Operations Insight: Dixons Carphone fighting off Amazon

Over the last four years, Dixons Carphone have consolidated their 25% market share of the UK’s consumer electronics market.  This is despite the fact that across the retail sector, from grocery goods to fashion, online shopping has resulted in significant losses for many high street, bricks and mortar retailers.

In fact, the types of product stocked by Dixons Carphone was one of the main reasons that Amazon and other retailers grew so quickly.  So the operator had to respond early on to the shift in consumer behaviour.  It did so by adopting three main approaches:

  1. It matches its prices to those of Amazon and others by monitoring 100,000 competitor prices.  Moreover store staff are equipped with tablets to show customers that buying in store will cost no more than if they buy online.
  2. The stores were redesigned, for instance to include Nespresso bars, to create a better shopping experience.
  3. Additional services have been offered – for instance, major suppliers such as Apple and Dyson have their own staff in the stores in order to demonstrate and explain their new products.

Source: https://www.bloomberg.com/news/articles/2017-07-03/as-amazon-fear-widens-one-u-k-retailer-shows-how-to-fight-back

This entry was posted in Chap 02 Winning Customers, Chap 04 Location and design, Sector: Retail and tagged , , . Bookmark the permalink.

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