German distributor reichelt elektronik is entering the UK industrial and consumer electronics brandishing products it says are 20 per cent cheaper than high service distribution competitors.
The company will eschew the high street, and look to gain a further advantage target through its new English eCommerce site and delivery service.
It will aim to emulate the British success of prominent German retail companies, Lidl and Aldi, which are gaining markert share against the traditional supermarket chains like Tesco and Sainsbury.
reichelt first launched in Germany in 1969 and became a market leader as a result of its competitive pricing and high stock availability. Many of the company’s products can be purchased 20% cheaper than elsewhere in the UK and CEO, Ulf Timmermann, says that this puts it in a strong position compared to competitors like Maplin, Mouser, RS and CPC-Farnell.
Timmermann says: “I fell in love with reichelt as a nine year-old boy when my parents bought me my first soldering iron from the company’s catalogue. I have no doubt the people of the UK will do the same; ours is a personality-driven company, one that always delivers on its promises. It’s a privilege to head-up reichelt as it enters a new stage of existence; we can’t wait to make tidal waves in the British retail sector.”
The company employs more than 220 employees at its German logistics centre in Sande (Friesland), and currently generates annual revenue of around 125m Euro per annum. As a result of strong sales and its expansion into new regions, including Austria, the Netherlands and Switzerland, the company is also expanding its warehouse facilities to respond to the increasing demand.
“reichelt is a company that appeals to a broad spectrum of audiences,” says Timmermann. “We supply business customers in the electronics and engineering sectors, from laboratories to workshops, education and IT, but we also meet the needs of the consumer audience. There’s a growing ‘makers movement’ in the UK and we are able to serve their needs, as well as businesses’ at prices lower than in Maplin, for instance, but at a higher quality than they might find when importing from other international suppliers.”
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