Supermarkets have increasingly begun to focus on convenience retailing as they adapt to changing consumer habits, with most now cutting back on larger store openings to focus on smaller local stores. Now it appears that non-food retailers are beginning to follow their example, with Argos this week announcing the launch of its first London Underground store as a means of capitalising on the commuter pool.
The store will be located at Cannon Street Underground station and will measure around 650 sq ft. However, only 170 sq ft will be utilised for the sales floor itself meaning that commuters will need to squeeze into a space equivalent to a large kitchen in a family home.
Argos’ business model means that a small selling space will be suitable with this store offering consumers the choice of 20,000 products. Furthermore, the retailer’s “hub and spoke” logistics network will allow staff to re-stock lines twice daily.
Chief executive John Walden, of Argos’ parent company Home Retail, believes the new initiative will prove particularly popular with shoppers who regularly use digital retailing techniques such as click and collect.
He says; “Digital shoppers are increasingly demanding improved choice, convenience and speed in the fulfilment of their online orders, especially via click and collect.
“Our new Argos Collect format at the Cannon Street Underground station will complement our other Argos digital store trials, including converted traditional Argos stores, small format digital stores and concessions in select Homebase stores: nearly 50 in total in place for Christmas.
“Because of our innovative new ‘hub and spoke’ distribution network, we can now provide over 20,000 products to any of our locations within hours, regardless of the stocking capacity of each individual store.”
Argos’ Cannon Street Underground base will open from 7.30am to 7pm on weekdays, meaning that it will be in prime position to attract a large portion of the 4.2 million consumers travelling via the London Underground network every day. In addition, it will also make use of the weekend market, opening between 9am and 6pm on Saturdays.
The new deal with Argos is only the latest in Transport for London (TfL)’s drive to generate increased revenue, all of which will be reinvested into the transport network. This strategy has already seen Argos click and collect points open in a number of underground stations – although Cannon Street is the first to benefit from an actual small format store – along with a number of click and collect points being established in partnership with supermarkets including Asda, Tesco and Waitrose.
Director of commercial development at TfL, Graeme Craig, says; “We have over 1,000 retail units across our transport network.
“We are keen to retain a wide base of independent quality retailers that reflect the character of the local area and sit alongside pop-up shops, click and collect units and High Street brands, to provide our millions of customers with better journeys and the range of shopping options they want.”
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