Wednesday 24 October 2012

Crazy Argos

I've mentioned before how blindingly obvious some of the mistakes that Argos are making are, but the last comment was something along the lines of 'we checked our navel and we aren't doing anything wrong'. Now that can be true and the best thing to do is batten down the hatches and ride out the storm, but things clearly weren't right.

So in the time honoured tradition, outsiders in the form of costly Consultants were brought in and here are the results of the Spanish jury. Argos will close some 75 stores (that's money saving) and concentrate on internet sales. There is some merit in this, but I'm guessing what Terry 'Dud' Duddy means is shifting the brand onto a more online led outlet basis.

This will be another nail in the coffin. The problem if you are a shop is that online is a pain in the backside, except when it isn't. What Argos don't seem to understand (and they are not alone) is how to discern the difference; when is the internet useful to a shop.

The first thing I would do is get rid of computers and photography. These are fast moving technologies that have an intense market, unsuited to the Argos model. Keeping cheaper compact cameras is OK as is tablets and such, cheaper devices.

Concentrate instead on house wares, gadgets, toys and a better range of jewellery and watches, not necessarily more expensive, just buy better. and stop selling stupid, specially commissioned stuff, unless you do it right. I bought a branded, 'made specially for Argos' lawnmower which had a ridiculously short mains lead on it. OK, so it forces you to buy an extension which is not, perhaps the end of the world. Except you can't, because it has a unique connector on it that not even Argos sell anything to match. This annoys people, guys. Seriously.

But the danger with the internet led approach I think they are proposing is that they will go to war with themselves internally. I think I have a talent for systems, particularly how people interact with systems and processes. Online will try to reflect the cheaper prices available with internet-only companies and undercut their own stores. If you have expensive stores to support, don't create a competing model internally, don't incentivise staff through targets to do harm to the business by dropping prices without regard to the bigger picture.

Online is supposed to help your business, not hinder it, so look for ways it can help. Give better product descriptions online, put some effort into it, no-one else does so that is a game-changer straight away and whether someone orders online or picks up in a store, they will have made a more informed choice. They will feel more confident buying it from Argos. What about order online and pick up (or the excellent idea of rapid local delivery)? That is what I did with the lawnmower. I researched online, found Argos had what I wanted at a good price, ordered online and picked it up.

There is a very good reason for the stores and they should be worked hard to get the money out of them; the staff need to be better and more responsive. And the whole point is to get the stock out to the delivery desk ASAP, so put more people on as soon as it gets busy and that includes all the standing around chatting supervisors.

Oooh some retailers make my blood boil and Argos is one of them.




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