Kitchen Culture
It’s very hard to predict which way 2023 will go…’
For further information please contact: Howard Saycell Chief
Executive Retra
howard.saycell@retra.co.uk 01234 269110 www.retra.co.uk
Howard Saycell looks at the year ahead, including the return of the Retra Conference, and explains why CE brand Bang & Olufsen isn’t in his good books.
Welcome to the first Alert of 2023. Reflecting on the year just gone, nobody could have predicted the events that 2022 had in store for us.
What will 2023 hold? Current economic forecasts for the UK are not great. The consensus is that the first half of the year will be tough. Inflation will continue to fall but will remain high – until at least the autumn.
During the second half of the year it should drop significantly, as by then many of the big price hikes will be annualised.
Basics, like food and energy, are likely to be a continuing worry for many. I’ve always believed that we compete for consumers’ disposable income with other sectors. If more of that income goes on the basics, then there is less available for non-essential items. Having said that, as I write it looks like the holiday companies have very good bookings already for this year. Ryan Air has just released a very good result for its last trading quarter and Easy Jet is very positive about this summer.
While a lot of people are genuinely struggling, there are still some out there with money to spend on the things they class as their own personal priorities. Most of our members tell me that 2022 was in fact a good year.
Although there were numerous price increases from many suppliers, demand remained consistent. Overall, the industry saw a decline in volume, but an increase in value. Although I don’t have market share data, the independent share of the market remains strong.
Good
So, what do we expect for our sector in 2023? The festive period was good for most of our members, and I’m told that January has again exceeded most people’s expectations.
Whether this will continue in the coming months is really anyone’s guess. So much depends on outside factors and whether or not the Government decides to take action to prop up the economy. I think it’s very hard to predict which way 2023 will go, but on a purely business level I think most of us would be happy to see a repeat of 2022.
Talking of repeats, I am delighted to announce that the Retra Conference will return in 2023.
Themed around “A Sustainable Industry”, it will be held on October 17 at The Double Tree by Hilton hotel in Coventry. The conference will focus on both the sustainability of our products and the independent electrical retailer.
The host for the day will once again be the broadcaster, Declan Curry. The final line-up of speakers is still work in progress but is already looking very strong.
The Retra board has once again decided to offer free places to all members. Numbers are limited to 125 free places, so if you want one, book as soon as possible.
Booking details are in this edition of Alert (see page 4). There will also be a welcome dinner on the evening of October 16, which is free to anyone attending the conference the next day. I look forward to being there in person this year. Covid got the better of me in 2022.
Quality
Many of you will know of one of our long-standing members, Potters Home Digital of Tenterden. It’s a family business, owned and operated by Lance Hopley, and is a multiple award-winner in both the industry’s IER and ERT Awards. I have personally known the business and Lance for over 30 years. It is the epitome of a quality independent electrical retailer in my opinion.
Why am I telling you this? Because, after over 50 years of trading, Potters has been told by Bang & Olufsen (B&O) that it no
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This year’s Retra Conference will focus on both the sustainability of our products and the independent electrical retailer
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longer wants to do business with them.
Lance received a phone call one Friday evening last year to say B&O had decided to close the account for “commercial reasons”.
On page 6 of this issue, our editor, Sean Hannam, investigates what has happened. I must admit that I am shocked at both the B&O decision and its lack of engagement.
I contacted the brand to ask for a meeting - it took them over two months to reply to my letter and when it did arrive it didn’t answer my questions or offer a meeting.
It is interesting that since giving Potters notice of termination of its account, B&O has announced that it will be opening a store in central London, selling its products direct to consumers. In the press release for the upcoming outlet, B&O mention how much it values its long-standing partnership with independent electrical retailers.
I can’t help but feel this is certainly at odds with the way it is treating Potters. I would be interested to hear from any of you who have had similar experiences.
I do hope that as many of you as possible will be able to attend the Retra Conference. Who knows, we may even invite B&O along!
17th October 2023
Double Tree by Hilton Coventry Paradise Way, Walsgrave Triangle, Coventry CV2 2ST
125 FREE Places for Retra Members
To claim your Free Place contact Pat Sheldrake at: pat.sheldrake@retra.co.uk or call: 07920 852973
CONTENTS
03: From the chief executive
NEWS
06: News
13: Associate News
15: Euronics News
16: Sirius News
BUSINESS
17: Business Matters
18: Dealer Focus: We visit award-winning appliance and kitchen specialist, Martins of Hawkhurst, in Kent
21: Retra Board Member: Robert Hughes on the year ahead
22: The Retail Trust - Tackling the intolerance epidemic
23: Digital Marketing: It’s Showtime! How to make the most of in-store events
THE ROAD TO NET ZERO
24-25 Retra associate members Beko and Sony on how they’re tackling sustainability and safeguarding the future of the planet
EDITOR’S INTERVIEW
26: Whirlpool UK and Ireland MD, Lena Henry, gives Sean Hannam her views on some hot topics, including sustainability, the cost of living crisis and direct selling
PRODUCT FEATURE
29: Built-in & Kitchens
WHAT’S HOT
34: New Year’s Resolution. Richard Stevenson takes a long, hard look at the TV market
CES REVIEW
36: We report on some of the glittering highlights from the Vegas tech show
ASSOCIATE INSIGHT
38: Gallagher
Editor: Sean Hannam T: 07932 586001
E: hannamsean95@gmail.com
Consultant Editor: Richard Stevenson T: 07974 926157
E: richard@quickbrownfoxpr.com
Advertising: Linda Dorling
T: 01256 321337
M: 07785 142398
E: lindaedorling@gmail.com
Retra Alert is a Retra publication
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All rights reserved. No part of this publication may be reproduced in any form (including photocopying or storage by electronic means) without the permission of the copyright owner. The articles and opinions contained in this publication do not necessarily reflect those of Retra.
While Retra endeavours to ensure that the information in this publication is accurate and contains nothing prejudicial to the position or reputation of any party, Retra shall not be liable for damages (including without limitation damages for loss of business or loss of profits) arising in contract, tort or otherwise from this publication or any information contained within it. Nor shall Retra be held liable for damages arising from any action or decision taken as a result of reading this publication.
Retra helps Potters Home Digital as B&O pulls the plug after more than 50 years
Retra has stepped in to support one of its members, Potters Home Digital, after Bang & Olufsen (B&O) announced it was going to terminate its trading with the award-winning Kent retailer after more than 50 years.
Potters Home Digital owner/director, Lance Hopley, contacted Retra after he received a phone call and then a notice of termination from B&O in August 2022, explaining that it was ending its relationship with the Tenterden-based retailer for “commercial reasons”.
The news came shortly after Mr Hopley, whose business has been selling B&O products since 1970 and won ERT and IER awards last year, was asked to invest in an upgrade of his B&O showroom, which he committed to.
On October 5 last year, Retra CEO, Howard Saycell, wrote to B&O’s UK and Ireland market director, Scott Anderson, expressing his disappointment at the decision and the way it had treated one of its long-term retail partners.
In the letter, Mr Saycell asked high-end, Danish CE brand, B&O, which is opening a new flagship store in London’s Mayfair this year, to reconsider its decision, adding: “We as an association would be happy to meet with you and Potters to understand both the decision process and what could be done to hopefully have it reversed.”
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We have supported B&O for decades, generated millions of turnover and nurtured a client base for the brand. Such treatment certainly leaves a bad taste
B&O’s legal representative responded to this letter on December 20, writing: “Last year, B&O carried out an in-depth assessment to identify retailers who did not provide the desired B&O experience or were [sic] willing to make the needed changes to create it, and those retailers were then discontinued.
“B&O must prioritise its resources on retailers wishing to continue to develop and grow the joint business. This is the key to creating an amazing customer and brand experience.”
The letter went on to say: “It was not an easy decision to end the joint business relationship with several retailers within Europe, and the decision were [sic] therefore also communicated orally prior to them receiving the notice in writing.
“We sincerely hope that the above explanation clarifies the reasoning behind our decision to discontinue our business relationship with Potters Home Digital Ltd. We do appreciate the work Mr. Lance Hopley has done for B&O for the past decades.”
Retra sent another letter to B&O, via email, on January 3 2023, requesting a prompt reply due to the time it took to respond to the previous one. B&O did not respond by the date requested.
Mr Hopley also contacted B&O UK via email on December 8, but did not receive a reply until he told them he was going to email the brand’s CEO Kristian Teär, in Denmark – he then got a response from B&O UK on December 16, which said that Potters Home Digital’s business didn’t fit with the direction that B&O was taking and that it would follow up its communication to make sure the process was clear. B&O asked Mr Hopley to contact them by Jan 6 2023.
Speaking exclusively to Alert, Mr Hopley, whose business is now the only B&O dealer in the South East of England – the nearest is in Guildford, Surrey - said: “B&O has been closing other dealers down over the past 12 months – like many manufacturers, they’re trying to sell direct. They’ve also introduced a new tier system for dealers –some have been downgraded.”
Under the system, Potters Home Digital is in tier three – B&O accounts for around 10 percent of its businesss.
Mr Hopley said the system is based on turnover and there’s no leeway – if a retailer in tier two, for example, doesn’t hit their quarterly target, they’re immediately downgraded to tier three, which is punitive to their retained margin.
He said B&O’s approach to its retail partners was “autocratic” and he likened it to “a dictatorship”.
“For a company that has always advocated that their dealers should offer the highest levels of customer service to represent the B&O brand, then it certainly doesn’t practise what it preaches,” said Mr Hopley.
“How a business like ours that has supported the brand for over 50 years is treated so shabbily beggars belief. We have supported them for decades, generated millions of turnover and nurtured a client base for the B&O brand. Such treatment certainly leaves a bad taste.”
He added: “It also saddens me greatly to hear how some fellow B&O dealers tell me they’ve been treated. “
Alert contacted B&O UK for a response but, at the time of going to press, had yet to hear back.
We will keep you updated on any developments.
Have you had a similar experience with B&O? Email the editor: hannamsean95@gmail.com.
Lance Hopley
New store in Thetford for Hughes
Retra member Hughes Electrical has opened a new store in Thetford.
Operating in the Norfolk town since 1990, the business has moved from premises in King Street to the Breckland Retail Park.
The new location has over 4,000 sq ft of retail space, compared with 1,250 sq ft in King Steet, resulting in the recruitment of seven new members of staff, making 10 in total.
Manager Dean Honour has been with Hughes in Thetford since 1997.
The new store was officially opened by the Mayor of Thetford, Cllr Jane James.
Said Hughes and Retra chairman, Robert Hughes: “This is a huge vote of confidence in Thetford and represents a very significant investment in the town and community. The
new store is fit for the future and specifically designed to meet the rapidly changing demands of our customers.
“They want stores offering ample free parking, that are large enough to carry a huge range of stock for them to see and have demonstrated by knowledgeable staff before purchasing - or indeed renting, which is becoming an increasingly attractive and easy way for people to acquire electrical items.”
He added: “The click and collect option on the website is also very popular and our new store offers this too from the nearby, massive Thetford warehouse.
“As a company we see retail in physical shops as a cornerstone of our business alongside the web, trade department and rental. We will continue to invest in all four of these to improve customer experience.”
Thetford is an important location for Hughes as it employs over 120 people in its main warehouse and distribution centre just two miles from Breckland Retail Park.
Hughes has acquired an electric van to move goods between the warehouse, which has over 700 solar panels, and the shop.
The new store is at: Unit B, Breckland Retail Park, Thetford IP24 3RU.
For more on Hughes Electrical, see page 21.
KBBG Annual Members’ Meeting to take place at Silverstone this summer
The Kitchen Bathroom Buying Group (KBBG) will hold its 2023 Annual Members’ Meeting on Monday June 12 at the home of the Formula 1 British Grand Prix, Silverstone.
The event is sponsored by kitchen, bedroom and bathroom furniture manufacturer, JJO. Members and suppliers of the KBBG (part of Der Kreis, European kitchen and bathroom buying group) will gather at the Wing Building, which overlooks the finish line of the world-famous Silverstone Circuit in Northamptonshire.
There will be the opportunity to hear from guest speakers, meet group suppliers in a dedicated supplier display area and benefit from exclusive supplier offers, in addition to plenty of time for networking.
Following the meeting, guests are invited to take a tour of the Silverstone Museum.
Bill Miller, managing director of the KBBG, said: “While the main focus of our Annual Members’ Meetings is to provide updates to our members and give them food for thought on ways to enhance their businesses, we also like to ensure they have a memorable experience.
“We are therefore excited to be hosting the event at Silverstone this year. The conference venue boasts remarkable views of the Silverstone track and will certainly provide a photo opportunity or two during coffee breaks.”
KBBG members will receive invitations and further details in due course.
See Built-in & Kitchens Feature (pages 29-32) for more from the KBBG.
Welcome to the first issue of Alert this year.
I hope you had a great and prosperous festive season and wish you all the best for 2023.
Quite a lot of this issue is dedicated to what might happen in the industry and the economy this year – Retra CEO Howard Saycell does some crystal ball gazing once more (page 3), while Hughes Electrical and Retra chairman, Robert Hughes, gives us some predictions for the year ahead and has some handy advice on how his business is gearing up for what might be around the corner.
In an exclusive interview – her first for Alert – Whirlpool UK and Ireland MD, Lena Henry, shares her thoughts on the state of the appliance market and where it’s heading (pages 26-28), and in the Built-In & Kitchens Feature (pages 29-32) I ask some industry experts to give me a flavour of the sectors and highlight some of the key trends in products and design.
In this edition, we also announce the return of the Retra Conference (October 17, The Double Tree Hilton hotel, Coventry), which has as its theme this year, “A Sustainable Industry”.
Sustainability – what our industry needs to do to survive, but also how retailers and suppliers need to adapt their operations for the future of the planet – are subjects that come up time and time again when I’m talking to people about business.
In fact, they were on the agenda when I spoke to Ms Henry from Whirlpool for this edition.
One of the other hot topics we discussed was direct selling, which I know will be talked about at the 2023 conference.
For more on this thorny issue, read our news story (page 6) on dealer Potters Home Digital’s unfortunate situation with Bang & Olufsen, which has terminated its business with them after more than 50 years. It’s a great example of how Retra can help its members when things get difficult. Let’s hope 2023 won’t be a hard year for any of us.
Sean Hannam hannamsean95@gmail.com
Cllr Jane James at the opening of the new store in Thetford with Robert Hughes, left, and Dean Honour
FEBRUARY
24-26
The Bristol Hi-Fi Show
Marriott City Centre Hotel, Bristol www.bristolshow.co.uk
MARCH
17 – April 2 Ideal Home Show
Olympia London www.idealhomeshow.co.uk
APRIL
13-16
Hong Kong Electronics Fair (Spring Edition)
Hong Kong Convention and Exhibition Centre (HKCEC), China www.hktdc.com/event/ hkelectronicsfairse/en
20 kbbreview Retail and Design Awards Cardiff www.kbbawards.co.uk
25-26 Retail Technology Show
Olympia London www.retailtechnologyshow.com
JUNE
13-14
The Exclusively Show, The Business Design Centre, Islington, London https://www.exclusivelyshows.co.uk/
14 Retra Golf Day
The Oxfordshire, Thame
For more information: Pat Sheldrake pat.sheldrake@retra.co.uk
16 The IER Awards 2023 www.ierawards.co.uk
17–18 The North West Audio Show
De Vere Cranage Hall Estate, Holmes Chapel, Cheshire www.audioshow.co.uk
27 TRIC Awards 2023 Grosvenor House, London Email: info@tric.org.uk
SEPTEMBER
1-5 IFA Messe Berlin www.b2c.ifa-berlin.de
OCTOBER
17 Retra Conference
Double Tree by Hilton Coventry
For more information: Pat Sheldrake pat.sheldrake@retra.co.uk
Digital UK rebrands as Everyone TV and unveils new leadership team
Digital UK, the platform operator of Freeview and Freesat, has rebranded as Everyone TV.
Owned by the UK’s leading public service broadcasters, the BBC, ITV, Channel 4 and Channel 5, the change in name is said to reflect a revised mandate for the organisation: “to lead the evolution of free, universal, high-quality television in a way that protects and strengthens the social glue provided by Britain’s broadcasting heritage.
“At the same time, it positions it for a point later in the decade when its shareholders might look to move away from digital terrestrial distribution”. Freeview and Freesat, which together offer 100 per cent coverage of the nation and serve 18 million British homes, will retain their consumer brand identities.
Everyone TV said its mission is to “champion free TV for all on whatever platform they choose”.
Jonathan Thompson, CEO, Everyone TV, said: “Among our tasks in the years ahead is defusing a threat to universality that could catch the industry by surprise. From the Queen’s funeral to the victorious England women’s football team, shared moments of sorrow and joy, drama and poignancy, are currently brought into every British home simultaneously by our world-leading television industry. But that could be lost in a fragmented future world of TV viewing. We at Everyone TV will lead the evolution of free television services in the UK so that universality remains a fundamental principle.”
Digital UK’s chair of over 10 years, Caroline Thomson, added: “Digital UK has come a long way since it delivered digital switchover over a decade ago. The new name very much reflects the organisation’s changed role in managing all the UK’s free TV services to the benefit of viewers and wider society. I’m confident it can continue to serve UK audiences and the wider broadcasting ecosystem.”
There will be a new top-tier of directors at Everyone TV under CEO, Mr Thompson.
The team now comprises chief commercial officer, Deep Halder, formerly head of TV retail and content Services at Samsung UK; chief
technology officer, Orf Warr, formerly CTO of Channel 4; chief product officer (job share): Sarah Milton, formerly Digital UK COO, and Carl Pfeiffer, formerly head of distribution and platform partnerships, Channel 4.
Over the coming years, the vital role of television in information and education, as well as entertainment, will need careful oversight to protect it. Having the right senior leaders in post at Everyone TV is critical
Jonathan Thompson, CEO, Everyone TV
Mr Thompson said: “Over the coming years, the vital role of television in information and education, as well as entertainment, will need careful oversight to protect it. Having the right senior leaders in post at Everyone TV is critical to ensuring we can achieve our strategic objectives of successfully delivering the evolution of our free TV platforms for a digital age and supporting the health of free-to-view TV for the long-term.”
Digital UK was founded in 2005 by the broadcasters and transmission companies of Britain with the purpose of masterminding the switchover from analogue to today’s Digital Terrestrial Television (DTT).
Bespoke Insurance Services for the Electrical Retailer Industry
Arranged by the experienced team at Gallagher, Gallagher Electracare is a specialist insurance policy designed exclusively for Electrical Retailers, Installers and Repairers.
Established in 1992, the Gallagher Electracare policy has been extended and improved over the years to keep up to date with the changing demands of the fast-moving Consumer Electronics Industry. By providing a bespoke solution specifically tailored for those in the Electrical Retail sector, we believe Retra Members can enjoy better protection for their business.
Benefits include:
• 0% Interest-Free Direct Debit Facility available*
• Negotiated rates for Retra Members
• 30% Seasonal Stock Increase over four months – January, October, November and December
• £100,000 for Contents, Fixtures and Fittings included as standard if requested
• £10,000 Tenants Improvements cover for items such as shop front signs, grilles, shutters and mezzanine floors included as standard if requested
• £10,000 of theft cover included as standard for shoplifting losses at retail premises
• £2,000,000 Business Interruption cover per location or four times the stock sum insured whichever is the greater (24 months maximum indemnity period), included as standard for loss of profit following an insured loss
• The above are standard automatic levels of cover although higher sums insured may be available if required
• Automatic inclusion of £5,000,000 Public and Products Liability cover for work carried out away from your own premises
• 24/7 Claims Reporting Insurer Helpline with in-house claims assistance provided by the Gallagher Electracare team on your behalf.
AMDEA highlights registration for the growing second-hand appliance market
The cost-of-living crisis is driving more Brits to consider buying second-hand large domestic appliances, but only one in five (20 percent) would bother to take the simple safety step of registering that appliance with the manufacturer before installing it, a survey has revealed.
According to The Association of Manufacturers of Domestic Appliances (AMDEA), consumers are missing out on a free and easy way to help ensure the safety of their homes by failing to register home appliances – both new and second-hand – via registermyappliance.org.uk
The survey, carried out by AMDEA to mark Register My Appliance Week (January 23-27), showed a significant surge in people thinking about buying a second-hand large domestic appliance, due to the current increasing cost of living.
Now one in four (25 percent) of people say they are likely to consider buying a second-hand appliance online, compared with just one in six (16 percent) four years ago.
For Millennials, two in five (37 percent) are now likely to buy pre-loved online, with the over 55s least likely at 12 percent.
Many have already bought a large domestic appliance secondhand. As many as one in four (24 percent) have done so online or from a shop.
AMDEA CEO, Paul Hide “ “
We urge anyone with an old or new appliance to register it, so they can be contacted in case of any safety notifications, repairs or recalls
Saving money was the principal motivator for buying previously used. When asked their reasons for considering it at any point in the future, 70 percent said to save money and 39 percent because it would be the only way to afford to replace an essential appliance.
However, environmental motives and saving resources also scored well: 39 percent cited environmental reasons for taking the pre-loved route. This rose to almost half (46 percent) for Millennials.
But when respondents were asked what they would do before installing or ‘adopting’ a second-hand appliance, only 20 percent said they would register the machine with the manufacturer in case of a recall.
This is despite most manufacturers enabling simple and easy registration of older appliances. Most (54 percent) said they would find the manual online, 42 percent would check installation instructions and 31 percent would even have it checked by a qualified technician, presumably with the implied cost of doing this rather than the free and simple act of registering.
Commenting on the survey, AMDEA CEO, Paul Hide, said: “Buying second-hand may be a tempting route to cut costs, and registering these pre-loved appliances will avoid skimping on safety. We urge anyone with an old or new appliance – whether a brand-new bargain picked up in the sales or installed a while ago –to register all their appliances so they can be contacted in case of any safety notifications, repairs or recalls.
your appliance for a safer home! Register machines bought in the last 12 years
Ensure manufacturers can contact you for repairssafety
you or applianceyour move
“Most manufacturers accept registrations of machines up to 12 years old, and there’s no need for a proof of purchase. It’s completely free and easy to do – it’s a win-win for keeping your home safe and possibly increasing the life span of your machine.”
Those questioned were more apt to spend extra money by fitting door locks or installing a camera doorbell rather than taking the free step of registering their appliances. When asked which three safety measures are most important for their homes, 83 percent said fitting good locks, and 20 percent said installing a video doorbell ahead of the 15 percent who cited registering all their appliances. Least likely to consider registering important were Gen X (12 percent) with Gen Z the keenest (20 percent).
By far the most popular place for people looking to buy preloved were online marketplaces (60 percent), again with Millennials (71 percent) the most eager. Second-hand or charity shops (45 percent) were also commonplace locations to look.
Register My Appliance is a web portal developed by AMDEA to improve ownership data by making it quicker and easier for householders to register old and new appliances.
Offering access to over 60 of the nation’s leading brands, the vast majority of manufacturers on the site welcome registration of products up to 12 years old or even older.
Handy tips guide the user through how to find the important model details, meaning all the user needs to supply is their name and address. This data then goes directly to the manufacturer for use exclusively in case of a recall.
Other results of the survey included:
When asked to imagine they had bought or adopted a secondhand appliance, people said they would do the following before installing it in their home:
• Get it checked out by a qualified technician: 31 percent
• Find an online user manual: 54 percent
• Check installation instructions: 42 percent
• Register it with the manufacturer: 20 percent
• None of these: 14 percent
• Don’t know: 12 percent
You cannot measure what you don’t manage, so measuring your carbon footprint is the best place to start’ ‘
In an exclusive interview, we talk to Sarah Evans, commercial director of Planet Mark, which provides sustainability certification for businesses, to find out more about its work and some of the challenges facing the electrical industry.
Alert: Can you tell us how Planet Mark came about and what it does?
Sarah Evans: Planet Mark is a sustainability certification for business and the built environment. Established in 2013, it was founded by Steve Malkin, in partnership with The Eden Project.
Coming from a mechanical engineering background, Steve was moved to action in the fight for a brighter future following a series of scuba diving experiences during which he realised the very real impact of climate change on the natural world.
Understanding a problem as complex as climate change could not have a singular solution, Steve designed a certification scheme to harnesses the power of business as a source for good, helping organisations to become part of the solution to the global crisis.
Over the past decade, Planet Mark has grown into much more than a mark. Today, Planet Mark certifies and celebrates the progress of more than 600 member organisations and goes beyond certification to support continuous progress through a range of specialist services designed to help businesses reduce, redesign and replace traditional methods with cleaner, more sustainable solutions that not only work to reduce CO2e emissions, but also save money, tap into consumer preference for sustainable business and simplify commercial operations.
Across the electrical appliance industry, stricter regulation and evolving consumer habits and expectations are driving increased scrutiny over sustainability-related impacts, policies, and credentials
Alert: Which electrical brands do you work with?
SE: Planet Mark started working with consumer electronics businesses after consultant, James Lane, brought in our services to help some of these brands to fulfil their sustainability goals, helping with their reporting and supporting their submissions for the Royal Warrant, where demonstrating sustainability credentials is key. With a member base exceeding 600 organisations, which includes Samsung, Whirlpool, Morphy Richards and Roberts Radio, the Planet Mark community touches all sectors and industries. We are seeing the interconnectivity of all industries as we support the transformation of entire value chains – from component manufacturers through appliance manufacturing, logistics, retail and into consumers’ use and disposal of products.
Alert: What are some of the sustainability challenges facing the electrical appliance industry?
SE: Across the electrical appliance industry, stricter regulation and evolving consumer habits and expectations are driving increased scrutiny over sustainability-related impacts, policies, and credentials. It is estimated that more than 50 million metric tons of e-waste is generated globally each year. In 2019 the World Economic
Forum reported that approximately 80 percent of this waste ends up informally recycled or in landfill.
Beyond recyclability, innovation is needed to reduce product redundancy by enabling consumers to repair and prolong the life of their products.
There is also increasing demand for more energy-efficient products as businesses and individuals across the world look to reduce their Greenhouse Gas (GHG) emissions as we all look to transition to net zero. Increasingly, energy efficiency is prioritised by consumers as they look for every opportunity to reduce their energy bills as prices rise due to market instability.
Alert: How do you work with retailers to address sustainability issues and what kind of areas should they be looking at?
SE: At Planet Mark we always say you cannot measure what you don’t manage, so measuring your carbon footprint is the best place to start. Once you have that measurement, you need a plan to target the most material causes in your business. These are typically easily identified, and solutions are usually available that payback in a short timeframe. Our measure, engage and communicate methodology was designed to independently measure and verify carbon footprints and provide insight into the material causes.
Alert: Sustainability is a key marketing message for many brands, but should we be wary of greenwashing?
SE: There is no doubt that enhanced sustainability credentials support brand growth across many sectors, and consumers are increasingly savvy when it comes to claims made by businesses. For that reason, independent verification using a robust evidence-based accreditation is a must. At Planet Mark we not only independently calculate and verify our members’ sustainability credentials, but our expert communications team is on hand to help craft stories that are truthful, robust, meaningful and easily understood by consumers.
Alert: How can retailers and consumers be certain that the messages they’re seeing are genuine and not just false claims?
SE: Look for independently verified evidence-based assurance, such as that provided by Planet Mark certification.
Mitchell & Brown launches a super-marketing campaign to help drive TV sales to indies
Bolton-based TV brand Mitchell & Brown has kicked off a nationwide initiative to support the high street and drive customers from Morrisons supermarket aisles to their local electrical retail stores.
The first trial of the consumer marketing campaign began across the UK in January and saw Mitchell & Brown place thousands of 16-page TV brochures, complete with a prominent discount code worth up to £100 off a Mitchell & Brown TV, in the checkout ‘pick-up’ zone of Morrisons stores.
From Devon to Yorkshire and covering many counties inbetween, the promotion has gone live in 17 Morrisons situated in major towns and cities across the UK.
The full-colour printed brochure highlights the Mitchell & Brown TV range, its British operation, heritage and the family business behind the brand.
With a discount code and guide to finding your nearest Mitchell & Brown stockist in the brochure, the aim is to drive potential customers into local high street retailers.
Over 70 Mitchell & Brown independent retailers are situated within the initial catchment areas of the promotion, with more likely
Haier named as world’s number one appliance brand by Euromonitor International
Haier has been ranked as the number one global major appliances brand by Euromonitor International, the market research provider.
This is the fourteenth consecutive year that Haier has won this accolade, with the sales of the brand’s refrigerators, washing machines, freezers and wine coolers also securing the number one spot.
This marks a new milestone for the brand in the global major appliances market, as it’s the fifteenth consecutive year Haier has ranked first for cooling appliances, the fourteenth for washing appliances, the thirteenth for wine coolers, and the twelfth consecutive year for freezers.
to be included in the planned second and third wave that expands the campaign’s reach later in the year.
“We are very excited to launch the first wave of our aggressive national supermarket campaign for Mitchell & Brown, which will run in three waves throughout 2023,” said Dan Brown, operations director for the brand.
“We are leveraging the high level of customer traffic in Morrisons supermarkets towards our retailer partners, as the customer demographic is ideal and Morrisons is one of the few supermarkets that does not sell TVs itself. Every brochure is a potential sale for our retailers in the area surrounding each Morrisons supermarket, and the discount given on sales will be credited, ensuring retailers retain all our usual excellent margin.”
Mitchell & Brown has championed the High Street retail model and its loyal retailers since the brand was launched in 2016, and it continues vocal support for pro-high street initiatives like business rates reduction.
The brand’s TVs are available exclusively through independent retailers that share the same pride for their customer service as the Mitchell & Brown team. That extends from ensuring the customer gets the right TV to offering delivery, installation and ongoing support throughout the life of the product. Every Mitchell & Brown TV is backed by a seven-year guarantee.
“Following the launch campaign in 17 Morrisons stores nationwide through January and into February, we will analyse the resulting sales and retailer engagement,” said Mr Brown. “That will steer how we expand the promotion in its second and third wave later this year, to bring the promotion’s benefit to even more of our loyal retail partners.”
Jim McEwan, chief commercial officer of Haier UK and Ireland, commented: “We are truly honoured to be the number one global major appliance brand for the fourteenth consecutive year. It is a fantastic achievement at Haier, reaching this tremendous milestone. We are constantly striving to listen to consumers, changing needs and adapting to them, while simultaneously researching and harnessing cutting-edge technology, to stand out in the market.”
Whirlpool and Arçelik join forces to create new European appliance business
Whirlpool and Arçelik are teaming up to form a new standalone European home appliance business.
Expected to generate combined sales of over €6 billion (£5.32bn), the move will see Arçelik, which is the parent company of Beko, own 75 percent of the new business, which is yet to be named, and Whirlpool 25 percent.
Arçelik’s wholly-owned subsidiary Ardutch B.V. and Whirlpool EMEA Holdings LLC will transfer their European subsidiaries to the new company.
Under the terms of the agreement, Whirlpool will contribute its European major domestic appliance business, and Arçelik will provide its major domestic appliance, consumer electronics, air
conditioning, and small domestic appliance businesses.
The combined businesses are expected to save costs of over €200 million thanks to the merger.
Separately, Whirlpool has agreed in principle to the sale of Whirlpool’s Middle East and Africa business to Arçelik. Whirlpool will retain ownership of its EMEA KitchenAid small domestic appliance business.
“The announcement marks yet another major and important milestone in our ongoing portfolio transformation,” said Marc Bitzer, chairman and CEO of Whirlpool Corporation.
“This allows us to participate in significant value creation from the repositioning of the business and cost synergies through our minority interest.”
Hakan Bulgurlu, CEO of Arçelik, said in its official statement: “This is a unique opportunity for two exceptional companies to come together with a focus on synergies, combined innovation, retail distribution, and sustainability and is consistent with our stated strategy.”
He added: “We are creating a strong foundation to drive value creation for employees, shareholders, and European consumers of white goods, extending Arçelik’s footprint with new growth opportunities in an important region.”
The deal is expected to close in the second half of 2023 and is subject to additional requirements, including obtaining regulatory approvals.
For more on Whirlpool, see Editor’s Interview, pages 26-28.
Haier Europe UK & Ireland wins top employment award
Haier Europe UK & Ireland has been awarded a prestigious Top Employer accreditation for the UK.
Recognising the company’s commitment to a better world of work through employing excellent HR policies and people practices, the award is based on the participation and results of the Top Employers Institute HR Best Practices Survey.
Top Employers Institute CEO, David Plink, said the award showcases Haier Europe’s “care for the development and well-being of their people.”
The programme has certified and recognised 2,053 Top Employers in 121 countries/regions across five continents.
care, development and wellbeing of our people is always a priority. This accreditation from the Top Employers Institute is a global recognition of our work and excellence in this area.”
David Meyerowitz, Haier Europe’s CEO for the UK & Ireland said: “Our team has worked incredibly hard to ensure that the
Added Matthew Given, Haier Europe’s UK & Ireland Group HR director: “This award reflects the tremendous amount of work our UK & Ireland HR and leadership teams have accomplished over the last few years to keep improving colleague experience at Haier Europe.
“We are delighted that our HR practices have been recognised by Top Employers Institute and that we now sit amongst a select number of certified companies as one of the UK’s top employers. We are committed to continuing to raise our HR standards to enable us to attract and retain top talent that will shape the future of our organisation and our brands, whilst creating great solutions for our consumers and retail partners.”
Sony unveils new Walkman with enhanced sound quality and longer battery life
Sony has introduced a new music player, the NW-A306, to its Walkman line-up.
The compact device is said to offer highquality sound and a sleek design.
It has full wi-fi compatibility, weighs just 113 grams and has both a 3.6in touch screen and tactile physical music controls.
Sony says the premium aluminium milled frame on the NW-A306 provides superior rigidity for low impedance and
clear, stable sound and solid bass.
The NW-A306 features a longer battery life compared with previous models - up to 36 hours of 44.1kHz FLAC playback, up to 32 hours of 96kHz FLAC high resolution audio playback or up to 26 hours with a streaming service app.
No plastic is used in the packaging material for the NW-A306, reflecting Sony’s commitment to reducing the environmental impact of its products and practices.
The NW-A306 has a suggested retail price of £350 and is available to purchase across Europe now.
Left to right: Fatih Kemal Ebiçlioğlu, consumer durables group president of Koç Holding; Marc Bitzer, Whirlpool Corporation CEO; Hakan Bulgurlu, Arçelik CEO
Euronics chairman calls on manufacturers to stop selling direct
Steve Scogings, chairman of CIH, which is part of the Euronics buying group, has urged manufacturers not to sell direct to consumers.
Speaking at its annual suppliers’ lunch late last year, he said: “Why continue down this path when we can offer you a better solution?
“As independents, we are the experts in managing consumers’ issues, we are on hand to help a consumer who cannot work a new product or is having issues on how to tune their TV or has a service issue and wants someone to hold their hand through what they need to do to get the product repaired.”
He added: “We also deliver and install better than any third-party delivery company, as it’s our reputation on the line. Consumers are continually choosing our members to fulfil their needs because of this second-to-none service offering.”
Looking ahead to 2023, Mr Scogings said: “My hope this year is that we all work together to confront this challenge and help produce a solution that helps all of us to achieve the growth we require but also give the consumer the best experience. You do not need to do D2C to have a strong brand, and if you are willing to work with us, we can prove it.”
You do not need to do D2C to have a strong brand, and if you are willing to work with us, we can prove it
Euronics also used the event to present awards to its top suppliers. Hoover Candy picked up the trophy for White Goods Supplier of the Year, Brown Goods Supplier of the Year went to Sony, and Liebherr was recognised as a brand that had shown a commitment to the independent retailer.
The award for Members’ Supplier of the Year was given to Beko/ Blomberg. Voted for by CIH retailers, this was judged not just on turnover, but also visits from reps, the returns process and marketing support.
Mr Scogings also used the suppliers’ lunch to announce the launch of its new e-commerce platform, which will be called Euronics Evolution and available from April 2023.
Commenting on the online offering, Mr Scogings said: “It has been a long time coming but Evolution will lead the way in an online offering that not only gives us national visibility for all the products we supply through agency but will also include further products from your ranges that the members buy direct.
“The initial launch will be a few thousand extra products on the site with the intent to ramp this up over the following months. This will utilise the 600-plus stores we have over the whole country to highlight what they all have to offer, while also giving the consumer a wider choice and the bonus of dealing with a local company.
“This will further enhance our standing with consumers and give all our members the chance to get involved online and showcase the many benefits they offer their local communities.”
He added: “Our intention is to grow this business to rival the major online players over the next three years and once again cement our place as the best omnichannel offering in our market.”
Steve Scogings
Liebherr won an award for its commitment to independents
Haier Europe CEO (UK and Ireland), David Meyerowitz, picks up the White Goods Supplier of the Year award
Sony won Brown Goods Supplier of the Year
‘Sensitive selling is the business buzzword for 2023’
The independent retailer has a huge part to play in terms of helping customers to feel good so they can purchase with confidence, says Steve Jones, managing director of Sirius Buying Group.
As independent retailers prepare for the home improvement season, we stand ready to support them with the latest creative and digital solutions to enhance everything from stock management to customer service.
There is no doubt that the UK high street has changed beyond recognition in the past two decades and we feel that a clear-eyed assessment of the market is the best way to help our members optimise their businesses and continue to lean into change.
Entrepreneurs know that there are no rewards without risk and in uncertain times risk management is becoming a key part of every specialist’s strategy.
Getting clarity about where you can save time, boost your reach and enhance profit will be essential to a healthy and successful business in 2023. With this in mind, we are always available to support our members with an accessible environment where they can draw on our or any of their fellow members’ extensive knowledge and make the breakthroughs they need, so that they are making the best use of their resources.
Network
We are also able to advise on the latest integrated systems and services available through our network of service providers, which are already saving many members time and money. It has never been more important for independent retailers and manufacturers to share live information as supply chain issues continue, and naturally customer expectations need to be carefully managed to ensure a smooth delivery process, so investing in an EPOS system or taking advantage of our market leading PIM system to help manage their website product catalogue can be a real gamechanger.
I think it ’s important to remember that the independent retailer has a huge part to play in terms of helping customers to feel good so they can purchase with confidence – whether they are in the replacement market or buying for a new property.
Confidence breeds confidence, so I believe that ‘sensitive selling’ is the business buzzword for 2023, so that you can quickly ascertain a customer’s budget and prior knowledge.
As many customers are used to communicating by social media, email or WhatsApp rather than on the phone or in-person, you need to make sure that all options are covered and regularly checked so that messages don’t end up in spam.
Conscience
Energy-efficient appliances are steadily growing in popularity, as consumers seek to save money as well as show their appetite for shopping with a conscience.
Given the amount of product information available online, some customers merely want to see a product in the flesh before making a purchase while others will be keen to establish exactly how noisy an appliance may be or what sort of payment plans are available.
For further information, please contact: Sirius Buying Group
Email: siriusoffice@siriusbuyinggroup.co.uk
Tel: 01395 277103
Web: siriusbuyinggroupltd.co.uk
It makes sense to keep an open mind and ‘assume nothing’ in all interactions with your customers as they have the power to refer your to their family and friends as well as rating you through Google reviews. The relationship never ends with the sale, as there are many touchpoints to cover including extended guarantees, aftercare and servicing.
In fact, given that the average person has up to 15 close contacts – remember that every lead could effectively give you another 14!
It ’s also worth noting that local Facebook groups are also regularly used as a place to ask for recommendations so make sure you’re easy to find online with a business page so you can be easily tagged in.
It has never been more important for independent retailers and manufacturers to share live information as supply chain issues continue
Steve Jones, managing director of Sirius Buying Group
Testimonial
Never be afraid to ask for a testimonial from a happy customer so it can go straight onto your website and your social media feed of choice.
Think of it as a way of making that warm glow of appreciation for your team and your services into your sales attraction system as well as boosting staff morale.
With that in mind, we must always remember the importance of looking after our people so that they can give their customers the very best.
I strongly advise that you make sure that established frontof-house staff are actively passing on their knowledge to new recruits as a matter of course. There’s also the great opportunity for mentoring across the generations to boost tech awareness, systems knowledge and enhance people skills at all levels.
We’re strong believers in sharing and supporting each other through our enviable network of relationships with leading brands and industry stalwarts.
The community we have established over the past 21 years is a continued source of pride as we see members tap into each other’s genius and develop life-long friendships.
As a bridge between global leading brands, distributors and retailers we like to offer a measured, long-term approach so that you can achieve your business goals in a way which suits you and your team.
Bank Holiday Bonus
In the first Business Matters of 2023, we look at employment advice around this year’s extra May bank holiday for the King’s coronation and report on changes to the National Minimum and Living Wage rates.
To celebrate the King’s coronation, there will be a UK-wide additional bank holiday on Monday May 8 2023.
In the same month, we will also have the usual early May bank holiday, which falls on Monday May 1 2023, and the spring bank holiday on Monday May 29 2023.
As such, May 2023 is likely to be a popular time for holiday requests. It is important that you have a formal holiday request process in place. It is well covered in the Retra Members’ Staff Handbook, so if you have issued this to staff then you are likely to be okay.
The thing to remember is to stick to the policy. Sometimes staff just assume that any request for holiday will be approved. The best way to manage requests is to treat them on a first come, first served basis.
Where you have several requests, you could also ask staff to try and resolve the issues between themselves. Another alternative is to draw names out of a hat. This is a perfectly fair system, but we do favour first come, first served.
You should remind staff on a regular basis that no travel or accommodation should be booked before a request is granted and you will not be responsible for any financial losses if they do so, and you are not able to agree their desired holiday dates.
Sometimes staff just assume that any request for holiday will be approved. The best way to manage requests is to treat them on a first come, first served basis
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2023/24 minimum and living wage rates
In November 2022, the Chancellor confirmed the National Minimum Wage (NMW) and National Living Wage (NLW) rates for 2023/24
The NLW, which is payable to all workers aged 23 or over, will rise from £9.50 to £10.42 p.h (up 9.7 percent).
The NWM, for workers aged 21 and 22, will rise from £9.18 to £10.18 p.h. (up 10.9 percent).
For workers aged 18 to 20, it will rise from £6.83 to £7.49 p.h. (up 9.7 percent).
In the case of young workers aged under 18, it will rise from £4.81 to £5.28 (up 9.7 percent). Apprentice rate will rise from £4.81 to £5.28 p.h. (up 9.7 percent).
This means that a full-time worker who works 38 hours per week and receives the NLW will see their gross annual pay increase by £1,817.92 which is £151.49 monthly.
Pension contributions will also rise in line with these increases as they are percentage based.
The NLW will be extended to all workers aged 21 and over from April 2024. The minimum wage target for the NLW at that point is at least £10.95 p.h but may well be higher.
2023/24 Statutory Rates
In April 2023, Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP) and all family-related benefits, e.g. Statutory Maternity Pay (SPP) and Statutory shared Paternity Pay (ShPP) will rise.
SSP will go up from £99.35 to £109.40 per week. Also, SMP, ShPP, Statutory Adoption Pay (SAP) and Parental Bereavement Leave Pay (PBLP), which are all currently £156.66 p.w, will rise to £172.48 p.w.
However, the lower earnings limit, which is the minimum weekly amount employees must earn to qualify for SSP, SMP, SAP, SPP, ShPP, and PBLP, has been frozen at £123 p.w.
You don’t have to advise your employees about the annual changes to statutory payments, but you could communicate the information to minimise payment queries.
Annual check of employee personal information
You should conduct an annual check to ensure that you hold accurate personal information for each employee. Although you might require your employees to immediately disclose to you any change in their personal information or circumstances, the fact is that many don’t.
This might be because they’ve forgotten to tell you, can’t be bothered or don’t want you to know something.
The UK GDPR states that “personal data shall be accurate and, where necessary, kept up to date”.
It also requires you to take every reasonable step to ensure that inaccurate personal data is erased or rectified without delay.
The start of a new year can be a good time to undertake the exercise, but it could be completed any time during the year.
As a minimum, you should ask each employee to check and confirm their last name, first name, home address, mobile phone number, personal email address and next of kin details.
It’s also worth asking employees to provide a second next of kin or emergency contact.
Rather than asking employees to advise if any of their personal information has changed, you should let them what personal data you hold, as it’s easy for something to get overlooked.
This must be done directly to everyone individually in a confidential communication - by email is probably best. You should also set a deadline for confirmation and/or any updates to their personal information.
Don’t give them too long though as it’s a fairly simple task. You could ask for a response within 48 hours.
Since Covid, there’s been a massive shift in how we run our business’
Award-winning Kent retailer, Martins of Hawkhurst, celebrates its 50th birthday this year.
Sean Hannam paid them a visit.
At last year’s ERT Awards, Kent family-run, Euronics retailer and Retra member, Martins of Hawkhurst, picked up the trophy for Best Independent Kitchen Showroom.
“It ’s the first award we’ve won and we’re very proud of it,” says owner John Martin, over a coffee in that very same award-winning showroom on a sunny day in early January.
“We’ve been promoting it on social media – we’ve had people from all walks of life congratulating us. I walk into my local pub and people mention it – we’ve made the most of it, it’s a big morale booster and it gets people talking.”
John Martin
Alert has made the short train journey from London to the picturesque Kent village of Hawkhurst, which is near the border of East Sussex, to find out more about the business, which turns 50 this year and will be celebrating that milestone in due course.
“We’ll definitely do something around the showroom – it will probably be something quite simple, like a party, and get the local influencers and bigwigs involved to spread the word,” says Mr Martin.
“I still see people who live in the village but have never used us –so where do they buy from? Alternatively, we’ve had customers drive from as far away as Whitstable to buy their appliances from us.
“People know us from word of mouth – our catchment area runs as far as Ashford, Eastbourne, Tunbridge Wells and Medway. All these areas have massive potential for us, but I don’t want to tread on other people’s toes. I don’t want to be a big online retailer - an AO. We try to work with other Euronics dealers, not against them.”
SH: So, who are your main appliance brands?
JM: BSH and Miele - we’ve been with Miele since day one. Our BSH rep, Darren Walmsley, comes in regularly – we have a good relationship with him. It’s important to have a consistent point of contact.
SH: Are you still experiencing supply issues with BSH?
JM: We were hit hard – we’ve got a lot of space dedicated to BSH and there were some key models we couldn’t get, but things have settled down.
SH: Do you sell online?
JM: Most of the business is from the shop, but, during Covid, we had a reset moment – we realised that the people who survived were the ones who’d set up websites and were already trading online. They knew what they were doing. We had a website, but it was a shop window – we didn’t sell online.
We used Calculus to help us develop the website, which is now transactional. We were pushed down that route by one of the manufacturers, but, in hindsight, we had to get there eventually and it’s worked out OK. It’s all been for the greater good. We use the Calculus EPOS system too – before that we were doing everything manually, with invoice pads and spreadsheets.
SH: What about social media? Have you embraced that?
JM: We weren’t big on it initially, so I took on Sarah Jones about nine years ago to help, as well as keep our website up to date. She’s also front of house and assists with sales when we’re busy.
The concept of having someone front of house came about some years back. My dad and I attended a Miele Centres meeting in Harrogate, and we had the pleasure of meeting Fred Sirieix – the maître d’ from First Dates. He’s recently been working with Gordon Ramsay and Gino D’Campo. He’s really enthusiastic and Miele were having a big push on service – setting the standard for how their customers should be looked after.
He spoke for two hours and even got us to do role play – he said his restaurant always has a front of house person that knows who’s coming in and when, will greet them and take them to the table, and introduces them to their waiter or waitress. No one hangs around, the service is efficient and professional. So, Sarah became our front of house meet and greet person while working on our social media and website.
SH: What’s the business split on kitchens and appliances?
JM: It’s pretty even – there was a bit of a dip with kitchens but that was more down to having a change of personnel and Covid. My brother-in-law, who runs the kitchen side of the business, turned 60 this year, and has now gone down to a three-day week. We now have one designer, Scott Hunt, who has recently moved over from appliance sales. He has worked for the company for many years in a management role and has a lot of industry experience. To be honest, we’ve had a lot of enquiries so far this year and he is struggling to keep up.
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I think you’ve got to be confident, but we’re being cautious – that’s our mindset
SH: Has the cost of living crisis affected the kitchen side?
JM: No. Not yet.
SH: So, you’re confident for the year ahead?
JM: I think you’ve got to be. We’re trying to manage the risk of higher prices, but, to a certain extent, it’s more money in the till for us and helps towards our targets with manufacturers. We’re being cautious –that’s our mindset. I don’t want to be cocky about it – people say, ‘Oh, but you’re in an affluent area’. But there are also local parts that aren’t affluent, where every purchase has to be carefully considered. People need kitchens and appliances. It’s very difficult to be without a washing machine or oven but you could cut back on holidays and other luxuries.
SH: How’s business been in general?
JM: We had a good year last year – the accountant was happy. The market’s not too bad. Since Covid, there’s been a massive shift in how we run our business – by embracing technology we moved into a different realm that we didn’t want to go into before. We’ve invested in search engine optimisation (SEO), and it seems to work. We’ve got a lot of stock. Our warehouse is a basic agricultural building up the road, but it’s full from top to bottom, with appliances. Whatever we could get, we ordered it, but luckily the stock situation is improving. If you don’t have the stock, you can’t sell it. We’re busy as a result.
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Manufacturers can come up with technology like heat pumps, but without retailers explaining the benefits to people, they are reluctant to invest any more than they have to
SH: Are customers more interested in sustainability these days than they used to be?
JM: They are to a certain extent. We have live appliances so we can demonstrate them, and we talk about and explain energy ratings and wash programs.
Manufacturers can come up with technology like heat pumps, but without retailers bringing it to life and explaining the benefits to people, they are reluctant to invest any more than they have to.
SH: What are the benefits of being a Retra member?
JM: We’ve always been a member – since before my time. Like anything, as long as you remember it’s there and you use it, there is
a lot on offer. I’ve recently use it to remind staff that the Retail Trust is there for their wellbeing and welfare – people need reminding about it.
SH: Where do you see the business heading in the future?
JM: We’re not looking to grow the business – we’re all working hard and we all do alright. Having a good work/life balance is important. I doubt any of us are going to get rich because we’re in electrical retail.
I could say I want to expand the internet sale side of the business, but I don’t. I prefer to keep as local as possible really. Maybe attracting more of the locals that haven’t used us yet would be a good challenge.
I’m sure there is a future for us. All the time we are offering a service that our customers need and want. Unfortunately, the future isn’t as predictable as it once was, especially when manufacturers are selling direct to our customers.
Martins of Hawkhurst – the history
Owner, John Martin, on the background to the business and how he started in the industry.
I’m Hawkhurst born and bred – my dad, David, and my uncle, Peter, started the business. Peter was a Hoover service engineer many years ago, but the company got rid of a lot of their engineers, so he opened a small shop doing sales and service of appliances.
We moved into selling kitchens in the early ‘80s. My dad was doing other things, but he saw the potential of fitted kitchens and that there was money to be made. So, he started doing that, weekends and evenings. The shop next door to my uncle’s became available so he purchased that and moved in with his kitchens – we then had kitchens and appliances together.
In 1984 we moved into the building we’re in now, where we could display the kitchens and appliances better. We also have a car park round the back.
Army
In 1992, I left the army after eight years – I’d joined the Royal Engineers when I was 16. While serving I had army quarters and I was married, but when I left, I didn’t have a job or a house. My dad said I could work for him and do deliveries until I got myself back on my feet.
My wife and I bought a house next door to the car park, and I started work with my dad and uncle. I didn’t intend to do it forever, but I was sucked in. While on deliveries, I learnt so much about appliances and their features and benefits from the guy who used to do the installations – I would listen to him and learn.
Every now and then I would help in the showroom. I remember being so scared of people coming in because I didn’t think I knew what I was talking about – I wasn’t usually on the shop floor so felt a bit uncomfortable, but I knew the differences between the machines and how they worked. I also knew the customers because I’d delivered to them – all I had to do was listen to customers and sort a solution out for them. After a while I moved on to sales full-time, but I still remember those early days and can empathise with any person starting in this industry.
Challenging
I became a partner with my dad and my uncle in 1998, but I found working with my family challenging – so, I disappeared for a few years – I went to work for BSH as an area sales manager. During that time, I went to see lots of independent dealers – it was good for me. I learnt a hell of lot by talking to other family businesses. Then I came back, a little older and wiser – my brother-in-law, Mike Rampling, and I now own and run the business, along with dad, who has retired, but still plays a part in the company.
Always ask the question: ‘How can you do the same but more efficiently?’
Retra and Hughes Electrical chairman, Robert Hughes, shares some predictions for the year ahead and has some advice on analysing your business.
It felt like we ended 2022 in a fundamentally different world than which we began it.
Gains from globalisations were unwound, asset prices fell, cold wars heated up and populations felt entitled but were aging.
Increased borrowing has kicked these cans down the road, but debt has now been pushed as far as it can go - certainly if you are Liz Truss.
The combination of lower volumes, higher prices and stable margins will leave gross profits much where they were last year. Those doing more home entertainment will do worse, those doing more appliances a bit better
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The result is that all of us are having to adjust our expectations for our market and how we manage our businesses.
One of the few advantages of being old in the tooth is that you can remember what it was like when there was inflation, when it cost to borrow money and when the annual pay round made a material difference to your overheads.
We have all enjoyed the best part of 20 years without these considerations, living in a world where growing your gross profit would probably grow your net profit and if it didn’t there was always cheap money available to make up the difference.
The only moan we had was that our product prices would fall, meaning we had to sell more of them to grow that gross profit.
However, that wasn’t too difficult as there was always cheap money available to our customers to fuel their buying needs. This has all changed and, in my view, is not coming back any year soon.
Adjusted
We at Hughes are getting our mindsets adjusted to a world in which:
• Sales volumes fall between 5 percent to 10 percent in kitchen appliances and even greater in the more discretionary CE categories that enjoyed better lockdown or World Cup gains. To some extent we have been adapting to lower volumes throughout 2022, but I see no respite in the year ahead.
• Average prices will continue to rise partly because of sterling weakness but mostly due to de-globalisation, supply chain inefficiencies and higher raw material costs all of which will be
passed on by suppliers and retailers as there is not the profit in our supply chain to absorb it.
• The near 10 percent jump in the Living Wage in April will have a big effect on our sector, which is reliant on lower-paid shop floor, warehouse and delivery staff. Wage differentials have been squeezed already, so it is hard to see how the average private sector wage rise of 7 percent will be lower in our industry or lessen in 2023. These pay pressures are only going to increase, as they seem part of a plan to pass the cost of in-work benefits onto employers.
• The increased costs of transport and fuel also falls disproportionately on our sector, meaning that our overheads could face a 5 percent to 10 percent rise, having already suffered a similar uplift in 2022.
• The one upside is that these cost problems fall equally across the whole industry, so this feels like one downturn where gross margins are not going to be squeezed. Indeed, action by the likes of AO to charge for delivery as they “pivot to profit and cash” could mean margins go up. Did I really write that?
Profits
The combination of lower volumes, higher prices and stable margins will leave gross profits much where they were last year. Those doing more home entertainment will do worse, those doing more appliances a bit better.
What will determine success in 2023 is the ability to take mitigating action against the overhead uplifts, as the ability to borrow to pay for increased operating expenses has long gone.
We did a ‘Bonfire of the vanities’ project in both 2018 and during lockdown and have just revisited it again.
This has resulted in the closure of five shops and one depot but also investment in a larger store and many bigger vehicles – it is not all bad news.
We even opened a WEEE recycling facility to turn a cost centre into an income source.
My message is to take an analytical look at your business without bias or rose-tinted spectacles and always ask the question: how you can do the same but more efficiently?
This need not be a destructive process, but it will be if you do not do it at all – overhead issues are not going away.
Robert Hughes at the opening of the new Hughes store in Thetford, with the town’s mayor, Cllr Jane James, and shop manager, Dean Honour.
Let’s respect retail
As the latest Retail Trust poll reveals the impact of customer abuse on retail workers, its Respect Retail campaign aims to protect the wellbeing of colleagues and stop the intolerance epidemic.
“The only way to describe my job is that it’s like being a human punch bag, every single day,” explains one colleague working for an electrical goods store.
“It ’s not just the occasional rude customer, there’s this widespread lack of understanding from the public, who expect
The retail sector is in the grip of an intolerance epidemic. Our latest poll of over 1,000 colleagues reveals that 90 percent of respondents have encountered abusive customers – for a third of you, this is happening on a weekly basis
more than ever and insult us or become aggressive if they have to queue or an item is unavailable. It is relentless.”
Epidemic
The retail sector is in the grip of an intolerance epidemic.
Our latest poll of over 1,000 colleagues reveals that 90 percent of respondents have encountered abusive customers – for a third of you, this is happening on a weekly basis – with almost 70 percent claiming it has got significantly worse in the last one to two years.
We’re highlighting the scale and impact of violence and abuse against colleagues, encouraging more positive customer behaviour and supporting employers to adopt a zero-tolerance policy towards abusive customers.
For frontline store workers, delivery drivers and customer services colleagues, it’s not a moment too soon.
Threatened
“Getting abuse has become part of my job,” reveals Jane, a 51-yearold checkout supervisor from Flintshire. “On many occasions I’ve had things thrown at me, been called names and been threatened.
“I once refused to serve an energy drink to a young person and a group of them told me they would wait outside for me after work. We’re just trying to earn a living but it’s made me feel anxious about going to work.”
“We are hearing daily from retail workers who are being shouted at, spat on, threatened and hit at work,” explains Chris Brook-Carter, chief executive of the Retail Trust.
“One shopworker was told by a customer that they hoped they got cancer and died. This is having a devastating and longlasting impact on real people’s lives. Many are extremely anxious about going into work and having to take time off or even quitting. We’re campaigning to end this intolerance epidemic and make our shops safer.”
He adds: “Our message at the Retail Trust is clear. Abuse is never part of anyone’s job and if you’re a retail worker encountering abuse, threats or violence, please do report this to your manager and call the Retail Trust’s free wellbeing helpline if you need any support dealing with your experiences.”
Resources
Pledge your support and access resources for your organisation at retailtrust.org.uk/respect.
Together, we can help safeguard the mental and physical wellbeing of our colleagues.
You are not alone
As a valued member of the Retra family, you and your colleagues have free and confidential access to the charity’s wellbeing services.
If you are experiencing abuse from customers, the free and confidential Retail Trust wellbeing helpline is available 24 hours a day, seven days a week. You can contact the team on 0808 801 0808 for in-the-moment support and guidance.
Tools for a happier, healthier life
The Retail Trust website (www.retailtrust.org.uk) is packed full of loads more articles, quizzes, videos and guidance on everything from mental health and wellbeing to your career and lifestyle. You can take charge and decide what’s important to you. Think of it as your very own support network. Once you’ve registered on the site, you can personalise it and choose what topics interest you. Whether that be advice on how to cope with anxiety or financial worries to valuable tips on managing a team. You’re in total control.
And remember, it’s completely confidential. Completely. That means, as with everything at the Retail Trust, no one at work will know what topics you choose, what you’re clicking on, what you’re reading or whether you’re reaching out for counselling or financial aid.
Register today at www.retailtrust.org.uk, choose ‘Retra family’ as your employer, and start your wellbeing journey.
It’s Showtime!
In-store retail events are re-engaging with the buying public, says Richard Stevenson, founder and owner of Quick Brown Fox PR, so isn’t it time to put on a show?
The paradigm shift to online sales brought about by the pandemic is unlikely to be reversed, but there remain plenty of customers looking for real shops with real product demonstrations.
“ “
According to the Event Marketing Institute, 87 percent of consumers claim to purchase a brand’s products after having attended one of their in-store events
It is a latent demand for the return of ‘experiential shopping’. Yet, simply displaying a host of static products and taking money at the till is just Amazon with travelling inconvenience.
A high street shop’s key USPs against the mass- merchant online retailers are the physical store and the retail staff.
If both are engaging, tell a good story, entertain and inform, people will buy and probably come back and buy again, irrespective of the convenience and potentially lower cost of buying online.
It is the same reason people still go to see live plays with real actors despite the entire multibillion-dollar film industry being available from their sofa.
A six-month subscription to the entirety of Hollywood’s goods via the likes of Netflix is available for less than the price of one London theatre ticket too, so it’s not a price-based decision.
Compelling
One of the best ways to establish your store as an equally compelling retail ‘theatre’ is through in-store events.
According to the Event Marketing Institute, 87 percent of consumers claim to purchase a brand’s products after having attended one of their in-store events.
That is not only good news for retailers but equally compelling to the supplier brands that you can leverage to help fund, arrange and promote your customer events.
Creating, marketing and delivering an in-store event is not as tricky as it may sound.
Exclusive launch events are a draw across all electrical sectors,
while live demonstration events tick all the boxes with food prep, beverage makers and cooking. Don’t discount classes and ‘how-to’ workshops for customers looking to get the very best from their <insert product category>
Food prep and cooking lend themselves naturally to these learning style events, but for the right audience, so too would ‘getting the most/best from’ categories like smart TV, voice control, smart home and audio.
Benefits
While many of these events might be geared up to customers already owning a certain product, the art is in leveraging the benefits of an upgrade or add-on products as part of the presentation and getting them to bring a friend.
Before you start any event planning, having a razor-sharp list of objectives and a goal is vital.
Detailing and documenting that strategy makes it much simpler to sell-in the idea to manufacturers and suppliers that you might want to assist you with or fund the event.
Can they supply demo samples, POS signage or a product manager expert? Have they got a budget for consumables or refreshments? Do they have a third-party expert, such as a product or brand ambassador, they can get to attend?
Who you invite to these events is equally important, and loyal customers are the first port of call.
Even if they already own the products of the event focus, they are super-powerful ambassadors for your store.
Make the invite personal and make it feel exclusive by getting them to register, suggesting numbers are strictly limited and making sure the invite includes the ‘+1’ friend to attend.
People are more inclined to go out to events with a friend, and that friend is, of course, a potential new customer.
Key
Email marketing to your database with calendar or registration page links, social media posts leading up to the event, in-store information are all key ingredients in getting a good turnout from your existing customers. If you are planning a bigger event, engaging a relevant local influencer or local newspaper advertising could be an option, particularly if you have a sponsoring supplier willing to foot the relatively small bill. Facebook Proximity ads can also work well as they target a particular demographic in a very tight geographical radius.
Most well-targeted events will have their own intrinsic appeal to customers, but adding free refreshments, a prize-draw prize or lowcost take-home merchandise will enhance the appeal. It doesn’t have to be expensive to be effective.
With the event packed out and in full swing, don’t forget to take plenty of pictures and post them immediately to your social channels.
This should encourage people who didn’t attend to look for your next event.
And don’t forget the close. Execute your finely-planned strategy to sell to your attendees with an exclusive discount or an enhanced package of products if they buy now.
Our work has been driven by the desire to be a business that minimises its impact on the world’
Steve Clarke, head of sustainability and quality at Beko UK & Ireland, on how the brand and its parent company, Arçelik, are focusing on environmental issues.
The last few years have seen a seismic shift in the approach towards climate change, sustainability and reducing carbon emissions.
COP 21, the Paris Climate change agreement, and the television series, Blue Planet, have all raised awareness of the need to take radical steps to protect the planet, leaving it in a state fit for future generations.
Arçelik has embraced that concept and now lives by its vision “Respecting the World, Respected Worldwide”.
While all industries have come under scrutiny, with consumers looking ever more closely at a company’s sustainability credentials, few manufacturers have come under as much focus as those who make white goods.
This is understandable. Our products require raw materials and heavy industry to manufacture, and they consume a significant amount of energy to build and use across their lifetime. The onus is on us to reduce our impact and at Arçelik/Beko we have focused on exactly that.
Key
Minimising the impact on the environment has been a key focus for Beko’s parent company Arçelik for well over a decade.
2015 was a key point in the sustainability journey, with Arçelik being invited to speak at the COP21 conference in Paris.
Arçelik was also an early signatory to the Paris Pledge for Action on climate change. This was an opportunity to re-affirm the commitment to the UN Sustainability Development Goals that Arçelik adhered to in its initial form in 2006.
More recently, Arçelik has communicated its strong ambitions in reducing its carbon footprint and has set targets in line with the Science-Based Targets initiative (SBTi) to reach net zero by 2050, and reduce the emissions in Scope 1 and 2 as well as Scope 3 from product use by 50 percent by 2030. As the biggest subsidiary of the Arçelik Group, Beko has a key role to play in helping Arçelik reach its ambitions.
Having made those commitments, it is important we deliver and our work since then has been driven by the desire to be a business that minimises its impact on the world, helping consumers to live more sustainable lives.
This starts with understanding where we are and the best way to do this is by external auditing and measurement. Arçelik is accredited to ISO14001 Environmental Management systems and ISO 50001 Energy Management systems. These standards require year-on-year improvements to be implemented and the longer we maintain our accreditation, the tougher it gets.
Arçelik has been recognised for leadership in corporate transparency and performance on Water Security with an A score and on Climate Change, with an A- score by the global environmental non-profit CDP.
For the fourth year in a row, Arçelik achieved the highest score out of 46 companies assessed in the 2022 S&P Global Corporate Sustainability Assessment DHP Household Durable Industry.
Among other awards and accreditations, Arçelik has received are Corporate Knights Global 100 Index, Top 300 Impact Companies, Ecovadis, and FTSE4Good Emerging Market index.
In 2021, Arçelik was awarded the Terra Carta seal, which recognised our work on sustainability. We were one of only 45 companies to receive the award in its inaugural year.
Awards
Arçelik has received these accreditations and awards through the work we’ve done. That includes reducing waste and water consumption in the factories, re-using where we can, and ensuring when we have maximised what we can use, what we can’t is recycled responsibly or released in a way that doesn’t harm the environment.
As an example, wastewater from our cooking factory is cleaned to such a level that we can release it into ponds where we keep healthy Koi carp.
Products
Being more sustainable is not just about production, it’s also about products. With the biggest part of carbon emissions coming from the product use phase, making sure we bring energy-efficient products on the market is a key focus for us. In the last seven years, washing machine energy consumption has improved by over 20 percent across Beko’s range.
We already offer top rating energy-efficient appliances in both washing machine and tumble dryer categories and we have targets in place to improve the energy efficiency throughout the key categories we operate in.
It ’s also about the materials we use for our products. Our washing machines, tumble dryers, cookers, and dishwashers have all started to use recycled plastics, including recycled plastic bottles and discarded fishing nets, which have clear environmental benefits over virgin plastics.
We’ve also trialled using plastics in new products that have come from recycling plants that recycle our old products. The company has a target of 40 percent recycled plastics in all products by 2030. All of this will be done without comprising on quality or reliability.
We are only at the beginning of the journey. We have made a strong start but there is a long way to go and only a short time to deliver. We are looking at every aspect of our business, including working with our retailers and consumers to make a better world for all of us.
Sony’s strategy for a sustainable future
Sony is making waves when it comes to sustainability initiatives, as UK and Ireland country head, Barend Ezechiels, explains.
As the climate crisis becomes an increasingly serious issue around the world, the transition to a decarbonised society has never been so important.
In 2010, Sony launched “Road to Zero”, a strategy detailing the group’s responsibility for the global environment and roadmap to carbon neutrality, which was initially anticipated to be completed by 2050.
However, last year, Sony announced that it would be accelerating its goal by 10 years to 2040. Sony is incredibly proud of this announcement, particularly as it has led to its inclusion in the CDP’s A-List, a distinction which recognises the business as a leader in its efforts to address climate change.
Below, we have broken down some of the initiatives included as part of the strategy, highlighting how Sony hopes to accelerate progress, ensuring it meets sustainability targets of 100 percent renewable electricity by 2030 and carbon neutrality from Scopes 1 to 3 by 2040.
Road to Zero
The first step is to improve the environmental impact of Sony sites as the basis for all initiatives. This means installing solar power generation equipment, introducing renewable energy throughout the Sony Group and implementing new energy-saving processes.
By ensuring the day-to-day of the business operates as efficiently as possible, Sony intends to set sustainability standards across the Sony Group, laying the necessary groundwork for how the entire business should function.
By building strong internal foundations, Sony can then look externally to strengthen the efforts of partners in achieving their sustainability goals.
This means encouraging business partners of the Sony Group, especially those engaged in manufacturing, to manage GHG emissions, save energy, and convert to renewable energy - reducing the amount of GHG emissions throughout the entire supply chain.
To further reduce emissions, Sony aims to contribute to carbon fixation through technological removal and absorption by ecosystems. In terms of technological removal, Sony intends to invest in startups engaged in carbon removal and related areas through the Sony Innovation Fund: Environment, a corporate venture capital fund established to foster environmental technology.
With regards to absorption by ecosystems, Sony is exploring credit generation from carbon absorption associated with augmented ecosystem businesses; this includes Synecoculture by SynecO, Inc., which was established as the first project of Sony Innovation Fund: Environment in April 2021.
Sony will also continue to promote energy-efficient products through initiatives that reduce annual power consumption and prioritise eco-efficient design, through the below programmes.
SORPLAS
To incorporate more recycled materials into Sony’s products – and for more efficient resource use – Sony developed SORPLAS, a material made from used water bottles and waste optical discs collected from
factories and markets, which is a proprietary flame retardant.
SORPLAS has a recycled content of up to 99 percent, with recycled plastics used in electronics typically having only a 30 percent recycled content.
Additionally, the CO2 emissions from the production of SORPLAS can be reduced by approximately 72 percent compared to flame-retardant virgin plastic production used in the same application.
SORPLAS is used across Sony consumer electronic products, providing solid durability and a good surface appearance. Currently, the material is used in Bravia TVs, including the A95K, A90K and A80K, Xperia smartphones, such as the Xperia 1 IV and Xperia 5 IV, vlogging cameras, including the ZV-1F and ZV-1, and digital cameras like the A7R V.
LinkBuds S
Sony’s LinkBuds S are designed with the environment in mind, featuring recycled materials from automobile parts.
The LinkBuds S Earth Blue take this a step further, with parts of the body and case made using recycled resin materials generated from recycled plastic water dispensers. Sony has also committed to donating $2 of the sales price of each unit sold to Conservation International (CI), an international NGO, to support its ocean conservation activities. This means each purchase protects nearly 58,824 square metres of ocean, according to calculations by CI.
Sony utilises Original Blended Material in the packaging of the LinkBuds S, and other flagship headphones (WH-1000XM5 and WF-1000XM4). Original Blended Material is a durable packaging solution, developed by Sony, made from 100 percent paper materials.
Harvested from plants with a short growth cycle, like bamboo and sugarcane, the material has reduced ink use and no unnecessary colouring.
Sony is making waves in terms of developing its sustainability initiatives, but much remains to be done. With time, we hope to make significant progress in our journey to net zero by 2040 and that other businesses will feel encouraged to join us, so that we can all protect our planet and move towards a better future.
Sony’s A95K Bravia TV features SORPLAS, a material made from used water bottles and waste optical discs collected from factories and markets
Parts of the body and case of Sony’s LinkBuds S Earth Blue are made using recycled resin materials generated from recycled plastic water dispensers
I’m confident for the industry and the opportunities for Whirlpool to grow’
In her first interview for Alert, Whirlpool UK and Ireland MD, Lena Henry, gives Sean Hannam her views on some hot topics, including sustainability, the cost of living crisis and direct selling, and looks at the opportunities for the company and its retailers to grow their business.
Sean Hannam: You joined Whirlpool last summer. What prompted your move to the company and are you enjoying the role?
Lena Henry: One of the reasons was the opportunity to work for a company with well-known brands, manufacturing products that make a real difference to consumers’ lives.
Over the past few months, I’ve really enjoyed learning about the industry and in particular getting out and about meeting retailers that provide that link to consumers to help improve their lives at home.
SH: You’ve worked in various industries, including management consultancy and the ophthalmic sector. How are you finding the world of home appliances?
LH: There’s more in common than you might think, as appliances, just like glasses, play a huge and extremely important role in people’s lives. What really excites me is how we can develop some of the many opportunities in the appliance industry.
SH: On that note, what do you see as the opportunities and challenges for the industry and also for Whirlpool and its brands?
LH: From an industry point of view, it’s an extremely competitive market which brings many benefits for consumers but, at the same time, there are a lot of growth opportunities which makes it even more interesting.
For example, less than half of UK households have a dishwasher and it’s a similar story for dryers and washer-dryers.
Of course, there are many challenges with the cost of living impact in particular, but this is also an opportunity to reset and ensure that your messaging to retailers and consumers is clear in terms of the benefits of your brands, products and services.
As for, Whirlpool then we have great assets in the UK, including our leading brands, Hotpoint and Indesit. They are strong brands with high awareness and recommendations from consumers, which is a really important base for growth.
Our end-to-end solution with our own home delivery and consumer service operations, where we visit approximately two million UK households every single year, also provide good opportunities, and, working together with retailers, we can provide the highest levels of support to continue to grow.
SH: What’s your current take on the industry? The appliance sector has dealt with the pandemic –appliance retailers did quite well from the crisis in the early days – but then dealers and brands were hampered by supply issues and logistics. On top of that, we now have a cost of living crisis. What kind of shape is the appliance market in?
LH: You’re right that there was growth after the initial shockwave felt through most industries at the start of the pandemic. That’s now settled down to be more stable, which does help in terms of supply.
From a Whirlpool perspective, we haven’t faced supply issues and are able to fulfil demand. That’s down to a lot of good work by our supply chain team, making our forecasting, demand planning, supply and processes and line-up together. It might sound a little boring but making sure that all parts of your supply chain are in sync is really important.
As I said earlier, the impact of the cost of living crisis and higher energy bills in particular is undoubtedly being felt by all households, but this is where clear messaging – not just about buying new products but getting the most of your current ones – is important.
Helping consumers to reduce their energy bills by choosing, using and maintaining your appliances’ most efficient features is very important, which is why we’re a big supporter of – and helped in the development of – the AMDEA Know Watt’s What campaign, that does just that.
The collective industry – manufacturers and retailers – has a huge role to play in both educating consumers how to get the best of their existing appliances, as well as helping them to make the right decisions when it comes to replacing them.
SH: How important are independent retailers to Whirlpool?
LH: Very important, which is why we still have a large team on the road visiting independent retailers on a regular basis. Working together in partnership to benefit consumers is crucial for our long-term success.
From a Whirlpool perspective, we haven’t faced supply issues and are able to fulfil demand. That’s down to a lot of good work by our supply chain
“
SH: Several suppliers, including Whirlpool, are selling direct to consumers. Why are some brands doing this, even though they have a strong retail base? Does Whirlpool have plans to increase direct selling? Why should retailers support brands who are selling direct?
LH: As I’ve said throughout, enabling consumers to help improve their lives at home is our focus and our strategy is driven by the evolution of consumer shopping habits over the last few years.
Consumers want a direct relationship – not only with their preferred retailers but the brands too.
We believe that our direct-to-consumer marketing, campaigns and content will increase overall demand for our brands and products by educating consumers about the features and benefits of our products.
That’s good for everyone, as it brings more consumers into retailers’ stores and onto their websites as well.
SH: Sustainability is a key message for many brands. Is it important for Whirlpool and why? How are you addressing sustainability issues?
LH: In fact, it’s always been a key focus for us, as we established our Office of Environment in 1970.
This means we’ve always taken a long-term view making the changes we need in our operations and supply chain for our production to be more sustainable – without shortcuts or excuses.
I referred to our vision earlier, which is the constant pursuit of improving life at home. Fulfilling this vision requires us to think of our house and home not just in terms of the four walls around us and the communities in which we live, but the planet that sustains us. That is why we are committed to reach net zero emissions by 2030, to build the resilient, thriving, sustainable communities of tomorrow, by taking action across our business in terms of sustainable plants, products and practices.
Since 2005 we have reduced emissions linked to the use of our products by 60 percent and have committed to a further 20 percent reduction by 2030.
In the UK, we are leading by example, from recycling packaging and refurbishing old products, right through to how we run our offices, distribution centres and manufacturing sites.
For example, none of the waste we generate in the UK ends up in landfill, and our sites use renewable energy.
Whirlpool is investing in renewable energy, manufacturing plant retrofits and ongoing energy, water, and waste reduction projects
None of the waste we generate in the UK ends up in landfill, and our sites use renewable energy “ “
We have directly removed a significant amount of single-use plastics, including the replacement of canteen cutlery, bottles and cups, which has saved 400,000 single-use cups going to landfill every year, and have also begun a journey to switch our delivery and engineer vehicles to electric power.
We have started to trial using biofuel for some of our on-site vehicles, and to help both our consumers and the planet, we remove and recycle packaging free of charge when we deliver a new product to their homes.
SH: Do you think sustainability is something that consumers and retailers are becoming more concerned about? How can suppliers like Whirlpool work more closely with the trade and consumers to get that message out there?
LH: Earlier I spoke about sustainability from a plants and operations perspective. Just as important is the part that our products in consumers’ homes play in ensuring a more sustainable world.
Prior to the cost of living crisis, then we saw sustainability rise to be one of the most important factors when choosing a new appliance.
What we’ve seen since is that while ensuring value for money has taken on a greater importance, the importance of making sustainable choices has not gone away and continues to be really important.
Of course, here is an opportunity to connect the importance of sustainability and the cost of living impact. It is here where retailers can really shine to demonstrate not only the performance benefits of the latest products, but how they can help save money through optimum efficiency by using less energy and water.
For example, our heat pump dryers save up to 60 percent in energy, and our Active Care laundry products the same.
We partner with Youreko to show the lifetime cost of new machines (not just the initial purchase price) which enables consumers to make the most efficient choice for them. Here is an opportunity for retailers to be able to demonstrate efficiency benefits and how they can save more money in the long-term.
SH: Are you confident for the year ahead?
LH: I’m confident for the industry and, of course, the opportunities for Whirlpool to grow. We have strong brands, exciting product innovations and outstanding consumer care. Our Trustpilot star ratings for customer service are the best in the industry, with Hotpoint at 4.4 and Indesit at 4.5. Bringing products to market during 2023 that consumers really want will help our retail partners to grow with us.
SH: In Europe, Whirlpool is joining forces with Arçelik to form a new home appliance business. What will this mean for the industry and what impact could it have on the UK market?
LH: The new business will bring together the best of the two complementary companies to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation, and consumer services.
At this stage we can’t speculate as to future actions post-close of the transaction. Until then, it is business as usual and the two companies will continue to operate as separate entities.
SH: Are connected appliances going to become more important for consumers and more ubiquitous?
LH: Smart connected appliances have of course been around for some time but not yet experienced the growth that many predicted.
I do believe that they will become more important for consumers, but more in the area that optimises performance, which includes using less energy and water that delivers savings for the consumer.
“ “
Consumers want a direct relationship – not only with their preferred retailers but the brands too
SH: What are the key product areas and focuses for Whirlpool and its brands over the next 12-18 months?
LH: Built-in appliances are a key focus for all our brands. We’re launching two new product platforms this year that we’re truly excited about. The new dishwasher platform has an innovative new system that maximises capacity and makes loading easier for consumers. We’re also launching a new range of induction hobs with some exciting advancements in technology.
SH: How will you be supporting retailers?
LH: We’ll be supporting retailers throughout 2023 with a variety of point of sale, particularly for our Hotpoint and Indesit brands, that brings to life our key technologies and brand missions.
We aim to help retailers create a journey through their stores, from category signs that highlight our reliability scores, to onproduct content that features our third- party endorsements, giving customers strong reasons to believe in our brands.
Cooking Challenges
Manufacturers are predicting challenging times for the built-in appliance and kitchen sectors, but there are still plenty of reasons to remain optimistic. Sean Hannam reports on the current market and design trends.
The markets for built-in appliances and kitchens flourished during Covid, as more consumers spent money on the home, rather than other purchases such as holidays. But now we’re living in a postCovid society and tackling a cost of living crisis, what will that mean for those sectors of the industry in the year ahead?
We asked some Retra associate members for their thoughts. “Last year was a year of two halves. In the first half, the market remained buoyant coming out of 2021, driven by positive postCovid spending on home improvements,” says Chris Grundy, cooking product manager at Haier Europe.
“The second half has been tougher, with Q4 seeing a smaller market than we’ve seen for five-10 years. This has been driven by fading consumer confidence to spend on large-ticket items off the back off the energy crisis, and rising inflation and interest rates.”
Looking ahead to the rest of 2023, he tells Alert: “It’s going to be a challenging year, due to pressures in the economy and disposable income for customers. This will see the number of projects decline year-on-year, with customers only replacing what they need to.”
Tough
His views are echoed by Vijay Bhardwaj, marketing director at Beko, who says: “2023 is expected to be a tough year for our industry, with the market being predicted to decelerate at a lower rate than in 2022.
“In 2022, we saw UK consumers spend more on average when purchasing home appliances, with a shift towards more advanced and premium features. This trend is expected to continue into the new year, with consumers also seeking larger capacity and better energy-rated products.”
Now, more than ever, consumers will be searching for appliances featuring advanced technologies, that meet their needs and expectations at a competitive price point
Vijay Bhardwaj, marketing director, Beko
He adds: “Inflation and the subsequent cost of living crisis have been the major challenges for our industry. With analysis suggesting that headline inflation could peak at 17 percent in the first half of 2023, a significant proportion of consumers are adapting their day-to-day behaviours, particularly when it comes to home appliances. Overall, we have seen the total demand for appliances decrease and we predict that the replacement cycle of products will extend in the coming period.”
New Miele 2in1 hob
Beko built-in
However, Mr Bhardwaj argues that the cost of living crisis does provide a growth opportunity for brands such as Beko, that offer value for money products, but without compromising on innovative features and performance.
“Now, more than ever, consumers will be searching for appliances featuring advanced technologies, that meet their needs and expectations at a competitive price point. As such, we predict that an increased proportion of consumers will be looking to trade down to more mid-range priced products,” he says.
“Equally, we may see an increase in purchases of entry-level products, and credit may become an important mechanism to leverage trade up.”
could not be absorbed by retailers. Many retailers used this as an opportunity to explore new suppliers.”
On this year, he says: “Many KBB specialists fear a tough year in 2023, with one of the biggest challenges being driven by consumers tightening their purse strings because of the higher cost-of-living. However, it’s important for retailers to hold their nerve – the drop-off in business due to the Covid-19 pandemic wasn’t as bad as predicted and the same may be said for the costof-living crisis.”
He adds: “I remain optimistic for a positive year and expect retailers to receive good quality leads from those who have been holding back on their renovation project due to delays with builders.”
Simon Collyns, marketing and retail director at Symphony Group “ “
Kitchen
We are continuing to receive positive interest in Symphony and retailing kitchens from a number of Retra members
On the kitchen furniture side, Simon Collyns, marketing and retail director at Symphony Group, says the market performed well in the first half of 2022, however, it cooled off in the latter half of the year, which was, in part, caused by a diversion of spend away from home improvements and the increasingly uncertain economic outlook.
He says: “Throughout the past year, the main challenges have continued to be ensuring the continuity of supply and managing rising costs. 2023 will be a challenging and uncertain year. While the first half of will be tougher than the same period in 2022, we are cautiously optimistic that the second half will see signs of gradual improvement in trading conditions.”
Asked if he was worried about a recession, a possible collapse of the housing market and the effect it could have on the kitchen sector, Mr Collyns told Alert: “The housing market is forecast to see a reduction in completions in 2023. However, we will not see the market collapsing, as demand continues to grow, plus credit and mortgages remain available, albeit at a higher cost.
“The implication for the kitchen market will be a reduction in numbers and a downgrading of specifications, as housebuilders compete in a tightening market.”
Bill Miller, managing director of the Kitchen Bathroom Buying Group (KBBG), says: “Two of the biggest challenges that faced most kitchen retailers over the past 12 months were appliance stock shortages, and the scale of supplier price increases, which
Improving
Major supply problems have hampered the appliance market, but, thankfully, most brands we spoke to said that situation is now improving.
“Production constraints have been the biggest challenge in the past 12 months – and this is a very similar story across the market,” says Miele’s kitchen category manager, Tom Hopper.
“At Miele, we have mostly resolved these issues, but there are still certain product groups which will remain challenged through 2023. Our retail partners have been extremely patient and understanding and we have tried our best to maintain a good level of communication with them.”
Haier Europe’s Mr Grundy tells Alert: “In the first half of last year, supply of electrical components and the cost of shipping remained challenging, but these eased towards the end of the second half.”
He adds: “Cost pressures remain for manufacturers, with material costs and inflation an issue across Europe.”
Symphony Linear Finesse
Smeg Linea in black
Cooking
Beko’s most popular sector for built-in appliances is cooking –specifically ovens and hobs. “These appliances play a centric role in any kitchen, with consumers using these products multiple times per day,” explains Mr Bhardwaj. “A large proportion of consumers opt for built-in cooking appliances, rather than freestanding cookers, because it offers a more aesthetic design to their kitchen.”
He adds: “Built-in appliances are perfect for those looking to create a modern kitchen design. With an increasing number of houses and apartments opting for open-plan living, the popularity of built-in appliances has increased.
“The modern kitchen has a central hub for the home, with households coming together to eat and socialise in one area. Builtin appliances allow customers to make the most out of their kitchen space, whilst also ensuring their appliances blend seamlessly into the home.
“This year, we predict that consumers will look for appliances that combine a compact design with a contemporary look, including easy-to-use displays, and flush handles.”
Beko has expanded its built-in cooking range by recently introducing more steam and self-cleaning pyrolytic ovens. The company is also looking to invest in higher energy-rated dishwasher models, as well as large-capacity laundry appliances.
Mr Bhardwaj highlights how when consumers are designing their kitchens, they are opting for shelving, rather than wall cabinets – a trend that is embraced by both contemporary and classic kitchens.
“The popularity of island kitchens also remains strong, with the design providing the perfect place for households to socialise. Equally, the popularity of minimalistic, open-plan kitchens continues to grow, highlighting an increasing trend of calmness in the kitchen,” says Mr Bhardwaj.
He adds: “Consumers are now looking to bring the outdoors inside, opting for natural textures, wood flooring, and materials. However, colourful cabinetries, smart storage areas, marble surfaces, and contemporary handles will also be attractive to consumers in 2023.”
Many KBB specialists fear a tough year in 2023. However, it’s important for retailers to hold their nerve
managing director of the Kitchen Bathroom Buying Group (KBBG) “ “
Bill
Design
On appliance design trends, Smeg’s marketing director, John Davies, tells Alert: “Black and grey still seem to be very in, and Smeg is slowly introducing new black and Neptune grey Linea models, as well as matt black-finished Classic products, catering to this trend, while also linking to matching refrigeration and small appliances, as well as co-ordinating Smeg sinks and taps.”
Miele’s Mr Hopper says: “Timeless colourways such as Cleansteel and black cooking appliances make up the majority of what we sell and we predict these will continue to be popular choices in 2023 thanks to their versatility. We also have a range of colour options available in the Vitroline and Artline ranges, for those looking for other colourways for their kitchen design.”
This year will see Miele launch three new 2in1 hobs, as well as a range of entry Discovery ovens, which the trade saw at IFA 2022. “It’s hugely exciting to have great innovation launching and we can’t wait to share more information about these new products,” enthuses Mr Hopper.
Commenting on what’s on-trend in kitchen furniture styles, Symphony Group’s Mr Collyns says: “We see the continued trend of matt replacing gloss finishes, crossover between contemporary and classic styling and the continued trend towards bolder colours, such as indigo, dark green, black and burgundy.”
Mr Miller of the KBBG shares some of his thoughts on current design trends: “We are witnessing a move away from the overtly
contemporary kitchen design, which I believe is partly driven by the wish of consumers to make their house more of a home with the continuance of working from home. One retailer described this trend to me as ‘the kitchen that will give them a warm hug’.
He adds: “In addition, there is a desire, once more, for the return of the dining table, so that everyone can sit and eat together. So, does this mean that the kitchen island is redundant? Perhaps it is too early to consign it to history, but there are signs that its position as the kitchen design ‘must have’ is waning.”
The KBBG is also looking to help independent electrical retailers move into selling kitchen furniture, as Mr Miller explains: “Following several success stories of electrical retailers using our kitchen support package to enhance their business and begin selling fitted kitchens, we strive to grow our support for electrical retailers even further in 2023.
“Our aim is very simple; to ensure independent electrical retailers achieve their full business potential and have a sustainable future.”
He adds: “Most fitted kitchen furniture sales are completed in traditional bricks and mortar showrooms, and this means an independent electrical retailer’s showroom can become an ideal place for consumers to buy a kitchen. However, selling kitchens requires several specialised skills such as CAD design, project management and access to experienced kitchen installers. Through its kitchen support package, the KBBG has viable solutions to help electrical retailers with the transition from only selling appliances to successfully adding sales of kitchen furniture to their portfolio.”
Symphony Group, which joined Retra last year, is also working with Retra members to sell kitchens – Mr Collyns updates us on that: “We are continuing to receive positive interest in Symphony and retailing kitchens from a number of Retra members. We are able to offer members a broad selection of our kitchen bedroom and bathroom brands, support with design, supply and fitting of showrooms and, crucially, both initial and ongoing training both online, in-store and at Symphony, to ensure they gain confidence in selling and designing kitchens.”
Despite turbulent times for the economy and political instability, Steve Jones, managing director of Sirius Buying Group, is confident for what lies ahead.
“In my experience, people are more inclined to focus on what they can control – their home environment – so I would anticipate an even greater determination to spend on improving and remodelling key rooms such as the kitchen.”
He adds: “The wellness trend is set to continue into 2023, as more and more homeowners explore unique solutions to enhance their quality of life – in terms of having bespoke laundry and utility areas as well as hybrid kitchen living spaces, which can also include home office elements. Practical luxury and sustainable design are defintely high on the wishlist, as homeowners want to create lifestyle interiors for the long haul.”
Smart home
And finally, he says, don’t forget the benefits of smart tech. “Smart home living has become increasingly mainstream, with 88 percent of the UK population having a smartphone. Ninety six percent of those aged 16-24 have one, and so do 78 percent of people aged 55 and over, but bear in mind that plenty of people still don’t know the benefits of combining their appliances with their apps, so make sure that you can demonstrate them to their best effect in the showroom.”
Miller,
Haier induction hob – I-Move Series 6 cooking range
How to cook up a storm and increase profits
Big Red Sales founder, John Reddington, on how stocking high-end cookware could be a recipe for success.
Higher inflation, higher energy prices, rising interest rates, consumer spending power curbed, less eating out, more eating in…
That last point is where forward-thinking Retra members can increase their profits by stocking high-end cookware.
Believe me when I say that this is a market which is going places. It was initially driven by the pandemic, as consumers had to stay at home and cook as restaurants closed, however, it’s now steadily rising, as an increasing number of people entertain at home as eating out has become prohibitive.
The kitchen has always been perceived as the heart of the home. And it’s now where ‘new home’ cooks are fuelling the demand in cookware. Which is why Big Red Sales added two new cookware brands, Domo and BergHOFF, to its range recently.
It is often said that the way to our hearts is through our stomach. So, the kitchen must be the heart of the home. And isn’t it strange how if you give a party, everyone always ends up in the kitchen.
Hence the increasingly popular trend of opening up the kitchen to become part of the main living space too. So, that’s a very good reason for ensuring that the kitchen looks really nice. And trendy.
And what better way of infusing some colour and excitement into your customers’ kitchens – and making extra profit for your business – than by stocking some well-designed and colourful kitchenware.
BergHOFF’s Eurocast cookware range originates from Belgium and is now sold worldwide, while Domo’s colour ranges are backed by a two-year warranty.
But don’t just take my word for it. Peter Neal of Retra member, Stuart Westmoreland, in Melton Mowbray, Leicestershire, recently starting stocking Big Red’s two new cookware brands.
“As our SDA and cookware categories continue to grow in sales, we needed some new brands to help bring in new and exciting products for consumers,” he explains.
“Domo has an excellent and vast range of small kitchen appliances, from air fryers to waffle makers and so on. Each product is of a high quality and backed with a two-year warranty, while remaining competitive within the UK market.”
He adds: “Cookware brands where quality reflects the price are harder to come by, however BergHOFF fills these criteria with its superb offering of saucepan/kitchen sets in different colours. You can get a three-piece kit for under £100, backed up with a 10-year warranty. Both brands also offer great margin opportunities and are selling well.”
So, what are you waiting for?
For more information, contact Steve Cox: steve@bigredsales.co.uk.
BergHOFF colourful cookware
Domo pancake / crepe maker
Over
50 Years of Creating Harmony
Symphony has been building strong partnerships and delivering consistent service month after month, year after year for over 50 years. That’s why we are one of the most trusted suppliers in the KBB industry.
With our diverse portfolio of brands, outstanding service, and focus on sustainability, we look forwards to another 50 years of creating harmonious relationships with retailers across Britain.
New Year’s Resolution
Following the boom brought about by two years of the UK being intermittently confined to barracks, a post-Covid slump in TV sales was inevitable. But is it going to be as grim as a Scandi noir drama? Richard Stevenson investigates.
The TV market fared particularly well through lockdowns, setting itself up for a complete face plant when we all started going out again.
The reality wasn’t quite as bad as it could have been. 2022 TV sales slipped back to approximately pre-pandemic levels rather than, as was feared, dipping savagely to account for broughtforward purchases.
Market volume dropped from the pandemic-fuelled boom of just over seven million units in 2020 to a more realistic circa six million in 2021 and a modest 5.7m last year.
Given the manifold pressures on the CE sector from increasing fuel prices, double-digit UK inflation, supply chain shortages, global logistics issues and war in Europe, that wasn’t a bad result - in numbers at least.
Comments Nick Simon, client director, market intelligence, at GfK: “Up until May 2022 we did have the consolation that the monthly declines in market turnover were less acute, but every subsequent month saw a reverse effect.
“Volume declines became less painful while turnover dropped more dramatically. So, the volume breakeven that was achieved in September, October and November was not matched in value.”
Shift
The higher volume / lower value shift could have had its roots in several market forces, not least of which the cornucopia of sporting events driving sales up and frantic price cutting towards the end of the year pushing prices down.
Amazon’s second Prime Day was two weeks long for Prime members and ran straight into a four-week long ‘Black’ discounting event, urging event non-sporting fans to opt for a new budget screen.
“Yes, there was competitive pricing in Black November and all the way through December,” adds Mr Simon.
“While that happens every year it just got more extreme in 2022. Remember also there was a World Cup during the same period and that event has always been an excellent opportunity to sell TVs since 1966. That year and every four years thereafter, despite recessions on or around 1974, 1982 and 1990 in particular, TV sales jump up in anticipation of this prestigious football event.”
Boost
The timing of last year’s World Cup may well have added to the event’s normal sales boost too.
A winter-based tournament meant lots more people geared up to watch matches from the comfort and warmth of their own homes.
Had the tournament been in its usual summer slot, those buyers may well have opted for viewing games in pubs, beer gardens and other outdoor venues instead of buying a new TV and staying on the sofa.
In terms of screen sizes, the trend remains ‘bigger is better’ but average screen sizes were not growing at the pace they have in previous years. Perhaps due to UK consumers being tight on the purse strings in the face of high inflation and impending recession, or simply opting for the lowest cost bargains during the winter-long ‘sale’ events, super-sized screens were not the order of the day.
“There was plenty of enthusiasm at the lower end of price classes for 43in and 50in, and both 55in and 65in enjoyed a further modest uplift in popularity too,” says Mr Simon. “But 75in and larger seemed to suffer, as consumers headed for year-end bargains.”
Cutting edge
This year’s CES (see pages 36-37) continued to drive cutting-edge TV technologies like Mini-LED and pushed 8K resolution as if there was actual content available or even likely to be in the imminent future, so we ask Mr Simon if technology was driving sales or simply driving brand marketing.
“QLED enjoyed particular success in 2022, outselling OLED in volume,” he says.
“The latter still held its own in sales value thanks to premium pricing and widespread adoption. 8K still only has marginal appeal and its fate may be decided by the European Union, as there are moves afoot to ban 8K sales because of its perceived negative effect on the environment.
“UK manufacturers might have to follow suit because the parent companies might conclude that it’s not worth putting in excessive effort on the one lonely outpost that can theoretically do what it likes.”
“
The timing of last year’s World Cup may well have added to the event’s normal TV sales boost. A winter-based tournament meant lots more people geared up to watch matches from the comfort and warmth of their own homes
“
The EU is set to launch a suite of revised energy labels in March this year, along with much stricter rules on appliance energy consumption that could effectively eliminate 8K TVs before they have taken off.
The European Commission has put forward a proposition to include a new EEI (Energy Efficiency Index) scale on labels that introduces a ‘maximum’ energy consumption which cannot be exceeded.
Large, 8K screens with serious brightness output and HDR, along with technologies like Mini-LED, do not get even remotely close to the suggested energy limits, and plenty of current top-spec 4K models would fall foul of the legislation too.
Quite where that leaves TV technologies like 8K in Europe remains to be seen.
Post-Brexit, those rules do not affect what can or cannot be sold on UK shores but given the globalised nature of the TV manufacturing business, big manufacturers are unlikely to make high-tech screens for the UK market alone.
For further information please contact:
Retra Alert richard@rspr.co.uk 07974 926157 www.retra.co.uk
Impact
Meanwhile, Sky’s launch of its Glass TVs in the UK has also had an impact on the shape of the market.
Bundling a large screen, well-specified smart TV with a Sky subscription on interest-free credit was a genius move for the broadcaster but has clearly offset branded TV sales in the retail channel.
How big an impact that has on the non-DTC sector remains a mystery as Sky is not supplying Glass sales data to analysts.
Yet quite clearly it is somewhere between notable and significant.
From a consumer perspective, Glass and Sky Q are compelling propositions and likely to fuel the broadcaster’s market share growth of screen sales as we go forward.
Sky’s entirely virtual TV showroom proposition and drive to sell Glass to existing Sky content subscribers is another factor in the move to online rather than high street TV sales.
While the split sat at 30 percent online to 70 percent in real shops pre-Covid, the pandemic and lockdown threw those ratios out of the window as virtual sales accounted for more than 90 percent of the sector.
According to GfK, the ‘new normal’ that the market has settled back into is far nearer 50:50 and unlikely to return to anything less in favour of online going forward.
That is exactly the split we predicted in these very pages back at the start of the pandemic in 2020.
Peering into the TV market crystal ball for 2023 reveals a rather murky outlook.
Pressure in the UK on cost of living, the number of TV purchases pulled forward during Brexit, EU legislation and the dearth of major sporting events in 2023 are together painting a grim picture for the TV market this year.
“It seems unlikely that the market can register similar sales in 2023 to those seen even last year,” says GfK’s Mr Simon.
“We may well see a further decline, with something a lot nearer to but hopefully not below five million units for the year.”
Revolution
Yet there are some positives to see in the TV sector. The 4K revolution is becoming the norm with far fewer HD-ready models available, and the media buzz around tech like OLED, QLED and Mini-LED is creating a demand for best-in-class and relatively future-proof TVs.
One can also look at the relative value of a high-spec 4K TV, combining eye-watering technology and breath-taking performance, coming to UK retail for less than the price of a meal for four people in a nice restaurant.
“Is 2023 the time for 4K to finally assert itself as the dominant resolution and push HD Ready and Full HD even further down the pecking order?” ponders Mr Simon.
“Standalone LCD with no frills has slumped to lower than 40 percent of market turnover as OLED and QLED grow further, with increased competition from esoterica like Mini-LED.”
The UK’s thirst for TV screens can never be underestimated, and we remain a global leader in screens per household and the brevity of our replacement cycle.
So, maybe the outlook for 2023 TV sales doesn’t look that bad.
Should the UK’s women’s football team continue their dominance of the sport in the FIFA Women’s World Cup 2023, we may even see a football-based boost in TV sales that finally breaks the four-year cycle since 1966.
VR Las Vegas!
CES is very much back in full swing since the digital and virtual alternative events of the last few years, but is it the same show? Richard Stevenson reports.
The world’s biggest consumer electronics show was back ‘in real life’ for 2023 in its spiritual home of Las Vegas.
This year (January 5-8) saw a respectable 3,200 exhibitors showing off their wares and technology to 115,000 industry professionals. That is a long way shy of CES’s heyday numbers but did represent more than 70 percent more exhibition floor space than last year’s event.
As CES has evolved over the last few decades, its once razor-sharp focus on traditional audio and video CE sectors now encompass many technologies, often with more commercial than consumer applications. No surprise then that the organisers now officially call it ‘CES’ rather than the Consumer Electronics Show.
As if to underline that shift to broader tech areas, this year’s main themes were Human Security, Automotive & Mobility, Digital Health, Sustainability, Web3 and the Metaverse. Have you sold many Metaverses lately? No, thought not…
Concept car
BMW’s new concept car, the i Vision Dee, took the win as far as national press headlines about CES were concerned, with its userchangeable exterior colour and full-screen Heads-Up Display.
VW’s ID.7 concept car with its colour shift camo paint wasn’t far behind in media attention, and even Retra associate member Sony headlined its CES with a concept vehicle from Sony Honda Mobility Inc – the Afeela EV. The brand had announced prior to the show that there would be no new Sony TVs at CES.
While AV remains present at CES, it is now massively overshadowed by cars, wearables, health, imaging, drones and any technology that puts the word ‘virtual’ in front of a noun
“
While AV remains present at CES, it is now massively overshadowed by cars, wearables, health, imaging, drones and any technology that puts the word ‘virtual’ in front of a noun.
Samsung
Thankfully Samsung did not disappoint on the TV announcement front, updating its Neo QLED and OLED ranges and expanding its premium Micro LED to include more domestically-friendly screen sizes.
The range will now include 50in and 63in Micro LED models to go with the five existing screens up to 140in that have been part of Samsung’s The Wall. Prices for the smaller screen Micro LEDs are still likely to be stratospheric, but it does iterate Samsung’s intention to bring this lower-energy and more sustainable Micro LED tech to the consumer arena.
Slightly more affordable hero TVs came in the shape of the new Samsung Neo QLED 8K and 4K panels. Both will now offer improved brightness, advanced contrast mapping and Shape Adaptive Light technology to enhance the brightness and accuracy of shapes on screen. These models will also feature Object Tracking Sound Pro, which incorporates up-firing speakers to create overhead surround sound to leverage Dolby Atmos content.
Samsung also unveiled its proprietary Auto HDR Remastering technology, coming to market in the Neo QLEDS this year. While
predominantly of benefit to gaming applications, Auto HDR Remastering applies various AI-derived real-time enhancements to the picture and is said to improve both HDR and non-HDR content.
While rarely at the top of Samsung media shout-outs, the brand’s 2023 second-gen OLED line up now covers 55 to 77inch screen size models and leverages Samsung’s own Quantum Dot processing technology to build on OLED’s image strengths. Gamers get a win here too, with 144Hz refresh rate across the 2023 range.
Panasonic
Panasonic used CES 2023 to unveil a new flagship OLED TV, the MZ2000. This new panel uses Micro Lens Array that better focuses the light from the individual OLEDs, delivering what Panasonic suggests is its best and brightest picture yet, with improved viewing angles and the brand’s cinema-quality colour Filmmaker Mode.
Sound has not taken a cheap seat either. The MZ2000 has built-in Dolby Atmos and upward-firing, side-firing and front-firing speakers designed and tuned by Technics. The front speakers make a welcome return to the front of the TV, with a full-width driver array behind a grille below the screen. Technic’s bass-boosting algorithm has been upgraded for the MZ2000, adding low-frequency scale to match the front-firing driver array.
Prototype
While Sony did make the shock announcement not to unveil any TVs at CES, one display product from the brand did catch our eye. The company unveiled a prototype 27in Spatial Reality Display that shows real 3D spatial images.
The technology is aimed at technical and medical imaging and enhancing other VR and AR technology but there was a consumer twist too. Multi-view video created by Hawk-Eye live sports data and virtual characters can be recreated in 3D on the display. While watching a 3D cricket ball trajectory from your sofa is still a way off, Sony’s Spatial Reality display could be one step closer to glassesfree 3D TV for the home.
CES 2024 returns to the Las Vegas convention centre January 9 – 12 2024. Alert will report as usual, most likely from the comfort of a UK sofa.
Samsung launched Micro LED and OLED TVs
Staying on top of challenges
Retra Risk Assist, which is available to members via our appointed insurance broker, Gallagher, offers guidance and tools to help mitigate risks to business and staff.
At Retra we pride ourselves on keeping up with the ever-changing challenges that our members face. As such, we are committed to providing you with the resources to stay on top of such challenges. Retra Risk Assist is one of those member benefits that does just that. Our online risk management platform - available to all members - offers a comprehensive set of tools and a vast library of straight to the point guidance to help mitigate risks to your business and staff, around the clock.
Every
tools, or know how to deal with them “ “
business face risks, but many do not have the
Every business face risks, but many do not have the tools, or know how to deal with them. So, we have created Retra Risk Assist to help our members manage and respond to a wide range of risks in the following areas:
Health & Safety
• Stay compliant and up to date with evolving rules and regulations
• Regular emails with relevant news and legislation updates throughout the year.
• Our workplace safety and wellbeing training provides you with a cost-effective way to carry out required staff safety training and help reduce the risk of accidents and litigation.
Human Resources
• Our Virtual HR department offers round the clock access to a range of online resources, including a wide range of downloadable templates such as policies, contracts and letters to employees.
• Extensive content libraries will ensure that you are up to date with the ever-changing requirements of employment legislation.
• Ask the Expert service – this gives you a direct channel to highly qualified HR advisors for those particularly complex and unique situations where a second opinion is needed.
Business Continuity
• Given the events of the last few years, protecting your business from unforeseen shutdown has likely become a much higher priority than ever before.
• Our step-by-step guidance, written in jargon-free language, will walk you through the process of creating a comprehensive business continuity plan.
Retra Risk Assist is free to members who hold a current Gallagher Electracare insurance policy for their business. For other members, it is available for purchase via the team at Gallagher for an annual fee of £125 + VAT.
Gavin Driver, manager of Retra Electracare at Gallagher, says: “In the event that something does go wrong, being able to show the Health and Safety Executive how you manage risk is paramount.
“Retra Risk Assist is a simple one-stop-shop for electrical goods retailers to understand and manage Health & Safety effectively, in addition to providing a safer workplace for employees, family and visitors.”
There is a wealth of advice and documents available to help you manage areas such as Occupational Road Risk (ORR), External Area Hazards, Fire Emergency Evacuation, Manual Handling, Working at Height and Pedestrian and Vehicle Movement.
The Business Continuity Area encompasses the management processes that identify potential threats that could impact on a business’s ability to provide its customers with products or services, and the actions needed to ensure the immediate future following any major disruption.
There’s a dynamic e-learning portal designed to coach staff upon the key areas of risk assessment, and an ‘Ask the Expert’ service is also available.
We are delighted to work alongside Retra to bring you Retra Risk Assist as a cost-effective and practical tool to raise awareness of safety risks as well as supporting Retra members with their physical and mental health.
For further information on the key benefits of Retra Assist, contact our Gallagher team, based in Poole, on 01202 647400.
● Established in 1992, the Gallagher Electracare product has been extended and improved over the years to keep up to date with the changing demands of the fast-moving consumer electronics industry. By providing a bespoke solution specifically tailored for those in the electrical retail sector, Retra members can enjoy enhanced protection for their business.
