Independent Electrical Retailer - the leading trade magazine for the electrical industry
Expanding at home
Published:  20 September, 2010

As John Lewis announces its ambitious expansion plans and Best Buy’s roll-out continues, other multiple brands are visibly stepping up their act, reports Tom Cole.

John Lewis ended its half-year (to 31 July) in subdued form, recording throughout July the lowest year-on-year increases of the whole period. However, the company was quick to point out that this time last year business was just beginning to recover so the comparison was more challenging.

Over the six months, total sales through the 29 stores and the John Lewis Direct website rose year-on-year by 15%, but whilst ‘fashion’ and ‘home’ sectors prospered, ‘electricals and home technology’ languished behind the others, delivering a more modest improvement of just under 7%. Enough for the Partnership to claim further gains in market share, but it must be noted that two new stores, in Cardiff and Poole (at home), have opened in the past year, so the figures are not strictly comparable. Take out those two, and the year-on-year like-for-like position for electricals is only modestly positive.

The boost from the World Cup was quickly wiped out by a quiet July. Electrical sales increased by around 15% in June, but fell by a percentage point or so year-on-year in July.

All stores, bar Aberdeen, beat last year’s figures and eight (Oxford Street, Peter Jones, Knight & Lee, Bluewater, Kingston, Trafford, Newcastle and Norwich) moved their sales forward over two years. Online sales are up by nearly 40%.

Andy Street, managing director, believes first half form should give partners great confidence for the all-important second half but he is realistic about expectations; “As we come up against stronger figures from last year .…. I suspect we won't finish with another 15% advance, so enjoy this one!”

Expansion

The partnership will be helped by the expansion of its smaller format ‘at home’ shops which specialise in a home and technology assortment. The first opened in Poole last October, followed by Croydon at the end of August, with Swindon and Tunbridge Wells soon to follow.

With a vast catchment area and what it describes as ‘the perfect customer demographic’, its hopes for Croydon are high. The 38,000 sq ft selling floor includes a 72-seat café while dedicated computer points offer every item from the John Lewis Direct website and there is a much improved customer collection facility. A lot of work has also been going on behind the scenes to improve both deliveries to store and to customers.

With John Lewis set to expand this ‘at home’ chain to 30 or more outlets over the next few years and Best Buy’s roll-out well underway (with Derby and Nottingham the latest confirmed locations; reportedly it is seeking 80 big-box stores by 2013), competition is certainly heating up amongst the multiples and the more established are visibly stepping up their act.

Name change

DSGi, soon to be known as Dixons once more, has rejigged its own label ranges in the latest phase of its transformation plan.

With four brands available in both PC World and Currys, it mirrors the supermarkets’ approach to tiered own-brand ranges, for instance from basic to finest. Essentials will offer entry-level small and household appliances such as washing machines and fridges as well as accessories. Logik is designed to be a value alternative in volume categories, like portable TVs, kettles, toasters and headphones. Advent, an established PC World brand, will be extended to include personalised laptop covers and Sandstrom will be the premium range including high-tech TVs to compete with leading high-end consumer brands.

The products are now rolling out and will be in all stores by Christmas. The group has also revealed a tie up with Phones4u who will open fifty concessions this year, following a successful test in Currys. There’s also a new format Electrical Clearance Store in Merry Hill.

Argos is trialing a same-day delivery service in London for the next six months through a partnership with Shutl, a same-day delivery start-up company. This will allow customers using its Check & Reserve online service the option of having purchases delivered in as little as 90 minutes. Prices start at £4.95 with one-hour delivery slots available between nine and nine, seven days a week.

Comet is launching a new look and accelerating its refurbishment programme, though it claims the changes “are not in response to those initiated by rivals”.







  • Click here to visit the Independent Business Awards website

© Copyright 2012 Independent Electrical Retailer. Datateam Business Media Limited. All rights reserved.
Registered in England No: 1771113. VAT No: 834 8567 90.
Registered Office: 8-10 Dryden Street, Covent Garden, London WC2E 9NA
Webmaster