The much anticipated strategic review of Argos by its managing director John Walden was delivered this week from the relative comfort of a first-half performance that registered like-for-like sales growth of 0.6%.

The much anticipated strategic review of Argos by its managing director John Walden was delivered this week from the relative comfort of a first-half performance that registered like-for-like sales growth of 0.6%. Unspectacular, but growth nonetheless.

While the short-term hopes for the business continue to look fragile, there were highlights within the figures, not least the fact that Argos’ multichannel sales penetration has increased to 51% of total sales. It is easy to forget among the calls for change that with 440 million site visits in the past 12 months, it is already the second most visited online retailer in the UK.

Against this backdrop, Walden has unveiled a five-year plan to transform the business into a “digital retail leader”. By turning his back on its catalogue heritage he has set out his stall and made a clear break from the past.

Based around four key tenets – a repositioning of sales channels; greater product choice and faster availability for customers; a product assortment with “universal” customer appeal; and cost efficiencies – the plan will be backed by £300m, to be invested in the first three years.

The vision has credibility, but the model will attract its critics, who argue the plan is not ambitious enough and highlight the fierce competition the retailer faces from online giants such as Amazon.

But it will be the news Argos will stand by its huge store portfolio that will attract the most debate. Owner Home Retail has long argued that its store network gives it an advantage over its online rivals, but Walden needs to articulate how a physical footprint of this scale can be leveraged to achieve a sustainable performance.

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Argos to leave catalogue heritage behind