Argos is getting a makeover - but can it attract new shoppers?

Argos is undergoing a transformation, prompting questions about its ability to attract new customers.

Do you still shop at Argos? What are your thoughts on the retailer?

For over five decades, Argos has been a staple on the British High Street, with approximately half of all UK households still using its services. However, the chain has faced significant challenges in recent years, struggling against intense competition from online giants like Amazon, which has led to stagnant sales and store closures.

Sainsbury's, the former owner, recently announced the sale of Argos for considerably less than what it paid just ten years ago. Despite this, the new owners express optimism, citing "real opportunities" for growth, including the opening of new standalone stores. The question remains whether they can succeed where Sainsbury's did not.

Enrico, 28, fondly recalls using Argos's now-discontinued print catalogue. When the BBC interviewed shoppers in central London this week, opinions on the retailer were divided. Some, like Enrico, praised the convenience of same-day collection and felt a sense of nostalgia for a brand that evoked cherished childhood memories. "It was a great way of doing your Christmas shopping," he told the BBC. "We'd go into our local Argos and we'd get the massive print catalogue."

Conversely, others believe Argos has failed to keep pace with modern retail trends and struggles to compete with the seemingly endless online choices. Emily, 22, stated, "I feel Amazon is a lot easier because it gets delivered straight to your door with Prime," adding that she only uses Argos for appliances, not "day to day" items.

Jack Cunningham, 26, a scientist from Kent, frequently uses Argos for pickups while working in London. He highlighted convenience as the primary appeal: "If I need something in the moment and can't wait for delivery, normally I'll get it in Argos. You can order something really cheap on Amazon, and it might come and be the wrong size," he added.

For years, industry commentators have pondered whether Argos could develop a business model to rival Amazon, the UK's largest online seller. Despite significant investment in digital platforms, Argos has not quite achieved this. Last year, Argos reported £4.1 billion in sales, a stark contrast to Amazon's £32 billion in the UK.

Argos does, however, possess a unique advantage over its online competitors: an extensive network of stores, concessions within Sainsbury's shops, and collection points that enable free same-day click and collect services.

Retail analyst Catherine Shuttleworth believes Argos can leverage this, along with its reputation as a trusted British brand. However, she suggests the app needs modernization to compete with "digital-first" players such as Amazon, Shein, and Temu. "I think if you asked people to name five High Street retailers, they wouldn't name Argos," she added. "It's almost about reminding people it exists."

What do consumers desire from Argos?

Georgia, 27, hasn't considered Argos for a long time, finding it outdated and not suited to her preferences. "It's very old school isn't it? I'm more of an Amazon shopper."

Argos also appears to have room for improvement in customer service, currently holding a Trustpilot score of 1.4 out of five, which is lower than High Street rivals like Curry's and Tesco.

"It's not an exciting place to shop, or what it used to be for kids around Christmas," says Hugh Radojev, editor of Retail Week. "Under a new ownership you'd hope they could get it back into the zeitgeist."

Nicole, 40, an Argos enthusiast from South London, wants to see more standalone Argos shops. Since 2012, the number of standalone Argos stores has decreased from approximately 845 to around 200, though it has also opened about 450 shop-within-shops in Sainsbury's stores. This move was considered strategic, allowing Argos to tap into Sainsbury's large customer base. Argos will retain all these concessions post-takeover, and customers will continue to earn Nectar loyalty card points on all purchases.

Nicole suggests, "It would be nice if they could go in other supermarkets like Tesco."

While Argos's new owners have ruled out partnerships with rival supermarkets, they do plan to forge other "partnerships" and open new standalone stores. The new ownership group, Swift Partners, comprises several experienced retail veterans, including a former boss of Co-operative Group. Retail analyst Richard Hyman believes this ownership will be a better fit than Sainsbury's, which primarily focused on food sales. However, he remains skeptical about Argos's growth potential in such a "tough retail market."

Shuttleworth is more optimistic, asserting that with a "ruthless focus," Argos can thrive and even challenge Amazon. "Argos completely revolutionised the way we shop when they came out and they have a history of being different," she says. "If I was marketing director I would be thinking about how to bottle that for 2027."