Smartphone sales boost acquisitions by phone stores
Published: 28 May, 2010
As the Apple iPad arrives in the UK, new figures from The Local Data Company show UK mobile phone shops are among the most acquisitive retail sectors. The number of stores grew 12.5 per cent over the past year.
Overall, the number of phone stores in the UK has increased from 3,847 to 4,329 in the year to April 2010. Carphone Warehouse continues to dominate with 812 stores nationally, a slight increase over 2009. But Orange has expanded its retail estate by 37.5 percent, growing from 306 to 407 units at the start of April 2010.
Regionally, the increase in numbers has been most pronounced in Scotland (17 percent) the North West (20 percent), the East of England (19 percent) and Wales (51 percent). Growth in London and the Midlands has been more modest.
And the Local Data Company notes that independents struggle for market share in the sector and only one in five phone shops nationally is not owned by a major chain. Matthew Hopkinson, director at The Local Data Company, said: “Independents often suffer most from the intense web-based competition and we estimate that many operate brand franchises rather than set up under their own name. But there is also an extent to which independents and multiples offer different products. Chains dominate with contract phones and independents thrive off pay as you go phones and other services, like unlocking and repairs.”
Liz Peace, chief executive of the British Property Federation, said: “In some areas, it’s fair to say that people think phone shops are like pound stores in that they’re a bit of a plague. They do increase footfall in high streets, but for many other retailers it’s the wrong kind as many kids who go to play with new phones often won’t be buying much.
“Every time you think phones have reached their technological peak, something new comes along. The challenge with phone shops will be to do the same and to keep evolving if they are to keep consumers interest.”
