An eyebrow or two was likely raised in the retail industry this week, when Argos announced its new Fast Track delivery service – same-day service any day of the week, provided the order is placed before 10pm.
While it might seem like a reaction to the UK launch of Amazon Prime Now to some, it makes a lot of sense. We’re about to hit the busiest trading period of the year, so taking its delivery services in-house gives Argos the opportunity to scale up workforce and logistics to cope with spikes in activity, such as Black Friday.
And as a multichannel retailer, naturally Argos is also rolling out the service into stores, offering free delivery to the customer’s local outlet – as opposed to the £3.95 charge for home delivery. Again, this is logical, as the cost to fulfil into store is going to be lower than home delivery (if the product isn’t sitting there already), and it takes some of the pressure off fulfilment networks.
Argos’ big money promise for store collectors is that they can collect the item within 60-seconds of being served, as the retailer’s stock management is able show estate-wide location and availability of products.
60 seconds is a big gauntlet to throw down – especially when you consider we’re about to career into the Christmas trading period. Its investment may give Argos greater control over fulfilment of Black Friday orders, but we can see the ‘quick click-and-collect’ promise really catching on as we move through December, and this could cause serious headaches.
Although Argos is taking on 1,000 extra staff for the Christmas period, those personnel are going to need to get up to speed quickly to cope with a potentially even bigger than usual late rush.
Its retail park locations and extended opening hours are a natural magnet for consumers fitting their festive shopping around a busy schedule, especially if they can secure speedy service at no extra charge.
But what seems to the customer like a simple act of picking something up, is reliant on a well-oiled machine at the back end. Argos has the inventory visibility, but it needs to perfect the chain of events between order and collection to deliver on time – and to expectation – in the store environment.
Argos will also need to upskill these temporary staff very quickly on how to work the technology required to complete transactions – and of course they will need a robust network to cope with the increase in order volumes. Customers are going to be twice as grumpy if they have to wait due to technical problems AND they are in a hurry.
As we mentioned in a blog post earlier this year, Argos is doing some really savvy things around technology, which reinforces its credentials as a cutting-edge, customer focused retailer. During this highly pressured trading period, let’s hope its new scheme is optimised for the tidal wave of store pick-ups as well as home deliveries.