Exclusive: Sky to open first retail stores as it takes on high street rivals
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Sky is set to open its first ever brick-and-mortar retail stores in the UK as the broadcaster and telecoms giant defies faltering footfall to turn up the heat on its rivals.
The media group is poised to open its first outlets in the coming months, providing a physical point of sale for its mobile, TV and broadband offerings, people with knowledge of the plans told City A.M.
The first store is set to open in Liverpool, with at least three further sites to open by the end of the year. London is not thought to be among the initial opening locations.
Some sites will also feature in-store partnerships with iSmash, the popular tech repair chain that currently operates 32 locations across the UK.
Sources said the plans reflect Sky’s increased focus on customer service over sales, and the stores are set to favour open-plan layouts similar to those favoured by US tech giant Apple.
The shops will offer help to existing customers as well as allowing new customers to test products — such as the company’s flagship Sky Q TV subscription package — before committing to a contract.
The brick-and-mortar project suggests the Comcast-owned company has faith in the British high street despite a steep decline in footfall sparked by the coronavirus crisis.
However, while many businesses have withdrawn from brick-and-mortar sites in recent years, telecoms firms have retained a strong presence on the high street.
Last year BT returned to the high street after setting up shop in co-branded stores with its mobile subsidiary EE, while O2 and Three have also kept their store portfolio relatively steady despite the retail downturn.
But Sky will be hoping to stand out from its rivals through its combined offering of TV, broadband and mobile amid increased consolidation in the industry.
Sky has struck a number of deals in recent months with the likes of Disney and the BBC to integrate streaming services into its Sky Q platform as it looks to provide a single access point to a wide range of services.
It has also pursued aggressive expansion of its broadband and mobile services.
However, the company posted a 15.5 per cent decline in revenue for the second quarter, largely driven by a collapse in the advertising market caused by the coronavirus pandemic.
Sky declined to comment.