Post Office to take on Argos in non-food push

The Post Office is to square up to the likes of WHSmith and Argos with a general merchandise offer that will land in more than 500 stores by Christmas. The Post Office is to sell a boosted range of its traditional lines such as greeting cards and stationery, but is adding books, DVDs, CDs, toys and electricals to the product mix in 540 directly-managed outlets.

DVD players and micro hi-fis will be on offer on shelf, but the Post Office also plans to offer bulkier electricals and household items through an in-store catalogue that will be launched before Christmas. 'This proposition has excellent resources to draw from,' said a Post Office spokeswoman. 'We have the Royal Mail and Parcelforce, or customers will be able to pick up products [ordered] from the Post Office.'

Some 99 per cent of the UK population lives within three miles of a Post Office. Its aggressive move into non-food comes via a partnership deal with ISA Retail, which also supplies Boots, Sainsbury's and John Lewis.

Post Office sales and marketing director Gordon Steele said: 'Post Office branches occupy some of the best retail space in the country. Through transforming these outlets with new fixtures, layout and lighting, as well as offering value-for-money products, we will set a challenge to high street retailers.'

The Post Office plans to offer at least some of its non-food range in all of its 14,600 branches. Retail Knowledge Bank senior partner Robert Clark was sceptical of the Post Office's move. He said: 'In the days of intense competition and professional management among the competition, it is going to be tough for the Post Office.'