RETAIL GROUP ARGOS has said it will likely close or relocate at least 75 stores over the next five years.
The decision comes following a review of its 739 stores on the basis of several factors, including profitability, attractiveness of location, complexity of operations and overall fit for the new strategy.
The retailer’s parent company Home Retail Group said the leases on stores impacted are coming to an end between now and 2018. It is hoping the move will provide the flexibility to respond to market changes as three quarters of the estate will be on leases of five years or less.
Argos plans to reduce its investment in its catalogue, focussing instead on digital marketing. It said the circulation of the catalogues has started to fall but its digital offering is growing.
Chief executive Terry Duddy explained, “We have also concluded a comprehensive business review of Argos which highlighted a clear opportunity to transform the business through increased investment in digital technologies.
“The transformation plan aims to deliver growth by repositioning Argos as a digitally-led business from a catalogue-led business, leading the market growth of digital commerce through online, mobile and tablet, and offering customers more products with the fastest, most convenient fulfilment options.”
Argos currently employs about 1,500 people across 40 locations in Ireland. It is not clear if any employees or Irish stores will be affected as part of the transformation.
A spokesperson told TheJournal.ie that the Irish shops will be included in the review but no specifics are being released at this time.
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