Telecom snaps up a retail specialist

By PETER GRIFFIN

The outgoing chief executive of The Warehouse will jump from one listed heavyweight to another when he takes on the job of revamping Telecom's retail operations.

Greg Muir leaves The Warehouse at the end of the month, citing "philosophical" differences with the rest of the retailer's management.

In August he takes up a short-term contract with Telecom, which has a presence in about 500 retail outlets, including 300 independent retailers, 160 mobile phone dealers and 35 of its own stores.

Facing sluggish take-up of its Jetstream high-speed internet products and fierce competition in the mobile market from retail-savvy Vodafone, Telecom is conscious of the need to improve its high street game.

"We need some smart, capable resource to make that happen and timing couldn't have been better with Greg's availability," said Kevin Kenrick, Telecom Mobile's general manager.

The brains behind the Telecom Shed, a showcase of communications technology at Auckland's Viaduct Harbour, Kenrick wants to extend the idea to retail stores.

Telecom outlets will become demonstration sites for an increasingly complex array of mobile and fixed-line technology.

Customers will be able to see the difference between dial-up internet connections and broadband or learn how to receive Xtra email on their mobile phone. The third-party retailer network will continue in a more conventional sales role.

"It doesn't make a lot of sense if you're running a retail store, but if you're using it to showcase the latest in communications technology, it makes a lot of sense," said Kenrick.

Muir said he was relishing the prospect of joining Telecom and taking time to weigh up his long-term options. He expects to draw on all of his retail experience in steering Telecom's retail strategy.

"My career's been across a large number of industry types; it's the ability to bring a different eye to what they're doing," he said.

Before assuming responsibility from Stephen Tindall for day-to-day operations at The Warehouse in 2001, Muir was organising Lion Nathan's Super Liquor retail chain.

He even has some experience of selling phones. The Warehouse is a reseller of pre-paid phones and calling cards under the Gold brand. The chain sold its 213,000-customer base back to Telecom in April but will continue to offer the phones and cards.

The retail revamp is part of Telecom's strategy to overhaul its business structure.

The telco, which is expected to report a profit of $670-$710 million for the last financial year, is now focusing on customer service and maintaining its brands.

Telecom last month signed $370 million-worth of outsourcing deals with equipment vendors Alcatel and Lucent, to manage and operate the mobile and fixed-line networks.

Overseas, telecoms are also focusing on retail. Emerging 3G operator Hutchison has rapidly assembled a massive retail network through 2000 outlets to promote and sell 3G handsets. The phones are being sold in Superdrug stores.

Across the Tasman, where Hutchison has just launched 3G mobile networks, industry observers regard its retail operation as being key to winning early customers.