Argos to launch TV shopping channel

Catalogue retail chain Argos has announced its plan to launch new TV shopping channel this summer. Channel has been allocated third position on Sky's shopping channel after the established QVC and Ideal Shopping networks.

As reduction in consumer confidence in last six months has caused in declines sales, Argo requires exploring new commercial avenues. Home Retail Group (HRG) Argos's parent company lowered its full-year profit-before-tax estimate following like-for-like (LFL) sales at both Argos and its sister firm Homebase falling in the 12 months to February 26th 2011.

Managing Director of Argos Sara Weller commented that, the launch of their new TV channel would see them really delivering on their commitment to offer their customers a whole range of convenient ways to shop with Argos.

Adding further on customer preference, value and ease he said that, their ability to connect between channels means that the content they would be producing for Argos TV would also have wider potential applications online and in store.

Argos sales slumped 5.6 per cent over the same period in which its sister firm homebase's LFL trading dropped 0.3 per cent.

Verdict Research Consulting Director Neil Saunders said in an announcement that company had taken a positive move, but the company would need to differentiate itself in a crowded marketplace. Argos’s stance on price would be appealing to homeshop market and the platform would allow the retailer to display and showcase its products, remedying a weakness in its current model.

Source : Nitesh Sharma - Media Mughals.com