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Argos invests heavily in marketing new online shopping service

Thursday, July 7, 2011 - 09:54 by Graham Miller

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The Argos click and collect service, which combines the convenience of safe shopping online with the immediacy of high street retail, is being backed by an advertising budget of £4 million, according to the Retail Gazette.

The idea of letting consumers purchase products on a website and then head down to their local store to collect them is not unique, but it is being seen by Argos executives as a significant step to shoring up the firm's position in these unstable economic times.

With profits dropping by 18 per cent in 2010, the catalogue shopping chain was hit particularly hard as consumer confidence dissipated and people were less inclined to part with cash to buy more expensive products such as electrical appliances.

With a million hits a month there is no doubt that Argos has a prominent website and it is hoping to bolster this reputation, while still feeding into its national outlets, with a series of ads outlining how safe shopping online can lead to collecting the product in-store within four hours.

Argos spokesperson, Karen MacLachlan, said that the firm was looking to mould the way in which consumers buy products. She believes that there need to be strong links forged between bricks and mortar retailers and their online entities, so that people can have seamless shopping experiences which blur the lines between the web and the high street.

Argos is not relying solely on web and in-store services to claw back some of its profits, because last month the first television channel dedicated to the brand went live for Sky TV customers. An m-commerce app for the iPhone is also helping the company establish itself as a true multi-channel retailer and it is setting an example which is sure to be followed by many others.