The partnership between ELKO and Foxway highlights the potential of shared values in advancing circular technology solutions. This collaboration has seen remarkable growth in trade-ins year after year, supporting a more sustainable electronics market in Iceland. ELKO, the largest electronics retailer in Iceland, and Foxway, a leader in circular tech solutions, have proven that the best partnerships begin with common goals.
Who is ELKO?
Founded in 1998, ELKO is Iceland’s largest electronics store, employing 240 staff across five locations, along with an online store. ELKO’s commitment to customer satisfaction is evident, having ranked third in the local customer satisfaction index recently. As a franchise partner of Norway’s Elkjøp, which operates around 400 stores across the Nordics, and owned by Currys PLC, ELKO benefits from joint procurement, offering competitive prices on well-known brands. This relationship ensures that ELKO customers enjoy both affordability and quality.
Why ELKO partnered with Foxway
In 2019, ELKO chose Foxway as it embarked on its sustainability journey. The decision was influenced by Elkjøp’s recommendation and the favorable business proposition Foxway presented, aligning with both ELKO’s sustainability goals and business strategy. According to Óttar Örn, CEO of ELKO, the sustainability factor naturally became the driving force of their cooperation.
The partnership quickly proved successful, with customers responding positively to the trade-in program. The initiative allowed customers to receive compensation for their old devices while supporting environmental efforts. This dual benefit appealed to ELKO’s customer base, who saw the value in trading in their devices rather than discarding them.
Trade-in growth and the impact on ELKO’s sustainability goals
Foxway’s plug-and-play platform made onboarding straightforward, enabling ELKO to integrate the trade-in solution into its operations seamlessly. Despite some initial challenges related to VAT processing and ERP system integration, the partnership has been a success. In 2023, ELKO saw a 60% increase in the number of devices traded in and a 90% increase in value. Campaigns like “Get something for nothing” played a significant role in this growth.
Currently, ELKO claims receiving about one device per 100 Icelanders annually. In a country with a population of approximately 384,000 people, that means ELKO traded in less than 5,000 devices in 2023. However, the company has ambitious targets for 2030, striving for higher numbers and greater customer engagement. The partnership with Foxway also enabled ELKO to collaborate with recycling company Fura, collecting over 500 kg of cables during the International E-waste Day campaign in 2023.
Future sustainability plans and challenges
Next to trade in, ELKO aims to sell at least 10,000 pre-owned devices by 2030 whilst focusing on initiatives that extend the life of electronic devices through repairs.
According to Óttar Örn, sustainable solutions are not yet a major competitive advantage in the market but will be crucial in the next 2-3 years. As the demand for sustainable products grows, companies that have not begun their ESG or sustainability journey will risk falling behind. ELKO’s proactive approach, combined with Foxway’s solutions, positions it well to lead this shift in the Icelandic electronics market.
Market
Trade-in
Repair
Refurbishing
