Popular catalogue retailer Argos is to revamp its UK operations in a new drive beginning next week.
MyRetailMedia reports that central to the change is a renewed online effort, a rise in prices and, crucially, a dramatic increase to its store closure program with up to 100 outlets facing the chop.
The plans are expected to be unveiled by MD John Walden tomorrow.
“Because Home Retail has cash of around £200 million, it is under no immediate financial pressure,” Panmure Gordon analyst Philip Dorgan stated.
“This also means that Argos could trade at a loss for some time. This is the good news, but it is not enough for us to buy the shares, nor is a less-bad-than-feared second-quarter.
“Both of its operating companies still have fragile profits and losses and we think that Argos requires significant store closure, major cost reduction and brand repositioning. We believe that the risks therefore remain very much on the downside.”