Electricals retailer Dixons has begun providing services such as delivery and installation on behalf of brands and other retailers as it ramps up its services division.
Dixons has struck a deal with appliances giant Whirlpool UK to deliver and fit its products in customers’ homes and is piloting similar ventures with other companies.
The arrangement means that the Dixons Knowhow division provides the service even when products are bought from other retailers – last week Dixons installed its first Whirlpool product for a Harrods customer, for instance.
The tie-up is part of Dixons’ push to capture a greater share of the £500m ‘added value services’ market, which delivers higher margins than many of the products sold by electricals retailers.
Central to the push is the Knowhow services brand, which is now being rolled out to stores and is designed to enable customers to get the most out of their technology by providing expert advice and assistance.
Although in the past Dixons was dogged by a reputation for aggressive selling rather than service, chief executive John Browett has been changing that perception as part of his renewal and transformation strategy.
Browett said: “From a brand perspective, we want to be famous for service and the services we offer.”
He believes that services provision ultimately has the potential to add “tens of millions” to Dixons’ profits.