Sainsbury’s Argos is the UK’s third largest online retailer offering more than 60,000 products through its website, mobile channels and store network. More than half of Argos sales originate online and around 120 million customer transactions take place in stores each year. Its market-leading same-day Fast Track delivery service is available across more than 90% of UK postcodes and customers can click and collect orders from any Argos store, including 190 inside Sainsbury’s supermarkets.
As part of its ongoing transformation into a digitally-led retailer, Argos wanted to re-invent its customer offer and create a market leading capability that would deliver for its customers and enhance shareholder value.
A collaborative team from Argos’s Commercial and Supply functions and BearingPoint designed, developed and implemented an innovative hub & spoke supply-chain management capability. Supplemented with new range deployment techniques, Argos now delivers same day click & collect and home delivery nationwide. Developments enhancing network and inventory flow modelling have greatly improved the offer economics.
Argos remains the only UK retailer to offer same day delivery across more than 90% of UK postcodes, seven days a week. In 2016, J Sainsbury bought Argos from Home Retail Group for £1.4 billion with the hub & spoke fulfilment capability a key contributor in the acquisition. This transformational innovation has been widely lauded by retail and consulting professional bodies.