Retailers a threat, UK VARs fear
Some 85 per cent believe retail electronics chains threaten their business
Most UK PC resellers are worried about retailers grabbing their business, according to research from analyst Context.
Of the 80 UK resellers polled by Context, 85.7 per cent said they believe retail electronics chains threaten their business.
But Tony Price, managing director of online reseller WStore, was unconvinced.
"If you asked an ordinary corporate reseller, retail would not be an issue. We're not worried by retailers at all. They don't know anything about our business," said Price. "Our biggest threat comes from Dell, not Dixons."
In contrast to the UK figures, 58.3 per cent of German dealers said they were 'not at all worried' about retailers.
Figures across the seven largest economies in Europe showed that just under 70 per cent of resellers feel some degree of concern, while the rest had 'no worries'.
Jeremy Davies, a partner at Context, said business offerings from Dixons and Dell could threaten the service and support offered by small local resellers.
"Resellers that are not wise about box shifting could get hurt," said Davies.
"Dell is already having a crack at it, and retail in the UK has been very aggressive recently, but if you look at the German market - where resellers are unconcerned - the supermarkets have been a threat at the low end for years."
Keith Warburton, executive director at the Professional Computing Association, which is offering a Confidence Assured scheme for resellers, said high-street PC resellers would see large retailers as competition.
"Retail chains have an impact, but frankly customers will go to a chain for their first computer and then realise they can get better options and service from a local business," Warburton said.
"There are more than 5,000 businesses building PCs in the UK, and a lot of them are micro-businesses that have found very specific niches to sell to."