J Sainsbury plc (LON:SBRY) plans to launch a click-and-collect service for Argos in 100 of the supermarket giant’s convenience stores as it attempts to fend off competition from rivals such as Amazon.
The company, which bought Argos and Habitat owner Home Retail Group for £1.4bn last year, said the service will allow shoppers to pick up Argos and Tu orders placed online in its Sainsbury’s Local stores.
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The scheme, to be launched at the end of 2017, follows a successful trial in six Local stores.
The extended roll-out of click-and-collect is part of an expansion plan that includes increasing the number of Argos stores within Sainsbury’s supermarkets.
Sainsbury’s plans to add a further 50 Argos stores within its supermarkets, bringing the total to 150 in time for the critical Christmas trading period. The aim is to have 250 shop-in-shops by March 2019, six months ahead of the original target.
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Chief executive Mike Coupe said its expansion will aid in the fierce rivalry among supermarkets as discounters Aldi and Lidl continue to take away market share from the biggest players in the UK and as Amazon ramps up its grocery business following the acquisition of Whole Foods.
“I don’t pretend for a moment that Amazon and others aren’t going to be significant competitors,” he said.
He added: “As customer shopping habits change, people increasingly want flexibility, speed and choice. More customers than ever are ordering online and choosing to collect from a store, which makes their lives easier and frees up their valuable time.
“Offering the Argos click-and-collect service in Sainsbury’s Local stores makes it even more convenient for our customers to buy our products.”