October 20, 2019

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PC World targets subscription selling

by Stuart Wilson, Tuesday 1 July 2008

PC World, part of DSGi’s European retail business, has announced plans for a new in-store initiative that will see the company attempt to sell broadband connections and digital TV packages alongside hardware sales. As part of the new ‘Get Connected’ push, PC World will offer a wide range of free laptops from A-brand vendors for customers also taking out a broadband subscription.

The free laptops include models from top brands such as Sony, Dell, Toshiba, Compaq, Acer, Asus and Advent. There will also be discounts of up to GBP450 (US$900) off PC World’s entire notebook range if customers take out a mobile broadband contract in-store.

“Connectivity and content services are as important to customers as the hardware they buy. Get Connected reflects customer demand for a complete, one-stop solution that provides a way for our customers to not only get a great deal on a laptop, but also get connected to the right service. As the UK’s leading laptop retailer we are uniquely placed to offer impartial advice and the widest possible choice of packages,” said Glenn Orchard, head of commercial development at PC World.

Mobile broadband can be bought as a laptop package or standalone product and starts from GBP10 (US$20) per month from service providers Vodafone, T-Mobile and 3. Home broadband and TV packages are available from Virgin Media, BT and Sky.

‘Get Connected’ is being rolled out to stores across the UK and is set to form a focal part of PC World stores, with substantial physical presence at point of sale, according to the retailer.

CE ANALYSIS: This is a step in the right direction for PC World as the only decent margin to be had from hardware sold through physical retail now comes from selling services on top. In the past, PC World has put a great deal of effort into selling extended warranty to customers that had become increasingly wary of the value that these contracts offered. Diverting that sales energy into selling subscriptions is a positive change. The management team at DSGi have their work cut out to turn a fragmented pan-European operation with multiple retail brands into a lean and mean selling machine. And they need to be quick with Best Buy looming large on the horizon.

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October, 2019

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