NEWS Dixons lifts Harrods tech sales 80%
Retailer sets sights on super-rich as CEO reveals half of Dixon’s turnover comes from 2% of customers, from one store by Dominic Sacco
Sascha C. Kolb
HARRODS’ technology department says it expects the strong demand for premium tech to rise in 2014 and beyond. Sales have risen 80 per
cent since Dixons began running the department five years ago, with half of the section’s turnover coming from just two per cent of customers in the famous London store Dixons Retail concession
director Sascha C. Kolb, who runs Harrods’ tech department, told PCR: “There is still very strong demand for high-end technology. The credit crunch didn’t happen in Harrods – it has annual revenues of over £1 billion. And this is the best tech store in the world. “We’re seeing more Chinese and Russian customers, and people from
the Middle East. The super- rich fly over to visit us.” Kolb said Harrods is popular with foreigners because it provides a personal touch. For example, staff learn what the lucky numbers and favoured colours are within a customer’s culture, and can adapt the in-store merchandising to suit.
Dixons Retail CEO
“We’re the only company ever to score 100 per cent customer satisfaction in any department in
Harrods.” Sebastian James, Dixons Retail
Sebastian James added: “Five years ago Harrods asked us to run their technology department. I think it’s safe to say that’s not been a decision they have regretted. Since we’ve taken over sales have grown 80 per cent. “Last year we won the Harrods ‘best concession’
(pictured, below) says there is
strong demand for high-end tech
award, and we are the only company ever to score 100 per cent customer satisfaction in any department in Harrods. We’re very proud of this achievement and for Sascha and his team, who have done a great job. “It’s a fantastic team at
Harrods, incredibly sophisticated, clever and knowledgeable people, and they have to be because 50 per cent of our turnover comes from just two per cent of our customers in this store. “This is a very highly
concentrated market full of very affluent people.” Some of the most expensive items in the store include a £68,000 diamond- encrusted iPhone case, a £20,000 Ferrari camera and a £20,000 set of ‘Diamond Tears’ Monster headphones.
‘Towns must do more to help indies’
The High Street shake-up needed is comparable to the rebuilding of post-World War II Britain, says latest report by Laura Barnes
THE UK’S town centres need to adapt urgently to meet the needs of the communities that they serve for the next 50 years. That’s according to a Beyond Retail report from the taskforce set up following Mary Portas’ review of the High Street. Chairman Mark Williams
has stressed that the shake- up needed will be comparable to the rebuilding of post-World War II Britain. He claims that waiting for normal economic growth to return is unacceptable and will result in a further decline of the High Street. Beyond Retail states that town centres need to
www.pcr-online.biz
“The change in consumer shopping
patterns is not a
short-term fad.” Mark Williams, Beyond Retail
develop an “integrated digital strategy”, incorporating mobile, social media and website, in order to “market the town to drive footfall, and to assist independents that might not have the resources required to take advantage of ever advancing technological capabilities”.
The taskforce suggests that Click and Collect should be coupled with low priced short-term parking to encourage consumers to visit local High Streets. A town centre website should be hosted as a promotional and information platform for multiples and independents in a bid to restore footfall.
The taskforce said it is up
to local authorities to decide what is right for their area. “The change in consumer shopping patterns, from ‘bricks and mortar’ to the ‘bricks and clicks’ multi-channel approach is not a short-term fad,” said Williams.
“Not only is there too
much retail in our urban centres but it is often in poorly configured and designed space and based on a cost model that no longer works for a number of retail operations. “Most of our town centres
need to evolve urgently.” Read our interview with Bill Grimsey about the future of the High Street on page 30.
PCR January 2014 | 7
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