THE MEMBERSHIP MAGAZINE OF THE BRITISH INDEPENDENT RETAILERS ASSOCIATION ISSUE 04 | FEBRUARY 2017
Trade news
The house of Lords
Rita and Rachna Dewan have proved to be fast developers in building up the award-winning housewares mini-chain
Auto enrolment. All wrapped up. Easy-to-use software with templates and alerts to keep you compliant With a one-off payment of just £359+VAT to set up the scheme and an annual governance fee of £115+VAT, you’ll have peace of mind that you’re legally compliant.
Visit birapensions.co.uk for more information and to register
Wren Sterling is a trading name of Wren Sterling Financial Planning Limited, which is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665653. Registered office: Castle Marina Road, Castle Bridge Office Village, Nottingham NG7 1TN. Registered in England No. 09157918
Comment
Let’s improve our high street parking Take our online survey to help shape our parking policy, says CEO Alan Hawkins They took almost a year to repair during which time the free parking produced sales increases rumoured to be as high as 30%. Then, sadly, the meters were restored... Is free parking best, however? Would free spaces just be filled by local workers? Free may result in little investment in safety, lighting, security. How much more are consumers willing to pay to be next to the high street even when free is provided at a greater distance? Are councils getting the balance right between short-, medium- and long-term options? One free hour may be good for a quick pick-up but it doesn’t encourage serious shopping or a day out involving more than just the purchase of product. Eating, drinking and leisure are such a big part of the high street appeal. Encouraging consumers’ dwell time is essential to prosperity. What about evidence from the private
sector? Presumably, it has the motive of profit, but sometimes that seems to be our councils’ main aim too. They gain huge sums just from machines failing to give change. Hospitals use parking as a cash cow from a captive audience. But bira members’ customers aren’t captive. Modern parking controls, such as number plate recognition, choice of payment options, and pay-on-return, all may merit some investment. On last year’s study tour to Ireland we saw a car park that indicated where the free spaces were as you arrived and told you what lane your car was in when you paid. As we report on our news pages, there is activity in Whitehall to seek improvements in parking. So now is a good time for us to get your views on the issues in your area. Are they are having positive or negative effects on your business? Please take part in our short and simple online survey - the details are on page 4.
news for 2 Trade bira members
9 Independent innovators
Cover photograph: Paul Driver
WHILE WE CONTINUE to push for more radical reform of high street rates, it is time to move to another retailers’ bête noire - parking. Out-of-town is perceived as free parking. Even if car parks are rated, they are usually wrapped up in the site rentals so that the allimportant customer sees plenty of availability but no direct cost. There is no parking issue for internet traders, with many of our savvy independents making a profit from delivery charges. Amazon has it down to a tee, although I am not so sure our grocery giants are making money from food deliveries; they are just frightened of losing market share. So where does that leave the high street? Expensive, congested, difficult to get to? bira needs your help to address what the issues are. Last year I did a BBC radio interview about a Welsh market town where vandals had damaged the expensive ticket machines.
IN THIS EDITION
Keeping up the rates reform pressure, analysing sales figures & moving on parking
ISSUE 04 FEBRUARY 2017
your 8 Reduce motoring bill
bira’s new fuel card deal will cut costs & admin for all users of petrol and/or dieselbira services
The bira Conference will celebrate indies’ opportunities in the modern retail market
the 13 Following family tradition By opening her fashion shop Carolyn Illsley was heeding her father’s advice
ice al adved it g e l e e Fre n you n whe
d. bira licate le, comp reliab more tam. Fast, law. , ever often of Ellis Whit side of the d, too h y ht that wit is ging an tap, courtes y on the rig view it an ch oes the so quickly sta on evering from utts ech ers is vice service our retailers Sowerb nges happen information ed ail Ian ret tact cha t ate ent to-d He con ecting rt legal ad sures tha things employmng to get up- same day. ded to com all the f ion aff clear expe a legal en reassuri l service the when he nee inst a staf made Legislat have an aga in . They . r you ensure the lega ittam aga ers ceedings employe m free, bir e expired she says legal to s Wh the ok up ary pro itta bira the leas consider,” as Elli memb rmed and d dbo iplin Wh use a to s ss that disc e Ellis es’ han we had rate in mence “I must stre usly we’d employe e serious. Elli est with re you hav ect well-info TO ope s. New ber. “Previo g our befo ely hon this mor
Would you like to see your business featured in this magazine? We are always delighted to receive your news, views and ideas on editorial@bira.co.uk FEBRUARY 2017
m mem plet . “In the corr HAVE ulation k slightly e keepin be com contact the he advises ER S prowe wer but this was supply us with service was must ing reg s, come thic KEEP must , staff,” do it all and t the to all the r-chang ting one SHOP gs to to date was able to rede and you ussions with me through of eve exis and over m e able the even t. ter thin ition tangle changes to Whitta the process end, we wer closure, we e bet any disc they talked e letters. In misconduc ry add or rs hav for e, the h eve ss ion plat lega l, In the laws, forms After renegotiat instanc with tem for gro ing our com . Retaile p up wit good. y bira staff. issed me tak ed by l, so and fast try and kee ich is wh shops, on the very, very of the six vided e was dism king of provid ise us remaining have to ty dismissa they k, wh than was thin m unfair ploy two legal to adv ser vice lth & safe t we e boo employe two he said re rul ice our that to clai Whittam In th, whe to the mb ers’ adv service used bira f hours in and hea popular par I heard a tribunal s essary. Narber , HR staf es. The n Elli ha to if nec t, but I the me ent law n and of our is suc ed whe tribunal, pany employe in.” rthe n m, ugh ght ym ma s bro seve deli the e. in the E l lis emplo Whitta llent aga in Car I was me at m was ever followed Elli Ellis packag cha nge on in back was exce st er- ba sed its bira expert bership profound ucti would ance, no clai taken and legal service he es red C mem vid of s to had of the r. Thi voidable time m pro ser v ice own.” this inst eful that I on its the lette In this sector, una ry Whitta adv ice was grat advice to bership fee The firm ndent necessa m’s free. leg al rs indepe bers and on the Whitta the bira mem bers for f hou mem tac ted th well t shop num t of staf is wor be con w and, as men an tha The me s. lign can dles to US member rea s belo it han ditions es are ACT ay, 8am number ent law, mercial and con ent issu Wh en CONT l is free to biranday to FridAdvice on ym employm ty, com VAT e. plo as Mo s. for em day & safe bira lega available via the to the employment lic holi tax and ing is 24/7 health , oft en any rrid advice luding pub available issues, calls erbutts with lega l s. The ove t a bira exc es is g t to the ent faced n, Ian Sow 6pm, ent issu re is no limi workin loym ma tter ensure tha sse s is questio generation niture & to employm tal. The on emp fur por aim is bus ine result advice commercial e your , the fifth utts, a er’s online make for erb the roe nt. The ey safety, issues. Hav me mb . to in Sow ss in Cli complia e and mon you can health & turns you call & VAT n utts, legally HR, tim tax & in bus ine ire, readily erb and law dy whe ngs Sow l law, of is savi utts, ber rea Lancash ittam. t part genera ship num Sowerb he had a grea ce ber Ellis Wh years ago to his Ian heroe ice and Dell, finan ber. mem rs c serv mem A few e Clit er hou for the is a fantasti ” says Garry eford. “We r few m ke som is Her ral ber, big .co in “Th seve to offe ff or ma n’t sure not am mem pets is e on hitt y sta a bira ale Car company ines wer “I was n the ellisw law & HR nine being at Greend or an ancies. employe ing on whe keep bira@ but the secretary ent up ctor p ple, redund stood as the to ym y dire end kee ted dep 14 peo I l law 37 itEmplo compan we try and slation, “I wan where t contracts employ to merit a genera 450 09 Ellis Wh . recalls. course, s in legi right, 0345 ercial and differen ed us,” Ian er hours, and e it happen enough l team. Of of change details ils lega Comm 0952 had join but on few tion to mak handle the house broad deta getting fine t. 450 ne, a solu I had to to ety 0345 ple at suppor everyo e up with with the n it comes & saf how s ice and a pool of peo you Health 5 450 0937 tam cam me exactly so Hughe but whe expert adv Tom d needed enquiries, iling told 034 & VAT of the They undanyou nee en advice is bira or ema so tions.” Tax 5 450 0952 director to make red e its “Wh n with es, deal with negotia Black, ed to clos 034 ittam conversatio p good not Elaine ps, was forc decided s Wh . “The need. in kee Elli ago ss you ays sho rs they ine alw s es as Ellis e yea fashion n the bus are not e person, but many tim like our sought nch thre pany as cies whe rdwest bra was that we re we even the sam to call back a small com call away.” g befo for ne clear Haverfo ortant thin ral weeks it’s easy t comfort a pho us a very cess ice just very imp advice seve They gave pro It’s a grea a serv m’s ation f. e such Whitta the six staf our consult know as we to hav to to when spoke le of how long vital for us ain date timetab , which was on a cert ises take would the prem exit had to
ra The bi rvice is se legal the bira worth rship fee membeown its on
peerless it all by 14 The house of Lords 19 Doing the rule book Four years of rapid growth has created an award-winning housewares business
How members have benefited from the free & expert advice of bira legal service RY 2017 FEBRUA
New Year 21 My resolution is...
Facing good times or tough times, bira folk are ready to put their best foot forward 19
Last 28 The Word
Neil Mackay on food festivals, daft thieves and serving Stephen Hawking
1
Trade news Shoppers seek experiences THE STRONG PERFORMANCE of retailers over the festive period is due to a growing trend among consumers to spend money on experiences rather than products, according to Professor Heiner Evanschitzky, director of the Aston Centre for Retail Insights at Aston Business School in Birmingham. “What we have seen over the Christmas period is that retailers’ results are linked to two key underlying trends in consumer purchase behaviour: the use of online to make purchases and the pursuit of inspirational shopping experiences,” he said. “The trend towards spending money on experiences, such as having fancy home-cooked dinners, has become more apparent over the holiday period. Credit card transaction data shows that we might have reached ‘peak stuff’, meaning customers realise they’ve basically got everything they need and can use their extra cash on experiences, rather than simply buying more stuff. We are evolving into an experience economy.” Professor Evanschitzky warned that retailers need to be wary of rising levels of credit card debt to ensure customer loyalty: “Unsecured consumer credit is now higher than before the financial crash. Retailers need to think long-term and help customers manage their budgets more effectively. It’s not sustainable to sell products to consumers that they can’t afford.” Once again, bira is looking for the very best from the independent retailing industry and will be rewarding the very best at its annual bira Awards dinner on Monday 8 May at the Bristol Marriott Royal Hotel, the venue for the bira Conference during the day. Spotlighting individuals, teams and businesses, this celebration is a great way of raising your profile, connecting with other business owners, and growing your network of potential partners and suppliers. For full details of how to enter or nominate a contender for the bira Awards 2017, see p27.
2
When Lords, the homewares retailer on our cover, wanted to define its brand identity, it hired Londonbased consultancy Worth Retail. The results can be seen above in the St Johns Wood branch and on pages 14-17. On trends in retail design Alex Johns, CEO of Worth Retail, told us: “The modern shopper is on the hunt for a personalised and authentic experience. Independent retailers need to take this to heart and ensure that they have a truly connected online and in-store experience or risk falling behind.”
Festive website viewing hits 63bn THE CATEGORIES HOUSE & Garden and Monday, and served up weather that encouraged Healthy & Beauty saw the highest growth in online people to stay indoors browsing the Sales. It may shopping in December, growing by 9% and 12% also suggest a wider shift towards combining shoprespectively during the month. December set a ping with other family activities on the day after record for online activity with the number of visits Christmas. to UK retail websites totalling 4.6bn, up 3% year“Overall, it was a solid end to a challenging year on-year. Almost 63bn pages were viewed, averaging for retail, a year which was carried by growth in just over 12.5bn page views per week. online sales. This only serves to highlight the imporThe BRC-Hitwise Digital Retail tance for retailers of continued investInsight report for December confirms ment in their digital platforms”. that online took its highest share of Total retail visits in Dec Christian Marsden, general manager Christmas spend ever. Rachel Lund, of marketing research company Hitwise, head of retail insight and analytics at added, “December was a solid month for the British Retail Consortium, Total retail page views online shopping, seeing a 3% increase in said, “Online is consistently total visits to the industry compared to outpacing store growth and the same period last year. The clear winwe expect to see that continue Retail visits on mobile ners were Healthy & Beauty and House for years to come. However, & Garden, which grew by 12% and 9% Christmas has some interestrespectively. ing challenges for e-retail. The Pages viewed per visit “While total visits to the industry were constraint of delivery means that slightly lower in the first three weeks of as the day approaches, shoppers prefer December, a revival was seen on Boxing to spend in stores rather than via the web. Minutes on websites Day with 197m visits to retail websites, a Consistent with this, we can see browsing 45% increase from the previous year. The activity slowed as the 25th got nearer as total sales key theme for 2016’s festive season was that promopicked up. It’s the same pattern we saw last year, but tions started earlier, well before Black Friday from as retailers evolve their online delivery strategies in several leading retailers, and lasted longer throughthe future we could see this trend change. out December. “Browsing activity picked up again in the final “For the first time for the industry, visits on week and was considerably higher than last year. mobile overtook desktop at a ratio of 52% to 48% This was at least in part due to Boxing Day, which in December, with categories like Healthy & Beauty fell on the most popular shopping day of the week, and Apparel leading the way.”
4.6bn
62.8bn 52% 13.6
6.35
FEBRUARY 2017
It is hard to see how institutional overcharging can be an improvement to the rates system
Trade news
Mark Radford, bira’s ratings consultant, sums up opposition to the new proposal for appeals
RETAILERS WILL FIND it harder than ever Government asking for measures to be put in place to win reductions against incorrect business rates to allow businesses to cope with any rates rise, such if the government introduces a controversial new as a phasing plan or more appropriate transitional appeals scheme. In its ongoing campaign to demand relief, and to carry out a longer-term review of the for a wholesale reform of the commercial ratings effectiveness of business rates as a method of tax. system, bira has complained to the government Three of Toolshop’s nine branches are in Lambeth. about the proposal. The council is campaigning with Lambeth’s Under the new scheme, even if an appeals tri- Business Improvement District against the rates bunal finds that the business rates are set too high rise and has written to every business in the borby as much as 20%, the Valuation Office Agency, ough alerting them to the impending increase, and which administers the rates system, will be under suggesting how they can make representations to no obligation to reduce the amount charged. The government. argument for this is that there should be an element The business rate revaluation effective from 1 of “reasonable professional judgment” allowed in April will see some businesses in Lambeth face an the calculations, but bira is outraged that immediate 45% hike in business rates, the proposal weighs this so heavily in the with the average rise being around 35%. Average rates rise for VOA’s favour. Toolshop will be hit by increases totalbusinesses in Lambeth “This is part of what the government ling £26,588, a 21% net increase on the calls its improvements to the business previous bill. Even allowing for the transirates system,” says Mark Radford, bira’s Rates bill increase for tional allowance, Vin will still have to pay ratings consultant, “but it is hard to see Toolshop’s mini-chain £13,759 more from April. how sanctioning institutional overchargJack Hopkins, cabinet member for ing – because that is what this is – can be termed an regeneration, business and culture on the Labourimprovement.” controlled council, said: “This huge rise in rates The idea emerged in the autumn, tucked away is incredibly unfair on businesses in London, and in a government response to a consultation paper Lambeth in particular. We are a borough that looks on business rates reform. Like much of the activ- to harness and encourage small businesses to grow, ity around the rates system and the new rateable provide jobs and strengthen the local economy. values that will become effective from April this “Lambeth has had the biggest rate of new busiyear, the precise details of the implementation of ness growth of any London borough, yet this huge the proposed appeals procedure are unclear. It is increase in costs, on top of the uncertain economic not known, for example, when it will be instituted, climate, increasing rents and staffing costs, puts all but bira is convinced it is unfair and unreasonable. that progress at risk.” Elsewhere across the bira community, the cam- l Almost three-quarters of international retailers paign against the new rates valuations continues. are choosing to expand outside of the UK because of bira president Vin Vara, who runs the Toolshop our burdensome and complex business rates system, mini-chain in central London, is backing the according to research conducted on behalf of shopstance of Lambeth Council, which has written to ping centre operator Intu and the British Council of the Secretary of State for Communities and Local Shopping Centres, now known as Revo.
35%
£26.5k
PATS Sandown to present 140 exhibitors SOME 30 PETS companies will be exhibiting for the first time at the PATS Sandown show on March 21-22. About 140 companies will be exhibiting in the Surrey and Esher Halls at Sandown Park racecourse in Esher, Surrey. One first-timer is Kittyrama, a start-up company specialising in cat accessories. Co-founder FEBRUARY 2017
Carolina Ballon-Forrester said: “The show gives us a unique opportunity to introduce our award-winning products to the entire pet trade. ” Veterinary charity PDSA will also be at Sandown for the first time. Paul Lilwall, PDSA vet care sales manager, said: “We were pleased with launching our Vet Care range to the trade at PATS
Telford and we’re already looking forward to exhibiting.” One of PATS Sandown’s most popular features is the new product showcase. The entries will be judged by a panel of retailers for the New Product Awards and the results will be promoted throughout the show. There will also be a full programme of free seminars.
Photograph: Sam Chick
Rates battle continues over proposed appeals reform
MEET THE EDITOR ERIC MUSGRAVE, THE editor of this bira membership magazine, is eager to hear news, views and opinions from the bira community. A trade magazine journalist for almost 40 years, Eric has connections with the association that go back to the days of the Drapers’ Chamber of Trade and the Menswear Association of Britain, precursors of the modern bira. He previously worked with bira on the launch and early days of its FAB division for fashion shops. “The demise of the high street and the death of independent retailers has been vastly over-exaggerated,” he says. “There are so many successful privatelyowned businesses that are overlooked by the national media simply because they are small- or medium-sized and usually not in London. With the new bira magazine we have a platform to promote the superb retailers from many sectors that are an essential part of their local communities and that collectively contribute a huge amount to the economy. Let us know what you are up to so that we can spread the word.” Eric has spent most of his career observing and analysing the fashion sector. He has been editor of Drapers, the fashion industry bible, twice and during each stint (in 2003 and 2015) he was named business publication editor of the year by the Professional Publications Association. The bira magazine is designed by Alan Bingle, a creative colleague of Eric’s from his Drapers days. “We have 10 issues a year of the bira magazine to fill and I look forward to members making the most of this brilliant opportunity to share their successes and discuss their challenges. Please, get in touch,” says Eric.
3
Trade news
Openings top closures again
Obituary: Muriel Curry, Bodenhams MURIEL ALICE CURRY, the fourth generation of the Bodenham family to run Bodenhams of Ludlow, died on 17 December. She was 91. Muriel was a very keen shopkeeper, who always believed in the retail community working together. Her father Frederick J Bodenham joined the Drapers Chamber of Trade (a predecessor of bira) in the early 1930s, mainly to use the clearing house services. Bodenhams believes it must be one of the oldest bira members. Born in Ludlow in 1925, Muriel studied sociology – then a new subject – at the Royal Holloway and Bedford College in London during the war, then worked briefly as an early social worker in Liverpool. With her husband Peter, she moved back to Ludlow in 1964 and took on the family business when her father retired in early 1970s. This was a great solace to her after the sad loss of Peter in 1973. Rather than feel sorry for herself, she went on running the department store, which was established in 1860, becoming a respected boss and great mentor for many. Some bira members and suppliers may remember the 600-year celebration of Bodenhams’ Plantagenet-timbered building back in 2005. Muriel contributed to Ludlow’s community as a Justice of the Peace, chair of Ludlow Festival, governor of three Ludlow schools and as churchwarden of St Laurence Church. Muriel partly retired in 2013, but remained very connected with the shop. Muriel’s three children are Charles, Hannah and Roger. Roger, who joined the business in 1998, and his wife Monika are running Bodenhams today, the fifth generation keeping the Bodenhams legacy very much alive.
4
MORE THAN ONE in 10 shop units changed occupant last year, with the independent sector remaining attractive to new operators. According to research from the Local Data Company (LDC), while multiples continued to reduce their high street estates, independents opened and closed more regularly. There was a total net gain of 207 stores from more than 17,000 which opened and closed during 2016. Seasonal units and festive pop-up shops may have accounted for some of the gains at the end of the year. The retail vacancy rate fell to 12.2% in December, its lowest level since 2010, while the leisure vacancy rate hit a new high of 8.2%.
LDC sales and marketing director Matthew Hopkinson said the figures highlighted the great deal of life – and death – on high streets. The occupancy rate slumped last summer but recovered in autumn, closing the year with the vacancy rate beginning to fall again. Hopkinson said: “The news at the end of the year was better than at the halfway stage. In a year which will see Brexit triggered, business rate hikes for some shops, and rising input cost pressures, the balance between these two facts of commercial life, births and deaths, will determine outcomes on the high street. This will have much to do with how confident businesses feel in the face of uncertainty.” Savings on money and administration are provided by a new fuel card scheme being offered by bira. Run in association with The Fuelcard People, the initiative involves a wide range of cards that are valid for petrol and diesel at 7,000-plus pumps nationwide. See p8 for full details.
Consumers ready for price hikes, says Verdict Retail MOR E T H A N H A L F of British consumers are expecting prices to rise during the first half of 2017 following the drop in the value of sterling. A similar number have said they expect to spend less with retailers over the next six months, with the greatest cutbacks on entertainment products, and furniture and floorcoverings. Resea rch compa ny Verdict Retail noted that future sentiment among UK consumers increased in December as they got into the festive spirit and deflected worries about a worsening UK economy. Sentiment regarding the future of the UK, however, remains below the levels seen before the EU referendum in June 2016. Most consumers accept
that the weak pound will lead to price rises, with 51.5% anticipating that prices will rise during the next six months. The biggest hikes are expected in fuel and household utility bills. The impending increases may have a detrimental effect on retail spending, as 48% of consumers expect to spend less while shopping up until June, with the greatest cutbacks on entertainment products, and furniture and f loorcoverings. The main reason is because more consumers plan to save over the next six months. According to Verdict, consumers expect fuel and clothing to see the greatest increases. Imports will cost more and retailers must pass on some of these costs.
Jones joins Horwood Rob Jones is the new sales director at Horwood Homewares. Rob joins from appliance manufacturer Miele, where he led the professional sales team and partner channels. He previously held senior positions at Bayer and Dyson. Rob succeeds Jeremy Horwood, who has retired. For more supplier news, see pages 22-23.
FEBRUARY 2017
Edinburgh
has 58 charity shops, more than any other Scottish city, but it’s 10 fewer than last year
Trade news
Local Data Company / University of Stirling report
Indies dominate Scottish retailing INDEPENDENT RETAILING IS critical to Scotland’s towns, with 55% of all units being occupied by indie businesses. The fourth annual report from the Local Data Company and the Institute for Retail Studies at the University of Stirling has highlighted that high streets north of the border are showing signs of recovery. The Scottish national vacancy rate for retail and leisure units in towns is 11.7%, down from 13% in 2012. England has a lower vacancy rate than Scotland, but its performance is skewed by the low vacancy rates in London and in the southeast. Wales has a higher town centre vacancy rate than Scotland. Retail park vacancy across the country fell in 2016, apart from in Scotland, which has remained stable at 7.8%, the UK’s highest rate. Scottish shopping centres also display the highest UK vacancy rates at 16.9%, although this is down from 17.6% last year, mirroring national
trends. In 2013 the Scottish vacancy rate peaked only Scottish city to not experience an increase at 18.8%. in its vacancy rate, with a drop of -2.9%; out Kirkcudbright, in south-west Scotland, has of Scottish cities, Dundee has the largest perthe highest proportion of independent retailers centage of units that have been vacant for over at 88%, while Tillicoultry in Clackmannanshire three years (9.9%); Edinburgh is the city with (with 5%) and Gretna in Dumfries and the largest number of charity shops Galloway (8%) have the lowest propor(58), although this is 10 fewer than Proportion of indies tion of independent retailers. Gretna is in Kirkcudbright in 2014/15; Ayr, with 13, is the town only 51 miles from Kirkcudbright. with most charity shops; in the last 12 Other findings include: Scotland’s months the number of cheque cashing average retail (shop) vacancy rate has Proportion of indies (-35%) premises, off-licences (-13.4%) fallen from 12.9% to 12.6%; Dundee in Gretna and betting shops (-1.6%) have all has the highest vacancy rate of Scotreduced. tish cities at 22% (+1%), while Brechin LDC director Matthew Hopkinson in number has the highest vacancy rate of Scot- Reduction said: “Persistent vacancy is one of the of cheque cashers tish towns at 24.0%, up from 22.3% key alarm bells for any town or city, so it in 2015; East Kilbride in south Lanarkshire is encouraging to see a reduction in the number (-16.0%) and Troon in south Ayrshire (-8.1%) of Scottish towns showing persistent vacancy. have seen the biggest improvement in their Yet there are some where one in seven of the vacancy rates during 2015/16 ; Inverness was the units has been empty for more than three years.”
88% 8%
-35%
Photograph: SWNS
Christmas clothing and footwear boost for Scotland
A sell out at close-out ADAM CLARKE, OWNER of the Arc men’s fashion business in Sunderland, has closed the shop, ending his family’s 90-year retailing tradition in the Wearside area. He plans, ironically, to donate his small residue of stock to one of the 12 charity shops in the street. Adam was hoping to trade until the end of April, when the lease for the unit on Blandford Street in the city centre expires, but his Closing Down Sale was so popular that he shut on 14 January. “The Sunderland Echo wrote a piece about us in early January and we were inundated after that. People we didn’t even know came in to say how sorry they were to see another independent closing,” he said. “Originally, I had planned to trade for another five years or so, but a FEBRUARY 2017
couple of years ago I had to accept we couldn’t go on as we were only breaking even. I was selling my stock at cost in the Sale – all I have been left with is 10 pairs of jeans, including one with a 64” waist. I’ll give them to one of the charity shops. “We also have four vacant units here. Blandford Street is very much a secondary street now and all the council’s investment seems to have been in other places than the city centre.” Adam’s grandfather, Joseph Clarke, opened a shop in Sunderland in around 1927. His father Harris started selling boiler suits to dock workers in 1957 and moved into fashion in 1967. He opened the Blandford Street shop in around 1983 as The Trading Post. Adam took it over in 1997 and changed the name to Arc.
A REBOUND IN clothing and footwear sales was a high point of non-food sales in Scotland in December, according to the Scottish Retail Consortium. Clothing and footwear was the second-fastest growing category after food, in positive territory for the first time since September 2015. Adjusted for the effect of online shopping, it showed its best growth since then too. Fashion benefitted from a strong Christmas week and a good performance in the postChristmas Sales, possibly helped by the cold spell at the end of the month. Men’s casual clothing was said to have been particularly good, boosted by Christmas jumpers. Footwear sales performed well in the Sales, with retailers pleased with the performance of the children’s segment. The lat e C h r i s t m a s and exclusion of the two Hogmanay days from the December period brought
a negative distortion to furniture, which tends to see strong sales in the postChristmas week. But toy sales were particularly good, helped by a continuing price war among retailers. Mobile phones were again the most popular gift choice in electricals in December. Some small electrical appliances in beauty made for very good Christmas presents. Some other consumer electronic items sold well, particularly online, but the category did not grow over last year. Overall, the SRC reported a 4.3% rise in like-for-like sales in December, compared with a 0.4% fall in December 2015. The 2.5% increase in food sales was offset by a drop in non-food sales of 0.7% compared with 2015. Nevertheless, this was an improvement on the 12-month average decrease of 1.8%. Adjusted online sales, total non-food sales increased by 2% in December.
5
Our lowest ever finance rate Available to you on new vehicle finance until 31.3.17
5.1%
APR Typical. Based on a £15,000 loan over 36 months with a monthly repayment of £449.16
Used vehicle loans available. 5.6% typical. Based on £15,000 over 36 months with a monthly repayment of £452.91 bira bank, 225 Bristol Road Edgbaston, Birmingham B5 7UB. bira bank limited is authorised by the Prudential Regulation Authority and regulated by the Prudential Regulation Authority and the Financial Conduct Authority (Financial Services register No. 204478).
Parking
ticket machines not giving change may be benefitting councils to the tune of £650,000pa
bira policy
Moving on parking Campaigning to improve parking will be a central part of bira’s strategy for political lobbying in 2017. Our message is already getting through to Westminster, as Fiona Cuthbertson, bira’s public affairs advisor, reports here. By responding to our short online survey, members can strengthen our arguments. BIRA IS PLEASED that the Department addition, the Re-Think Parking on High Street for Communities and Local Government has Report produced in 2013 for the British Parking agreed to support a Private Member’s Bill by Association states that footfall reflects a town David Tredinnick, Conservative MP for centre’s performance, with those towns that Bosworth in Leicestershire. His aim have higher footfall generating a highis to make it easier for English er level of spend in shops. councils to lower parking The gover nment ha s charges at short notice and acknowledged that as “high ensure that councils will streets and town centres only be able to increase have the potential to aid parking fees after consuljob creation and nurture tation. The bill was due to small businesses, it is parkbe heard in committee at ing that plays a major role the end of January after we in providing the gateway went to press. to them”. They have made Welcome though the initiasome welcome changes to parktive is, it does not deal with ing provision and reporting, any issues around best pracsuch as making it mandatory tice for parking charges, how for local authorities to give local councils set their charg10-minute grace periods for es, or the criteria they use. all on-street parking bays and Some 52% of car The government does not colall off-street car parks. lect data on parking charges parks are run in the Additionally, they have from councils, allowing them private sector and changed the code so motorfree rein to charge what they ists can see a breakdown of like, without considering lack a binding code the parking charges their value for money or whether of practice councils impose and how the costs are reasonable. much money the charges bira wants the government to collect details raise. This will be extended to include of what councils charge and the facilities offered. information on the fines imposed, This would provide the basis of a full analysis how many were paid and how of what happens now, how consistent (or not) many were cancelled. But we charges are, and charges versus facilities. It should bear in mind that fines also would enable bira to research among its are only about 5% of the revenue members about the balance between the cost of councils receive from parking parking compared to activity on the high street. Moreover, it must be rememThis should give the government best practice bered that some 52% of car guidelines. (See right for details of bira’s initial parks are run in the private online survey). sector. Anecdotal evidence sugThe Portas review of 2011 clearly showed that gests some practices here, such car parking charges were the biggest barrier to as setting excessive parking the regeneration of town centres. Astonishingly, charges or providing unclear the average hourly parking rate in London is or no signage, could breach £8.44, 18% more than the minimum wage. In consumer protection laws.
FEBRUARY 2017
The government promotes a system of industry self-regulation - private parking companies have the option to join an accredited trade association – but bira believes the introduction of a binding code of practice would give consumers more confidence to use private car parks, to the general benefit of retailers. A final issue to be addressed is that many parking meters do not give change. Cornwall Council disclosed in answer to a Freedom of Information request that in 2011-12 and 201213 on parking income of more than £23.6m it collected what it calls an “estimated over-vend” of almost £650,000 – equivalent to 2.7% of the total. Overall, councils collect annual income of over £1.5bn from their car parks. So, if “overvends” like Cornwall’s are typical, they account for extra income of £40.5m. Potentially, of course, this money could have instead been spent with high street traders. Mindful of this, bira supports the view of the RAC Foundation, an independent motoring charity, which has called for an end to this unfair rake-off. We will be lobbying for this change. In conclusion, bira believes that the government can implement decisions that would help improve parking issues. It is encouraging them to do so within this Parliament.
Fill in our online parking survey
It takes less than a minute to complete at www.bira.co.uk/parking-survey/ Alternatively, just email Sarah Arnesen on sarah.arnesen@bira.co.uk to receive the questions. You best know the parking issues in your area and if they are having positive or negative effects on your business. Your responses will help us formulate our lobbying policy to Westminster. Make your opinions heard. Many thanks.
7
New member benefit
Drive down your fuel costs with bira In association with The Fuelcard People, bira is offering a new hassle-free way to save money on petrol and diesel at thousands of service stations nationwide
How you’ll benefit as a bira member l Free fuel card* l No obligation service l Save up to 5p per litre on national average prices l Save 10p per litre at motorway pumps l Personal service l Simple VAT reclaiming process l Your own account manager l 24/7 access to your account, reports and FAQs l Zero liability once a fuel card loss is reported l Custom alarms for unusual fuelling activity
AS EVERY INDEPENDENT retailer is seeking to save on everyday running costs, bira has teamed up with The Fuelcard People to offer a wide range of cards that are valid at 7,000-plus pumps nationwide. Excellent service and value for money have been combined in the new deal for petrol and diesel, which includes BP, Esso, Shell, Tesco & Texaco forecourts, some supermarkets and independent garages, as well as the networks of Diesel Direct (Keyfuels) and UK Fuels. All bira members – and their drivers – are eligible to enjoy the benefits of the partnership. Jeff Moody, commercial director at bira, said: “We wanted to find a supplier that could significantly reduce fuel costs for our members, but we wanted more than merely consistent savings. As our retailers place such emphasis on service quality, we expect our commercial partners to have the same focus. We found what we were seeking with The Fuelcard People. For instance, the company allocates to every customer, regardless of size, a dedicated account manager. As other fuel card companies still use anonymous call centres, this speaks volumes about quality of service offered by The Fuelcard People. We were reassured also that it offers the best security and protection against fuel card loss or fraud. We are certain that this new service will save bira members money.” Steve Clarke, group marketing manager for The Fuelcard People, remarked: “We believe that fuel cards should offer more than just cost savings and we are delighted at this recognition by bira. From now on, bira members no longer have to drive around looking for the best refuelling deal – they have it already. Our fixed weekly pricing nationwide for diesel, petrol or both means a typical saving of up to 5p per litre
on national average pump prices and up to 10p per litre on motorway refuelling.” Cheaper diesel and petrol, less paperwork and reduced administration are just the start of the benefits for bira members. A single weekly invoice, covering all the refuelling for every vehicle, can result in up to three weeks of interest-free credit before an automatic direct debit payment is made. Members will not be pushed towards any particular fuel card, but will receive impartial advice on the most appropriate fuel card for their specific needs. Other benefits of The Fuelcard People schemes include 24/7 access to a secure internet account that includes transactions yet to be invoiced. Bespoke reports are available on demand for downloading directly to standard business packages. The use of eServices means that the whole process can be paperless and administration-free. bira members can now enjoy significant fuel cost savings, with free credit and reduced administration, all backed by personal service and security. Fuel cards will be personalised to discourage theft or fraud. When they fill up with diesel or petrol, they can ignore the price shown on the pump. Even better, they do not have to pay for the fuel there and then. They will save on the cost and save on administration, with no fuel receipts, credit card statements or cash reimbursement to worry about. And remember one monthly invoice covers all the refuelling for every vehicle.
WANT TO SIGN UP?
Complete a quick form at discountfuelcards. co.uk/bira or speak to Theo at The Fuelcard People team on 0844 870 8537 or send an email to enquiries@thefuelcardpeople.co.uk
* Fuel cards are free-of-charge up until July 2018; agreed rates apply thereafter
8
FEBRUARY 2017
bira Conference 2017
Be an independent innovator with bira
Progressive independents should set aside Monday 8 May to attend bira’s annual Conference & Awards in Bristol SPEAKER Jonathan Reynolds Navigating the New Retail Landscape: A Guide for Business Leaders is the intriguing title of a book co-authored by Jonathan Reynolds. In his conference address, Jonathan will explain why he believes the retail industry globally is in the early stages of an era of profound, perhaps unprecedented, change. Accelerating technology, the rise of internet-enabled shoppers, and the rapid emergence of new retail enterprises and business models are combining KEYNOTE SPEAKER to reshape the fundamentals of the industry. Laura Tenison MBE He will explore his idea that physical shops The founder & MD of the are no longer needed for the business of retailing. UK’s leading independent The choice for shoppers is not limited to their maternity and baby wear neighbourhood, town, or even country. No longchain JoJo Maman Bébé, Laura Tenison MBE er is retailing solely the preserve of traditional runs a business that boasts a turnover of £55m. enterprises - internet-enabled businesses, techSince launching the concept in nology, logistics, suppliers, and 1993 as a tiny mail order catafinancial services companies all logue, Laura has built the comare seeking direct relationships pany up to have about 80 stores with consumers. HEADLINE SPONSOR across the UK and Ireland, a busy The opportunities in this new website, and a wholly-owned USA subsidiary. landscape are profound, but so too are the chalInitially she borrowed £2,000 from her lenges. Very different skills will be required by brother after four high street banks turned her the leaders of retail enterprises. Jonathan will down. She was awarded an MBE in 2004 for serdiscuss the major directions and drivers of vices to business. Laura will tell delegates at the change that define the new global landscape of conference about her story, offering first-hand retailing insight and advice on how to survive and thrive as an independent in our omnichannel world. WORKSHOP Google Digital Garage For the first time, the bira Conference will feature The Digital Garage from Google. This digital skills training platform aims to The bira Conference & Awards assist independent retailers in growing their 2017 will be held at the Bristol business, career and confidence, online. Google Marriott Royal Hotel on digital expert Abbey Oledapo (pictured) will Monday 8 May. teach attendees what is needed to gain a comConference ticket £95.00 petitive advantage in the ever-changing digital Awards ticket £95.00 landscape, so delegates should come prepared Conference & Awards ticket: £179.00 to ask questions and learn. To book, visit www.bira.co.uk/ Abbey’s session will concentrate on learning conference2017/ or request a how to make your business more visible online booking form by emailing to help new customers find you through search events@bira.co.uk optimisation, local listings and search engine marketing. SAM HALE, OWNER of The Advance Performance running stores in Peterborough and Cambridge, is a fan of the annual one-day bira Conference. “This is a very valuable, worthwhile day to spend away from the business,” she says. This year speakers at the event will include a retail entrepreneur who started with a £2,000 loan and now has a £55m business, a retail analyst who believes we are in the early stages of an era of unprecedented change, and digital experts from Google who are determined to help independents grow their business online.
FEBRUARY 2017
FIVE REASONS YOU MUST ATTEND
1
Enhance your skills
All entrepreneurs need a break from their work to sharpen their skills. Choose from 12+ interactive workshops and keynote speeches, hear different stories and drop in on a variety of talks. Learn new techniques, catch up with what’s going on in your industry and get new ideas on how to drive performance in your field to transform for the future. This is a one-stop-shop event for retailers. Each session will ensure you have practical tips to use in your business.
2
Network and build contacts
The event brings together experts and like-minded independent retailers from different parts of the country who all share the same passion for retailing. It’s a fantastic opportunity to meet up with friends and to make new ones.
3
Interact with industry experts face-to-face
There’s nothing like being in a room full of retailing professionals and industry experts. The event gives you a one-of-akind opportunity to interact, share business ideas and ask pressing questions. It is your chance to meet people who have had huge success in independent retailing and learn from them.
4
Invest in yourself
Think of attending the bira conference like an investment. You pay money for a ticket, get something in return, which in time will provide great ROI for your business. Knowing what the latest news and trends are in your industry is key to ensuring you stay ahead of the curve. Get inspired and implement what you’ve learnt.
5
Share new ideas
No matter how experienced you are at your business, everyone can learn. Working in a small business can often be isolating. Without exposure to different viewpoints, we can miss ideas and trends that can impact future results. Learning and sharing new ideas with your team will expose you to new ways of steering your business.
9
Promotion
Online is the new high street It’s easy and essential for independent retailers to get online in 2017 THE RETAIL INDUSTRY is booming, according to an Office for National Statistics report. Consumers bought 5.9% more goods in November 2016 than they did the previous year. That increase leaps to 24.9% in online buying alone, showing that ecommerce continues to grow in importance. Changes in consumer buying behaviour, especially online activity, is a major predicted trend for 2017, so it’s more essential than ever for shop owners to take advantage and get online. It can seem daunting for independent retailers to create an online presence, but it’s easy, affordable, and is an essential part of a retailer’s strategy. Here are some reasons why getting online could be the best thing to do for your business:
10
Websites aren’t just used for buying Retailers don’t have to have ecommerce functionality to benefit from being online. Even if they buy in-store, customers are likely to have done their research online, where they have access to a huge amount of impartial information, from investigating product details to reading reviews. Customers may want to find out more about retailers before purchasing, for example, finding where the nearest store is and what the opening hours are. Even without offering ecommerce functionality, your website can make you more trustworthy to potential customers. Some 42% of customers research online while in store. What retailer wouldn’t like an opportunity to shout about their business and what makes them unique? FEBRUARY 2017
Even if products are purchased offline, websites can act as online brochures. They can be a creative and innovative way for independent retailers to showcase their full product range. Shop owners can offer a clickand-collect service to increase sales, so that customers can reserve items online, then collect them in-store. Online is the new high street Online shopping has grown enormously in recent years, with some consumers abandoning the high street in favour of using ecommerce from home. Independent retailers can adapt to this trend by setting up an ecommerce website with a custom domain name through which they may offer products online as well as in-store. By diversifying in this way, you’re opening up a huge new avenue of potential customers, as well as giving existing customers another way to buy from you and an easy way to encourage repeat purchasing.
A website opens up opportunities to be seen by new customers online who are looking for your product or service. A website provides many potential SEO (search engine optimisation) benefits to improve the visibility of your business in search engine listings, such as Google, making you more visible to potential customers. Having your business information online allows you to be found in location searches, in which customers search for shops and services near them before visiting in person (for example, “furniture stores near Oxford”). By having a website, you can appear in these relevant searches, making it more likely that customers will visit you. It may even bring in customers who might not have known about you before. FEBRUARY 2017
Linking online and offline shopping The best way for independent retailers to succeed is to offer a combination of online and offline services, which more and more customers are looking for. They are seeking the convenience of online, while searching for the personal offline touch. Business owners need to use what they learn about customers online to offer a better, more personalised experience in-store. Here are how some retailers have started to do this: l Cross-channel loyalty schemes using customer data gathered online or in-store to create personalised future marketing efforts l Understanding what products are popular online to showcase in-store l Supplying customers with digital receipts to acquire contact details on a customer database for online marketing efforts l Interactive technology in-store, such as iPads, that display your website, offer customers helpful advice or ask for in-store reviews
l Offering free wi-fi in your store and asking for customer details on registration Shop operators ought to embrace the online changes that are continually affecting the shopping landscape, but at the same time make the most of their offline presence and champion their individuality. It’s easier than ever to get online Here are the five essential steps to getting online: l Secure the best domain name for your website l Choose a hosting package to suits you l Make your website clear and simple, and ensure it is optimised for mobile devices l Drive traffic to your website from search engines and social media l Secure your website against cyber threats Gain the benefits of a .co.uk domain name Obtaining a unique, trustworthy .co.uk domain for your business is a simple and affordable process and can be purchased alongside a professional email address. A .co.uk domain gives your website legitimacy and makes your business more trustworthy to customers; 69% of people would buy from a business with a website ending in .uk. Not only will you appear more trustworthy to consumers, but you’ll also be demonstrating to Google, and other search engines, you’re a British business, which can aid your SEO efforts. Also, just by using a .co.uk domain, you could increase the chances of customers clicking on your website; two out of three people are more likely to click on a website ending in .uk
FIND OUT MORE TODAY
Setting up a website is an exciting prospect for your business this year. It could open up many exciting opportunities. Getting started couldn’t be easier; simply begin by getting your .co.uk domain today. Call 01865 332244. Visit www.theukdomain.uk/bira
11
the show 10 – 14. 2. 2017 Interaction between idea and realisation, design and craft, concept and market. At the world’s most important consumer goods trade fair. Information and tickets at ambiente.messefrankfurt.com Tel. +44 (0) 14 83 48 39 83 info@uk.messefrankfurt.com
Business profile
63574-001_AM_allg_Handel_BiraMembers_210x297 • 210x297 mm • FOGRA 39 • CMYK • tg: 20.09.2016
Living
DU: 13.09.2016
GB
COLLECTION OF SANDWICH, KENT
Keeping a family tradition When Carolyn Illsley opened a fashion shop as a second career, she may have been a late developer, but she was only following her father’s advice. Now the 20th anniversary of Collection of Sandwich is not too far away. RUNNING A CLOTHES shop is a family tradition for Carolyn Illsley. Her accountant father Harry Cherry was always eager that the family had “a second string to its bow”. “My father had been orphaned early in life, so was always careful with money and was keen we had our own business. So, in the 1950s my mother Isobel ran a womenswear shop, a haberdasher’s and a childrenswear shop in Glasgow, where I was born. When we moved south in 1959, my parents looked for a business to buy until they found a costumier called Gillian of Broadstairs. My mother converted it into a fashion shop and ran it successfully for 26 years.” When Isobel retired in the mid-1980s, Carolyn did not want to take on the business in the Kent seaside resort as she was busy running a home for solicitor husband Geoffrey and children Giles and Yvette. Part-time work at Canterbury Cathedral suited her at the time, but while she was running a shop linked to an exhibition at the cathedral in 1997, the retail bug bit. So, on 30 May 1998, Carolyn opened her shop, Collection, in the historic Cinque Port of Sandwich, Kent. The property sits on a corner leading to the small town’s main shopping street. “It comprised two units, an upmarket grocer and a freezer store, but I thought its position, with several windows, would make a good dress shop.” The Illsleys acquired the freehold, which includes a flat above the shop. At the time, of opening, Collection was the third women’s fashion shop in Sandwich, but it has outlasted its older rivals (and welcomed a few new competitors in the past 18-plus years). There have been plenty of changes since 1998, but Carolyn mentions the internet first. FEBRUARY 2017
“I have a website for marketing, but I don’t want to sell online. It’s expensive to do properly and it would dilute my personal service. I like being bricks-and-mortar. I take a lot of pride in the shop, getting my stock and staff right. But the internet has affected my business, so I have upped my game. My lovely customers love coming into the shop, but they are all internet-savvy and enjoy looking around what is like a huge online shopping mall.” Dress codes have changed over the past two decades and Collection now sells much more casualwear and far fewer obviously dressy items or the country tweeds Carolyn started with. “My customers are over-40, in many cases quite a bit older, but they are modern women who take care of themselves. They know they can’t get away with the cheap clothes they might have bought when they were young. Their body shapes are different, of course, but they still want a modern and stylish look. We have to be as individual as they are, so we do not have rails of the same things. I buy items rather than complete collections.” Carolyn joined bira three years ago, signing Collection, 4 Delf Street, Sandwich, Kent CT13 9BZ Hours: 10-5 Mon-Sat, 12-4 Sun Size: 818sq ft Staff: Four part-timers, inc manager Brands include: Avoca, Christina Felix, Frank Lyman, Lindi, Marble, Saskia, Saint James bira member: Since 2014 collectionofsandwich.co.uk
up at trade show Pure London. “As we all have to watch our overheads, bira has enabled me to make savings on my telephone bill, card machine, music licence and electricity. I am now looking at its insurance services,” she says. Although she is excited that another year and a new fashion season is upon us, Carolyn admits that trading is likely to be challenging in 2017. “The last couple of years have been difficult, mainly due to the weather being so unreliable. But for 2016 I started buying differently. Now I am ordering fewer things, but doing it more often. I must keep my assortment fresh and now I look for suppliers that do not trade online themselves. I like labels that have low minimum orders, so you can try them out and see if they work.” Although most indie shop owners are loath to give up any control, Carolyn appointed a parttime manager, Elaine Million, who has worked at Collection for seven years: “Elaine worked for Jaeger and since I made her manager three years ago, I have been able to spend more time thinking about the business and more time to buy better and so achieve better sales. I am in the shop now only a couple of days a week.” Items around £70 to £80 are good sellers at Collection and it is rare for anything to cost more than £300. Carolyn likes to achieve a 65% sell-through before her regular seasonal Sales in January and July. She does odd days and weekends offering 20% reductions on slow-moving lines. Another relatively new initiative is to open on Sundays: “We see a lot of our regulars on Sunday. We offer tea or coffee as soon as they come in. We are friendly to everyone. My customers like the ambiance we create. They have more fun here than going to a coffee shop.”
13
14
The big interview
Sister act: Rita and Rachna Dewan in the Holland Park branch of Lords
How Lords leaps ahead LAST YEAR FOUR shop managers from Lords attended bira’s prestigious Oxford Summer School to stretch their retailing abilities and improve their skills. It was the first time this ambitious Londonbased housewares business had sent delegates to the OSS and is an indication of the levels of investment the owners have made over the past four years. “Among our 30 or so staff, we have had a core group for a long time. They embody the DNA of Lords and by osmosis they can pass this on to new recruits. If the newcomers are the right sort of people, they tend to stay with us,” explains director Rachna Dewan. “We pay our colleagues above the national living wage and everyone is included on an incentive scheme that pays out an annual bonus. The cost of living in London is high and we want them to perceive us as good employers and be happy with us.” The front-line shop staff are key to Lords’ success as an independent retailer. “In our original Westbourne Grove shop, Ajo Agyapomaah has been with us for 17 years and he is a legend in the neighbourhood. My son even refers to it as ‘Ajo’s shop’. His colleague Agatha Osei has been there for 13 years. Through staff training we ensure that all our colleagues know what they are talking about when, say, they are advising someone on which kettle to buy. Without this knowledge behind you, you can lose credibility with customers. We are now devising our own programme for customer service training by asking ourselves what does ‘customer service’ mean at Lords.” Another huge step forward will take place in spring this year when a new integrated EPOS system from RBA goes live. Following a total replatforming of the Lords website in 2016, this development will permit Lords to become truly an omnichannel retailer. The recent investment in online is described as “substantial”. “Online has been the heart of the business for the past 12 months,” says Rachna. “It has never been more accurate to say that the customer is king. Today’s consumers want everything and they want
it now. Our stores are showrooms – admittedly expensive ones – for our online store. We cannot possibly stock every item in every store, but each branch has an iPad so the team can show customers our complete offering. We can transfer stock between branches easily, usually on the same day. We want to serve the customers at their convenience, not ours.” This confident approach to the realities of modern retailing is typical of the can-do attitude that has seen Lords grow from one shop to six so quickly. The stores are part of the Lords Group, which started life as a builders’ merchants in Westbourne Grove, near Notting Hill, 20 years ago. CEO Shanker Patel joined the business in 1993 after graduating from university. He is Rachna’s husband, so this is a true family business. This is underlined by the fact that Rachna has built up what’s referred to as “the retail side of the business” with her older sister Rita Dewan and her brotherin-law Tilak Patel. Rachna is responsible for all the buying for the shops, Rita is director of marketing and operations director Tilak (who has also attended a bira OSS course) oversees the day-to-day running of the business. Lords’ retail side has a long pedigree but it was not always the impressive and sophisticated operation of today. The Westbourne Grove shop was opened in 1994 to complement the nearby builders’ merchants business. “Builders need kettles, heaters, mugs and so on, so that was the first idea. Westbourne Grove is a residential area, but back then it was not as prosperous as it is now. The business developed over the years and when I joined Lords in 2013, we were selling lots of nice things from tatty shelves. I saw there was huge potential,” says Rachna. Such was the team’s confidence, Lords went on a buying spree, acquiring other independent cookshop and housewares businesses in London and the Home Counties. In June 2013 a unit was taken over in Holland Park and the retail operation was rebranded as Lords of Notting Hill. Poores
15
Photograph: Paul Driver
Only four years ago, Lords had just one shop, selling “nice things from tatty shelves”. Product chief Rachna Dewan explains how the business became an international award-winner so quickly
they might need in the future. We listen to the and publishers from housewares trade publicacustomers. Each shop makes a list of what tions from around the world. customers have asked for that we do not stock. Lords was evaluated on several criteria: overIf there is enough demand, we will add it. The all mission statement, vision and strategy; store managers suggest what we need to add and each design and layout; visual merchandising, displays store even picks which local charity to support. and window displays; marketing, advertising and “We act as a convenience store because promotions, customer service and staff training; people come to us rather than going into central and innovation. Previous UK winners of the accoLondon or to a retail park. We go out of our way lade have been Selfridges, Bentalls department to build a relationship and trust. If we haven’t store in Kingston (part of the Fenwick group), got something we will try to order it in from one Steamer Trading Cook Shop, Lakeland and the of our suppliers. We like to keep things fresh by John Lewis Partnership, so Lords is in excellent adding new and unique lines. We take pride in the company. way our shops look and change our window and It has also taken top spot in the bira Awards, in-store displays regularly. This keeps the stores but there is no sense of resting on past achievelooking fresh and inviting for our customers ments, however. Rachna predicts that 2017 throughout the year.” will be a challenging year, not least because of For the past 18 months, the team has conceninevitable price hikes. “We will have to handle trated on consolidation and getting its network increases of at least 10% across the board,” she of six stores plus the overhauled website working says. “We operate mainly at the mid-to-high as optimally as possible. Their exemplary efforts price band and while our shops are in generwere recognised on a ally affluent areas, our customers do not global stage in March want to feel they are being charged Lords, 86 Westbourne 2016 when Lords was more than they would elsewhere. Grove, London W2 5RT named as one of the It is easier to increase prices on Established: 1994 five top retailers from lower-cost items.” Size: 1100sq ft around the world in the Given the size of the Branches: Battersea (600sq ft), annual International business, Lords is an Chorleywood (3000sq ft), Hampstead Housewares Associaimportant customer (1000sq ft), Holland Park (3000sq ft), tion Global Innovation for most of its suppliSt John’s Wood (900sq ft) Opening hours: Mon-Sat 9-6 (9-7 at Awards, which were ers and Rachna is the Holland Park) Sun 11-5 held at the IHA’s Intermain point of contact. Staff across group: About 36, of national Home + HouseShe sees signs that the which about 70% are full-time wares show in Chicago. The importance of good lordsathome.com winners were decided by a jury independent retailers @LORDSATHOME of four retailing and visual meris being better recogchandising experts and seven editors nised: “I find it easy to
16
FEBRUARY 2017
of Chorleywood was acquired in May 2014, and Andrews of Hampstead followed in July. Lords took over a former La Cuisiniere cookshop in Northcote Road, Battersea in November 2014. The expansion strategy was completed when a shop was opened in St John’s Wood in June 2015. “It was quite rapid expansion, but we were alert to opportunities and being a family business, we can move fast. All the stores were totally redesigned and refurbished by (London-based retail design agency) Worth Retail and all are now called just Lords. We dropped the ‘of Notting Hill’ about a year ago as it was too limiting. Each is a local store and we need to reflect that.” The stores are certainly impressive, with a clean, light and airy ambiance. Each one has a slightly different mix of products, which is dependent on the branch’s heritage, its catchment area, its size (see box at right) and its nearby competition. “Essentially Lords has a housewares offering, but as well as everyday essentials like bulbs, batteries and cleaning products, customers can also find nice gifts like scented candles and things for the home, such as ironing boards, bins and crockery,” says Rachna. “In Westbourne Grove, there are quite a few shops selling the sort of things we do, so we have changed the ranging to move away from the lower level.” The market is not just local these days, of course. As well as any smaller independent housewares store, Rachna lists John Lewis and Amazon as obvious competitors. So, what are Lords’ techniques for standing apart? “Ours are all local stores, so that means we need to remember customers’ names, and which light bulbs or vacuum bags they require. We need to know what they want now and anticipate what
In front of a mural of historic Westbourne Grove in the original store, long-serving colleagues Agatha Osei and Ajo Agyapomaah with manager Charmaine Fearon
have an honest conversation with suppliers. They realise that when we range more carefully with focus, often we end up selling more. I have noticed that they are helping smaller retailers by reducing carriage charges, offering smaller pack sizes and more flexible terms. All of this is helpful for what will be more demanding times. “One thing I would like to see, on behalf of our customers, is some suppliers to amend their returns policy so that we can in turn help our customers. We want to be confident and always to say ‘No problem’ if customers return items. There’s still room for improvement there.” In her search for new products to give Lords a point of difference, Rachna is visiting the Ambiente show in Frankfurt for the first time this season. This follows a couple of visits to Maison & Objet in Paris. She likes Top Drawer and Exclusively Housewares in London and spends a day at Spring Fair, although she has usually done all her buying with the major exhibitors by then. She also buys through bira direct. When Rachna joined Lords in 2013, she had no retailing experience, having had a 15-yearlong career in private banking. She is clearly a fast learner but possibly her best quality is her eye for product and the ability to see things from the customers’ viewpoint. Ready for the challenges of 2017, she outlines the strategy for marketing her sister Rita has devised: “It is impossible to measure how successful your marketing has been, of course, but we communicate with the consumers in several ways. We take a lot of pride in our windows and employ our own visual merchandiser, who changes them about every six weeks. In-store we like to regularly have ways of interacting with FEBRUARY 2017
consumers, such as a competition to guess how many sweets are in a jar, or an Advent calendar at Christmas. We like to change our gifting and till-point selection regularly too. “We design leaflets that are mailed to selected target groups, particularly potential new customers in the area. We still do some print advertising in local magazines, which is important when you are new to an area. There is a need to create brand awareness in the local community. “We are active on social media like Facebook, Twitter and Instagram – we have hired young people who are very skilled at this! We use emails for marketing, but only selectively when we have a real benefit to tell our customers about.” Treats and benefits are part of The Lords Club, which is not a classic loyalty scheme but more like a social network. It is free to join and membership includes discounts through the year, small gifts from Lords, the chance to test new products, free coffee in store and free delivery of purchases. Although it retains two main seasonal Sales, Lords is not averse to running strategic price promotions: “We restrict these to very narrow, specific events, but they bring the customers in.” Rachna admits that her favourite role is to be on the shopfloor, talking with and listening to customers. “It is great to get good feedback and even to learn from criticism. This will be a tough trading year, but we are optimistic and we are ready to be very proactive. We all have a passion for what we are doing and we plan to transmit that to the customers. Our aim in 2017 is to keep the customers interested in coming into our stores and looking at our website. If they are shopping at all, we need them to be shopping with us.”
The six stores range in size from 600sq ft to 3000sq ft
and the product mix stretches from batteries and cleaning
products to scented candles, gifts and garden furniture. The brand identity, created by Worth Retail, is consistent across
the six, as seen in (from above left) Hampstead, Westbourne Grove, Chorleywood and St Johns Wood. The large photos above show the 3000sq ft Chorleywood store.
17
Promotion
Don’t unlock your business to shop thieves
The experts at bira insurance offer some preventative tips to help reduce shop theft Theft costs shops and small businesses in Britain over £300m a year*. As a broker, bira insurance is privy to many of the occurrences that cause shop owners real financial damage. As thieves get more clever and more brazen, retailers are struggling to keep up. That’s why bira insurance has compiled a guide to common forms of shop theft, preventative measures and protection. The guide is at www.bira.co.uk/ resource/shop-theft-experts-bira-insurance/ Here we list some highlights. Hiding items out of sight A thief will use an item such as a bag, pram or loose clothing to conceal an item. It is common for a smaller item to be hidden (or swapped over) in the packaging of another item, which is then legitimately paid for. Security tags can be an effective line of defence against this kind of crime, but beware that metal-lined bags can be used to negate an exit alarm system. Offenders will target and re-visit shops that have blind spots in them. Remove any opportunity by making sure there are no areas hidden from sight of the register, staff, cameras, mirrors or the shop window. Distracting the staff Many thefts occur when a staff member leaves the shop f loor or becomes distracted by a
customer. Beware of a request for something that is kept “out the back”, or a group of people who will work together so one distracts the staff with a query while the other(s) steal. A group of thieves or suspicious people will eventually become known in the area. Work with other local shops and the police by being sure to share information on anyone working or caught in your area. Unlike many other retail insurance policies, bira insurance, which is exclusive to bira members, offers full theft cover without evidence of forcible or violent entry. Blatant theft Walk-out techniques involve simply picking up an item and casually leaving the shop. This works under the premise that if the activity does not arouse suspicions, no alarm will be raised. Another technique is for the thief to grab something and dash out, hoping to get a good head start on any attempt to chase. For smaller shops where security staff are not an option, try using dummy displays or empty boxes around the entrances. This discourages blatant thieves, who would need to come further into the store to attempt the snatch. It also helps you avoid areas in your store where shoplifters could go to hide items. This type of concealment can be difficult to
*source: https://www.businesscrime.org.uk/assets/files/BRC-2015-Crime-Survey.pdf
18
prove, especially if the thief has already brought an item – they can always claim they “accidentally” forgot to pay. This again is where sharing information locally will help you identify offenders. Exclusive to the bira members’ policy is the “Theft of stock in the open” enhancement, which covers a blatant theft where someone just walks by and takes goods from outside your premises. Preventative measures like these will help deter theft but bira insurance understands that sometimes loss is inevitable. Happily, bira insurance retail policies contain exclusive enhancements that include but are not limited to: lF ull theft cover without evidence of forcible or violent entry lC over for theft of stock in the open lC over for loss of money up to £10,000
CONTACT US TO DISCUSS YOUR INSURANCE NEEDS 0330 123 5939 info@birainsurance.co.uk www.bira.co.uk/bira-insurance/
bira insurance is a trading name of Towergate Underwriting Group Limited who are authorised and regulated by the Financial Conduct Authority.
FEBRUARY 2017
bira services
Free legal advice when you need it
Legislation affecting retailers is ever-changing and, too often, ever more complicated. bira members have an expert legal advice service on tap, courtesy of Ellis Whittam. Fast, reliable, well-informed and free, bira legal ensures that our retailers stay on the right side of the law. SHOPKEEPERS HAVE TO operate in a the lease expired. They made clear all the things tangle of ever-changing regulations. New we had to consider,” she says. laws, or changes to existing ones, come thick “Previously we’d used bira legal to ensure and fast. Retailers have better things to do we were keeping our employees’ handbook up than to try and keep up with every addition to date, but this was slightly more serious. Ellis to the rule book, which is why bira legal, Whittam was able to supply us with the correct the members’ advice service provided by forms for the process and overall the service was employment law, HR and health & safety very, very good. In the end, we were able to redeexpert Ellis Whittam, is such a popular part ploy two of the six staff. After the closure, we of the membership package. used bira legal to advise us on the renegotiation In this time of profound change in the of our staff hours in our two remaining shops, independent sector, unavoidable reduction in in Carmarthen and Narberth, where we have shop numbers and necessary seven employees. The service realignment of staff hours was excellent again.” and conditions mean that C he st er -ba se d E l l i s employ ment issues are Whittam provides its bira often to the fore. When legal adv ice ser v ice to faced with any employment members for free. The firm question, Ian Sowerbutts, can be contacted on the the fifth generation working numbers below and, as well in Sowerbutts, a furniture as employment law, it handles business in C litheroe, health & safety, commercial Lancashire, readily turns to legal issues, tax and VAT Ellis Whittam. matters. The overriding A few years ago he had aim is to ensure that a bira to offer fewer hours to his Ian Sowerbutts, Sowerbutts, member’s businesses is nine staff or make some Clitheroe legally compliant. The result redundancies. “I wasn’t sure is savings in time and money where I stood as the employees were on several for the member. different contracts depending on when they “This is a fantastic service and a great part of had joined us,” Ian recalls. “I wanted to keep being a bira member,” says Garry Dell, finance everyone, but on fewer hours, and Ellis Whitdirector at Greendale Carpets in Hereford. “We tam came up with a solution to make it happen. employ 14 people, but the company is not big They told me exactly how I had to handle the enough to merit a company secretary or an innegotiations.” house legal team. Of course, we try and keep up Elaine Black, director of the Tom Hughes with the broad details of changes in legislation, fashion shops, was forced to make redundanbut when it comes to getting fine details right, cies when the business decided to close its you need expert advice and support. Haverfordwest branch three years ago. “The “When advice is needed a pool of people at very important thing was that we sought Ellis Ellis Whittam deal with bira enquiries, so you Whittam’s advice several weeks before we even are not always in conversation with or emailing spoke to the six staff. They gave us a very clear the same person, but they keep good notes, so timetable of how long our consultation process it’s easy to call back as many times as you need. would take, which was vital for us to know as we It’s a great comfort for a small company like ours had to exit the premises on a certain date when to have such a service just a phone call away.”
The bira legal service is worth the bira membership fee on its own
FEBRUARY 2017
Ian Sowerbutts echoes the view that with employment changes happening so quickly it is reassuring to get up-to-date information from the legal service the same day. He contacted Ellis Whittam again when he needed to commence disciplinary proceedings against a staff member. “I must stress that as the employer you must be completely honest with Ellis Whittam and you must contact them before you have any discussions with staff,” he advises. “In this instance, they talked me through it all and provided me with template letters. In the event the employee was dismissed for gross misconduct. I heard that he was thinking of taking our company to a tribunal to claim unfair dismissal, so I was delighted when Ellis Whittam said they would back me at the tribunal, if necessary. In this instance, no claim was ever brought, but I was grateful that I had taken and followed Ellis Whittam’s advice to the letter. This legal service is worth the bira membership fee on its own.”
CONTACT US
bira legal is free to bira members. The advice is available Monday to Friday, 8am to 6pm, excluding public holidays. Advice on employment issues is available 24/7 via the online portal. There is no limit to the calls you can make for advice on employment law & HR, health & safety, commercial & general law, and tax & VAT issues. Have your membership number ready when you call.
bira@elliswhittam.com Employment law & HR 0345 450 0937 Health & safety 0345 450 0937 Commercial and general law 0345 450 0952 Tax & VAT 0345 450 0952
19
1
23/11/16
16:00
40x490.pdf FRONTON_ML_1*4_UK_5
WE GOT AVE
H
NEWS F OR YOU
A Stress-Free Ready-Made Promotion at Your Fingertips
£1 OFF0 6ft) 8m (2pe ck Ta Auto Lore STA033504 Measu £37.99 WAS £27.99 NOW
Black Force dded Pa eight (+SIZE) Lightw DEWFORCE Gilet. Gilet tweight paddedtop.
■ Ligh % nylon rips panels. . ■ 100 fleece side XL & XXL s M, L, ■ Stretch le in size ■ Availab
£3 ONLY
1.99
W
NE
Free A4 Full Colour 28 Page Brochures Plus Free Price Tickets, Free Counter Mats & Free POS
Reasons To with
da Barracu 30014 (22") 55cmBAH24422P + AVC 4.99 W £1 saw Hand 2.99 | NO £2 WAS
TA ) 2 GE (14" BUEY 35cmX SAW £15) FREOOLBO VER T TH O
s Drill ushles 18V BrS Hammer Ion & SD x 5.0Ah Li2 Driver 2P2 CK253 s 18V Brushless ImpactPack With DEWD Twin Batteries (DCF887) pluH273). a er rger and act Driv mer Drill (DC es, cha ss Imp n batteri Brushle ode SDS Ham ■ 18V h Li-Io e. 3-M 2 x 5.0A ak carry cas d with T-St ■ Supplie
.99 £459 ONLY
R (WO
Low Prices on Big Brands including Stanley, Bahco, Irwin, Dewalt, Stabila and many more
SERVICE SUPPORT INTEGRITY
Same Day Order Despatch To You
For Every Trade & Task
For more information, please contact your local Toolbank branch or representative, phone 01322 321460 or email b2binfo@toolbank.com
Business strategy
My New Year’s Resolution is…
bira members around the country share their business ambitions for 2017 Our wish list for 2017 is: for greater clarity on the Brexit situation so that we get on with it and stop talking about it all the time. More action, fewer words; that Donald Trump is not going to be as bad for the world as most people fear; and that we’re going to have a long hot summer; and that Amazon implodes or gets fined billions by the EU for dodgy business practises. PS: Look up quickly, there are a load of pigs flying past. Cliff & Laurie Elliott, Crossy’s, Hinchley Wood, Surrey
We reviewed our strategy at the tail end of 2016. So, my personal goal for 2017 is to manage my time to ensure we get going on the key initiatives rather than getting bogged down in the day-to-day challenges the business throws up. One of these goals is to come up with a growth strategy for each area of the business. It’s not going to be easy given the forecast for this year but we’ve made a start and have already identified some hopefully easy wins. William Coe, Coes of East Anglia
Batten down the hatches! Stormy waters ahead! There is uncertainty around what the implications are of Brexit and concerns on inflation because of exchange rate f luctuations affecting all we source from Europe. My resolution is to buy less forward and more in season to quicker react to trends and manage stock levels effectively. Yet we are still here and want to be around a good while yet.
As with my team Arsenal, I’m expecting highs and lows from consumers and business customers this year, depending on what’s going on politically at any point. So, 2017 will be unpredictable. We are expecting costs to rise for stock, staff, and property because of business rates. And we are prepared for inflation to bounce back. The key thing to do will be to maintain profitability by making sure we have the best product and service – and getting that message across to our customers, the ones who put the money in the till. Increased prices will flatter a lot of retailers as they will be able to claim rising like-for-like sales, but that won’t really mean a thing if profits, the reason we are in business, don’t grow along with them. There is certainly uncertainty in the air (as there is above the heads of the Arsenal back four - now that does worry me). But we’re not going to sit back and absorb the pressure. We’re going to get out there and fight for business. We’re going to keep our eye on the ball (I hope that the Gunners do this too) and remember that in business the goal is profit.
Bruce McLaren, Dalziel Kingsize Menswear, Woking, Surrey
Vin Vara, Tool Shop, central London, and president of bira 2016-17
Our resolution is to expand, refurbish, roll out EPOS. Bring on Brexit. Let’s go with the World Trade Organisation. Onwards, upwards. John Morris, Tudor Williams, New Malden & Elphicks, Farnham, Surrey FEBRUARY 2017
We are already having a happy new year as our main resolution was achieved in the first week in January when we refitted our shop, including new flooring. The reaction from customers has been overwhelming and made all the hard work worthwhile. We have had a lot of retail closures locally, so our refit was featured in the local press as an example of our commitment not only to keep local retailing alive, but to constantly improve it. Chris Beards, Mantons Cards, Port Erin, IoM seen with Debbie Beards & Gemma Corkish
Our New Year Resolution is more a hope for 2017. We hope that the March budget is good for small business. We hope government appreciates what small independent retailers do for the economy and sees sense to reduce business rates even further. Kevin Bellwood, Love Roobarb, Bridgnorth, Shropshire
Firstly, I hope the British media resolves to start talking the high street up, rather than down. Let’s have a half-full mentality rather than a half-empty one. The supposed demise of the high street is exaggerated. Secondly, I am willing the weather to start doing what it is supposed to do and provide us fashion shop owners with hot summers and cold winters, not the other way round. Finally, I want the multiples and department stores to promise to stop their ridiculous early and unnecessary discounting. Debenhams offering spring stock deals in February - madness! Michael Hughes, Tom Hughes, Carmarthen and Narberth, south Wales
21
Product news
Keeping in touch with the BURG-WÄCHTER ADDRESSES THE POST BOX MARKET
TOOLBANK RECRUITS A ‘SILENT SALESMAN’
As Europe’s largest manufacturer of external post boxes, Burg-Wächter has many options for retailers who want to offer practical and stylish alternatives to the letter flap. Materials include stainless steel, high-quality plastic and powdercoated galvanised steel in a range of colours, in wall-mounted and free-standing models. All Burg post boxes conform to the European standard EN 13724, which assures superior performance, enhanced weather protection and greater resistance to attack. Retail prices run from £40 to £140, inc VAT. Burg-Wächter marketing director Rex Atkins commented: “Customers care about what they put on the front of their homes and properties, so a post box must be practical and long-lasting, but it has to be decorative too. Highquality, durable, stylish, secure, appropriately sized and simple to use, Burg’s extensive range fit the bill perfectly.” Visit www.burg.biz/uk or telephone 01274 395333.
More than 30,000 products stocked by tools and hardware supplier Toolbank are included in a new ‘silent salesman’ edition of its massive Big Blue Book product catalogue, which is designed specifically to help Toolbank customers build their special-order business. “By displaying the laminated catalogue, the Toolbank stockist can offer our full range of more than 30,000 products, with delivery to the shop in 24 or 48 hours,” said Toolbank’s marketing development director Simon Bicknell. “Our customers can generate significant extra sales, with no extra stock commitment and no extra display space because we act as their stockroom. And we have £80m of stock, held at 12 depots across the UK.” The sturdy steel stand was created by Toolbank’s sister company Biz Engineering. The ‘silent salesman’ package, including the stand, the header and the laminated pages, costs £99 net, and is available from any Toolbank branch. For more information, call 01322 321460 or go to b2binfo@toolbank.com
Can he stand the heat? Michelin-starred chef Glynn Purnell (left) with his amateur trainee
PRESTIGE COOKS UP A TV CAMPAIGN Meyer Group has revealed that Prestige will be the main sponsor of a new prime-time ITV show, The Secret Chef, which is due to be aired in March. Each of four episodes will show a different professional chef training a cooking novice by showing them the tricks of the trade at their restaurant. The show finishes with the chefs helping their protégés to prepare a gourmet meal. As the main sponsor, Prestige will have bespoke idents at the beginning and end of
22
each ad break,. The kitchenwares brand will underpin these TV appearances with a digital campaign. Meyer Group managing director Paul Wright commented: “This is a huge coup for Prestige and highlights our commitment for the brand in 2017 by communicating across all mediums to our core target consumers.” Prestige also intends to return to traditional TV advertising sometime in late spring. FEBRUARY 2017
Want to sell to bira members? To discuss appearing on these pages, contact mutimedia sales executive Simone Adams on 0121 446 6688 or email her on simone.adams@bira.co.uk
latest launches JVL ADDS NEW MOBILE APP Household products distributor JVL has improved its service to customers with the launch of a new mobile app. Designed to make ordering simple and convenient, its quick and easy-to-use features include barcode scanning, favourites and shopping list options. There’s also a desktop version so the order can be finished at a PC if preferred. The app can be downloaded for free using the App Store or Google Play. For further information, contact customer services on 01422 888535 or telesales@jvl.co.uk
DON’T MAKE A SNAP DECISION ON SECURITY According to UK police reports, 25% of all burglaries involve the snapping of lock cylinders, as no specialist tools or knowledge is required. Security specialist Sterling has responded by developing its “Snap Safe” 6-pin cylinders. Independently certified as Sold Secure Approved, these cylinders, selling at £12-£20, include an engineered shear line, which ensures the cylinder will snap at a predetermined point, but continue to keep the door locked. Combined with increased anti-drill protection, this feature is specifically designed to deter burglars. Additionally, Sterling’s nightlatches come in a variety of styles, sizes and finishes, from the traditional to the recently-added deadlocking model. Some can be deadlocked from the outside with a full turn of the key, providing additional security for doors with (or near) glass panels. All Sterling goods come with a 10-year guarantee. Contact Sterling on 01274 395333 or visit www.sterlinglocks.com
AN ONLINE APPEARANCE FOR ABUS CODELOXX Jake Thiesen of Your Secure Locksmiths in Nottingham was so impressed with the ABUS CodeLoxx products that he posted a 7-minute training video on how to fit and programme them on YouTube. It can be viewed at https:// www.youtube.com/watch?v=se2WcWdroXM The ABUS CodeLoxx has an adjustable modular design, is easy to use, and can be used
with an electronic key tag or a code entry system. One of Jake’s satisfied customers owns a block of flats and has been changing the lock to an ABUS CodeLoxx every time a unit becomes vacant. For more on the whole range of ABUS security, contact ABUS UK on 0117 204 7000 or sales@abus-uk.com and www.abus.com
RESPONSETAP ANALYSES CUSTOMERS’ CALLS ACCURATELY Online retailers wishing to analyse the customer buying experience are being targeted by ResponseTap, a leading call intelligence specialist. Its new platform, Insight Hub, is a sophisticated reporting tool that closely analyses an individual customer’s journey. Information is captured across visitor-level web analytics, powerful call intelligence and other data sources such as Google Analytics and AdWords. Findings are presented in intuitive ways using summary dashboards, powerful reports, and conversational insights. Detailed reports, comparisons and trends can be produced and reviewed quickly and easily. Staff members can now annotate reports directly to support collaboration between different teams. Promising “twice the insight in half the clicks”, this next-generation of call analytics reporting will enable businesses to optimise their return on investment from different FEBRUARY 2017
marketing campaigns, while providing a more enriching, relevant and personalised customer experience over the phone. ResponseTap’s head of product Stephen Russell said: “It is no longer acceptable for any modern digital marketer to be making business decisions in isolation – different pools of data need to be triangulated to make meaningful, evidenced decisions that will help achieve company-wide strategies across all channels.” ResponseTap claims to be the UK’s market leader in call intelligence and the largest premium provider in Europe. Founded in 2008 by Ross Fobian and Richard Hamnett, who still run the business, the company supports more than 2,000 clients worldwide, including British Gas, Aviva, MercedesBenz, and Virgin. For further information, visit www.responsetap.com
FEEL SECURE WITH STERLING, WHATEVER THE WEATHER With aluminium locks proving increasingly popular with customers, Sterling has extended its range of weather-resistant padlocks with the introduction of a long-shackle model. The new WPL 248 padlock has a hardened steel shackle that is more than twice as long as the standard model. The superior level of corrosion resistance makes the 48mm padlock perfect for a wide range of exterior applications. Prices are about £8-£12. Like its standard shackle length 48mm and 57mm cousins, the new padlock features a precision brass cylinder. It has a protective key hole cover and is fully enclosed with a colourful thermo-plastic jacket for added water-protection. The inherent strength of aluminium and a double-locking mechanism means that Sterling weatherproof locks are robust and provide good security performance.
23
Promotion
THIS SEASON GROW YOUR GARDENING OFFER THROUGH THESE BIRA DIRECT SUPPLIERS:
Quote to go in here Quote to go in here Quote to go in here Quote to go in here Quote to go in here Quote to go in here xxxxxxxxx
Growing your opportunities in a £5 billion market
We initially used bira direct for our DIY and hardware requirements but now we use it more than ever for our gifting and the evergrowing gardening and chemicals offerings Haresh Patel, owner, Tylers Homecare, Notting Hill, London
24
THE GARDENING MARKET is worth over £5bn and offers independent hardware and DIY shop owners a great opportunity to diversify. Haresh Patel, owner of Tylers Homecare in the busy Notting Hill Gate area of central London, has been a bira member for 21 years. One of his biggest offerings is his gardening range, which he uses to attract passing footfall and draw customers in. He says: “As an independent retailer on Notting Hill High Street, we are fortunate to have a 12m shop front that offers us the opportunity to feature our gardening and floral offers to the busy commuters right in the heart of London. We offer a wide range of gardening products, which can be hard to find in a busy city centre. It works well for us. “We use bira direct to re-stock our chemicals, fertilizers and gardening tools as its array of branded suppliers allows us to differentiate ourselves from our competitors with a variety, while still allowing us to stock key lines. We like to order daily rather than always having to place large orders. The minimum orders of bira direct suppliers helps us to do this while remaining competitive and in control.” For more on bira direct’s garden suppliers, call Steve Akers on 0121 446 6688 FEBRUARY 2017
Counterpoint / Des Count
All is not fair at our trade shows Our new correspondent Des Count is dreading his seasonal slog around the miles of aisles at trade fairs
If I look to buy a cooked meal at a trade show, you will have to hand me the gas and air as I may have one of my funny turns FEBRUARY 2017
SO HERE WE go again then. Another endless round of seasonal trade shows. Whether it’s for gifts, furniture, homeware, fashion or crafts, there is usually one every week or so covering one of the types of product we stock. As progressive and motivated retailers, we try to go to them all. We are frightened of missing something or are worried our competitors will beat us to the Next Big Thing. They usually don’t, of course, as we tend to have an eye for these things. And I treat going to trade shows as a military operation, much to the annoyance of my long-suffering wife. I am one of those who is up and out with the larks to arrive early at the venue. I queue at the entrance (with my already-printed pass to save time), waiting with my fellow early-bird retailers to secure that major purchase before any competitors get to even consider the Next Big Thing. 3-2-1 and the doors are open. It’s like a Le Mans start. All the professionals are battling to get through the exhibition doors, armed with well-used, small pull trolleys to carry the exhibitors’ literature. Our pull trolley, which by the look of it these days has notched up a few thousand miles, is usually packed with sandwiches and a flask at the beginning of the day, plus an odd snack in case we get peckish. Well, you don’t want to be paying those prices in the exhibition halls, do you? Over three quid for a trendy cup of coffee with a bit of frothy milk, and over a fiver for a tasteless and uninspiring sandwich. If I look to buy a cooked meal you will have to hand me the gas and air as I may have one of my funny turns. I’m an independent retailer - and so I am on a strict budget. The latest trend is to book appointments in advance of going to these shows. During December and January my inbox was packed full by companies wanting us to pre-book a slot to see unknown product. The logistics of this new practise is pure madness. It clearly hasn’t been well thought out. Can you imagine booking in to see one supplier at 10am in one
hall and having your next appointment at 12pm in another hall on the other side of the exhibition? You will spend all your time moving from hall to hall, missing everything in between. And I am not sure our pull trolley is up to it. Of course, you then have to add to all the above, the keynote speakers. These people have all the answers to our independent retailing troubles and woes. They appear at seminars as talking heads you have never heard of (apart from when you see them at these shows). Additionally, there are all the catwalks to fit in during your visit so you can see the latest tantalising product being used or worn by some Size 6 model. This svelte lovely bears no relation to our valuable and well-rounded customer Agnes, who regularly buys our scarves. They will need to extend the show by a few days if any more catwalk shows are added. At our trade shows it never ceases to amaze me how much similar product there is, from supplier to supplier. If I see another grey, weathered, “witty” wall sign that was mildly humorous five years ago, I’m likely to end up before the local magistrate for causing wilful damage. And if I see or sniff another sickly, sweetsmelling tinned candle, I’m highly liable to go mad. How many companies are there in the UK selling candles? They get right on my wick (pun intended!). Surely, they eventually will have their own trade event: The UK Candle Show. Remember where you heard it first. So, as I print off the set of tickets for our first trade show of the new season and oil the wheels on our trusty pull trolley, can I wish you luck to find the Next Big Thing? Watch out for me, however, because probably I will have beaten you to it.
Have your say Would you like to share your views and experiences with the bira community? We welcome contributions like Des Count’s. You can write under your own name or under a pseudonym. If you are interested, please email editorial@bira.co.uk
25
LEADING THE WAY IN COOKWARE INNOVATION
Exhibiting at Spring Fair, 5th – 9th February, HALL 9 F44-G25 Come and visit our stand to receive your exclusive Bira membership discount and hear more about our exciting advertising plans for 2017. For further information please contact customersupport@meyeruk.com
www.meyergroup.co.uk
YOUR BEST MATE
Available in: Burnt Oak, Country Oak, Ebony Black, Holly Green and Rustic Red
L A I C SPE OFFER! SHED & FENCE MATE BUY 6 BOXES of ANY COLOUR
(CONTAINS 4 x 5 litre TUBS PER BOX)
GET A BOX OF ANY COLOUR FREE OF CHARGE! IMPORTANT NOTE
Offer available 1st – 28th February 2017. Offer only available when invoiced via bira direct. Deliveries must be made in conjunction with £300 carriage paid order. Everbuild Building Products Ltd - A Sika Company Site 41, Knowsthorpe Way, Cross Green Industrial Estate, Leeds LS9 0SW. Tel: 0113 240 3456 Fax: 0113 240 0024 email: everbuild.info@uk.sika.com website: www.everbuild.co.uk
Shed and Fence Mate BIRA half Page.indd 1
26
19/12/2016 14:36
FEBRUARY 2017
bira notices Shine bright! Entries are now open for British Independent Retail Awards 2017 The membership magazine of the British Independent Retailers Association Published 10 times a year by bira publishing Editor Eric Musgrave 07702 628848 eric@ericmusgrave.co.uk Design Alan Bingle 07949 024737 alan@forty6design.com Multimedia sales executive Simone Adams 01295 713329 simone.adams@bira.co.uk Publishing director Sarah Golden 0121 446 6888 sarah.golden@bira.co.uk All advertising and editorial enquiries editorial@bira.co.uk Printed by Buxton Press bira, 225 Bristol Road, Edgbaston, Birmingham B5 7UB Tel 0121 446 6688 Fax 0121 446 5215 www.bira.co.uk bira national president 2016-17 Vin Vara, Tool Shop, London CEO Alan Hawkins Finance director John Collins Marketing, membership & publishing director Sarah Golden Commercial director Jeff Moody Professional services & special projects director Bob Jarrett bira membership magazine incorporates bira alert, Hardware Today, Cookshop, Housewares & Tabletop and Pet Product Focus. If you would like to reproduce anything from bira member magazine, please contact the editorial team for permission. While every effort is made to ensure the accuracy of the material we publish, bira publishing cannot accept legal liability for any errors or omissions, nor can they accept responsibility for claims made by advertisers or contributors. Unless specifically stated, goods or services mentioned are not formally endorsed by bira. Views of the contributors are not necessarily those of bira. All rights reserved. © 2017
ONCE AGAIN, BIRA is looking for the very best in independent retailing and it will be rewarding the best achievements of its members at the annual bira Awards dinner at the Bristol Marriott Royal Hotel on Monday 8 May. The Awards, decided by an expert judging panel, showcase the outstanding talent, hard work, innovation and achievements of the bira community. Spotlighting individuals as well as businesses, this celebration is a great way of raising your profile, connecting with other business professionals, and growing your network of potential partners and clients. The 2017 event includes the return of the Independent retail business of the year award. This category will celebrate the shining successes that sets one retailer apart from the rest, especially innovation and forward thinking. We will also be naming the Independent retail employee of the year, an award that highlights the efforts of an individual, someone who has worked their socks off to drive change and achieve new things for your business. The winner could be anyone from the owner, manager or someone in your team who has made an outstanding contribution to the business. The Team of the year award highlights and celebrates all the joint hard work and effort that goes into the day-to-day running of independent retail businesses. The bira Awards will see the return of our charity accolades: Local hero and Charitable champion. These celebrate those retailers who dedicate time and support to their communities. They highlight those working in retail with passion and drive for supporting others.
It’s simple to enter the bira Awards 2017 yourself or to nominate a business or individual. Visit the website and head to www.bira. co.uk/events/ or request an entry pack by emailing events@ bira.co.uk or calling Paulina Swiech on 0121 446 6688
What our previous winners say Entering the bira Awards was our chance to put on paper all the initiatives and effort we put into our business. It was our chance to review all the work that goes into our business, which can easily be taken for granted day-to-day. To be recognised is an honour and shows that all the hard work we do is appreciated by our peers. It leads to new relationships and builds our reputation in the industry. Rita Dewan, Lords, overall winner, independent retailer of the year award 2016.
The bira Awards entry form encouraged me to analyse my business in greater detail and encouraged more discussion with staff members on how we could improve. When we won the Independent team of the year award in 2016, it was a great boost to staff morale. It is very satisfying when your company is acknowledged for doing a great job! Sue Dronfield, The Baby Barn Pram Nursery Centre, Rugby, independent team of the year 2016.
The glittering evening dinner is very special and it is great to socialise with other small businesses. Becoming runner up in the Independent retail business of the year category in 2016 was testament to our whole team and showcased our business to a wide audience. I suggest that every owner of a small business should invest time in entering the bira Awards. Sam Hale, Advance Performance, Peterborough, bronze winner 2016.
We welcome our latest new members Absolute Tyres Crowthorne, Berkshire; Arwel’s Agriculture Services, Llanwrda, Carmarthenshire; Breadsall Village Shop, Breadsall, Derbyshire Cafe Piazza, North Shields, Tyne & Wear; Celebrations, Frodsham, Cheshire; Farmers Combine, Ramsey, Isle of Man; Izzi of Baslow, Bakewell, Derbyshire; Kash 22, Frodsham, Cheshire; Lakeland, Bowness, Cumbria; Need A Gadget, Edgware, north London; Sandhill Nurseries & Garden Centre, Hull; The Wash House, Alfreton, Derbyshire; Ty Bach Twt Interiors, Cardiff; Wooden Spoon The Cookshop, Derby
FEBRUARY 2017
27
The last word
Neil Mackay
up for every item stolen. We now have 30 CCTV cameras permanently monitored.
Q
How old is your bira connection? It dates back to the British Hardware Federation. My aunt, Joan Moore, worked here until she was in her early 80s and was the local BHF secretary for 35 years. Another matriarch was my grandfather’s younger sister, Aunt Isabella Mackay, who joined us in early 1930s after he died young. She was still doing the wages nearly into her 90s. When my father was going to see the bank manager for a loan, she’d always respond with: “There goes my new fur coat”. It became a family saying.
MACKAYS OF CAMBRIDGE
In 1912 Donald Mackay and his son Duncan shook hands with a Mr Alsop over an anvil and so bought a wheelwrights’ business on East Road, Cambridge. Some 105 years later, Donald’s greatgrandson Neil Mackay is still enjoying life at the DIY firm.
Q
Q
What work did the firm do for Cambridge University? By the 1920s Mackays was trading in materials, including metals. We built a big workshop and created a reputation for our engineering. Up until the 1960s we were a main engineering resource for the university. In 1964 Mackays built the first radio telescopes that were used to discover pulsars and contributed to Martin Ryle and Antony Hewish receiving the Nobel Prize for Physics in 1974.
Q
Not your average DIY order… My father Donald, who is 91 and still occasionally pops in, was “Mr Engineer” in Cambridge in the 1950s and 1960s. Boffins from the university would turn up with designs for a revolutionary perpetual motion machine and he’d have to tell them why it wouldn’t work. By the time I joined the business in the late 1970s, followed by my older brother Duncan in the early 80s, the university had developed its own engineering facilities. Sadly, we have now closed the main workshop but we still get the odd visit from eminent scientists, such as Stephen Hawking.
Q
How is the business split? When I joined, we were probably 80% trade. Now it’s more like 50:50 between trade and retail customers. In the very old days eight or nine staff would be standing behind a 40ft-long mahogany counter, serving customers. The counter is now a bar in my father’s house. We have departmentalised the shop, ensuring that our 28 staff have a deeper knowledge about a narrower range of stock, while knowing enough to advise generally.
28
Neil Mackay in the workwear clothing section. Left: The nocturnal food festival in the car park
Q
Who are the customers? The largest age group is 50-plus. They tend to be more resistant to online, they like to handle things and benefit from the knowledge of the shop staff. We have noticed more young people coming in, although sometimes I think it’s just to get our expert opinion before they buy online. To attract new customers, we run courses such as woodworking and routing or wood carving.
Q
You campaign against shop theft… The word shoplifting ought to be expunged from the lexicon! It’s THEFT, pure and simple. We created loads of publicity a while ago when we put up in the shop a CCTV image of a thief we called Mr Magnet Man. The local paper ran the image too. Although we’d obscured his face, he went to the police to complain we’d violated his human rights. He was arrested and prosecuted successfully, with a £400 fine and £600 costs. I described him as “not the sharpest tool in the box” and the story was picked up by news channels as far away as New Zealand. We now have a Rogues’ Gallery on display in the shop featuring thieves like Mr Spanner Man, Mr Socket Man – named after what they steal. It annoys me so much that shop theft is now being classed as a minor misdemeanour. Police have been told not to bother about thefts of property from shops worth under £200. But at one time we were losing about £35,000 worth of product in 12 months. At average margins,it takes 10-12 sales to make
How have you adapted Mackays? We are doing well. We are online via several different platforms and we are maintaining strong footfall through the door. People come to us for hand tools, power tools, ladders, garden equipment, ironmongery... We’ve always tried to get what people want.
Q
And you sell food in the car park? My son Andrew is bringing in new ideas. From the end of November to Christmas we had a truly fabulous food festival after closing on Fridays and Saturdays. Five vans offered food from around the world. We had tables, benches, patio heaters, a snow machine and a fireworks display. Over 400 attended each night and it brought us to the attention of new customers. We’ll be doing more festivals in 2017. We are very adaptable at Mackays.
Personally speaking
Main hobby: Golf, but my handicap is moving in the wrong direction
Favourite place: I really love Ireland, particularly Cork and Kerry. The golf is pretty good there as well!
Favourite food: A well-cooked medium-rare steak. Or anything cooked on the “smoker” I invested in last year Favourite drink: Guinness, which doesn’t travel well, so it has to be in Henchy’s Bar, Cork, with my father-in-law Brendan Murphy playing the piano Best Holiday: Fabulous trip to Rome with the family staying a minute from the Forum Business hero: Richard Branson
Mackays of Cambridge, 85 East Road, Cambridge CB1 1BY mackay.co.uk
FEBRUARY 2017
GLOBAL PAYMENTS SPECIALISES IN CARD PAYMENT PROCESSING FOR CUSTOMERS RANGING IN SIZE FROM OWNER-MANAGED BUSINESSES TO MULTINATIONALS IN EVERY SECTOR.
Benefit From Exclusive Promotions As Part Of Your bira Membership; Saving You Time And Money! These Benefits Include: • Preferential card processing rates • No set up/joining fee • Wide choice of terminals including Contactless for quicker payment options or mobile terminals for those on the move • Help navigating the complex world of card payments
In a current contract? Speak to us to see how we can help make switching easier for you. Call us today on 0800 731 8921* quoting reference: bira.
*Lines are open Monday to Friday, 9am - 5pm, excluding public holidays. Global Payments is HSBC’s preferred supplier for card processing in the UK. Global Payments is a trading name of GPUK LLP. GPUK LLP is authorised by the Financial Conduct Authority under the Payment Services Regulations 2009 (504290) for the provision of payment services and under the Consumer Credit Licence (714439) for the undertaking of terminal rental. GPUK LLP is a limited liability partnership registered in England OC337146. Registered Office: 51 De Montfort Street, Leicester, LE1 7BB. The members are Global Payments U.K. Limited and Global Payments U.K. 2 Limited. Service of any documents relating to the business will be effective if served at the Registered Office. Issued by Global Payments, 51 De Montfort Street, Leicester, LE1 7BB.
GP506
leading minds to inspire, stimulate, and educate you
Find out more at bira.co.uk/conference17 Book your place from as little as ÂŁ95+VAT at bira.co.uk/conference17
Monday 8th May 2017 Bristol Marriott Royal Hotel
conference and awards