Bluetooth expands; Hillstreet trial is so successful.

Byline: JEZ DAVISION

THE funder behind a Bluetooth marketing scheme in Middlesbrough's Hillstreet shopping centre is planning to roll out the technology in at least one other Teesside retail outlet by the New Year.

The move is part of plans by Devon marketing and technology firm Connections to install the system in up to 30 shopping centres across the UK.

The technology has sent promotional information to around 550,000 bluetooth-enabled mobile devices operating in or close to Hillstreet since the trial began last year. Connections has spent pounds 15,000-pounds 20,000 on installing the system in the centre after securing more than pounds 100,000 of funding through the Government-backed Enterprise Finance Guarantee scheme.

The company estimates that around pounds 300,000 of investment will see the system installed in 30 centres "from Devon to Glasgow" - including at least one more on Teesside.

Connections director Simon Boyce said: "We are aiming to have the technology up and running in 10 centres by Christmas. With Bluetooth, the marketing is direct and you are giving the consumer more choice."

He said the scheme would be funded through advertising and sponsorship, although retailers at Hillstreet have not yet had to pay to use the system.

The centre plans to install more pods and Wi-Fi access in the centre, and perhaps trial the technology in individual retail units.

The content is free to download and is delivered over a short distance, meaning customers have to be in or close to the centre to receive the material - and with their mobile device switched on.

It allows retailers to learn more about their customers' buying habits and produce targeted promotions to boost sales.

The sector has had a tough time of it in the recession, with total sales growth below zero since last October, according to the British Retail Consortium (BRC).

However there have been signs of improvement in recent weeks, with Tesco today reporting a 2.7% rise in UK like-for-like sales in the six months to August 29. Underlying profit before tax, which strips out one-off items, rose 8.6% to pounds 1.6bn, slightly ahead of market expectations.

Retail analyst Nick Coulter, of Numis Securities, forecasts a rise in like-for-like sales (excluding fuel but including VAT) of around 5.5% at Sainsbury's when it announces its latest results tomorrow.

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OUT OF THE BLUE: A Bluetooth marketing scheme is in the Hillstreet centre Picture by IAN McINTYRE