Apple extends concession strategy with Comet tie-up

LONDON - Apple is expanding its store-within-a-store concept with a presence in electricals retailer Comet, following a successful trial in Tesco.

Comet will host Apple concessions in five of its 250 UK stores, in Greenwich, Bristol, Yeading, Tottenham and Oldham.

Apple established a presence in Tesco's flagship Milton Keynes outlet at the start of the year in a deal that gave the US technology company a dedicated area of the store. The supermarket is now expanding the concept to nine outlets.

To support the expansion of its concession model, Apple has appointed field marketing agency Gekko to provide trained store staff and merchandising.

The agency has been tasked with instilling confidence among consumers that it is safe to buy high-end products in an environment traditionally associated with FMCG products. While Tesco is best known for its food offering, Comet trades on an everyday low prices proposition.

Apple's strategy is based on a desire to reach a broader audience; it is also seeking to expand its branded retail portfolio beyond its seven standalone outlets.

Tesco has agreed to house the concessions as part of its drive to become one of the UK's biggest multimedia retailers.

In October, it launched a range of own-label computer software, including a Complete Office suite and antivirus products.

Tesco makes more than £6bn a year in the UK from non-food items such as clothing, health and beauty, furnishings and electrical sales.

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