Multi-channel offering at Argos would be boost for Sainsbury’s proposition, says e-commerce specialist

Sainsbury's has been trialling Argos concessions in its superstores

Sainsbury’s has been trialling Argos concessions in its superstores

Acquiring Home Retail Group would have been a major coup for Sainsbury’s, according to the e-commerce agency, Ampersand. 

“Taking Argos, with its robust multi-channel offering, under its wing would have certainly boosted Sainsbury’s proposition,” Darryl Adie, the Ampersand managing director, said today. Argos’s same day delivery offering attracted a lot of attention over the Christmas period and Sainsbury’s would benefit greatly by having insight into the inner-workings of Argos’s model.”

Speaking as Sainsbury’s revealed its November bid for Home Retail Group had been rejected, Adie added: “The current struggles of the major supermarkets are well documented, especially as value chains such as Aldi and Lidl go from strength to strength. Sainsbury’s, which previously owned but sold Homebase back in 2000, must be kicking itself that the deal didn’t go through, with its shares falling by 5% after the announcement was made.”

Looking ahead, threats such as the impending launch of Amazon Fresh in the UK will provide further cause for concern amongst the major supermarkets, according to Adie. “It will be interesting to see if Sainsbury’s competitors react to this news of a failed takeover by mounting their own acquisition attempts,” he said.