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Innovation. E‑SCM should make it possible to be more flexible in delivering a more 

diverse range of products and to reduce time to market.

Benefit: better customer responsiveness.

Case Study 6.2

Argos uses e‑supply chain management to improve customer convenience

Retailer Argos is a leading proponent of using supply chain 

management to improve multichannel sales. The transac‑

tional Argos website was launched in 2000 when they were 

pioneers in implementing a reservation service. Sales have 

grown significantly since the launch over 10 years ago.

According to E‑consultancy (2010), multichannel 

sales for Argos reached £1.9bn in 2009. Its ‘Check and 

Reserve’ feature, which enables visitors to check store 

availability and then order from a specific store for later 

pick‑up, was responsible for 22% of the retailer’s total 

sales in 2009, growing by 36%. Internet sales account 

for 32% of all sales. Some features of the system which 

rely on integration of the website with different logistics 

systems are superior to competitors’. For example,  real‑ 

 time stock availability information is shown and while 

some retailers make customers wait several days for 

in‑store collection, items reserved on the Argos website 

can be collected straightaway.

David Tarbuck is head of multichannel retail at Argos. 

He explains the approach Argos has used for its fulfilment:

The way Argos is built is unique in the UK market, and 

this has made it easier for us to implement Check & 

Reserve. Since customers are in the front of the store, 

and the stock is held in the back, we have a clear pic-

ture of stock levels in our stores. This means we can 

be confident that, if we ask our systems about stock 

levels at any store, this information will be accurate.

 Check & Reserve gained immediate adoption with 

customers, and this has accelerated over the last two 

or three years, with this channel growing by 36% for 

a second year in a row. People have caught on to 

it, and appreciate the convenience of being able to 

check before they leave the house and save them-

selves a wasted journey. While our model has been 

improved over the last ten years, other retailers have 

a more difficult and costly process for implementing 

this kind of service.

A further benefit for multichannel retailers like Argos 

is that they can broaden the available range of prod‑

ucts available to shoppers by providing extended 

ranges on their websites, and Argos planned to add 

10,000  online‑  only products in 2010. Argos also pro‑

vides kiosk services in‑store to help customers arrange 

home delivery.

Mobile commerce offers more order choice for Argos 

customers. In 2010, Argos launched its first iPhone 

app, in response to a 600% increase in traffic to Argos.

co.uk from mobile devices. In December 2009, Argos 

had 750,000 visits from iPhones and iPods, suggesting 

demand for such a service.

The iPhone app initially asks you to set your home 

store to make subsequent reservations smoother. The 

app can also find the local store via GPS, or by enter‑

ing the town name or postcode. Results of local stores 

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