In 1972, the company was founded. Argos is a UK catalog retailer serving all of the United Kingdom and Ireland through several shopping channels. In its 50-year history, the store has undergone numerous changes, and is now known as a popular destination for shopping with over 130 million customers each year. Argos ranks as the 4th most-popular web-based retailer within the UK, generating over $5.2 millions US USD in revenue in 2021. This case study reveals how Argos’ marketing strategy was adapted from its humble origins as a catalogue retailer to a retail giant using an omnichannel strategy.
A trip through the rich history of the renowned UK catalog retailer
As Argos’ case study shows the company was founded in a small scale but has since implemented a variety strategies, including omnichannel marketing in order to grow. Over time, Argos has been recognized by numerous awards for marketing such as the Multi-Channel Retailer of the Year award from Retail Week. The store is the first to be in the UK to surpass the PS1 billion threshold in sales.
The early days
Argos was established in 1972 in 1972 by Richard Tompkins, a British entrepreneur who started Green Shield Stamps. They were promotional stamps that customers used to buy merchandise at participating stores. Argos was first referred to as the Green Shield Gift House, catalogues where customers could redeem stamps.
After 1973, the founder revamped the catalog, renaming it Argos which was later followed by an Argos store during the exact same time. The first year of operation, the company made over PS1 million sales.
Development and expansion
UK tobacco company BAT Industries purchased Argos in 1979 and ran the brand until the year 1990. At this point, Argos opened a jewelry counter which later grew and was one of the biggest jewelry retailers in the UK. The company changed hands a few more times from 1990 until 2016 but was true to its branding.
Argos’ branding strategies build on value, choice, and ease of shopping — exactly the features they have offered their customers since its catalog’s inception. It provided internet-style shopping before the advent of the internet. It offered a wide array of products customers could purchase and then have delivered to their residences directly.
This retail chain has weathered multiple recessions and later decided to modernize its products following the 2008 financial crash. Five years after the downturn in the economy, Argos had to close 75 physical stores, while testing new in-store tech at its Camden location. Customers could browse through the catalogue on iPads inside the store, and then place an order while shopping for other items. Then, this quick and efficient method of shopping and delivery led to growth. Argos’ marketing strategy helped the company sustain its growth and received praise from industry insiders who were impressed by its omnichannel strategy.
2016, Argos’ acquisition by Sainsbury
In the year 2016, Argos was acquired by the British retailer Sainsbury for PS1.3 billion. This acquisition increased Argos customers and provided Sainsbury the benefit of a bigger delivery network. Since 2016, Argos has continued to change its website and mobile apps to ensure brand consistency and seamless shopping regardless of the method the customer has chosen to shop on.
Analyzing Argos’ marketing strategy
Argos has managed to accomplish a major feat with its marketing strategies staying competitive with big eCommerce companies like Amazon. Argos shares of market have been steady in UK eCommerce, and has grown in its early days, by expanding its product offerings and opening retail stores to complement catalogue sales.
Argos’ strategy for online marketing involves focusing on customers with specific promotions based on the geographic location and customizing a simple website that is stylish and user-friendly. As you move on with this report, you’ll know more about the different aspects of Argos marketing strategy has played a role in the success of the company.
Argos target markets
Since Argos can be described as a broad retailer where customers can buy various products it’s target customer base is households. While the company stopped printing its catalogue in 2020, it did distribute it to millions of households across Ireland and 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. The business offers affordable prices, which allows it to reach out to price-conscious consumers. In addition, it has launched its Homebase brand, which offers furniture and home accessories to the most affluent customers.
Argos pricing strategies
The company keeps an eye at the market in order to provide prices that are competitive. In order to remain on brand and to provide value to its customers Argos often offers discounts and sales, frequently offering coupons and discount codes to customers who sign-up for email newsletters. Argos is also aware of the costs associated with production as well as location and other variables when determining prices.
Argos distribution channels
The Argos advertising strategy based upon the delivery of products through multiple channels. Since the acquisition of the company by Sainsbury several of the stores that were standalone have closed and been substituted with outlets inside Sainsbury stores. As of 2022, the company still operates 253 standalone locations as well as 422 outlet outlets.
Argos distribution is also available on it’s website. It allows customers to receive items to their homes. They also have multiple warehouses throughout the United Kingdom, so customers can buy items online and pick them-up in a store.
Argos promotion strategies
In its early days, Argos’s promotion strategy primarily consisted of sending out its catalog to households in the area of service. As the business grew and faced increased competition, it began running more targeted advertisements and also promoting its store online. Argos today uses online advertising, social media, videos, as well as content marketing, to highlight its offerings and draw people to its Argos store.
Argos’ approach to Omnichannel Retail
When Argos started using in-store technology in the early 2000s, only a handful of stores offered the same services. With iPad stations, customers could look through their catalogs and find the items they wanted in the store or purchase items that were out of stock, in addition to other purposes.
The company continued to develop its omnichannel strategies, with a focus on the Argos website with a user-friendly and modern design. For instance, customers on the site can get reservations numbers that allow them to purchase products in store without hassle. Each aspect of Argos the omnichannel strategy has helped to elevate the brand to its current level of success.
Get in touch when searching for Argos Live Chat.
How Argos disrupted in-store user experience
One of the key elements of Argo’s marketing plan is offering a convenient shopping experience for customers. Since 2013, Argos eliminated its laminated in-store catalogs on iPads, which customers could browse and place orders for products. Over the past decade the retailer has vastly upgraded its in-store experience.
Customers can now open the 3D concept of their store on Google Maps and walk through the stores virtually. In the store they can also interact with virtual service representatives on large screens. They can also pay for their purchases through a self-checkout machine and take them home in store.
As per to the Argos advertising mix, every store serves as a digital hub with a simple layout, making it easier for customers to locate a catalog station and search for products they’re looking for. They also offer free in-store WiFi, which customers can utilize to browse the catalog using their mobile app to purchase items not found in retail stores.
Adding new tech to the digital user experience
Argos launched its first self-service retail store in 2019, and now most of its outlets in Sainsbury stores are self-service. Argos recently added visual search to its iOS application, which allows shoppers to find items using a photograph. The retailer also introduced Voice Shop which allowed customers to use voice search to browse through its Google Assistant platform. It was among the first stores in the United Kingdom that had this feature, which provided another level of convenience to its customers.
Analyzing Argos eCommerce website
Argos has been consistently recognized for its multichannel shopping experience and is among the most highly evaluated brands in eCommerce. We’ve examined the templates on four pages on its website to pinpoint eCommerce most effective practices and mistakes to avoid.
A. Analyzing Argos’ homepage
Argos homepage has seen many changes throughout its time and is now offering a cleaner look that is easy to read. It’s even undergoing a makeover in 2023.
What we enjoyed about
Categories are simple to locate they are well-presented on the site.
Banner advertisements on the homepage are designed to target audience using geolocation and past purchases.
Offers are prominently featured in the upper right hand corner.
It’s easy to search for an item.
The site is mobile-responsive and simple to navigate.
What did we not know?
Certain of the deals on the homepage were irrelevant.
The sheer number of choices is overwhelming. Since it started out as a catalog, there are many categories and ads to browse through.
B. Analyzing Argos the category page
The category pages of Argos are the online equivalent of walking into a big box shop.
What we enjoyed about
The categories are simple to find.
On the mobile app, each category’s page contains multiple subcategories to help filter product results.
The site cuts off before it becomes too long, making it less overwhelming.
The sticky cart function assists users keep track of items they might need to buy.
What we didn’t
Other information about the item pops during shopping, creating a sense of urgency, an aspect that can distract the user from the browsing experience.
Subcategories aren’t displayed from the home page.
C. Analyzing Argos’ product page
Since the primary Argos marketing strategy revolves around making their products look appealing in catalogs The retailer designs attractive product pages.
What we enjoyed about
Prices are prominently displayed beneath each item, helping customers find the best deals.
The customer can put items in their carts without having to click on the item.
The most important features of the product are illustrated and easy to read.
Customers can check estimated delivery times in relation to their location.
What we didn’t know
Each product’s website has the opportunity to apply for an Argos credit card, which can be distracting.
You have to scroll through a lot of data to find details and reviews.
D. Examining Argos the checkout process
The checkout process is an additional way Argos helps customers shop more conveniently for its customers.
We loved:
The trolley is easily accessible
Stored payment information speeds up the checkout process
It’s simple to keep track of and manage your the status of your orders
What we didn’t
The offers which are available on the website may have expired
The touch screen may not always perform as it should.
The checkout page is frozen at times
You need to create an account before you can checkout.
Amazing Argos stats that you must know
Despite all the difficulties in recent years, Argos has maintained some impressive stats:
Argos Market share is substantial. The retailer accounted for 59% of all online purchases in United Kingdom in 2018 (Statista)
Over half of UK furniture buyers shop at Argos (Statista)
Around 40% of furniture shoppers will shop at Argos (Statista)
Argos boasted 49.336 million visitors from January to January, 2023 (Sem Rush)
Argos had the highest sales of sports products and outdoor items throughout the UK in 2020, beating rival retailers such as Sports Direct and Nike (Computer Weekly)
Argos customers read 35% of all emails the company sent in 2016, which is high for the retail sector. (Internet Retailing)
Argos The top categories at Argos by 2021 was toys, hobbies, and DIY (eCommerce DB)
Latest news about the UK retailer
With such high brand awareness and brand recognition, Argos’ Argos marketing strategy is believed to be working. Even a brand which has made itself an iconic brand should be committed to maintaining its branding. A large part of that includes making news. Here are a few of the latest news stories on Argos.
Argos is closing all stores in Ireland
Since its beginning, Argos has not picked up the same amount of momentum in Ireland. The reason behind this is that the company isn’t closed on Sundays, as is typical for Irish companies. However, the most important reason businesses are shutting down in Ireland is that the investment needed to modernize or upgrade the stores would not be able to survive. Argos keeps its locations open throughout Northern Ireland, which is part of the UK. Its remaining 34 Irish stores will be shut down by June 2023.
Bestway bought a 3.45 percent stake in Sainsbury
The privately held group Bestway purchased the 3.45% stake in Sainsbury which owns Argos. This allowed the stock price of the company to climb, which placed management in a better position execute the Argos’s marketing strategy.
Argos customers are in awe over a heater fan
When winter brings cold snaps to Britain. UK, Argos sells multiple small fan heaters. These heaters, priced at PS40 are effective in keeping customers warm and happy. They can heat a room within minutes, which makes them ideal for UK families that are struggling to make ends meet in the wake of inflation.
We’ve learned a lot from Argos’ marketing strategy
Argos has been operating for over half a century partially due to recognizing what customers want and changing according to the latest trends. Argos’ retail innovation strategy has been to test new concepts and introduce them when they’re popular, for example:
The company has opened new locations to complement its catalog.
It was among the first users of technology that was used in store and replaced heavy catalogs with iPads which allowed customers access to a vast catalogue of goods.
The Argos marketing strategy online involves making ads more personal and focusing on the right customers based upon their location as well as their preferences.
Like many Argos competitors The store has managed to stay afloat in COVID-19 and is poised to come back with a greater force. It’s not the right time to be sitting around and laying down.
