News broke yesterday that Sainsbury’s plan to cut 3,500 jobs with the closure of 420 Argos stores and all of their meat, fish and deli counters.
“Argos sales grew by nearly 11% in the first half, with 90 per cent of sales originating online and almost two million customers re-discovering Argos despite standalone Argos stores being closed for 12 weeks. Building on this success we will accelerate the structural integration of Sainsbury’s and Argos and further simplify the Argos business model, making it more efficient and profitable and improving our customer offer at the same time.
120 of our standalone Argos stores have not reopened since we closed them back in March. These stores will now close permanently. We currently have 315 Argos stores in our supermarkets and 296 collection points across supermarkets and convenience stores. Over the next three years we will open up to another 150 Argos Stores in supermarkets and a further 150-200 collection points. In total, we will close around 420 Argos stores by March 2024, reducing the total number of standalone stores to around 100.”
What this means is a change for eBay Click & Collect, although the impact will be less than it would have been in the past – eBay added CollectPlus collection points and so are no longer totally reliant on Argos for the service.
Realistically in the short term, with the 120 Argos stores already closed in March that will now become permanent so consumers won’t have been used to collecting there anyway. What will make a bigger difference is reducing the number of standalone stores to around 100 although if the closed stores are in part replaced with collection points across supermarkets and convenience stores and these are opened to eBay it will be more a case of collecting from a different location rather than a total loss of local collection options.