Argos to sell branded clothing

Retail giant Argos has announced that it wants to start selling branded clothing, however, the announcement has been met with a cool reception from the branded fashion sector.

Selling everything, from electrical items to furniture, Argos is the UK’s biggest general merchandise retailer and it is understood to be eyeing major fashion brands. Its hit list is expected to include streetwear brands, such as Gio-Goi and Ringspun.

The timing of Argos’s move into fashion has yet to be confirmed but it has approached key buyers at etailer ASOS, branded young fashion chain USC and department store chain House of Fraser about potential roles. It is not yet known whether the fashion offer will be available across all of Argos’s channels or whether it will operate under the Argos fascia.

It will be Argos’s first foray into fashion since 2003, when it sold its GUS Home Shopping business to Littlewoods (now Shop Direct), including its direct sales retailer Additions, which sold some clothing.

However, many young fashion brands contacted by Drapers said they would not sell through Argos for fear of over-distribution or damaging their brand positioning.

“Do you want your brand to be next to a microwave or kettle?” said Will Rigg, founder and creative director of streetwear brand Fly53. “Fashion products [have] to have synergy with the environment. There are also dangers of over-distributing.”

Johnny Hewlett, Diesel UK managing director, said: “There’s a risk of over-commoditising what is anything but a commodity product.”

Catalogue and general retailers have a chequered history with branded fashion offers. Next axed its Brand Directory website last autumn, only 18 months after it launched, after it struggled to drive significant traffic. Meanwhile, Tesco has been forced to turn to lesser-known brands for its stand-alone branded fashion site because more established names were sceptical of its scale and positioning.

However, other key fashion businesses predicted Argos could become a major player. A senior buyer at one major etailer said Argos’s distribution network, customer knowledge and marketing clout made its entry into fashion “un-ignorable”.

The source said: “Amazon and Play have been born out of a trendier platform [online] but they are essentially after the same audience [as Argos]. Some brands need to recognise they are in a mass-market game.”