Argos facing overhaul plan

The Argos store on Eastborough, which used to be a Tesco store. Home Retail Group, which owns Argos, is planning to close or relocate at least 75 of the it's stores over the next five years. Picture by Andrew Higgins 124310a 24/10/12

The Argos store on Eastborough, which used to be a Tesco store. Home Retail Group, which owns Argos, is planning to close or relocate at least 75 of the it's stores over the next five years. Picture by Andrew Higgins 124310a 24/10/12

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Uncertainty is hanging over the future of Scarborough’s two branches of Argos after bosses announced that 75 shops could go in a planned overhaul.

A spokeswoman said that they were not yet ion a position to comment on individual stores and staff would be consulted first – with any closures taking place over a five-year period.

The Argos store in the Brunswick shopping centre. Home Retail Group, which owns Argos, is planning to close or relocate at least 75 of the it's stores over the next five years. Picture by Andrew Higgins 124310b 24/10/12

The Argos store in the Brunswick shopping centre. Home Retail Group, which owns Argos, is planning to close or relocate at least 75 of the it's stores over the next five years. Picture by Andrew Higgins 124310b 24/10/12

The retailer’s parent company, Home Retail Group, made the announcement as it reported a 37 per cent fall in group pre-tax profit to £18m in the six months to the start of September – however Argos only made £3.3m during the same period.

Home Retail said it had reviewed Argos’ 739 stores on the basis of several factors, including profitability and attractiveness of location.

The company said in a statement: “As a result, it is likely that Argos will close or relocate at least 75 stores as their leases come to an end over the next five years.”

Chief executive Terry Duddy added: “The transformation plan aims to deliver growth by repositioning Argos as a digitally-led business from a catalogue-led business, leading the market growth of digital commerce through online, mobile and tablet, and offering customers more products with the fastest, most convenient fulfilment options.”

The Argos catalogue also faces a lower circulation.