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Rise and fall of 'unloved child' Argos from iconic catalogue to Holly Willoughby bras
Argos was once one of the UK's most-loved brands, but after years of struggle and competition from online giants like Amazon, it now faces a very perilous future
Since 1973, Argos has been one of the UK's most recognisable names on the high street – but it now faces a very difficult future. Earlier today, it was revealed the brand "is not performing to the best of its ability" and has been treated like an "unloved child" due to the strategy of its current owner Sainsbury's.
The future of Argos was thrust into the spotlight after Sainsbury's confirmed in September that it was in talks to sell the retailer to Chinese e-commerce titan JD.com. However, a day later, Sainsbury's ended the discussions with JD.com.
Since then, the retailer has reported massive losses as it slashed thousands of jobs amidst declining sales. And now experts have likened it to being the black sheep of the family.
But how has the once much-loved brand famed for its catalogues and celebrity tie-ins – Holly Willoughby, to name but one – got to this stage?
The foundations
Argos was launched in 1973 by Richard Tompkins, and was based on his already-popular Green Shield Stamps scheme where shoppers collected stamps to exchange for goods from a catalogue. However, realising customers wanted to just spend cash – not stamps – he rebranded them as Argos and became the go-to company for catalogue shopping.
In essence, customers were made to write down the product number, pay at the till, and then collect the item from the stockroom.
The name Argos was reportedly chosen partly for its early alphabetical listing, and because of the Greek city of Argos where the found regularly visited on holiday.
The peak
Argos achieved its peak cultural and commercial influence throughout the 1980s and 1990s.
It's twice-yearly catalogue was arguably the company's most important asset, becoming a true cultural staple – and a bit of an icon of British retail history.
It was one of the most widely printed publications in Europe, often seen as essential reading in nearly every British home, particularly around Christmas when families used it to create their wish lists.
With around 800 stores across the country, it was estimated that almost the entire population lived within a short distance of an Argos.
The downfall
The downfall begin around the early 2010s, mainly caused by Amazon. Argos's original appeal was that it offered a vast range of goods ordered from a catalogue and delivered to a local collection point – it was essentially an analogue precursor to modern e-commerce.
Once Amazon and other online retailers could offer a wider selection, often at lower prices, and deliver directly to the customer's door, Argos lost its fundamental competitive advantage. It was increasingly difficult for Argos, with its large retail estate and printing costs, to compete on speed and price with online-only competitors.
And the catalogue? Well, printing something once every six months when the internet existed was not something customers really looked forward to any more.
For most, it was out of date the day it hit store shelves. Sainsbury's bought the business in 2016, which has seen most – if not all – stores closed, with Argos moving into Sainsbury's own stores as a concession.
The future?
Recently filed accounts with Companies House revealed that Argos suffered a pre-tax loss of £223.2m for the 12 months to March 1, 2025. The deficit emerged following the retailer recording a pre-tax profit of £37.3m in the preceding financial year.
The figures also revealed that turnover dropped from £4.22bn to £4.13bn during the same time frame. Argos also cut its workforce throughout the year from 12,000 to 9,800 staff members.
In the findings, the firm stated its reduced turnover was "driven by a subdued and highly competitive general merchandise market".
The company noted there had been a "significant reduction" in web traffic during the opening half of its financial year and that a "cooler and wetter summer" left its sales trailing behind projections.
Nevertheless, Argos reported that whilst "remaining highly promotionally driven its sales improved during the final six months "as the online traffic improved". The retailer also confirmed that it achieved year-on-year growth once again in its fourth quarter.
So the future might not be quite so bleak – but it certainly isn't plain sailing for the former retail giant.
Daily Star Sunday
Argos was once one of the UK's most-loved brands, but after years of struggle and competition from online giants like Amazon, it now faces a very perilous future
Since 1973, Argos has been one of the UK's most recognisable names on the high street – but it now faces a very difficult future. Earlier today, it was revealed the brand "is not performing to the best of its ability" and has been treated like an "unloved child" due to the strategy of its current owner Sainsbury's.
The future of Argos was thrust into the spotlight after Sainsbury's confirmed in September that it was in talks to sell the retailer to Chinese e-commerce titan JD.com. However, a day later, Sainsbury's ended the discussions with JD.com.
Since then, the retailer has reported massive losses as it slashed thousands of jobs amidst declining sales. And now experts have likened it to being the black sheep of the family.
But how has the once much-loved brand famed for its catalogues and celebrity tie-ins – Holly Willoughby, to name but one – got to this stage?
The foundations
Argos was launched in 1973 by Richard Tompkins, and was based on his already-popular Green Shield Stamps scheme where shoppers collected stamps to exchange for goods from a catalogue. However, realising customers wanted to just spend cash – not stamps – he rebranded them as Argos and became the go-to company for catalogue shopping.
In essence, customers were made to write down the product number, pay at the till, and then collect the item from the stockroom.
The name Argos was reportedly chosen partly for its early alphabetical listing, and because of the Greek city of Argos where the found regularly visited on holiday.
The peak
Argos achieved its peak cultural and commercial influence throughout the 1980s and 1990s.
It's twice-yearly catalogue was arguably the company's most important asset, becoming a true cultural staple – and a bit of an icon of British retail history.
It was one of the most widely printed publications in Europe, often seen as essential reading in nearly every British home, particularly around Christmas when families used it to create their wish lists.
With around 800 stores across the country, it was estimated that almost the entire population lived within a short distance of an Argos.
The downfall
The downfall begin around the early 2010s, mainly caused by Amazon. Argos's original appeal was that it offered a vast range of goods ordered from a catalogue and delivered to a local collection point – it was essentially an analogue precursor to modern e-commerce.
Once Amazon and other online retailers could offer a wider selection, often at lower prices, and deliver directly to the customer's door, Argos lost its fundamental competitive advantage. It was increasingly difficult for Argos, with its large retail estate and printing costs, to compete on speed and price with online-only competitors.
And the catalogue? Well, printing something once every six months when the internet existed was not something customers really looked forward to any more.
For most, it was out of date the day it hit store shelves. Sainsbury's bought the business in 2016, which has seen most – if not all – stores closed, with Argos moving into Sainsbury's own stores as a concession.
The future?
Recently filed accounts with Companies House revealed that Argos suffered a pre-tax loss of £223.2m for the 12 months to March 1, 2025. The deficit emerged following the retailer recording a pre-tax profit of £37.3m in the preceding financial year.
The figures also revealed that turnover dropped from £4.22bn to £4.13bn during the same time frame. Argos also cut its workforce throughout the year from 12,000 to 9,800 staff members.
In the findings, the firm stated its reduced turnover was "driven by a subdued and highly competitive general merchandise market".
The company noted there had been a "significant reduction" in web traffic during the opening half of its financial year and that a "cooler and wetter summer" left its sales trailing behind projections.
Nevertheless, Argos reported that whilst "remaining highly promotionally driven its sales improved during the final six months "as the online traffic improved". The retailer also confirmed that it achieved year-on-year growth once again in its fourth quarter.
So the future might not be quite so bleak – but it certainly isn't plain sailing for the former retail giant.
Daily Star Sunday