Radio Rentals to abandon PC arm

Rentals High street outfit not in tune with PC market.

Radio Rentals is to cease its PC rental operation on the high street, bringing to an end the option to rent a computer within the UK.

The rental company is rumoured to be pulling out of PCs altogether, due to its disappointing performance in the sector. The move follows the demise of rival Granada from the computer rental market in July 1997.

Granada wound down the business and sold its last PC in December 1997.

In a statement to PC Dealer, Radio Rentals admitted to a lacklustre performance.

'Our business volumes in computers have been disappointing over the last few months and this fact will undoubtedly be taken into account in our normal range review,' it said.

The suggestion of a range review has caused confusion within the sector, because it is understood that Radio Rentals exclusively stocks Olivetti PCs, having withdrawn its IBM models in October.

A Radio Rentals representative said the company wanted to concentrate on its core business of TV and video and that the product review would occur at the end of this month.

The PC rental market has become increasingly difficult as monthly purchase repayments undercut rental charges.

Annabel Sellers, operations support manager at Granada, admitted that the firm had entered the market without sufficient preparation. 'It's not like selling TVs and videos - we didn't have the technical background,' she said. 'Shop managers weren't confident with PCs. At the end of the day, we didn't know enough about them.'

Jeremy Davies, analyst at Context, said of Radio Rental's rumoured retreat: 'It wouldn't be a surprise at all. PCs don't suit the rental paradigm. The market is too fast. I'm just surprised they've managed to stick it this far.'