Currys home plan poses utilities threat

Currys is considering providing extended warranties or service agreements for products it has not sold. This could include electrical, plumbing and heating insurance.

The retailer, part of the Dixons Group, also plans to launch a credit card with a loyalty scheme by the end of the year. It is expected that this will be a group-wide initiative.

The move to increase the range of service agreements comes months after the Competition Commission’s report into the sale of extended warranties,ÂwhichÂrecommended changes to marketing practices.

For products bought from Currys, the Coverplan provides cover in addition to the manufacturer’s warranty for accidental damage protection, theft and repairs as well as information helplines. The new plan will apply to all household electrical products, even if they have been bought elsewhere.

Currys deputy managing director Peter Keenan says: “One of the business development areas we want to explore is electrical, plumbing and central heating support.”

A move into support services for the home would put Currys in direct competition with the likes of British Gas.

Currys plans to continue with its “Always Cutting Prices” campaign, which helped to increase the number of customers over Christmas by 12 per cent. It is investing £30m in its supply chain to improve stock availability and £40m on a more efficient purchasing system.

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