With the demise of the UK retailer that I knew and loved, where will people go to make that important first purchase?
The pay-as-you-go market is a perfect fit for young first-time users whose parents are helping to make that purchasing decision (and possibly paying for it). The problem is that the UK has a shortage of non-specialist retailers that stock mobile phones. Woolworths appealed to first-time buyers, offering user-friendly entry-level devices, jazzed up with features like unique colours or free gifts. Bundling phones with items like jewellery, phone socks or licensed merchandise had always helped lure first-time users into Woolworths stores.
In my view, Woolies’ demise is an opportunity for other retailers. But the question is whether existing mobile phone retailers will increase their share of the market or whether new players step into the breach. It’s an opportunity for supermarkets like Asda to take grab a bigger share of the market. They’ll need to consider what drove customers to Woolworths and perhaps adapt their ranges to appeal to this type of customer. They’ll also have to understand how this customer works and roll out some clever point-of-sale and marketing material.
It certainly feels like there is space for other retailers to get involved, but it might be more about who will be brave enough, given the massive impact of the current economic climate on the retailing industry.
It’ll be interesting to see if anyone takes on the challenge of capturing the market share that once belonged to Woolworths. I wonder if there’s anyone creative and resourceful enough to fill the gap.
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