UK's Argos to open digital stores in Sainsbury's supermarkets

LONDON, United Kingdom - British general merchandise retailer Argos has struck a deal with supermarket Sainsbury's to open 10 new format digital stores within existing Sainsbury's stores.

Argos, which is owned by Home Retail Group, said the stores, ranging in size from 1,000 to over 5,000 square feet, will provide shoppers with a choice of over 20,000 non-grocery products which they can either buy in store using tablets, or reserve online for collection.

It said an extended range of around 40,000 products can also be ordered in store for home delivery.

The 10 digital stores will open by summer this year.

Sainsbury's is seeking partners because it has forecast that over the next five years about 25 percent of its store estate will have some under-utilised space. The firm operates over 1,200 supermarkets and convenience stores.

Argos is expanding its reach because its new distribution model allows it to provide customers in any Argos location with a choice of around 20,000 lines within hours.

It already trades from 756 stores in the UK and Ireland.