Weller stresses importance of innovation
The unique business model at Argos will help it stave off competition from the supermarket sector but non-food retailers will have to continue innovating to keep the grocers at bay, Argos managing director Sara Weller said at the Retail Week Conference today.

Weller said Argos is focusing on improving its multi-channel offer and enhancing its home delivery strategy, as the general merchandiser seeks to use its scale as a barrier to UK competition.

Online sales now make up 10 per cent of the total business and are increasing 30 per cent year on year, she said. However, almost half of online purchases are collected at store, while for non-bulky goods that proportion is nearer two-thirds.

Argos is increasing its presence in the furniture market and launched its Home catalogue with an expanded furniture range yesterday.

'We are perhaps unique in retail in that we actually encourage our shoppers to carry out their shopping as quickly as possible in-store and we have tested a number of different kiosks to help speed the process up,' Weller explained. 'By doing that, we are experimenting with how we can use the store space to, for example, show more of our large furniture items.'

Argos intends to improve its time slots for home delivery and to emphasise its multi-channel offer to consumers as it seeks to reinforce its market-leading position. However, Weller admitted that overseas expansion would be problematic, because of the need to create 'very quick critical mass'.