The company has opened new locations to complement its catalog.
It was the first adopter of technology in stores that replaced bulky catalogs by introducing iPads, which gave customers access to an unlimited catalog of items.
The Argos online marketing strategy is making ads more personal and focusing on the most relevant customers based on their location and preference.

Contrary to some Argos competitors The store is able to remain afloat through COVID-19 and is set to bounce back with a greater force. It’s not the time to be sitting around and laying down.