Is your local Argos at risk of closure?
Argos shops across the region could be closed and jobs lost as Sainsbury's look to take over the retailer and relocate sites within supermarkets – impacting around a quarter of branches, sources believe.
Sainsbury's made the revelations after it set out its case for a £1 billion-plus takeover of Home Retail Group, which incorporates both Argos and Homebase.
In Wolverhampton, units in the Wulfrun Centre, Bilston and Bentley Bridge Retail Park are all under threat.
It is believed the city's Homebase branch will be unaffected by the proposed takeover of the retail chains.
In a presentation outlining its plans, Sainsbury's said it would look to shut a number of the 734 shops in the Argos chain and bring them into its supermarkets as concessions.
Sources close to Sainsbury's believe between 150 and 200 Argos sites could be impacted and that places all 16 in the Black Country and Staffordshire under threat, including the three in Wolverhampton.
Councillor Roger Lawrence, the leader of the council, believes any deal is a long way off and played down fears.
He said: "They have said they will look at leases as they come to an end but I don't know what their commercial arrangements are in Wolverhampton.
"With a bid being a long way off the valuation and some Sainsbury's shareholders expressing doubt about the takeover this is something that is a long way down the track.
"It's best not to be too alarmist about it at this stage."
On top of the three in Wolverhampton, Argos has one shop in Walsall at Crown Wharf Shopping Park, two in Cannock at Orbital Retail Park and Cannock shopping centre, one in Kings Square in West Bromwich, one at Bearwood shopping centre in Smethwick, one at Oldbury Retail Park in Oldbury, two in Dudley on the High Street and at the Merry Hill centre, one in Halesowen at the Cornbow centre, one in Rugeley at Pointland Park, two in Stafford at the Hough Retail Park and on Mount Street and finally, one in Lichfield's Three Spires shopping centre.
Walsall's new unit at Crown Wharf Shopping Park has been open for less than a year. Walsall Council leader Mike Bird said: "I would like to think we would escape such a move because it's a brand new purpose-built shop which has been open only a few months.
"It's always worrying times when one firm takes over another as there is always repercussions, but lets hope it's not our shop in Walsall."
No indication has so far been given on what might happen to Argos' distribution centre in Stafford.
Speaking on the proposed closures, Sainsbury's chief executive Mike Coupe said that overall it could expand the Argos chain by rolling out concessions in supermarkets nationwide.
He added that he believes around half of Argos' branches in the country had shop leases with less than five years to run, which offered the opportunity to shut a number of them and move them into Sainsbury's.
There are already 10 Argos concessions in the supermarket in the UK as part of a trial.
Sainsbury's is keen on the 'strategically compelling transaction', which would allow it to realistically compete with rivals such as Amazon, with more than 100,000 general merchandise products between Argos and Sainsbury's.
It also sought to answer critics who have questioned cross-selling opportunities, claiming that more than 40 per cent of households have shopped in both Argos and Sainsbury's over the past year – making this a firm investment for the retail giant to make in an increasingly competitive market.
But Sainsbury's has remained tight lipped on the proposed takeover and said it is still 'considering its position' amid talks of an improved bid for the group, after it was revealed they made a rebuffed approach in November last year.
Sainsbury's have until Tuesday February 2 to make a firm bid to the Argos and Homebase owners under the City Takeover Panel's so-called put up or shut up deadline.
