How many stores are needed in the multichannel age is an oft asked question, with many retailers attempting to slim down their estate. But Argos has turned what many view as a risk into an opportunity with its eBay tie-up.

Click-and-collect is undoubtedly popular with shoppers. Some 40% of shoppers used the collection method last Christmas and retailers across the board are heavily investing in the service.

The fact that online goliaths Amazon and now eBay have sought out high street space to offer click-and-collect shows there is a huge customer demand for the service.

However, Argos boss John Walden argues that very few UK retailers are geared up for click-and-collect. To be convenient to the customer, a retailer needs lots of convenient pick up points and a large, efficient distribution network. This is where Argos’ 700 store estate comes in.

It has long been said that the role of the store needs to evolve and adapt to current shopping trends. Online shopping and click-and-collect are two of the biggest and Argos is vying for a slice of the action.

Retail sales are still growing, albeit online is benefiting the most, however ironically people still like the convenience of a store to pick up from.

This tie-up of online and offline gives customers what they want – a local, convenient collection point – and gives high street retailers a chance to benefit from the fastest growing channel in the sector, both from enhanced footfall and a fulfillment fee, and finally a justification for having a large store portfolio.

However, online consultancy eNova Partnership partner Andy Morrey, former head of ecommerce at Argos, warns that it’s too early to herald a new dawn for the retail store and raises a question mark over the profitability of Argos and eBay’s tie-up.

“There are three retailers [including the merchant] in the value chain trying to make margin. I can’t imagine the normal benefit of additional footfall driving sales in Argos’ case,” he said.

Argos boss Walden is clear that this is a trial but he thinks that the model of fulfillment partner could work for the retailer and says there is an opportunity to make some profit.

Morrey suggests that perhaps to make it more profitable Argos should, in fact, cut out middle man eBay and develop its own marketplace selling non-competing products. However, Tesco’s muted entry into this market could indicate that even the biggest retail brands cannot develop an offer to rival eBay or Amazon overnight.

Observers have also questioned whether Argos is too late to the party. Click-and-collect is already well-established and 5,000 strong convenience store network CollectPlus has become the pick-up partner of etail giants including Amazon, Asos, Littlewoods owner Shop Direct and eBay itself.

“There would be a lot more demand if [5,000 convenience store collection network] CollectPlus didn’t exist,” says Morrey.

Moreover, the introduction of Amazon Lockers to stores including The Co-operative’s has made competition even fiercer. Despite this, US retail giants RadioShack and Staples this month dumped Amazon Lockers in their stores as they failed to bring incremental sales.

Consumer uptake for click-and-collect in the UK, however, is growing rapidly and Argos, an established high street name, may be a more trusted route for those unfamiliar with the concept.

Both Argos and eBay should be applauded for piloting this scheme, one which the whole of the high street will undoubtedly be watching closely.