Thursday, 15 January 2009

Tesco Mobile witnesses surge in handset demand before Christmas – UK

During 2008, Tesco Mobile witnessed a big boost in the sales of its mobile handsets. The main reason behind the success was the offer provided by the company, including a rebate of GBP 25 (USD 36.42) on Tesco Mobile handsets (above GBP 50 (USD 72.84)) for customers spending more than GBP 25 (USD 36.42) in the supermarket. This resulted in a 69% year-on-year increase in demand for its handsets and SIM cards in the week before Christmas. On the whole, sales for the last quarter increased by 20% compared to the previous year.

Commenting on the success, Lance Batchelor, Chief Executive Officer for Tesco Telecoms and Tesco Mobile, said: “We are delighted with our Christmas performance. By focusing on value, choice and convenience we are delivering what our customers want and are making Tesco one of the most popular destinations for telecoms retailing”.

The company claims that the growth came due to its focus on customer satisfaction. According to the company, it was the number one network for pay-as-you-go customer satisfaction in the final three months of 2008, as per the data from TNS. The company has also been successful in retaining this position for 10 quarters in total.

Within the UK, Tesco Mobile is competing in the MVNO food retailers’ market with ASDA, Sainsbury’s, M&S and then likewise with a whole host of other niche focused MVNOs and those simply aimed at the consumer discount market. As part of its green strategy the company is also offering in store credits or charitable donations via its Clubcard scheme to anyone wishing to send in an old mobile phone for recycling.