Online to account for 75% of Argos sales

Retailer expects its stores to make up just one quarter of overall sales by 2016.
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Argos says digital will account for three quarters of its overall sales in just three years’ time.

The retailer generated sales of £3.9 billion during 2012, a like-for-like rise of 2.1 per cent year-on-year.

Total internet sales grew in the period, with online accounting for 43 per cent of Argos’ total sales, up from 40 per cent a year ago. This growth was supported by mobile sales, which increased by 117 per cent over 2011.

And Argos expects this growth to continue.

Marc Spence, Argos’ trading director for toys, freetime and jewellery, told ToyNews: “We absolutely expect online sales to continue to grow. By 2016 we expect 75 per cent of our sales to be digitally-led.

“Argos is the UK’s number one toy retailer (by value) and toys is an incredibly important category to our business. The split between online and store sales for toys is roughly in line with our overall business, where internet sales represent almost half of total sales.

“The feedback [to our digital plans] from toy suppliers has been very positive and they are excited to see what’s next.”

In 2012 Argos announced a five-year transformation plan, to “reposition the retailer from a catalogue- led business to a digitally- led business”.

Spence praised suppliers for embracing digital.

“Remaining fresh and relevant in this digital age is very important for established brands and there are several examples of well-loved brands which have stood the test of time by adapting and reinventing themselves, such as Monopoly, Twister and Barbie,” he added.

“It’s quite exciting to think what’s next for toys with technology – the options for creativity and innovation appear endless.”

To read the full interview with Spence, simply click on this link.

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