Attractive proposition in Argos' e-commerce operation

The value of the Argos operation lies in its dominant e-commerce performance, as illustrated by the infographic in the linked article, which presents an opportunity for a company like Sainsbury's to gain a competitive edge and drive growth in the sector. In a study comparing Argos with four of its e-commerce peers, the retailer topped most categories and scored much higher overall than the others relative to the Good Growth Benchmark - 76%, versus Dunelm, its nearest competitor, at 56%.

 

Given that In January of this year the owner of Argos, Home Retail Group, announced its second profit downgrade in three months due to poor Christmas trading, why are both Sainsbury’s so keen to get their hands on the Argos operation? (At the time of publication, a £1.2bn deal has just been announced). The answer lies in its dominant e-commerce performance and the opportunity that this presents anyone looking to compete with an edge over the next 10 years.

This infographic shows just how attractive Argos’ e-commerce operation is and the scale of the opportunity it presents a new owner looking to drive growth.