Our business model

We aim to provide outstanding value and convenience for our customers by building an infrastructure of market-leading retail capabilities, which can be leveraged by our retail brands – Argos and Homebase – to provide leading offers across multiple channels. Customers are at the heart of our business, with around 180m transactions during the year. We use the insight that our many customers provide to add value to our business model.

Home Retail Group business model diagram

Building market-leading retail capabilities

Sourcing and distribution

We source our products both locally and globally. The scale of the combined sourcing synergy of Argos and Homebase allows us to offer great choice and value to our customers. We have a strong supply chain which, together with our logistics infrastructure, enables us to provide products for our customers cost-effectively through a national distribution network.

Products

We offer a comprehensive range of over 90,000 products across home and general merchandise. We support our offer of well-known product brands with a portfolio of own and exclusive brands such as Habitat, Heart of House, Bush, Alba, Chad Valley and Odina.

Technology infrastructure

Many modern and innovative retail capabilities depend on new technologies. Technology is central to our multi-channel business model, where information of interest to customers must be maintained securely and be available whenever and wherever a customer needs it.

Engaged colleagues

Our ability to deliver our business model is underpinned by our 47,000 dedicated colleagues who serve our customers every day and we are committed to their ongoing training and development.

Financial Services

Both Argos and Homebase are supported by an in-house financial services offer, which provides a range of credit products for our customers.

Financial strength

The Group has strong operational cash-generating characteristics and is in a strong financial position, with £309m of cash. This supports our strategy for growth.

Digital development

The internet has inspired a revolution in the way customers shop, with digital channels such as online and mobile representing a growing share of business. Our business model prioritises the rapid development of customer features on these digital channels.

Retail brands deliver leading multi-channel convenience

We are one of the UK’s leading home and general merchandise retailers, bringing together two of the UK’s most recognisable retail brands – Argos and Homebase. We are a multi-channel retailer in that we offer our customers a number of convenient ways in which they can both purchase and physically obtain their products.

We are taking advantage of developments in digital technology that have brought about a fundamental and permanent shift in the way our customers shop. Our successful Online and Mobile channels help make us a market leader in multi-channel retailing. This is supported with a national network of over 1,000 stores in various Store Formats, including ‘big box’ speciality retail stores and a range of Argos formats. Our store network can offer not only a selection of shopping options, but also a leading Click & Collect service for customers who order a product on a digital channel and collect it in-store. In addition to store collection, we offer Home Delivery options for products of all shapes and sizes, and Contact Centres to provide our customers with personalised service. Increasingly, we are entering into Partnerships to help us access new customers online or through store concessions.

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