New Home Retail boss John Walden has achieved a lot in his two years at Argos, Retail Week looks at why he was given the top job and what will be on his to-do list.

John Walden was unknown in UK retail just two years ago but when long-standing  Home Retail Group boss Terry Duddy revealed his intention to step down late last year, he quickly emerged as a front-runner for the role.

Walden has set Argos, which had been suffering from sliding sales, on a dramatic turnaround to transform it into a digital leader.

His initiatives have not only returned the retailer to sales growth but are ones that the entire industry is watching.

He has started the wheels in motion to move Argos away from its catalogue heritage. He has brought in a new suite of apps - a big opportunity given that mobile sales represent 16% of sales – helping sales from mobiles grow 124% year-on-year.

Importantly, he has sought to improve its technology to facilitate its digital future and has brought in new talent including digital director Bertrand Bodson from EMI to spearhead the transformation.

He is also seeking to digitise its stores and has removed the old laminated catalogue and pen and paper for a new tablet based ordering system.

Argos’ 700 store estate has long been seen a problem in the multichannel world but Walden is seeking to find a solution. Argos has tied up with online giant eBay to allow shoppers to pick up selected products from its stores.

The trial, which is being watched closely by many retailers, will drive footfall to Argos’ stores and will capitalise on the growing consumer trend of click-and-collect. If successful it could redefine the role of retail stores and could pave the way for more partnerships between on and offline retailers.

Also, in a move that will help it rival Amazon, it is building its product range, with a further 6,000 new lines added ahead of Christmas, including its own brand tablet.

The initiatives have not only stimulated a sales jump but have seen the share price almost double for Home Retail Group over the past year and made Walden the obvious choice to replace Duddy.

WALDEN’S TO-DO LIST

1)   Determine Home Retail’s management structure - Little has been said of how Walden’s promotion affects his role at Argos. Duddy ran Home Retail and Argos simultaneously when he first took the top job, but Walden will need to determine whether he needs someone to manage the day-to-day running of the multichannel retailer. He will have several internal candidates to choose from including commercial boss David Robinson, retail director Steve Carson and new high-flyer digital director Bertrand Bodson

2)   Complete the turnaround job at Argos – Although Walden has made great progress in reviving Argos, the job is far from done. There is much to do to make Argos the “digital leader” that Walden wants it to be.  The retailer has just started trialing its new digital format with only a handful of its 700 stores converted. There are also improvements needed to its digital service with one-click online purchasing just one of the initiatives in development.

3)   Differentiate Homebase – Walden has worked his magic with Argos but now has to decide what to do with Homebase. The DIY specialist has had a recent good run but still needs to clearly differentiate itself in the home improvement market which is dominated by B&Q.  The retailer is vying to be seen as more aspirational than B&Q. Walden must decide whether this is the right strategy and how best to achieve it. It is also seeking to build its multichannel business, currently 6% of its sales, which Walden will no doubt have ideas on how to progress.

4)   Rightsizing the store estate – Although like-for-likes are growing, there still remains a question on whether Argos needs the 700 stores in its portfolio. Many retailers are looking to close stores as multichannel sales diminish the need for a presence on every high street however convenience of pick-up has been one of Argos’ biggest USPs.  Walden will have to decide how many stores is right for Argos

5)   Argos as a delivery partner – Walden’s decision on stores might be determined in part by the success of the collection tie-up with eBay. If successful, Walden has hinted that there could be an opportunity for Argos to widen its click-and-collect fulfillment to other retailers. This could dramatically change Argos’ business model and could make it both a retailer and supply chain partner.

Home Retail appoints Argos boss John Walden as chief executive