Industry: General merchandise
Categories: Toys, furniture, homewares and consumer electronics
Facts & Figures
Established: Argos in 1973
Employees: 30,000
Outlets: 1,000+ physical locations
Solutions Used
GfK Market Intelligence: Sales Tracking
About Sainsbury’s Argos
Established in 1973, Sainsbury’s Argos is a leading UK general merchandise retailer with more than 60,000 products available through its website, app, stores and Click & Collect points inside Sainsbury’s supermarkets. It is the UK’s leading toy retailer, and a market leader in furniture, homewares and consumer electronics, including domestic appliances. With more than one billion visits per year, it is the third most visited retail website in the UK.
“The data, insight and support we receive from GfK has been instrumental in enabling us to make evidence-based decisions as part of the range review of our Major Domestic Appliance product portfolio. It has formed the foundation of a new brand strategy in the category, enabling us to continue to meet our customers’ evolving needs. What is especially useful is the scope – we can evaluate big-picture trends and drill down in the detail to understand which product features and trends are most appealing. This has been invaluable.”
Luke Gallagher, Senior Buyer at Sainsbury’s
Reviving the category
GfK has a long-standing working relationship with Sainsbury’s Argos. Early in 2022, the retailer approached GfK to reinvigorate its Major Domestic Appliances category. The team had identified the opportunity to stock more premium brands and further improve performance with existing suppliers. GfK was tasked with identifying the most appealing brands, products, and features to help Sainsbury’s Argos expand its portfolio to guarantee maximum appeal. In addition, the team requested further detailed analysis to understand how to really drive and develop existing mid-premium suppliers including Samsung, LG, Bosch, Beko and Hisense.
“To tackle a project of this size and complexity takes reliable and timely market intelligence and sector expertise. GfK has been by our side throughout. We’ve been able to make decisions with confidence, knowing they are rooted in accurate data-based evidence and we’re seeing the results in our sales value and market share.”
Luke Gallagher, Senior Buyer at Sainsbury’s
Towards a premium-priced strategy
Using a combination of GfK’s sales data, market overview presentations, ad hoc reporting and analysis of purchase journey and drivers, the team at Sainsbury’s Argos has identified and onboarded new brands including NEFF, Miele, Smeg, AEG, Zanussi, Haier, Belling and Stoves. Deep dives provided the granular insights needed to prioritize the sub-categories within MDA in order to inform negotiations with suppliers. The analysis focused on the features that most appeal to consumers, as well as purchase drivers and motivations to choose Sainsbury’s Argos versus the competition. Armed with such comprehensive and detailed evidence, the retailer has been empowered to apply its premiumisation and trade-up strategy across the Cooking, Cooling and Laundry categories.
Delivering sales, profit, ASP and market share
Sainsbury’s Argos met its objectives of adding more premium-priced ranges to the major domestic appliance portfolio and moving to higher average sales prices. As a result, the retailer has achieved its goal of increasing revenues, ASP, profit margin and consequently market share.
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