UK Retailer Argos Rolls Out Fast Track Same-Day Delivery Service

There couldn't be a better time for retailers to step up their game with same-day delivery, as Amazon is driving more and more of them to do just that. A recent report by The Guardian shows that this is not just going on with Google, Macy's, BestBuy, and more in the US, but also abroad. Ask high-street retailer Argos and it will tell you that if you're going to thrive against Amazon, you're going to have to compete their way, which is offering shoppers a fast online delivery option.

Argos' has launched Fast Track delivery service to to offer same-day delivery to shoppers right before Black Friday and the big holiday season begins. The service is making available 20,000 products to customers with only a flat fee of £3.95, which is less expensive in order to combat Amazon’s low cost Prime Now. In the UK, Prime Now is £6.99 per order and is said to only be available within certain London postcodes, versus Argos' Fast Track delivery, which will be offered all around the UK.

“Argos led the way with click and collect 15 years ago, and customers can continue to shop with us in the traditional ways if they choose to,” said John Walden, chief executive of Argos’s owner, Home Retail Group. He went on optimistically about the new service stating, “But we believe Fast Track is the next big innovation and brings shopping into the digital age for customers. No other retailer can offer the breadth of products immediately or at that speed."

He also stated, “We can do this because we are a different type of retailer. We know where every product is in our network and for customers who shop across digital channels – online and mobile – that means they can get what they want faster and with certainty.” The article mentioned how Walden would not disclose how much Argos had invested in re-engineering its national “hub and spoke” model of 170 larger stores and distribution centers for better quality and delivery speed. Amazon has distribution centers strategically located all over the US, appearing to be the same concept and objective.

Sophie McCarthy, a retail analyst with Conlumino, also commented in the report regarding the best move for Argos to make was to launch same-day delivery. She stated, “This has the potential to be a serious game changer, not only for Argos, but for the wider UK retail market as retailers increasingly chase fulfillment as a competitive weapon. There is no doubt that the introduction of a same-day delivery service for as little as £3.95 is going to be an expensive business for Argos, but the costs of it not competing on delivery are likely to be even higher – its last trading update revealed further sales declines as it struggled to evolve its traditional catalogue to fit the demands of the modern consumer.”

It makes sense for Argos to do it right before the holiday season, as Google, Amazon, Macy's, and others are doing the same. For retailers seeking to drive their sales upward online, a Same-Day Courier like A-1 Express can partner with any retailer and get their same-day delivery program launched quickly. The New Jersey Courier has a national footprint, enabling it to implement the service on a large scale also. Argos and other retailers see the benefits of same-day delivery, and it won't be long until others begin to follow.

Reference: 10.6.15, www.theguardian.com, Rebecca Smithers, Argos squares up to Amazon with same-day delivery across UK