Launch of sustainability partnership with Asda

RNS Number : 9682M

musicMagpie plc

27 September 2021

 

27 September 2021

musicMagpie plc

("musicMagpie", or "the Group")

MUSICMAGPIE AND ASDA LAUNCH SUSTAINABILITY PARTNERSHIP FOLLOWING SUCCESSFUL TRIAL

Initiatives include the roll-out of musicMagpie's SMARTDrop kiosks from 15 Asda stores to nearly 300 in 2022

musicMagpie, a leading re-commerce business in the UK and US specialising in refurbished consumer technology, is delighted to formally announce the launch of a sustainability partnership with Asda. The ground-breaking partnership will create a circular ecosystem that will prevent thousands of tonnes of consumer technology and media products ending up as waste. It will entail:

1.   The roll-out of musicMagpie's innovative SMARTDrop kiosks across Asda stores

2.  The launch of an affiliate agreement which will give Asda customers the chance to buy and sell pre-owned consumer technology and media items with musicMagpie through the Asda website and mobile app

3.  The continuation of musicMagpie's pre-existing relationship with Asda, whereby musicMagpie's pre-owned DVDs and CDs have been available to buy in Asda stores since August 2020.

musicMagpie's SMARTDrop kiosks will be rolled out to nearly 300 Asda stores in 2022, following a highly successful trial involving 15 kiosks across the Asda estate since November 2020. The kiosks offer a fast, easy and free way to recycle unwanted phones for instant cash.  They allow a customer to bring in their old phone, receive a valuation and get paid instantly with money transferred directly to the customer's bank or PayPal account.

So far, approximately 3,000 smartphones have been traded in through musicMagpie's kiosks, paying out over £800,000 instantly to customers. The completion of the Asda roll-out will mean that 90% of the population in the UK will live within a 15-minute drive of a SMARTDrop kiosk. For Asda, research from the trial has shown that 70% of the customers who came into a store to use a kiosk had not shopped at Asda before, and that 24% of customers using a kiosk went on to make a purchase whilst in store.

In addition, the new affiliate agreement means that Asda customers will now be able to buy and sell refurbished consumer technology products (such as mobile phones and tablets) as well as pre-owned entertainment products with musicMagpie through the Asda website and mobile app. When selling, the items can then be dropped off by the customer at any Asda store, from where they are transferred to musicMagpie using Asda's "toyou" service.

Asda already sells musicMagpie's pre-owned DVDs and CDs in its stores. After launching in August 2020, the offering proved so popular with customers that it was rapidly rolled out from five to over 200 Asda stores across the country.

Steve Oliver, Chief Executive Officer and Co-Founder of musicMagpie, said:

"We are thrilled that a business of Asda's prestige and national reach has recognised the value of musicMagpie's unique circular economy model, and is now prepared to scale up our partnership so decisively and quickly. Our research shows that the average UK household has 11 items of unused consumer technology lying around, totalling an astonishing £16.5bn. Both the SMARTDrop kiosks and the new affiliate agreement will allow Asda customers to free up cash and declutter their homes.

"The extension of our partnership with Asda will help us to achieve our clear strategic goal of 'buy more, sell more, rent more' by making it even easier for consumers to sell to musicMagpie and make a decision that is both smart for them and smart for the planet."

  Matt Harrison, Senior Director of Partnerships at Asda, said:

"Our exclusive partnership with musicMagpie has been developed with the long-term view in mind and it is  fantastic to see this vision achieved through a wider roll out in Asda stores. From the start, the team at musicMagpie have shared our philosophy of testing and learning through trials in our stores, with the ability to quickly understand what works and scale.

"The launch of 295 SMARTDrop kiosks and an affiliate site where customers can buy and sell technology via Asda.com will prevent e-waste going to landfill, as well as save shoppers time and money.

"As we continue to deliver on our partnership strategy and develop our partner 'ecosystem', we hope to create more opportunities to offer customers access to the products and services they want in more convenient locations."

Enquiries

musicMagpie plc Steve Oliver, CEO Ian Storey, COO	Tel: [phone]
Powerscourt (Financial Public Relations) Rob Greening Elly Williamson Lisa Kavanagh	Tel: [phone]

Notes to Editors

musicMagpie is a leader in the re-commerce of consumer technology (including smartphones, tablets, consoles and wearables), disc media (including CDs, DVDs and games) and books, with sustainability running to the very heart of its operations.

Founded in 2007, the Group has an established presence in the UK, with operations in Stockport, Greater Manchester, and in the US in Atlanta, Georgia. Operating through its two trusted brands - musicMagpie in the UK and decluttr in the US, the Group's core business model is simple: to provide consumers with a smart, trusted and sustainable way to buy, rent and sell refurbished consumer technology and physical media products.

It has a strong environmental and social focus, as demonstrated by its trademarked 'smart for you, smart for the planet' ethos. Over 400,000 consumer technology products were resold to consumers in the year ended 30 November 2020 by the Group. In addition, the Directors estimate that that the Group re-sells approximately 2,500 tonnes of books and disc media each year that could have ended up as waste. As a result, the Group has received the London Stock Exchange's Green Economy Mark, which recognises companies that derive 50 per cent. or more of their total annual revenue from products and services that contribute to the global 'Green Economy'.

When selling to musicMagpie, the customer is offered a fixed valuation via the website, provided with free logistics to ship the products and (subject to it being 'as described') receives payment for their product on the day of arrival at the Group's warehouse.

Customers purchasing from musicMagpie receive branded refurbished product for a fraction of the price of buying new. All consumer technology products sold by the Group are sold with a free 12-month warranty.

The Group has the highest number of seller reviews on both Amazon and eBay and has consistently achieved extremely positive feedback scores. The Group also has a 4.7* rating on UK Trustpilot with over 190,000 reviews.

For further information please visit: www.musicmagpieplc.com/  

About Asda Stores Ltd.

Founded in the 1960s in Yorkshire, Asda is one of Britain's leading retailers and helps customers save money and live better in stores, online and through their mobile devices.

Each week more than 18 million customers visit its 645 stores - including 30 Supercentres, 392 Superstores, 155 Supermarkets, 33 Asda Living stores, and 35 standalone petrol stations - and are served by 153,000 colleagues. www.asda.com and www.george.com deliver to 99% of the UK's homes and to its 538 click and collect sites across the UK.

Its main office is in Leeds, Yorkshire and its George clothing division is in Lutterworth, Leicestershire. Asda joined Walmart, the world's number one retailer, in 1999.

 

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