Sainsbury’s deal with Argos could boost eBay too

Ebay flogs digital marketing unitSainsbury’s bid for Argos could prove a boon for eBay sellers and customers by opening up a much bigger market for companies which use the site’s marketplace service.
eBay launched its Click & Collect services into Argos’ high street stores late last year, allowing customers to pick up their purchases direct rather than wait for deliveries at home.
There have been fears that Sainsbury’s could axe the scheme if its takeover of Argos is successful, but Fastlane International’s head of consumer research David Jinks claims this is unlikely.
He said: “One reason Sainsbury’s is bidding for the business is to achieve significant economies by closing many Argos stores and merging them with Sainsbury’s outlets where there is spare capacity.
“On the face of it, this would seem to be bad news for eBay customers, who might lose these new click and collect points. However, eBay signed an exclusive multiyear partnership with Argos, so it’s unlikely the relationship will end if the Sainsbury’s takeover goes through.”
The prospect of millions of eBay customers visiting Sainsbury’s stores is likely to be an attractive one for the supermarket giant, Jinks reckons.
He added: “The grocery market is as fierce as it has ever been, and if Sainsbury’s can attract new customers into its stores, who may previously have had an allegiance to another chain, it could be a big win.
“And eBayers could get the advantage of hundreds of new stores to pick up from if the relationship proves a success.”

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