It’s not often that WHSmith takes you by surprise. Year in year out, group chief executive Kate Swann’s story has been about maintaining a usually healthy overall profit by running an exceptionally tight ship. But alongside today’s financials came an announcement that shows intriguing multichannel innovation from a retailer not renowned for creative thinking.
In the coming months, it will roll out 100 branded shop in shops for its ereader Kobo – all of which will be completed by the end of the year. A specific Kobo specialist will man each area, advising customers on all aspects of the e-reader – be it installation, advice on downloading, or which particular device might best suit their needs.
The move may well please many of those who criticise the retailer for focusing on cost-cutting to drive profit, rather than sales. Conlumino senior consultant Joseph Robinson is one observer impressed by the move, saying it shows the retailer is keeping “ahead of its rivals”. He says: “This totally makes sense from WHSmith’s perspective. They need to focus on growing profits through increasing sales and the business will need some serious investment, particularly in stores. This shows they are thinking seriously about the long term.”
The launch also indicates a strong awareness of the retailer’s need to focus on customer service. The popularity of ereaders will continue to grow among people of all ages and demographics, but at present there isn’t necessarily the hands-on, practical advice that many would-be ereader enthusiasts might wish for.
The ability to be able to go into a store and ask for assistance has the potential to boost both footfall and sales for the retailer. A WHSmith spokeswoman says one of the main drivers has been improving customer experience. “It’s about enabling people of all age groups to gain advice and find out what might work for them,” she says.
Done well, it should help cement the retailer’s multichannel offer. Robinson says: “People need to choose to buy in to WHSmith as an ereader seller. At present, consumers don’t necessarily link ereaders with WHSmith – it’s usually Amazon. This is a way to maintain the relevance of its high street stores.”
The roll-out follows positive feedback from trial Kobo stores in some of its flagship stores. Innovation on the high street is what many shoppers are clamouring for. How refreshing that this innovation has come from arguably one of the least likely high street sources.
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