Interactive Ideas pulls out of retail space

Managing director says tablet boom made its boxed software business redundant

The rise of the tablet and the consumer spending crunch have prompted Interactive Ideas to withdraw from the retail product distribution market and focus on its burgeoning enterprise software business.

Speaking to ChannelWeb, Interactive Ideas' managing director Mike Trup said it was the right time to draw a line under an activity that formed the basis of its creation but now contributes less than seven per cent to its £35.5m annual sales.

The move will allow the distributor to redirect management and financial resource into its fast-growing enterprise software and services business, its main activity since 2005, said Trup (pictured).

On top of the retail spending slowdown, booming sales of tablets, which feature built-in apps, have accelerated the demise of boxed software, he explained.

"Over the past 18 months, this has made those niches we were involved in pretty much redundant," said Trup.

"It was a nice business, and six years ago it was 80 per cent of our business. We are sad to see it go as it is our history, but it is non-core and not where the growth in the business is.

"It was commanding more than seven per cent of senior management's time."

Trup said Interactive Ideas' primary retail accounts would be minimally affected because its key vendors in this area, including Focus and Avanquest, used multiple distributors.

The distributor has also begun a consultation with affected staff to "see who is transferable and who is not, and what their aspirations are", said Trup.

The growth of its enterprise business has ensured Interactive Ideas' sales have more than tripled over the past four years, Trup added.