(qlmbusinessnews.com Wed. 4th Sept, 2024) London, UK —
Alex Baldock: Leading Currys Towards a Greener and Profitable Future.
Inside the UK's largest electrical goods repair centre, located just outside Newark, engineers work tirelessly, surrounded by tiny cameras from disassembled mobile phones, LED strips, and plastic vacuum cleaner handles. The facility, run by electrical goods retailer Currys, is dedicated to refurbishing and repairing over 1.4 million appliances annually, from smartphones to fridge freezers.
Alex Baldock, the CEO of Currys, explains that the primary aim of the Newark facility, and its associated business selling refurbished products, is not only to enhance the company’s environmental credentials by reducing landfill but also to drive growth, improve profits, and boost customer satisfaction. “If all we did was sell laptops, others could do that too. But our competitors cannot match our repair capabilities,” Baldock asserts as he surveys the bustling workshop floor. “There is a lot of greenwashing out there, but this is genuinely good business for us. Purpose and profit go hand in hand.”
Reviving damaged electronics has become central to Baldock's strategy to maintain Currys' relevance in a market increasingly dominated by budget online retailers like Amazon. With 727 stores in six countries, Currys, which started as Dixons photography studio in Southend in 1937, has evolved significantly. After acquiring Currys Group in 1984, the business later dropped the PC World and Dixons brands to adapt to the changing retail landscape.
Following a failed takeover bid by a Chinese e-commerce giant earlier this year, Baldock now faces the challenge of proving to investors that he can continue to drive growth. One focus area is expanding repair services, which are more profitable than selling new items. The rising cost of living and increased environmental awareness among consumers have boosted demand for second-hand and repaired goods, from clothing to gadgets.
Currys already serves 12 million repair customers, but for service revenue to match that of retail, a significant shift is needed – services currently account for just a few hundred million of the group's £5 billion total revenue in the UK and Ireland.
The recent introduction of “right to repair” legislation in the UK, which requires manufacturers to design certain products with repair in mind, could be beneficial. However, Baldock is unconcerned about the possibility of more people repairing their items at home, noting that most gadgets require specialist expertise.
To encourage recycling, Currys offers customers £5 for every unwanted electrical item they bring back, resulting in 65,000 trade-ins since the scheme began in 2022 and providing 120,000 valuable spare parts for repair services. The company also utilises 3D printing for spare parts, resolves customer issues via video calls, and has created a database of past faults to aid in diagnostics.
Baldock, who took the helm as CEO in 2018, quickly set about reshaping the company, criticising the legacy of his predecessor, Seb James, and reducing staff numbers following an unsuccessful merger with Carphone Warehouse. However, Baldock has faced his own challenges, cutting hundreds of management jobs and selling off the Greek division. This year, he also fended off takeover attempts from US activist investor Elliott, China's JD.com, and Frasers Group, led by Mike Ashley.
Despite these challenges, Baldock remains optimistic. “The business has weathered pestilence, shortages, wars, and the cost of living crisis, and is now well-positioned to accelerate progress,” he states. Currys is expanding its range to include health and wellness gadgets, e-bikes, and AI-enabled devices, and it is also enhancing services for small businesses.
Although speculation has arisen about the potential sale of its £350 million ID Mobile business, Baldock dismisses these rumours. He also confirmed that Currys plans to retain its Nordic division, which operates 421 stores across Denmark, Sweden, Norway, and Finland, despite recent challenges due to aggressive discounting by competitors.
Baldock's approach to leadership is influenced by his father's “ferocious work ethic” and a household “full of business talk.” He believes in leading by example, with energy and commitment, and values his varied career experience, which has taken him from management consultancy to the role of managing director at Currys. “These jobs are a privilege,” Baldock says. “You need to give it your all – or step aside for someone who will.”
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