Retail group Argos is partnering with supermarket chain Sainsbury’s to open its digital format stores within ten of its supermarkets.
The Argos digital stores will offer over 20,000 non-grocery products to Sainsbury's shoppers.
Customers can buy in-store or via the Internet. They can reserve online for collection the same day, or the following day, in one of the ten Sainsbury's stores.
Around 1,000 products will be available in the supermarkets, an additional 40,000 products will also be available to order for home delivery.
The new format stores will range in size from around 1,000 to over 5,000 sq. ft.
They will later this year.
Argos also operates concessions stores in its sister chain Homebase.
Sainsbury's has agreements for concessions with around 30 companies e.g. Jessops, Virgin Holidays.
Sainsbury's recently predicted that 25 per cent of its stores will have under-used space between now and 2019.
Speaking on the announcement, Mike Coupe, CEO of Sainsbury’s, said, "These 10 Argos stores will complement our supermarket offer, giving customers the opportunity to shop for an extended range of non-food items. They will bring something new and different to our customers, and fit well with our strategy of making our supermarkets more convenient.”
John Walden, chief executive of Home Retail Group, said: "Our new distribution model allows us to provide customers in any Argos location with a choice of around 20,000 lines within hours, regardless of the size or stocking capacity of the store. This strategic capability has opened up options for a variety of new Argos stores and formats, and the possibility that we can now cost-effectively reach more customers and neighbourhoods with an Argos presence.”
@ 2015 ESM - European Supermarket Magazine.
