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[spob] 26/6/2020 11:10

Clearly Sainsburys shops don't have that much free space

because the in-store Argos shops I have seen are tiny

and have very little warehouse space

meaning they only stock around 20% of the full argos range



I know what the directors thinking is, in regard to the stand-alone Argos shops

but customers are not directors. They will do what they want to do

[loganair] 26/6/2020 11:02

1. Many of the large Sainsbury's stores have too much spare space, so bring in Argos to fill this space.

2. By doing so Sainbury's also hopes to increase foot fall into their supermarkets.

3. Many of the in house Argos's are at the back of the Sainsbury's therefore they are making people who shop at Argos walk through Sainsbury's hoping that these people who may not be Sainsbury's shoppers, buy their food from Sainsbury's.

4. This was one of the main points about trying to merge with Asda. Asda only have large stores which are ripe to put Argos's in, even said as much in the merger document at the time. By doing this could me worth as much as £200m to £300m a year in extra sales for Argos, while bringing in a further £100m of saving for Argos.

[spob] 26/6/2020 10:34

Sure you can close some stand-alone argos shops if they are losing money

but if you close too many, there comes a tipping point where the brand dies and becomes irrelevant in the eyes of the average argos customer

[spob] 26/6/2020 10:27

yes i'm quite sure it works for some

but this is a numbers game

and you have to weigh up the numbers for the full range of Argos customers

[spob] 26/6/2020 10:25

remember that if you dont need your item "right now"

and you don't mind waiting for it

then you may aswell buy it cheaper on ebay anyway and get it delivered for free

[tim 3] 26/6/2020 10:24

Probably agree to disagree on this spod.

I think the model of ordering in the morning while browsing the net/reviews ect then collecting later/with your shopping works quite well.It does for me anyway have done it many times.

[spob] 26/6/2020 10:18

You don't want Argos to be known as that tiny little shop in Sainsburys where you have to come back later to get what you want

or the little shop in Sainsburys where you have to buy online first, before you can go and collect what you need "right now" because they have to transfer your item from another location

especially for people who don't shop in Sainsburys

[tim 3] 26/6/2020 09:58

spod

I see it a bit like carphone will soon be incorporated into the stores in a similar way.

Its all about money at the end of the day if the savings of closing shops out weigh the lost sales then they will do it.

Argos is one of the few that can compete with Amazon, huge range of goods delivery or collection from thousands of physical shops within a few hours I know no other retailer that has that offer.

[loganair] 26/6/2020 09:48

When Sainsbury's took over Argos they said it was because:

1. Argos had better logistics then Sainsbury's.

2. By closing c65% of the Argos shops and bringing them into Sainsbury's stores will save £110mln a year and will fill empty spaces in current Sainsbury's stores.

The other c35% of Argos stores will remain as stand alone stores.

3. By closing Argos head office would also bring a saving.

[spob] 26/6/2020 09:28

I guess most Sainsburys directors have never used an Argos store.


So they will not understand the importance of keeping most of the proper Argos stores open.

Trust me, if they close all of the stand alone Argos shops then the Argos brand will be dead.

[poikka] 26/6/2020 07:12

A reminder of the costs that Covid has imposed on supermarkets - Tesco:

"...The majority of these costs relate to payroll which includes the provision of twelve weeks' paid leave to 26,000 vulnerable colleagues, in addition to the recruitment of 47,000 temporary colleagues to cover absence and meet increased demand.

We have also incurred costs in areas such as distribution, where we have needed to re-open previously mothballed distribution centres and property, where we have incurred costs to adapt the store environment and temporarily lost tenant income.

The provision of safety-related consumables and personal protective equipment across all of our 3,628 stores in itself results in a charge of c.£(65)m.

In total, our latest estimate of incremental costs for the UK for the full year is c.£(840)m. These costs will be partially mitigated by the UK business rates relief of £532m and a contribution from additional food sales."

[pmount] 25/6/2020 16:28

Lidl and Aldi put this well into shorting. chop prices or lose cutom, Aldi no longer a laughing stock stock. Covid was lucky for them but now its time to go back to 180p. People remember them removing all offers due to ques outside and they will pay for that.

[tim 3] 25/6/2020 13:46

The standalones will be gone in time imo.Even though many items are not available instantly you can still order online in the morning and collect the same day which is pretty fast.It would not surprise me if some standalones remain shut.The Argos in Sainsburys have been incredibly busy during the shut down.

[spob] 25/6/2020 11:04

yes but the in store shops only stock around 20% of the full argos range on site

so you have to wait/come back again later, for most items

when you want something "right now" popping down to a large proper Argos store is much better


if you close all the proper argos shops, then you may aswell kiss goodbye to the argos brand

[loganair] 25/6/2020 10:58

That was one of the two main points Sainsbury's taking over Argos, to close down 1/2 the stand alone Argos shops and bring them into to Sainsbury's stores to fill up space in these stores thereby saving £100mln a year on not having 500 stand alone Argos shops.

[spob] 25/6/2020 10:42

When are they going to open the stand alone Argos shops ?

You know, - the proper Argos shops, which actually keep most things in stock and you can buy items immediately.


What are they waiting for ?

Wake up Sainsburys

[ny boy] 25/6/2020 08:36

Added, must be some excitement due here soon, has finally started to act as a defensive play during volatile markets.

[mercer95] 23/6/2020 15:58

Cheers Nerdlinger, I’m still holding here, bought some Halfords today DYOR GLA

[nerdlinger] 23/6/2020 13:52

large numbers: "The latest grocery market share figures from Kantar show take-home sales from British supermarkets increased by 13.7% year on year in the 12 weeks to 14 June 2020, covering the full lockdown period. Shorter term, the latest four-week ending numbers suggest that while the market has started to edge slowly back towards normality, shopper habits remain a world away from what retailers would usually expect.
Sales growth over the four weeks to 14 June accelerated to 18.9%, up from 17.2%"

if you click on "Check our datavisualisation tool" you can see that aldilidl's market share fell in each of the last 3 Kantar monthly reports but I don't remember that being headlined...

[nerdlinger] 22/6/2020 13:31

Kantar numbers due tomorrow I think, probably expected to be large.

[mercer95] 22/6/2020 08:20

Sainsbury’s share price performing well so far, maybe news about the dividend being reinstated, who knows.

[tim 3] 12/6/2020 12:22

The irony of that Sainsbury's are probably more proactive in equal opportunities and ethnic diversity than any other supermarket.

[oxfordbull] 12/6/2020 11:52

Feel free to boycott them. Less queues for the rest of us!

[xxxxxy] 11/6/2020 17:11

Boycott Sainsbury'shtTps://www.standard.co.uk/news/uk/robert-milligan-statue-removal-sainsburys-boycott-a4464621.html?amp

[mercer95] 11/6/2020 12:51

You go back far enough & half the country is associated with the slave trade, it’s a made up story,already yesterday’s news.