Multichannel retailer Argos has confirmed it is axing its TV
shopping channel less than two years after its launch.
Argos unveiled its TV channel in the summer of 2011, attracted by
the possibilities of DRTV. At the
ECMOD TV Shopping conference last year, then head of Argos TV
Darren Frost told delegates that TV shopping was a “natural
extension” for Argos. It presented the business with an
opportunity to acquire new customers that don’t necessarily have
the same demographics as the traditional Argos shopper. In
addition, Argos intended to use the footage created for the TV
channel on the Argos website to add rich content to the site and
increase conversion rates.
Nevertheless, following what Argos calls a “trial” period for the
channel, it has now reached the decision to cease operations.
While an Argos spokesperson said the channel had been
“performing well both for customers and financially”,
it took a “tough decision to ensure our resources are
focused on what will make the biggest difference to our newly
announced strategy”.
That strategy, announced in October 2012, will also see the
closure or relocation of some 75 Argos stores over the next five
years as part of Argos’s drive to reduce costs, increase
efficiency and improve profits. The plan is underpinned by a
three-year investment programme during which Argos aims to
transform itself from a “catalogue-led business to a digitally
led business”, it said in a statement at the time.
“As Argos works towards delivering its ambition to become a
digital retail leader, the business has to focus its resources on
priority programmes to deliver the key milestones announced to
the City in October 2012,” Argos told Direct Commerce. The
spokesperson didn’t give a date for Argos TV’s final
broadcast.
As well as reducing the store portfolio and axing the TV shopping
channel, Argos also announced plans in October to shift the
catalogue to a more supporting role. Circulation of the Argos
catalogue has reduced as consumers increasingly migrate to
digital channels.
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