Opinion: As Walden says farewell to Argos, he leaves a better business

The transformation of Argos from the inky world of the catalogue, famously dubbed “the laminated book of dreams”, to a digitally led retailer is not fully accomplished, but departing boss John Walden can look back with some satisfaction on changes wrought.

When he joined, Argos was jokingly associated with stubby pens used to fill in orders and lengthy collection queues. Certainly it was making progress in ecommerce – in 2013 internet sales accounted for 42% of the total.

As he stands down, Argos is becoming known for innovative partnerships, such as with eBay, digital innovations and fast-track fulfilment options. Internet transactions represented 49% of the total, and within that m-commerce 28% of overall revenues.

“Despite the shift at Argos, there will certainly be challenges to come. Argos’s operating profit fell last year when costs rose, reflecting investment in key aspects of transformation such as Fast Track”

George MacDonald

Such change caught the eye of Sainsbury’s, which sees the chance through its deal with Argos to create a more powerful business spanning food to fashion and set up to cater to changing shopper habits.

Despite the shift at Argos, there will certainly be challenges to come. Argos’s operating profit fell last year when costs rose, reflecting investment in key aspects of transformation such as Fast Track.

However, the case for such investment is strong, as Walden discusses in an interview with Retail Week. The traditional retail business model is under pressure. That is unlikely to change, and is a key to the tie-up between JS and Argos. If successful, the enlarged business will be positioned to fend off threats as well as make the most of opportunity.

In his farewell letter to staff, Walden concluded: “I have taken seriously my responsibility to help create a better future for you and your families.”

At a time when retail has had more than its share of bad headlines, Walden’s words were eloquent testimony to the industry at its best – forward-looking, entrepreneurial and a conscientious employer.

The same will be said again if the link-up with Sainsbury’s proves successful.

New chairman needed at Sports Direct

As Sports Direct’s AGM nears, the retailer continues to attract controversy.

But the AGM could provide a chance for a reset at Sports Direct. When he appeared before MPs in June, Mike Ashley came across better than might have been expected as he acknowledged failures.

Ahead of the meeting the retailer will publish an independent report on working practices, and an external evaluation of the board is planned in this financial year.

Love him or loathe him, Ashley has earned his place on the list of great retail entrepreneurs and has showed some signs of change.

The best thing that could happen would be the appointment of a new chairman to replace Keith Hellawell. Sports Direct needs a chairman able both to challenge and bring the best out of Ashley.