High street giant Argos is set to expand its range into clothes for children in the hope that selling childrenswear will boost its brand even further.
A familiar sight on many high streets, Argos is battling to maintain its position as the go-to store in times of economic difficulty. A brand synonymous with value and choice, you can currently get anything from bed sheets to batteries to a bathroom suite from your local Argos store, or from the company's website.
More than just home goods, the Elizabeth Duke jewellery range is a strong part of the Argos brand identity, while the company is also popular with parents at Christmas and birthdays due to its large, good value range of toys.
Bolstered by a strong online presence that makes it a convenient shopping option, Argos already seems to be a jack of all trades. However, by branching out into clothing for children Argos will be entering a whole new market.
Clothing, for both adults and children, is an area that supermarkets seem to be having continued success in, with Asda, Tesco and Sainsbury’s all having their own clothing ranges. This ‘everything under one roof’ approach could also work well for Argos, should it offer quality childrenswear at the trademark reasonable prices.
Financially-stretched parents are always looking to cut costs, and when you have children clothes can be a considerable seasonal expense. Should Argos be able to offer a good value option for families then the move into childrenswear could well be successful.
The facility that Argos has for online shopping also makes for convenient clothes shopping, particularly for busy parents who have children that may not be overjoyed at the prospect of a day spent hitting the high street.
This proposed period of change and growth at Argos, as reported by BusinessScotsman.com, also encompasses more than just a foray into the children’s clothing market. The retailer is also planning to launch a new home shopping channel this summer, along the lines of popular QVC, while also dipping its toe into the book selling market.
However, the worry is that the areas Argos is looking to expand into are already more than covered elsewhere. Amazon is an incredibly popular online book retailer and paperbacks aside, more and more people are moving into ‘bookless’ reading using devices such as the Kindle and iPad.
On the other hand, Argos continues to do well in the toys and games market, despite specialist toy emporiums such as Hamleys now selling Hamleys toys through its website and other retailers. Some may argue though that, as Argos is aimed at lower income customers, it is more likely to be hit by the income squeeze that many working class families are experiencing at the moment.
Whether the expansion of Argos will turn out to be a lucrative move or a costly mistake is something that only time will tell. For a retailer battling to stay on top during a difficult time it may just turn out to be a kill or cure decision.