Argos Shrinks to Become a Desk in a Corner of Sainsbury's

By Gary Cutlack on at

Retail stalwart Argos is the latest victim of outlet downsizing, but it's not going to disappear from the high street altogether just yet. Brand owner Sainsbury's is planning to close between 60 and 70 standalone Argos branches over the next year or two, and will instead begin hosting them as miniature concessions within its supermarkets.

The plan is to help the supermarket giant save £500m over the next five years, by binning off some off the less stellar performing of the Argos locations and instead opening around 80 smaller versions of the catalogue shopping chain inside Sainsbury's stores.

This comes from the supermarket's latest release of financial figures, which partly blame a sparse video game release schedule for a drop in the performance of the Argos division as a whole. [BBC]