Sainsburys completes takeover of HRG

Grocery giant Sainsburys has completed its takeover of the Home Retail Group, home of Argos and Habitat.

In a statement issued on Friday (2 September), Mike Coupe, Chief Executive of Sainsbury’s, said: “We are delighted our acquisition of Home Retail Group is now complete. The combination of Sainsbury’s and Home Retail Group creates one of the UK’s largest food and non–food retailers, offering customers over 90,000 products in over 2,000 stores and across market leading digital channels, employing 195,000 colleagues across the UK and Ireland.”

As previously reported, Sainsburys main target has been Argos and its newly developed Fast Track last mile delivery network. Sainsburys believes that this within the hour delivery network has potential to change the online delivery environment in the UK.

This focus on delivery was also evident in the official comment that John Rogers, Chief Executive of Sainsbury’s Argos, made on Friday: “The way people shop is changing – customers expect choice, convenience, flexibility, fast delivery and to shop whenever and wherever they want.

“I am excited about leading the newly formed Sainsburys Argos management team.

“Our customers will benefit from great quality products and services and fast delivery networks, so whether customers want home delivery, Click & Collect or to visit our stores, we will make it easy and convenient for them.”

Amazon has been ramping up its one hour delivery network across the UK and is believed to be improving its groceries offering too. Sainsburys move will bring it into direct competition with the online giant and should drive competition into the market.