A bold new experiment in the online retailing of brown goods and consumer technology gadgets is set to be rolled out by Radio Rentals Its launch could spearhead an online war between 3 major retailers in Australia.
Called the Big Brown Box the web site which is set to go online next week will allow consumers to order goods online with Radio Rental stores facilitating delivery and service of the goods. It will go up nationally against JB Hi Fi in the consumer technology market and later this year up against Harvey Norman who insiders say are set to roll out a major web presence next year with trials taking place as early as December 2008.
John Hughes the CEO of Radio Rentals which is a share listed Company said that the Company had invested significantly in the roll out of the web site www.bigbrownbox.com.au and that he was confident that he was coming into the market at the right time with a web site that will be supported by an extensive retail network.
“One of the big differences with this site is that consumer can either rent or buy. Our internet retail offering is now being trialled and will be rolled out next week. PR and teaser advertising is set to spearhead our launch followed by more product and range marketing, particularly through the internet in the lead up to Christmas. Given the positive feedback from consumer research we believe it will quickly attract a great deal of interest from a wide range of consumers. A key element of the offering will be free delivery which leverages off the strength of our Radio Rentals store network”.
The project has been spearheaded internally by Peter Krideras.
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August 2008 the Company reported a 16% increase in revenues accompanied by a 4% increase in their rental customer base and a 67% increase in profit after tax. At the time Hughes said “Healthy demand for plasma and LCD televisions along with PC’s is expected to continue as a boost in whitegoods generally occurs when the economy slows”.
Radio Rentals is Australia’s largest household appliance rental company, with 65 stores nationally and over 400 employees.
Hughes concluded “We have done a lot of research and we are convinced that our future is online. We are doing away with our stores though we are retaining rental locations. For example if a consumer wants a new refrigerator we will full fill the order online and ship it to the nearest Radio Rentals location they in turn will contact the customer to arrange delivery. In some cases we will ship product directly to them”.
