By Patrick Avenell
SYDNEY, NSW: Radio Rentals and Rentlo, two of the most resilient retail brands in the electronics appliance space, are implementing a new kiosk-based retail presence in order to boost brand awareness and sales where its media presence is fragmented. Radio Rentals and Rentlo are owned by the Thorn Group, which is listed on the Australian Securities Exchange.
As part of its geographic expansion strategy, Thorn Group intends to place these kiosks in Westfield and Westfield-esque shopping centres in targeted locations, with sales and branding exposure both active goals of this venture.
The major benefits of this plan, according to the Thorn Group, are improved visibility in metropolitan areas, increased selling potential and the avoidance of high overheads from dedicated retail space. Thorn Group estimates the lease on one such kiosk to be between $60,000 and $70,000. The proposed kiosks would be staffed by two employees.
The drawbacks of the plan include the potential cannibalisation of existing locations and the isolation of the store operator.
In order to make these kiosks work, Thorn plans on recruiting the right salespeople, supporting the kiosks at corporate level, developing the appropriate sales infrastructure and using its central credit system. The Thorn Group received its own credit provider licence under the National Consumer Credit Protection Act earlier this month.