Articles / What Leadership Style Does Argos Use? Digital Transformation Through Transformational Leadership
Leadership StylesDiscover Argos's transformational leadership approach driving digital transformation, employee engagement, and retail innovation under Sainsbury's ownership. Expert analysis included.
When examining what leadership style does Argos use, one discovers a fascinating evolution from traditional retail hierarchy to cutting-edge transformational leadership. Argos has adopted a transformational leadership approach that emphasises coaching, digital innovation, and employee empowerment—a stark departure from the command-and-control structures that once dominated British retail.
This transformation didn't occur in isolation. Since Sainsbury's acquired Argos for £1.4 billion in 2016, the retailer has undergone a remarkable leadership metamorphosis that mirrors the broader challenges facing brick-and-mortar retailers in the digital age. Like Churchill's wartime leadership adapting to unprecedented circumstances, Argos's leadership team has demonstrated the quintessentially British trait of pragmatic innovation under pressure.
Argos's branding strategies build around choice, value, and convenience—the exact features it has offered its customers since its catalog beginnings. This legacy foundation provides crucial context for understanding their current leadership philosophy. The company that once provided "internet-style shopping before the internet" required leaders who could honour tradition whilst embracing radical change.
The leadership challenge was monumental: How does one transform a company built on paper catalogues into a digital-first operation without losing the essence that made it successful? The answer lay in adopting transformational leadership principles that would inspire rather than coerce change.
1. Inspirational Motivation Through Digital Vision
Argos's leadership demonstrates inspirational motivation by articulating a compelling digital transformation vision that resonates across all organisational levels. Like Nelson's signal at Trafalgar, the message is clear: expect every employee to do their duty in the digital revolution.
The company's strategic focus on becoming the UK's third most visited retail website whilst maintaining physical presence through Sainsbury's stores exemplifies how transformational leaders create exciting, achievable visions that motivate teams to exceed expectations.
2. Idealised Influence: Leading by Example
Former marketing boss Gary Kibble's approach of breaking down hierarchical barriers and opening marketing leadership boards to different employees monthly demonstrates idealised influence in action. This "follow me" leadership style encourages participation rather than passive compliance.
The leadership team models the collaborative, innovative behaviours they seek throughout the organisation. When senior executives actively participate in digital transformation initiatives rather than merely directing them, they establish credibility and trust.
3. Individualised Consideration: Coaching Over Control
Through effective leadership style adoption, specifically coaching leadership, Argos provides little direction to employees in order to attain their full potential in a strategic manner. This represents a dramatic shift from traditional retail management approaches.
Research indicates that most of Argos Limited's workforce is satisfied with the leadership style adopted by company leaders, with leaders influencing employees very well to improve efficiency and achieve organisational goals. This satisfaction stems from leaders treating employees as individuals with unique strengths rather than interchangeable resources.
4. Intellectual Stimulation: Innovation Through Challenge
Argos' retail innovation strategy has been to test new trends and roll them out when they're successful, including early adoption of in-store technology, replacing bulky catalogs with iPads. This experimental approach requires leaders who stimulate creative thinking rather than punish failure.
The marriage between Sainsbury's and Argos presented unique leadership challenges. In 2019, the brands combined marketing roles under group marketing officer Mark Given, signalling deeper integration. This wasn't merely corporate restructuring—it represented a fundamental shift towards unified transformational leadership.
Sainsbury's plans to boost engagement by extending the Argos range, fulfilling new product categories directly by suppliers, and investing in the Argos website, app and customer relationship management. Such ambitious integration requires leaders capable of managing complexity whilst maintaining distinct brand identities.
Leveraging data across all three businesses (Sainsbury's, Argos, and Tu Clothing) to better capture customers online has become crucial, with pooled data allowing surgical customer targeting. This strategic approach demands leaders comfortable with ambiguity and rapid iteration.
The leadership philosophy mirrors the Royal Navy's tradition of decentralised command: provide clear mission parameters, then trust capable subordinates to execute. Argos's analytics teams are embarking on major transformation, stretching imagination about what digital data and insights can bring to operations.
Argos has purchased applications including SoftCo ExpressAP for AP Automation, New Relic APM for Application Performance Management, and Microsoft 365 for Collaboration, demonstrating leadership commitment to providing teams with cutting-edge tools.
This investment philosophy reflects transformational leaders' understanding that empowering employees requires more than inspirational speeches—it demands tangible resource allocation.
The COVID-19 pandemic tested Argos's leadership approach severely. Unlike some competitors, Argos managed to stay afloat during COVID-19 and is positioned to come back stronger. This resilience stemmed from transformational leadership principles emphasising adaptability and employee empowerment.
The leadership response demonstrated several key principles:
The ability to clearly articulate brand purpose means people can come with you on the journey, with customer voice driving transformation rather than executive mandate. This approach reflects the British preference for consultation over diktat, building consensus rather than demanding compliance.
Research shows transformational leadership in retail delivers fantastic results—improving company culture, work ethic and practices within organisations, particularly as the sector adapts to post-COVID realities. Argos's approach aligns with broader industry movements towards more engaging, empowering leadership styles.
Studies of retail chains show moderate negative correlation between transformational leadership style and employee turnover rate, suggesting Argos's approach contributes to workforce stability—crucial given persistent retail labour shortages.
The numbers tell a compelling story. Argos leads sales of sporting goods and outdoor products in the UK, beating retailers like Sports Direct and Nike, whilst customers read 35% of all emails sent by the company—high for the retail industry.
Such performance metrics reflect transformational leadership's impact on customer engagement and operational excellence.
Monthly formal meetings between CEO and Vice presidents to analyse company performance, evaluate new projects, and follow up ongoing projects demonstrate structured yet flexible governance approaches. This balance between accountability and autonomy characterises effective transformational leadership.
Formal talent development pipelines offering four distinct pathways provide all employees with leadership practice opportunities, whether personal or for large business units. This investment in human capital reflects transformational leaders' belief in unlimited potential.
The approach echoes the British military tradition of developing leaders at every level—from lance corporals to field marshals—recognising that tomorrow's challenges require today's talent development.
Sainsbury's runs experiments like three-month trials of checkout-free grocery shops, using SmartShop Scan, Pay & Go smartphone apps. This experimental mindset, championed by leadership, creates cultures where innovation thrives.
The senior leadership team was reduced by more than 20% since March 2019, with hundreds of management roles eliminated across commercial, retail, finance, digital, technology and HR functions. Managing such transitions requires exceptional transformational leadership skills.
These challenges tested leaders' abilities to maintain morale whilst implementing necessary changes—a distinctly British challenge requiring stiff upper lips and clear communication.
Argos faced a particularly tough start to 2024 with poor weather and online traffic declines caused by regulatory changes to cookie consents. Navigating such external pressures whilst maintaining transformational leadership principles requires remarkable resilience.
With revenues growing to $5.17 billion in 2024, Argos continues investing in emerging technologies such as AI, Machine Learning, IoT, and cloud-based applications. Such investments require leaders comfortable with technological complexity and rapid change.
Modern transformational leadership increasingly encompasses environmental and social considerations. Argos's leadership must balance profit maximisation with sustainability goals—a challenge requiring both commercial acumen and moral leadership.
What leadership style does Argos use? The answer reveals a sophisticated blend of transformational leadership principles adapted for digital-age retail challenges. Like Drake's circumnavigation—ambitious, meticulously planned, and ultimately transformational—Argos's leadership approach combines British pragmatism with innovative thinking.
The company's success demonstrates that transformational leadership isn't merely theoretical construct but practical necessity for retailers navigating digital disruption. By emphasising inspiration over control, collaboration over hierarchy, and innovation over tradition, Argos has created a leadership model worthy of study and emulation.
The key takeaway for business leaders: Transformational leadership succeeds not through grand gestures but consistent application of core principles—individualised consideration, intellectual stimulation, inspirational motivation, and idealised influence. In an industry where 70% of change initiatives fail, Argos proves that thoughtful, sustained transformational leadership can indeed beat the odds.
The Argos story continues evolving, but its leadership philosophy provides a compelling blueprint for any organisation seeking to balance heritage with innovation, efficiency with empowerment, and profit with purpose.
What specific leadership style does Argos primarily use? Argos primarily uses a transformational leadership style combined with coaching approaches, providing strategic direction whilst empowering employees to reach their full potential. This creates high employee satisfaction and organisational effectiveness.
How has Sainsbury's ownership affected Argos's leadership approach? Since the 2016 acquisition, leadership functions have been integrated, with combined marketing teams and unified digital strategies, whilst maintaining distinct brand identities and leadership cultures.
What evidence exists of Argos's leadership effectiveness? Research shows most Argos employees are satisfied with leadership styles, with leaders influencing staff very well to improve efficiency and achieve goals. Performance metrics including market leadership in sporting goods and high email engagement rates support this.
How does Argos develop future leaders? Argos operates formal talent development pipelines with four distinct pathways, providing leadership practice opportunities for employees at all levels, whether for personal development or managing business units.
What challenges does Argos's leadership face? Key challenges include managing digital transformation whilst reducing management layers by over 20%, navigating external pressures like regulatory changes, and maintaining employee engagement during restructuring.
How does Argos's leadership approach compare to other retailers? Studies show Argos's transformational leadership approach aligns with successful retail sector trends, contributing to lower employee turnover and improved performance compared to traditional authoritarian retail management styles.
What role does technology play in Argos's leadership strategy? Technology serves as a leadership enabler, with significant investments in analytics, AI, and digital platforms that empower data-driven decision making and support the company's £5.17 billion revenue growth.