MARKET RELEASE
19 June 2017
Spark New Zealand planning to take on direct management of all stores
Moving away from a Dealer partner model to directly owned stores will allow
Spark to showcase digital experiences to customers in an interactive retail
environment
Spark New Zealand is in the process of moving 26 retail stores around New
Zealand from management by dealer partners Leading Edge and Orb to direct
management by Spark, with the intention of all mall and high street consumer
stores being under Spark ownership from late 2017.
Grant McBeath, Spark GM of Customer Channels, explains why Spark owning
stores directly is a key part of building seamless digital and real world
experiences for its customers.
"A few years back, analysts were gloomily predicting the ''death of the high
street''. However, while e-commerce and online channels are becoming a
fundamental way that businesses reach their customers, we''re seeing a
resurgence in the importance of physical locations to complement the digital
experiences that businesses provide.
"For instance, while many customers are choosing to buy online, the option to
visit a physical location to ''click and collect'', exchange or return items,
or simply get the opportunity to touch and feel a new device prior to
purchase is increasingly seen as an attractive choice. Even dominant online
retailers such as Amazon are building and buying established high street
stores that they use both as stock warehousing and as shopping destinations.
"We believe that stores are a key part of the community, especially in
smaller towns around New Zealand. We know many of our customers love to visit
our stores, to check out the latest deals, shop for a new device or simply
have a chat about their Spark services.
"We are also passionate about giving both potential and existing customers
the experience of what being with Spark is like. Stores give us that
opportunity, from showcasing the experience of using the Spark App, to
introducing Spotify music streaming, Lightbox and Netflix content, to giving
customers access to our awesome Spark customer service."
"While our dealer partners have done an awesome job for us, by bringing our
stores back to direct Spark ownership, we can create consistent experiences
for our customers: they will have access to the same processes and options,
no matter which store they visit, or whether they''re trying to do something
online or in person.
"Ultimately, we want to offer seamless experiences across all our channels,
with the option to shift easily between digital and human interactions, no
matter what you''re trying to achieve."
ENDS
Notes to the editor:
o Spark already directly owns 36 stores. With the eventual addition of
the 26 dealer stores, this will bring Spark''s total owned stores to 62. There
are no plans to close stores.
o Spark is working closely with the dealer business owners to work out
the details to ensure a smooth transition.
o Business hubs and hybrid stores (that offer both consumer and
business solutions) will continue to be run by Leading Edge and Orb under the
current dealer model. Spark''s experience is that local small business owners
prefer to deal with a local business owner, so the hybrid stores and business
hubs will continue to offer this.
o Dealer employees who work for the stores that are being bought back
will be offered the opportunity to stay with the store and move to direct
employment with Spark.
For media queries, please contact:
Richard Llewellyn
Head of Corporate Communications
+64 (0) 27 523 2362
For investor relations queries, please contact:
Dean Werder
General Manager Finance and Business Performance
+64 (0) 27 259 7176
End CA:00302756 For:SPK Type:GENERAL Time:2017-06-19 09:51:02