BRIGHTHOUSE, the rent-to-own retailer, is planning to open a number of smaller, neighbourhood stores across Yorkshire following the success of its large store formats in the region.
The retailer appeals to hard pressed families who would struggle to raise the money upfront for electrical goods and furniture.
Instead they rent goods at a weekly rate including interest and keep them at the end of the period.
The group said it has tested a new satellite store concept in Scotland and following its success it plans to open another handful over this year and next.
Chief executive Leo McKee said the group is eyeing up locations in Sheffield, Brighouse and Horsforth.
“The logic with these smaller neighbourhood stores is to open sites in significant centres that are adjacent to footfall drivers such as Asda, Primark, Marks & Spencer, Next and Tesco,” he said.
“Our research has shown there are another 300 locations in Britain that are not traditional high streets, maybe in a smaller town like Brighouse.
“We have looked at 300 and there are between 140 and 150 with a distinct neighbourhood community in a town that people go to.”
The satellite stores will be around 750 sq ft, compared with a full size store at 2,500 sq ft.
“The satellite stores will report to a parent store nearby and a lot of the administration will be carried out at the parent store,” said Mr McKee.
Satellite stores will typically have half the number of TV models, washing machines and other electrical goods. The biggest difference will be the lack of furniture in the smaller stores.
Instead they will offer customers an interactive screen to view the furniture and customers will be guided to the parent store to see the furniture for themselves.
The plans were unveiled as BrightHouse, which has 26 stores across Yorkshire, prepares to announce a 16 per cent jump in annual pre-tax profits today.
Profits rose from £16.9m to £19.6m in the year to March 31 following a 5.5 per cent increase in revenue to £351.7m.
“Our Yorkshire stores are performing strongly,” said Mr McKee.
“Yorkshire has a well deserved reputation for canny folk that surpass the Scots in their canniness,” added the Scotsman.
He said that best sellers over the year included smart phones, particularly the Apple iPhone 6, other IT technology products and contemporary fabric sofas.
Asked whether the group will suffer once the economy recovers and people have more money to spend, Mr McKee said: “BrightHouse is kind of resistant to fluctuations in the macro-economic cycle. We are in a particular demographic - the alternative credit market which has 12 million individuals and seven million households. It’s for individuals who have difficulty getting credit from mainstream providers.”