IT works venture set to move in on SME turf

Comet and BT are to set up a retail chain to exploit the growing market for computer telephone integration which will challenge independent dealers in the SME market.

Called ITWorks, the jointly run stores will use the Norweb sites bought by Comet in November 1996. The first outlet is due to open early next year in Reading.

Neil Sansom, retail development controller at Comet, said the two companies were 'co-operating', but it was not a joint venture.

Sansom said the shops were aiming to exploit the small business market and convergence between IT and communications technology. He claimed competition would come from independent dealers as well as Byte Computer Superstores and PC World. The chain will assemble-to-order PCs, networking products as well as phone exchanges and communications products.

Sansom added the aim was to provide the same level of project management as an IT department. He refused to divulge the total number of ITWorks stores. Comet bought 80 Norweb stores, for #29 million.

According to sources close to the company, the stores have suffered a delay in opening, although Sansom denied this. ITWorks is believed to be offering staff good training and generous salaries, which is unusual for high street retailers, said a source. The stores are said to be loosely based on the style of Communications Expo, a Dallas-based retailer.