INTERVIEW Currys ‘serious about getting the most out of technology’

He spoke to Steve Pendleton, director of services at Currys DeliveryX as part of the newly published Returns a report for 2024 to explain how the repair offering ensures a longer life for the technology.

Q: Has Currys seen a change in consumer attitudes towards repairs and refurbished technology? Is the repair offering becoming more popular due to the sustainability element? – People are turning to a circular economy – or are buyers driven by affordability?
Definitely. It’s safe to say that sustainability is a growing area of ​​interest for all our stakeholders, including consumers. Honestly, some things need to change – with e-waste being the fastest growing waste stream in the world, expected to grow to almost 75 million tonnes by 2030, we all need to face the facts, we can’t keep throwing things away.

At Currys, we believe we are best placed to lead the way in changing everyone’s relationship with technology and we know that our customers want to reduce their impact on the environment. Our job is to make this easier, which is why we help customers make more sustainable purchasing decisions through best-in-class repairs and refurbished technology sales. And in terms of customer demand, that’s where we’ve really changed, accelerated by the cost of living crisis.

In fact, we are witnessing and encouraging the normalization of second-hand shopping when it comes to technology, in the same way that everyone has generally embraced second-hand clothing shopping in the fashion industry. This is a real result for customers who can access higher-end appliances at lower prices, and the environmental benefits are obvious, in the sense that we are reusing valuable, mineral-rich appliances much more often than ever before.

Q: Do repairs and renovations fit into your sustainability efforts?
We are honest and very proud of the work we have done and continue to do to give technology a longer life. We have invested millions to build Europe’s largest technology repair center in Newark, Nottinghamshire. It’s a wonderful facility, half a million square feet of space, 1,000 experts, all of whom are very committed, and the average tenure is almost ten years. They are open 363 days a year, processing 3 million products annually across all our major categories and for over 40 major brands.

The key to this operation is having collaborators with the technical knowledge required to dismantle one product to collect valuable components for use in refurbishing another. So, for example, if we receive a unit that is severely damaged beyond repair, our experts will still be able to disassemble it and collect working parts that will be used to repair and refurbish another unit in the same product line. This team collects parts from over 5,000 products every week and they don’t just work on laptops, they work on TVs, mobile phones and home appliances.

So we repair and reuse as much as we can – in many cases providing us with a significant, higher-margin recurring revenue stream – but we also recycle what we can’t use. We work with best-in-class recycling partners to turn what our experts in Newark can’t extract into recyclable materials that can be sold wholesale and reused to make future products.

Q: How does Currys balance offering repairs with its continued successful high-tech retail business?
We are deeply convinced that purpose and profit go hand in hand and complement each other. The fact is that companies are commercial enterprises and it is by making profits that we earn the right to continue to be a powerful force for good in the world. We make money – profits – by giving technology a longer life, just as we make money by selling lots of shiny new equipment. And by giving technology a longer life, we also ensure that our customers keep coming back to us because they know we can help them get the most out of their technology. And that’s why we take it seriously, precisely because it’s in our interest and we don’t apologize for it.

Q: What are the technology challenges in ensuring confidence in refurbished products?
We understand our customers’ concerns about refurbished electronics – from data security to quality – which is why we’ve built multiple layers of security into the entire process.

First, data security. Providing peace of mind is key: it’s a huge factor in the purchase journey, and even when customers are sharing unwanted technology with us. Data on all products we sell and receive is deleted to a government-approved standard. This ensures that both the original owner and the new owner can be assured that their data is 100% safe.

Then quality. We are uncompromising when it comes to quality because we want our customers to trust our products. All our refurbished units are thoroughly inspected by our experienced technicians to ensure they are in good condition. For customers, this means they are buying something they can trust, rather than a completely new equivalent.

We test both the hardware and software of each device before cleaning and repackaging. We also have a separate quality assurance function that allows us to double check standards and quality before we release any stock for resale. We understand how important it is to build consumer confidence in used technology, so we take no chances when it comes to quality. In any case, all of our refurbished products come with a 12-month technical warranty for added peace of mind.

We also have a solid grading system that we apply to all our refurbished products, which helps us determine what level they are at and allows customers to understand what they are buying. When it comes to what refurbished products we stock, we don’t have a cut-off point when it comes to specification. This is important because it gives us a wide range of options for our customers, many of whom will be looking for a bargain. For example, even if a device is a good few years old, we will consider refurbishing it because it will be available at a lower price to the customer than if they were buying it new.

This interview is included in the DeliveryX Returns 2024 report and is part of a broader look at how retailers are turning to repair and resale to help manage returns.

The report also discusses what consumers think about returns fees, why data can be crucial to minimizing the impact of returns on retailers, and includes case studies on H&M and Oh Polly.

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