Posted by: Stuart Higgins Posted by: Will Dawson Sunday 31 May 2015 12.06

Argos is an immediately recognised high street brand, with the Argos catalogue a long standing feature on UK coffee tables. The Argos ‘Check and Reserve’ offer provided one of the first examples of multichannel retailing, pre­empting Click and Collect by leveraging the unique stock visibility that the Argos operating model enables.

It is no surprise that Argos has long been perceived as a leader in multichannel retailing. (Although we should disclose that Argos is a client of LCP.)

The Argos delivery proposition is built on providing convenience at a low price through a standardised tariff. Next Day, Named Day and Weekend deliveries are competitively priced, with a flat rate of £3.95 for parcel delivery (‘postables’ are free via Royal Mail), whilst the 2-man delivery service is provided through an in-house offer using a dedicated fleet. The standard charge for 2-man delivery is £8.95, including a 2 hour time window, delivery into a room of choice and with the option to remove and recycle old appliances for a small additional charge. Same Day delivery is provided by Shutl (from stores) on a near national basis – a market leading proposition that makes Argos stand out from online competitors, who are geographically limited in their Same Day service.

The standard delivery tariff provides Argos with a simple and easy to understand customer offer. However, the downside is that it lacks certain attributes that other retailers provide as standard: Free delivery options (1 & 2-man), free delivery threshold, delivery windows (for 1-man), late order cut-offs (currently 5pm). This has the impact of artificially reducing what would otherwise be a formidable delivery benchmark score.

Argos recently announced a trial of a new, same day ‘hub to home’ delivery service that will allow shoppers to order online for same day delivery on an Argos van. Same-day delivery is a growing battleground for retailers and the provision of a rapid, reliable and branded same day delivery service could prove to be a competitive game-changer for Argos.

Overall, the Argos mission to transform the business into a digitally led retailer for the 21st century will maintain their position at the forefront of retailing in the UK. The tie up with eBay for in-store collection, together with their Hub-and-Spoke and Hub to Home trials, offer a tantalising glimpse of how the business is re-emerging as a disruptive leader in UK retail, especially in the home delivery space.