During that time, Thorn has actively participated in consultation with government, in its own right and as part of an industry leadership group. The consumer leasing industry has seen increased regulatory scrutiny over the past year, with the Government appointing an independent panel to review small amount credit contracts and consumer leases. sources and has proactively kept industry regulators advised. While the trial was positive overall, some issues remain around high customer acquisition costs and conversion numbers, with changes around the proposition and pricing currently being considered before a decision to maintain the brand is made. Thorn continued the trial of its second rental brand, Rentlo, which achieved positive results in its first year of trading with the “No Lock In” contract proving very popular, increasing market share and improving asset utilisation. Thorn considers this as a good indication for the future of the brand’s concept store plans, including the new brand, RR, modernised store design, strategic location in high traffic shopping centres and the introduction of new propositions such as “interest free quick buy.” In FY16, the first RR pilot store in Erina, NSW, was the highest revenue and customer growth store in the network. In the past year, key initiatives included a pilot rebrand of Radio Rentals, to RR, to reach a wider demographic, the development of new propositions and a second rental brand to increase market penetration and improve asset utilisation. This strategy has proven successful in supporting installation growthĪnd will extend Radio Rentals’ demographic reach.Īs a market leader, Radio Rentals constantly looks to improve its offering, from new products to brand and store evolutions and improved systems. In addition, Radio Rentals plans to transition six existing “Full Service Branch” locations to a “Hub and Spoke”īusiness model which will benefit from access to highįootfall shopping centres. In FY17, Radio Rentals will be opening two new outlets, one in Victoria and another one in Thorn has also started piloting a new small appliance range, which furtherĬomplements a broad electrical retail category. The launch of new smartphone ranges among major brands has resulted in the category growing Partnering directly with manufacturers to deliver these products has a Range expanding over the past few years and now includes televisions, a variety of fridge types, Thorn branded products are still very successful among Radio Rentals customers with volume and 48-month agreements continue to be in high demand, with moreĬustomers now opting for longer contracts that offer affordable weekly payments for larger Installation volume in FY16 remained high, with furniture and household essentials continuing toīe the most popular categories. A significant technology project has now commenced to improveĬustomer experience and transactional efficiency, while taking into account evolving regulatory This, andĪ provision for historic customer credit refunds, affected earnings, with underlying EBIT 4 perĬent lower at $49.7В million. Practices relating to evolving regulatory oversights and responsible lending concepts. Similar level to last year at $246 million, principally due to tightened credit assessment In FY16, Radio RentalsĬontinued to experience strong demand and high levels of customer satisfaction. Proven successful and will extend Radio Rentals’ demographic reach. Locations and ways of helping people access the goods they want and need. It is doing this by evolving and reinventing itself to customers, by creating new products, Thorn’s strategic intent is to continue to enhance its market leading positionĪs a provider of essential household goods.
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