Argos who partner with Home Retail Group announced today it will close 75 of it 700 shop across the UK to focus on a huge internet push.
Today (24th October 2012) Argos announces it is to close seventy five of its 700 UK shops in a bid to better compete online with rivals like Amazon.
Closing in the next five years, the group made the announcement after it reported a 37% fall in pre-tax profit to £18 million in the six months to the start of September.
The company said: “As a result, it is likely that Argos will close or relocate at least 75 stores as their leases come to an end over the next five years,”
Reinventing itself as a “digitally-led business” by focusing on online sales, the company will also reduce the circulation of the traditional Argos catalogue, which was launched in 1973. This wills tart in January 2013 with the first regional catalogue to be smaller.
Chief executive Terry Duddy said: “The transformation plan aims to deliver growth by repositioning Argos as a digitally-led business from a catalogue-led business, leading the market growth of digital commerce through online, mobile and tablet, and offering customers more products with the fastest, most convenient fulfilment options,”
“This plan provides the right approach for Argos to achieve a long-term sustainable performance and profit recovery.”
Aiming for £4.5bn of Sales by 2018 and if Home Retail Group’s shares keep raising by 8% as they did this morning this seems to be promising.
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