Member Article

Argos: the Multi-channel Store of the Future?

Out go the catalogues, pencils and notepads, and in comes a brave new world for Argos that brings bricks-and-mortar together with the digital age. Argos is looking to become the store of the future and we examine how they’re doing it.

Retailers are under pressure

From former high-street giants collapsing to ecommerce and ‘showrooming’, retailers feel under siege from all sides. But there are retailers operating multi-channel stores who understand that to survive and flourish in this fast-moving digital world, you need to adapt or die – by fully embracing multi-channel and digital services. Argos is shining a light on a potential way forward – and if it works, it could change the physical retail space for ever.

Why Argos is making the change

While 40% of Argos sales are made via digital channels 90% of Argos transactions are still made in-store. So Argos wants to bring the two worlds together as one unified whole – the ultimate in multi channel retailing - by introducing what it believes is the future of retail. It has opened six trial digital stores which make seismic changes to the way the retailer deals with its customers.

Out go:

• the famous Argos catalogues
• pencils
• paper
• sales literature and posters

In come:

• iPads to browse and order items through
• dynamic digital screens showing products
• more staff, all sporting iPads so they are on hand to offer information and help
• free wifi so customers can order items on their own mobile devices or even ‘showroom’ if they wish – because Argos is adamant it offers the very best prices.

The end result?

A streamlined, more personalised shopping experience in its multi-channel stores which blends bricks-and-mortar and digital: If you order online or via mobile, Argos is introducing a fast-track service which will see you able to pick up your order within 60 seconds of walking into the store. If ordering in-store, you can browse 20,000 products and order goods via in-store iPads before collecting your purchases at the Pay-and-Collect tills. Behind the scenes, a new hub system is being introduced in 50 stores which will see larger stock levels and quicker deliveries. Warehouse operators will use voice-activated technology to speed up and prioritise incoming orders. Argos is also hiring more shop floor staff to help customers.

Will it work?

Time will tell if the investment Argos is making pays off – but its attitude to adapting to a hugely shifting marketplace and trying toc reate the store of the future that their customers want to use is exemplary and one from which all retailers can learn.

To do list:

• Identify what bugbears your customers have with your retail operation. Can technology help speed up queues? Remove crowds? Offer better ways of explaining and demonstrating your product range?
• Trial different technologies; if it doesn’t work, dump it – but if others do work, they could open up opportunities for your business that other competitors have yet to exploit.
• If you truly believe you offer the best deals, then let customers access competitors even in-store; show you have the confidence and self-belief to take on all-comers.
• Uncertain how to move forward? Then call in an expert supplier to help clarify and hone your vision.

For more insights into how you can create the store of the future, download the eGuide on how to make people love shopping. JUst copy and past this URL into your browser http://bit.ly/1JnWkBL

This was posted in Bdaily's Members' News section by Ian Newcombe .