DIGEST
PHONES 4U NOT MOURNED BY ALL T
he recent demise of Phones 4U could benefit the newly created Dixons Carphone entity.
Phones 4U went into administration mid-September following decisions by Vodafone and most recently, EE to stop supplying the consumer tech retailer. These recent decisions by EE and Vodafone are
seen by some to be be an indication that networks in the UK are moving towards dealing with customers more directly. Phones 4U and its investor since 2011, BC
Partners, are said to have felt blindsided by the exit of EE and Vodafone, stating that the company was trading well. Phones 4U was subsequently left with none of
the ‘big three’ UK network carriers on its books. However the UK Government seems to be backing
Marks and
the operators, dismissing suggestions of improper behaviour. O2 ended its agreement with Phone 4U earlier this year. Phones 4U runs 550 stores across the UK and employs 5,596 people. Investec believes that Carphone Warehouse,
which merged with Dixons earlier this year (Carphone Warehouse and Dixons announce merger,
RetailTechnology.co.uk, 16 May 2014) and currently offers all three networks in its stores, could be set to gain market share as customers exit two-year agreements and switch from Phones 4U to other retailers. As a result of the merger, the two major UK High
Street consumer technology retailers, Carphone Warehouse Group and Dixons Retail, became Dixons Carphone in a deal worth £3.8 billion.
APPLE PAY TO BOOST MOBILE RETAIL T
he recent unveiling of Apple Pay (Apple Pay affirms NFC in mobile payments drive,
RetailTechnology.co.uk, 10 September 2014) will allow customers to pay at a cash register by holding a device up to a sensor. Philip Rooke, chief executive of e-commerce
platform Spreadshirt, said that Apple Pay will make a huge impact in the US, as well as in the UK where contactless payment is already common. “A few weeks ago I saw a friend who had taped
his contactless card to his phone, as the phone was always to hand and easier to get out than his wallet. This is just the next logical step. “Mobile is an integral part of the shopping
browsing process, we have 30% of all our traffic from mobile, but payment via mobile can still be
tricky. Perhaps this is now the moment for easy offline and online payments.” Rooke warned however that retailers need to
believe in it enough to install new equipment. “Consumers will also need to be convinced the security will be better than the recent incident with celebrity naked selfie pictures.” “Using mobile and wearables in-store for
payments will create a snowball effect on other uses of the tech in-store, such as showrooming, coupon collection at point of sale and in-store navigation,” added Viv Craske, head of planning and digital for Live & Breathe. “As a result, shoppers will use their mobiles
more not just during the path to purchase, but in- store too.”
Spencer’s recent Scandinavian incursion, which includes the opening of 15 franchise stores across Finland and Norway, is a natural move for a retailer that is already successful in mainland Europe, according to Tristan Rogers, chief executive of retail profitability company Concrete. “By taking the franchise route through partnerships with S Group and Pocos Group, M&S will gain the support and local expertise that is needed to perform well in this new marketplace,” said Rogers. “However, M&S must also make sure it has effective planning, communication and collaboration processes in place to ensure that all areas of the brand are linked up for the roll out of new stores,” he warned.
www.retailtechnology.co.uk
Autumn 2014
07
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