Argos is to step up its attempts to sell clothing this summer as it takes over exclusive rights to distribute the Cherokee brand in the UK from Tesco.
Tesco will stop selling the US brand, which it has stocked for over a decade, in April as it focuses on its own labels F&F and Value.
The exit from the long-term deal comes as new chief executive Dave Lewis simplifies operations at the supermarket and tries to revive trading.
Argos already sells a few clothing brands, including a girlswear range backed by the former Spice Girl Emma Bunton, but it has only dabbled in selling clothing since selling off its Additions clothing catalogue to Littlewoods in 2003.
It has steered clear partly because of the more complex logistics required and the vagaries of sizing, which mean shoppers tend to return a higher proportion of clothing to retailers who must then check and repackage it.
Argos would not confirm whether it would be displaying clothing in its stores but did say it would not be offering changing rooms.
David Robinson, Argos’s chief operating officer, said: “Part of our transformation strategy is to broaden our product ranges and bring on board more great brands which our customers know and want. Cherokee is already a well-established clothing brand with UK shoppers and we are pleased to be able to offer our customers convenient, nationwide access to a range of new, quality Cherokee products later this year.”
Analysts said Cherokee did not have a strong brand position in the UK after being neglected by Tesco in recent years, and Argos’s move was unlikely to have a major impact on the clothing market.
Tony Shiret at BESI said: “Argos’s systems are better set up then they once were and it should be able to handle clothing remotely or via its big stores using the hub and spoke method. Argos needs to move the product mix away from electricals and add products which are not so low margin so I can see why they are doing this. But I would think clothing is quite difficult for them to sell.”
