CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Argos pushes for same day delivery

Article By: ,  Financial Analyst
October 8, 2015 9:36 AM

Online retailers are looking for new ways to attract customers and Argos has stepped up to the challenge of how to deal with home deliveries by becoming the first British retailer to offer a same-day service across the UK up to 22:00, seven days a week, 364 days a year.

Called Fast Track, the service will cover the company's 20,000 most popular products. Customers will have the choice of four time slots throughout the day and there will be a flat delivery rate of £3.95.

The firm believes this "ultra-fast" service will be particularly popular in the run-up to Christmas.

John Walden, Chief Executive of Home Retail Group, which owns Argos, said the company has been an industry leader for years. 

"Argos led the way with Click & Collect 15 years ago," he explained.

He said that customers can continue to shop in the traditional ways if they choose to, but that Fast Track is the "next big innovation" and brings the firm's offering into the digital age. "No other retailer can offer the breadth of products immediately or at that speed," he added.

Delivery costs

Critics question whether the Fast Track service from Argos will be successful – and if the company can afford it.

In July, Tesco became the second big retailer to start charging customers for in-store collection. John Lewis switched to charging for the service on orders worth less than £30, saying it could no longer absorb the cost of free deliveries.

However, Argos says it has the necessary infrastructure to keep costs low.

The firm rolled out a new UK-wide delivery system last year. It has big warehouses and around 150 larger hub stores, which can quickly replenish smaller stores with the most popular stock.

Argos is also in the process of hiring nearly 2,300 permanent drivers to make home deliveries from the hub stores. The company is also recruiting 1,000 temporary drivers for the peak Christmas period.

While the Argos scheme may be the biggest – it's not the fastest. Earlier this year, Amazon launched Prime Now, which offers shoppers in parts of London and Birmingham to order via a mobile app and get products within an hour. However, the service is only available to Amazon Prime members.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024