- 9 November 2018
- Transport / Logistics Services
Sainsbury’s owned Argos Fast Track delivery service saw sales grow by 18% in the first half of the 2018 financial year. Sales at Fast Track click and collect grew by 21%.
In H1, Sainsbury’s opened 60 Argos stores in its supermarkets, growing the Argos estate to 251. There are an additional 233 order collection points at other convenience stores and supermarkets.
According to the Sainsbury’s H1 report, it had realised the £160 million EBITDA synergy target nine months ahead of the original schedule.
Across the Group, general merchandise sales to include the Argos brand grew by 1.5% in H1 but margins are still under pressure.
Meanwhile Group sales grew by 3.5% to £1.69bn, or on a like-for-like basis, 0.6%.Operating profit fell from £283 million last year to £152 million this, which the company attributes to one-off integration and restructuring costs.
Chief executive Mike Coupe said: The market remains very competitive and we are transforming our business to meet rapidly changing customer needs.
“Our proposed combination with Asda will create a dynamic new player in UK retail, with the ability to further lower prices and to reduce the cost of living for millions of UK households. The Competition and Markets Authority is conducting its in-depth Phase Two review into the proposed combination and we continue to engage constructively with the CMA and Panel.”
It is worthy of note that Argos acquisition by Sainsbury’s was in a large part due to the Fast Track infrastructure the company had built with its close to perfect nationwide reach that directly competes with Amazon. This seems to be bearing fruit.