Covid and other crises have impacted many sectors, yet the head of an electricals chain asserts that their burgeoning repair and recycling division is setting the course forward.
Tiny cameras from deconstructed mobile phones, LED strips, and plastic vacuum cleaner handles are all utilised as engineers tackle thousands of malfunctioning or outdated items at the UK’s largest electrical goods repair centre located near Newark. These often minuscule components contribute to the rejuvenation of 1.4 million appliances annually, ranging from smartphones to fridge freezers. Over 1,000 employees are dedicated to identifying and fixing issues at this Nottinghamshire facility.
The chief executive of the electrical goods retailer highlights how the Newark plant, along with a business focused on selling refurbished items, aims not only to enhance the company’s green credentials by reducing landfill waste but also serves as a core strategy for driving growth, improving profits, and enhancing customer service. As Baldock states, ‘If all we did was sell laptops… well, other people do that. But competitors can’t do repairs like we do.’ This approach marries purpose with profitability.
The retailer, which operates 727 stores in six countries, has placed the revival of damaged electronic goods at the centre of its strategy. Competing with budget online retailers necessitates innovative solutions, and the company’s extensive repair capabilities are a significant differentiator. The group’s history, dating back to 1937, has seen it adapt to various changes in the retail landscape, including significant rebranding and acquisitions.
After fending off a takeover attempt by a Chinese e-commerce company earlier this year, Baldock is tasked with convincing investors of his ability to sustain growth. Notably, the company generates higher profits from selling refurbished phones than new ones, illustrating the financial viability of its repair activities. The cost of living crisis and growing environmental consciousness have driven increased demand for second-hand and repaired goods, spanning clothing and gadgets.
The retailer already boasts 12 million repair customers. However, achieving parity between service and retail income represents a significant shift, as services currently account for only several hundred million of the group’s £5 billion total revenue from the UK and Ireland. The ‘right to repair’ legislation, introduced in the UK in 2021 and progressing through the European Parliament, potentially supports this transition by requiring manufacturers to design repairable products and make parts available.
Baldock expresses confidence that the necessity for specialist expertise limits the likelihood of more people attempting home repairs. Consequently, the retailer’s incentive program, offering £5 for every unwanted electrical item brought back, has led to 65,000 trade-ins since its 2022 launch and provided 120,000 spare parts for the repair service. Additionally, innovative activities such as 3D printing spare parts, troubleshooting via video calls, and compiling a diagnostic database of past issues are being employed.
Baldock, who took on the role of chief executive in 2018, brought a wealth of experience from various sectors, including management consultancy and banking. He swiftly addressed legacy issues by cutting jobs and closing stores following an unsuccessful merger. Despite facing significant challenges, he has fought off multiple acquisition attempts and streamlined the business.
The company plans to diversify its offerings to include health and wellness gadgets, e-bikes, e-scooters, and AI-enabled devices while expanding services for small businesses. Contrary to speculation, Baldock asserts the company is not planning to sell its £350 million mobile network business or its Nordic arm, despite facing stiff competition.
Baldock’s background includes a private education followed by studies at the University of Oxford. He worked various jobs in his youth, including bars and construction, before embarking on a professional career that spans management consultancy and senior roles at major corporations. This varied experience, he believes, enables him to engage effectively with the company’s extensive workforce, leading by example and with vigour.
Baldock’s strategy of placing repair and recycling at the forefront signifies a commitment to sustainability and innovation. His leadership exemplifies a balance of purpose and profit, essential for navigating the modern retail landscape.