Wednesday 2 May 2012

Argosit

The retailer struggling for reasons that are palpably obvious to everyone, except its management are in the news again. Bad news. The boss of Argos, who gets paid the big bucks because he takes the big decisions and thinks up grand strategy and is a risk taker, is going to hire consultants. To come up with the grand ideas etc. He also thinks that a bunch of employees ought to pay, with their jobs for this bewildering failure to sell enough.

Maybe close a load of stores, though most are mid-lease. Doh. Argos have an interesting sales concept that they should work harder at making a positive in the eyes of the public. Instead their laxity in getting the goods out and the teeth grindingly annoying 'number 27 please', machine seem designed to drive people away.

By having no goods on shelves, for shop lifters to steal, they have no theft problem. They don't need security on the door and they don't need security tags on products. Are these cost savings passed on? No. The way Argos have decided to present themselves as having cheaper prices is by selling tat. They ought to have a staff uniform based on baggy jogging suits, to make their target audience feel at home.

But it is not just that. It is their product range. Choice is nice, don't get me wrong but what you stock defines who you are. You employ people to understand the market sector they cover and buy according to a strategy, maybe one the CEO came up with, when he wasn't looking for consultants to ask what he should have for lunch. But what kind of strategy produces this result;

Mice. A fairly simple device, that tends to be seen with almost every computer. So maybe an item that sells well. So how many different models do you think Argos have available? One hundred and thirty, that's how many. Yes, you read that right 130. And there are fully 25 priced below £12.50.

Mr. Moron met Mrs. Moron and they had a child. They called it Argos. Don't sack the staff, sack the management. Do what entrepreneurs do and innovate. Look at your market, spot the opportunities and work them. Be a motivator not a dumbed down, run down, disrespected shop, with a sense of entitlement.

If you look at job ads for roles at Argos such as Buyer and Category Manager they say exactly the right thing. They want people who 'think outside the box' (I hate that phrase, but everyone knows what it means), who can bring new ideas. But they don't hire those people! Or if they do they stifle them into conformity once on board.

Don't hire cloned graduates, because your sure that sociology degree will prove useful at some point. Hire them because they have a spark, or hire a kid off a park bench who, when you talked to him was oozing natural talent. Go and find these people. It is clear this isn't happening, because on an effort versus return basis the lack of return points clearly to a lack of effort.

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