Retra Alert (2023 Winter)

Page 1


A Sustainable Industry

INSIDE THIS ISSUE:

● We report from this year’s Retra Conference

● Editor’s Interview: BSH UK CEO, Gunjan Srivastava

● Product Features: Cooking and Christmas Gifting

● What’s Hot: Headphones and Accessories

Leading and shaping producer responsibility

We’re proud to be the UK’s leading household WEEE compliance scheme, delivering excellence in compliance today, while playing a key part in shaping the circular economy of tomorrow.

REPIC is committed to delivering peace of mind to our members through the provision of high-quality, cost-effective services. We go beyond compliance to build long-term partnerships with local authorities, service providers, retailers, the third sector and many other businesses that are seeking to contribute to the success of the UK’s producer responsibility regimes.

We need to deliver great value and exceptional service – that’s how we will survive and prosper’

For further information please contact:

Howard Saycell Chief Executive Retra howard.saycell@retra.co.uk 01234 269110 www.retra.co.uk

This year has been a challenging one, and, sadly, 2024 isn’t going to be a whole lot easier, says Retra CEO, Howard Saycell, but, on a more positive note, he has had some great feedback on the recent Retra Conference.

Welcome to the winter edition of Alert magazine.

As we move into our traditional busy period, with Christmas not far away, I hope you will enjoy this issue.

There is no doubt that trade remains challenging for many. We have persistent inflation which is well above the Government’s target of two percent.

This will remain a key focus for the Bank of England and will more than likely result in interest rates remaining high for the foreseeable future.

With the geopolitical uncertainty in Europe and the Middle East, we are going to see continued volatility in the cost of energy.

All of this and, of course, the prospect of a general election looming is not good for consumer confidence.

Most of our markets remain challenging, apart from SDA which is performing very well. All these issues were discussed in some depth at our recent conference in Coventry.

There is a full conference report in this edition, but I do want to touch on the event, especially for those members that were unable to attend.

The conference was titled ‘A Sustainable Industry’ and looked at the sustainability question across a broad spectrum.

There were speakers on AI, electric vehicles, waste recycling, the future of the high street and much more.

I was delighted with both the turnout and the feedback on the day. We’ve had some very complimentary messages and I think we managed to deliver an interesting and thought-provoking conference.

Directly

In my opening comments on the day, I once again addressed the issue of brands selling directly to the consumer.

It ’s nothing new, but I do believe strongly that we need to keep raising this issue.

We know that for many UK subsidiaries this direction is something that is imposed upon them by head offices from around the globe.

The question is what does the UK management do about it? They can make the decision locally to ensure that at the very least there is a level playing field.

Just simply using their websites to discount products for short periods of time is not good for their brand or their loyal retailers.

We’ve seen some brands offer 24 or 48 hour ‘flash’ sales over a weekend, or numerous offers of free delivery and installation, purely to drum up some business towards the end of the month.

It ’s short-termism at its worst in my opinion. I won’t go on and on about this but would ask all the manufacturers to think carefully before using this kind of tactic. You know who you are.

Fascinating

One of the most fascinating presentations at the conference was from Tim Gordon of Best Practice AI.

He looked at the potential benefits to us, all along with some cautionary notes.

There is genuine concern from some that AI will take away people’s jobs. Bear in mind that retail has already lost 100,000 jobs since 2020. I was reassured that if used well, AI will benefit retail and the economy.

On a less positive note, recent figures state that there are around 850 incidents of violence and abuse against shop workers every day. We don’t hear much of this in Retra, but there was an incident recently where a knife was drawn in one of our member’s shops.

We continue to campaign along with the BRC – and progress is being made – for the police to take this matter more seriously.

Risk Assist

Launched at the conference was the rollout to all members of Retra Risk Assist.

This is an online platform for everything you may need in your toolkit as a small independent retailer.

It gives you advice, templates, staff training across a wide range of business matters. I would urge you to start using it and reap the benefits of this excellent system. The best bit of all is that it is free to all members.

There can be no doubt that 2023 has been challenging for many. Sadly, I can’t see that 2024 is going to be a whole lot easier.

We’ve had some very complimentary messages and I think we managed to deliver an interesting and thoughtprovoking conference

Optimism

At some stage we will have a new Government, which may give some renewed optimism, although many of the problems we are beset with are out of control of the UK Government, regardless of which party is in power.

As far as our industry and our members are concerned, we need to continue to deliver great value and exceptional service to the consumer. That’s how we will continue to survive and prosper.

I want to take this opportunity to wish you, your families, and staff a very happy Christmas and a safe and prosperous New Year.

The Retra Helpline (01234 269110) will be open throughout the festive period, with the exception of bank holidays.

CONTENTS

03: From the chief executive

NEWS

06: News

12: Associate News

15: Euronics News

16: Sirius News BUSINESS

17: Business Matters

18: Showroom Focus: We visit TVD Group’s new ‘tech hub of the north’ in Bolton

THE ROAD TO NET ZERO

22: This year’s AMDEA 2050 Appliances of the Future Conference set the agenda for achieving zet-nero goals in the appliance sector – we report from the event

RETRA CONFERENCE REPORT

26: We report on some of the highlights from this year’s sustainability-themed event in Coventry

EDITOR’S INTERVIEW

30: BSH UK CEO, Gunjan Srivastava, on some of the big issues of the day, including selling direct-to-consumer and the importance of sustainability

PRODUCT FEATURES

33: Cooking

36: Christmas Gifting

DIGITAL MARKETING

39: How can you add some sparkle to peak season sales?

WHAT’S HOT

40: Richard Stevenson listens in to the headphone market

ASSOCIATE INSIGHTS

42: REPIC

43: Neff

Editor’s InterviewBSH UK CEO, Gunjan Srivastava Cooking

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 Conference highlights the importance of sustainability for the future of electrical retail

This year’s Retra Conference (October 17, Double Tree by Hilton hotel, Coventry), was themed around ‘A Sustainable Industry.’

In his opening speech, Retra CEO, Howard Saycell, stressed the importance of sustainability for the future of the planet but also for the electrical retailing industry.

He cited a study carried out by research company Nielsen, which found that 81 percent of global respondents feel strongly that companies should help improve the environment.

“Sustainability is good for the Earth and it’s actually really great for your business,” said Mr Saycell. “It’s basically a win-win.”

He told delegates that as a nation the UK is doing ‘quite well’ on its journey towards net zero, but he said that the Government’s target of achieving it by 2050 was ‘ambitious’, adding: “It’s a challenge because you’ve got to look at the whole supply chain,” but, he added, it was a ‘bold effort.’

On sustainability in retail, Mr Saycell said Retra was supporting the British Retail Consortium’s (BRC) Climate Action Roadmap initiative, which it had promoted to Retra members.

Looking at the future of the high street and the independent retail sector, Mr Saycell said: “The high street is in decline, but quality, omnichannel retail with a focus based on the community is actually doing really rather well.”

He said one of the challenges facing independents is manufacturers selling direct to consumers and urged brands to be responsible when doing so: “Protect your traditional retail market and think about the people who have helped you build that brand for decades and think about how you can help retain the livelihoods of them and their staff.”

Speaking at the conference, AMDEA CEO, Paul Hide, outlined the sustainability challenge faced by the home appliance sector and electrical retailers.

He said: “We need to work together to achieve a net zero future.”

Educating consumers on purchasing and using energy-efficient appliances is key, said Mr Hide, highlighting AMDEA’s Know Watt’s What campaign.

He also talked about the importance of recycling electrical appliances, as did guest speaker, Scott Butler, executive director of Material Focus, which runs the award-winning Recycle Your Electricals initiative.

REPIC’s member account manager, Laura Crehan, updated delegates on recycling activity and targets as part of the WEEE Directive, as well as producer responsibility and the need for

sustainable product design in a circular economy, while Steve Fowler, editor-in-chief of Auto Express magazine, spoke about the move to electric vehicles and whether the UK infrastructure was strong enough to support them.

Business journalist and broadcaster, Declan Curry, who hosted the conference, gave his views on the economy, and said that sustainability was both a big opportunity and a challenge, that would require ‘the rewiring of Great Britain’, and ‘mammoth investment by companies and the Government.’

Delegates were given a thought-provoking and fascinating insight into the concept of AI (Artificial Intelligence) by Tim Gordon, partner at Best Practice AI, who highlighted both the opportunities and threats that the technology could bring, while Andrew Goodacre, the CEO of BIRA (British Independent Retailers Association) looked at the future of the high street.

Mr Goodacre said that if you are a retailer in a non-essential market, it’s tough, adding: “The place not to be is in the middle.”

He called for retailers to not lose their identity, citing the recent failure of hardware chain Wilko as an example of a retailer that didn’t know where and what it wanted to be.

Analyst GfK’s client director, market intelligence, Nick Simon, was on hand with the latest industry sales trends and data.

He explained how the SDA (Small Domestic Appliances) market is continuing to do well and said the MDA (Major Domestic Appliances) market had slowed down last year but has since picked up and is relatively healthy.

The performance of the consumer electronics sector has been disappointing, said Mr Simon, but he singled out turntables as a star performer.

The final conference session of the day was an industry panel with retailers Matt Renaut, managing director of Dacombes of Wimborne, Matthew Todd, partner at Herbert Todd, and Luke Gammon, director of Wades, as well as Sean Hannam, editor of Retra’s Alert magazine.

A wide variety of subjects were discussed, including sustainability, training, direct selling and the use of social media.

Also at the conference, Retra members were told about some of the latest initiatives introduced by the trade association.

Paul Laville, managing director of T21 Group, talked about Retra’s new online e-learning platform, and Rosalind Klass, managing director of Health & Safety Click, promoted the benefits of Retra Risk Assist, which can provide members with information and support for areas including health and safety, employment legislation and wellbeing.

For more on the Retra Conference, see pages 24-28.

Retra CEO, Howard Saycell
Conference host, Declan Curry

More consumers expect brands to be doing their bit for the planet

Sustainability and energy efficiency are now higher up on consumers’ shopping lists when they’re looking for domestic appliances but less so in consumer electronics, says Nick Simon, client director, market intelligence GfK, speaking at this year’s Retra Conference.

Shoppers expect brands and companies to be environmentally responsible – according to research by analyst GfK, 71 percent of global consumers said it was very important that businesses were doing their bit for the planet.

When asked which sectors they thought could make the biggest difference to limiting damage to the environment – retailers or consumers – 21 percent of shoppers said it was consumers, while 30 percent said it was retailers.

Speaking at the Retra Conference, Nick Simon, client director, market intelligence, GfK, highlighted some of the current consumer buying trends in electricals.

“Generally speaking, SDA has done well – since 2020 there has been gradual growth, which is reassuring. There may have been fewer units sold but the overall value of the market has been going up.”

On the MDA sector, Mr Simon said: “It hasn’t done that badly – it’s on a breakeven level.”

He added: “In MDA, energy efficiency is

very important in a consumer’s buying decision – less so in consumer electronics.”

Mr Simon said that latterly the performance of the CE market has been disappointing.

“Just about every product we measure in CE is suffering quite a significant shortfall – things like DVD and home audio systems.

Smart audio is also fast-declining – a lot of those products were bought before the pandemic, or even before it.

“When smart audio products, like Amazon Echo and Google Home, came out there were so many of them bought – people were buying three, four or five per household. That has not been sustainable – everybody’s got one now and there’s no need to buy more – and there’s no built-in obsolescence in them, so they appear to be working. There are no real innovations coming into smart audio to make it worthwhile.”

Mr Simon said the TV market was down, but he singled out turntables as a star performer, with the sector increasing in value, which he said was reassuring.

‘It is still too difficult for people to recycle their electricals’

Scott Butler, executive director of Material Focus, on how retailers can help consumers to recycle their electrical waste.

Electricals are the fastest-growing waste stream in the world, according to Material Focus.

The independent, not-for-profit organisation is on a mission to stop electricals being thrown away, and ensure they’re reused and recycled instead.

Speaking to delegates at this year’s Retra Conference, Scott Butler, executive director of Material Focus, said: “‘It is still too difficult for people to recycle their electricals – and that’s where you guys come in.”

He added: “We’ve produced an industry briefing on retailer take-back, in partnership with OPSS (Office for Product Safety and Standards). That can help you – the retail community – understand what your obligations are and to help communicate them to the public.”

Said Mr Butler: “We’ve funded over 60 projects which will make it easier for 10 million

people in the UK to recycle and reuse their electricals, we’re expanding recycling drop-off points and we’re testing new ways of collecting electricals.”

Material Focus is behind the awardwinning Recycle Your Electricals campaign: www.recycleyourelectricals.org.uk

“We have 6,000 locations [where you can recycle electricals] on our postcode locator and we’re getting one million new users to our site,” said Mr Butler.

He pointed out that large retailers, like Argos and Currys, were included on the site, but that very few independent electrical retailers had their information included on it.

“That’s a big, missed opportunity – we want you to be on there,” said Mr Butler. “We just want to stop electricals being wasted.”

For more information, visit www.materialfocus.org.uk.

Welcome to the winter issue of Alert –our final edition of the year.

I’ve heard reports that the last few months have been quiet for many retailers – the market is tough – but it’s been a busy time for yours truly, as is reflected in this copy of the magazine.

We’ve had the Retra Conference –this year’s sustainability-themed event was one of the best I’ve attended, with lots of great and thoughtprovoking content on some very relevant topics, including electric vehicles, energy efficiency, recycling, the future of the high street and the impact of AI (Artificial Intelligence) on the retail sector.

With that in mind, I haven’t used ChatGPT to write this editor’s comment or the report on the conference, which you can read on pages 24-28.

If you took time out of your business to attend the event, I hope you found it useful – we’ve had some great feedback from people who attended.

So, what else have I been up to?

Well, I headed up north to Bolton to see the TVD Group’s impressive new Experience Centre, which features state-of-the art tech and includes TV displays by British brand Mitchell & Brown – read the report on pages 18-20 – and I also found time to pop to BSH UK’s headquarters for an exclusive interview with the company’s CEO, Gunjan Srivastava (pages 30-32).

It’s his first time talking to Alert– I’d been wanting to chat to him for ages and he finally agreed to speak with me.

I’d like to thank him for his time and for covering some hot topics, including direct-to-consumer, sustainability and the brand’s relationship with its retailers.

Sustainability was also the theme of AMDEA’s 2050 Appliances of the Future Conference, which I attended – you can read my report on pages 22-23.

Also in this issue, we look at how to add some sparkle to your Christmas sales and marketing (page 39).

And, on that note, I’d like to wish you all a prosperous peak season and a merry Christmas. All the best for 2024 –see you on the other side.

Scott Butler
Nick Simon

DECEMBER

5 The TRIC Christmas Lunch

The Londoner www.tric.org.uk

2024

JANUARY

9-12 CES

Las Vegas Convention Centre www.ces.tech

FEBRUARY

23-25 The Bristol Hi-Fi Show Marriott, Bristol City Centre www.bristolshow.co.uk

MARCH

3-6 Kbb NEC, Birmingham www.kbb.co.uk

4 kbbreview Retail & Design Awards 2024 Hilton Birmingham Metropole www.kbbawards.co.uk

17 – April 7 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

24-25 Retail Technology Show Olympia, London www.retailtechnologyshow.com

MAY

23-23 Internet Retailing Expo and E-Delivery Expo 2024 NEC, Birmingham www.internetretailingexpo.com

JUNE

11-12 The Exclusively Show

The Business Design Centre, Islington, London www.exclusivelyshows.co.uk

22–23 The North West Audio Show De Vere Cranage Hall Estate, Holmes Chapel, Cheshire www.audioshow.co.uk

SEPTEMBER

6-10 IFA Messe Berlin www.b2c.ifa-berlin.de

Gerald Giles celebrates its 75th birthday in style

Award-winning Retra member, Gerald Giles, recently celebrated its 75th birthday.

On October 21, customers were invited to take part in an open day at the Norwich-based retailer, which featured demonstrations of state-ofthe-art technology and gastronomic displays from a local chef.

There was also a prize draw and special offers on a range of products.

Gerald Giles, which sells brands including Miele, Bosch, Neff, Siemens, Panasonic, Samsung and Sony, underwent a refit this summer.

The new showroom now offers a contemporary and streamlined design, including fitted kitchens by German manufacturer Nobilia

The business was founded in Rose Lane by Gerald Giles in 1948, selling fluorescent lighting, before expanding into valve radios and TVs, offering both sales and repairs.

In 1967, it became one of the first retailers in Norfolk to sell dishwashers and opened Norfolk’s first Sony Centre in 1987.

The operation moved to Ber Street in Norwich, where it is still located – opposite John Lewis – in 2007.

Four years later, in 2011, Gerald Giles merged with fellow local independent, Snellings in Blofield Heath.

Speaking to Alert about the open day and its 75th anniversary, managing director, Paul Giles, said: “It was great for us to see so many loyal and regular customers at the event. Some have shopped with us for over 50 years and many bought personally from my father.

“My mother is now 96 and was able to reminisce with customers over how the business has evolved over 75 years. We also had some vintage electronics on display from our Snellings museum, showing how far the industry has come during the period.”

He added: “We have many longstanding relationships with great brands like Sony, Miele, Panasonic and BSH, whose support with offers for the event was really appreciated.

“We had really strong interest from customers, which boosted sales in what is traditionally the slow pre-Black Friday period.

“Marketing the event has raised our profile in the local community at a key time, placing us front of mind for shopping over Black Friday and Christmas.”

AMDEA’s Know Watt’s What promotes better appliance usage

Retailers could help to educate householders on making simple changes to their use of home appliances to save money and benefit the environment.

That’s the advice from AMDEA (Association of Manufacturers of Domestic Appliances) as part of the latest phase of its Know Watt’s Watt campaign and comes as cold weather and dark nights are setting in, alongside continuing high fuel bills and the cost-of-living crisis.

As much as £80 can be saved each year by always washing clothes and dishes on the eco cycle, and £60 can be saved by cooking food in the microwave rather than the oven, said AMDEA.

Taken together, this conserves almost enough electricity to power a washing machine on eco mode for two whole years. Other small maintenance tasks, such as descaling the kettle, can help maintain efficiency and extend appliance lifespan.

AMDEA CEO, Paul Hide, said: “Many people don’t really treat their appliances as they might. Once fitted, the appliances are often forgotten about, regarded as

self-supporting. But they are machines that benefit from small acts of care. So, by thinking about how appliances are used and giving them a little attention, households can save themselves money by using less energy and extending the lifespan of valuable assets.”

AMDEA’s Know Watt’s What campaign explains why using certain appliances in a particular way – with the eco button – and why particular appliances - such as heat pump tumble dryers – are more energy efficient. It advocates four routes to save money, which responsible retailers could help educate customers about as they buy:

• Use to save – use installed tech, such as eco mode on washing appliances or smaller cooking appliances, such as microwaves, to cook smaller quantities

• Maintain to save – look after machines to prolong efficient performance and lifespan.

• Repair to save – consider repairs before replacement.

• Replace to save – replace wisely by buying appliances that are the highest affordable on the rating scale and consider replacing fridges and freezers over 15 years old.

Managing director, Paul Giles

We’ve always had a special relationship with independent retailers’

In an exclusive interview, Whirlpool UK and Ireland’s new managing director, James Goldsmith, who was appointed this summer, looks at the opportunities for the business, gives us his views on the appliance market and highlights how the company is supporting independent retailers.

Alert: Congratulations on the new role. What are the challenges and opportunities ahead?

James Goldsmith: I’m relishing the opportunity to grow the business. Our connection to consumers is central to this, with strong brands, innovative new products, great people and, of course, our own consumer service and home delivery infrastructure. The combination of these present great opportunities for us to continue our recent growth.

Alert: What’s the latest on the Whirlpool/ Arçelik merger?

JG: At this stage there’s not a lot to add to what’s already out there. The regulatory authorities are undertaking their reviews across the relevant markets, so until that’s concluded the companies remain as separate entities and competitors. When there’s some news, we’ll be sure to update you.

“ “
Consumers want a direct relationship – not only with their preferred retailers but the brands too

Alert:: What’s your take on the home appliance market in the UK? Is it tough out there?

JG: It’s no secret that it’s a challenging market. The continuation of the cost of living crisis, with high inflation and higher energy bills, has undoubtedly led consumers to carefully consider their purchases and take longer, but this is where clear messaging, not just about buying new products but getting the most out of your current ones, is important.

Helping consumers to reduce their energy bills by choosing, using, and maintaining their appliances’ most efficient features is very important, which is why we’re a big supporter of and helped develop the AMDEA Know Watt’s What campaign, which does just that.

The collective industry – manufacturers and retailers – has a huge role to play in both educating consumers on how to get the best of their existing appliances as well as helping them to make the right decisions when it comes to replacing.

Alert: Are you confident for the rest of 2023?

JG: It continues to be tough but I’m confident in the industry and, of course, the opportunities for Whirlpool’s continued growth. We have strong brands, exciting product innovations and outstanding consumer care.

Our Trustpilot ratings for customer service are the best in the industry, with Hotpoint at 4.7★ and Indesit at 4.7★. Bringing innovative new products that consumers really want to market during 2023 will help our retail partners to grow with us.

Alert: How important is sustainability to Whirlpool?

JG: Sustainability has 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.

Our vision is the constant pursuit of improving life at home. Fulfilling this 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.

Alert: Are independent retailers important to Whirlpool?

JG: We’ve always had a special relationship with independent retailers. They have always been and will continue to be very important, which is why we still have a large team on the road visiting independent retailers on a regular basis. It’s a team that we’re very proud of and working together in partnership to benefit consumers is crucial for our long-term success.

Alert: Can you update us on your activity with independents?

JG: We have and will continue to support independent retailers with a variety of point of sale which brings to life our key technologies and brand missions, particularly for our Hotpoint and Indesit brands.

We aim to help retailers create a journey through their stores, from category signs that highlight our reliability scores, to product content that features our third-party endorsements, giving customers strong reasons to continue to believe in and trust our brands.

Alert: Many brands, including Whirlpool, are selling direct-toconsumer. What’s the thinking behind that when you have a strong and loyal dealer network?

JG: 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-toconsumer 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.

James Goldsmith

Chris Reddington, wife of Big Red Sales founder, dies

The electrical industry has lost one of its most loved and respected ladies.

Chris Reddington, wife of Big Red Sales founder, John Reddington, has died, aged 70. She had fought nearly a four-year battle with cancer.

Although well known as John’s wife, she also forged her own very successful career in the consumer electronics industry –starting in 1982, when she opened her own retail store.

Once the couple’s two children, Brian and Sarah, were at school, Chris saw a gap in the market in her local area for hi-fi products and opened an electrical shop in Basingstoke, Hampshire, with a friend and neighbour. The store did extremely well and was sold after eight years.

Chris’s next job was with Thorn (Rumbelows/Radio Rentals) in Theale, Berkshire, as an assistant buyer. Quickly recognising her talent, her bosses soon promoted her to buyer and then senior buyer, and she was with the company for more than 10 years.

When Thorn closed, Chris worked with John at Alphason for over 10 years and managed some of the major accounts, including John Lewis and Euronics.

When John started Big Red Sales in 2010, to provide an independent sales force for the industry, Chris undertook the role of managing the accounts office.

She was diagnosed with late stages of colon cancer in April 2020. Due to Covid restrictions, Chris, like many people, was worried about visiting the hospital for scans. However, her local doctor, realising there might be a problem, insisted she be admitted for exploratory scans.

As a result of this quick diagnosis, Chris was whisked into hospital to remove a growth, following which she underwent a series of successful chemo treatments.

Three years of treatment followed, where she went from strength to strength, continuing to work, and enjoy many lovely cruise holidays with John and the family. The pair had recently returned from a cruise around Italy and Croatia with the entire family, including their three grandchildren.

During Chris’s illness, John has worked very closely with the NHS to raise money to improve staff conditions at the local hospital where Chris undertook most of her treatment. To date he has raised more than £28,000.

If you would like to contribute to this fund and help John reach his target figure of £85,000, please contact him by email at: JohnBReddington@vqmail.co.uk

Peter Gilks retires from Sirius Buying Group

Peter Gilks, the co-founder and director of the Sirius Buying Group, has announced his retirement.

Playing a key role in the co-creation of Sirius over the last 22 years, he took on the role of director in 2005, and carved a niche for himself, furthering business operations within the group.

Mr Gilks established award-winning, Bristol-based retailer, NE Appliances (formerly Nailsea Electrical), in 1983. The company has since evolved into a second-generation familyowned business, which is now managed by his son, Ben.

Steve Jones, managing director at Sirius Buying Group, said: “We are all hugely inspired by Peter’s passion for the industry and his determination to keep it moving forwards with confidence and a clear vision to ensure the retailer remains independent in the marketplace.

“His determination to keep pushing the boundaries of what our members can achieve has empowered hundreds of brands and businesses up and down the country to ultimately ‘stay in business’ and like us, are grateful for the time and expertise he has provided over the years.”

Mr Gilks said: “I feel it is time to stand aside and let the next generation of trailblazers take the lead, to continue to ensure the independent electrical retailer remains a fundamental asset to the UK homeowner and property developer.

“It has been a huge privilege to help create such a supportive, loyal, and open-minded environment where Sirius members and suppliers can grow their businesses together, remain agile and respond to the changing needs of the marketplace.”

Mr Gilks will be succeeded by Phil Cox, who is managing director of Empire Kitchens & Appliances, Cannock, Staffordshire, and has 35 years’ experience working in the electrical appliance industry.

Mr Cox commented: “To see the creation and growth of Sirius under Peter’s guidance over the years has been truly amazing. In his retirement he is taking with him a wealth of experience and knowledge, and I am grateful and thrilled to be able to step in and support the incredible team that we now have.

“Working on behalf of our members, I will be assisting the team to both fill the gap left by Peter and help develop the group further with some of the exciting plans we have for the future.”

Chris Reddington
Peter Gilks

TRIC is back – bigger and better than ever!’

TRIC chair, Daniel Todaro, reflects on the challenges of making the charity more relevant for today’s industry, and looks ahead to this year’s Christmas Lunch on December 5 in London.

It’s been an emotional two years as TRIC (Television and Radio Industries Club) chair and as I complete the final three months of the role, I’ve got to admit, turning this oil tanker of an organisation steered by the old guard has been a welcome challenge.

Expanding the work of previous chairs, Richard LindsayDavies and Jane Ostler, the rebranding of TRIC as a progressive, all-inclusive and representative organisations was my goal and, despite bruising a few egos, we did it.

TRIC is back – bigger and better than ever, as a conversation piece and not that of a bygone era.

Its ability to engage as a marketing tool is demonstrated by the 5.8 million social media engagements and our photography of the stars stood in-front of TRIC’s famous press boards are continuously used across many media titles, accompanying breaking news stories and celebrity pages.

Today, TRIC can stand proud, with its logo emblazoned across multiple programmes such as Good Morning Britain, as well as channels like Talk TV.

Cristiano Ronaldo even gave TRIC the seal of approval personally for his TRIC-award winning Piers Morgan interview.

With over 16 million votes cast in 2023, the 54th TRIC Awards were the biggest ever, and our pink carpet captivated celebrities and guests alike.

In fact, a record breaking 1,200 guests showed up – it was our largest attended TRIC yet and was supported by our fabulous headline sponsor Euronics, as well as innovative red carpet sponsor, Hisense.

Raising money on behalf of everyone who works within the broadcast media industry, from every broadcaster to programme

maker, as well as the manufacturers who support TV, streaming and radio, is the TRIC goal.

In my time as TRIC chair, we’ve raised over tens of thousands of pounds for good causes – the largest amount ever raised in TRIC history.

TRIC is there for those who work in and support broadcast media and must be headed up by someone who continues to be active within our glorious industry for it to remain relevant.

The 55th TRIC Awards are around the corner (Tuesday June 25, 2024) and my desire is that TRIC remains relevant through strong, active leadership that reflects the industry today, not that of 30 years ago.

Strong

I leave knowing TRIC is in a good place, with a strong management team lead by Alexia Sciplino, who has a clear goal and plenty of determination.

Join us at The Londoner Hotel on December 5 as a guest or sponsor for what will be my last TRIC event and celebrate together over a lavish Christmas lunch.

You’ll have the chance to rub shoulders with the stars and be entertained by singer, Louise Redknapp, who will help us celebrate 50 years of commercial radio.

Enhance your marketing messages through sponsorship or buy a table and be there to support the amazing work TRIC does to raise money for good causes on your behalf.

TRIC belongs to everyone in broadcast media, including the

The rebranding of TRIC as a progressive, all-inclusive and representative organisation was my goal and, despite bruising a few egos, we did it

Daniel Todaro, TRIC chair

retailers who enable us to watch, listen and engage.

Without you, it could never happen. Be a part of it – the Television and Radio Industries Club is your club too.

Talk to Alexia@tric.org.uk to create your sponsorship package or book your seat.

This year’s TRIC Christmas Lunch takes place on Tuesday December 5, at The Londoner, in central London – 12pm to 4pm.

For more information, visit www.tric.org.uk

Winter Wellness

The Retail Trust has some top tips to stop you feeling overwhelmed this Christmas.

This time of year can bring joy, but also its fair share of stress –especially for those of us who work in electrical retail.

When you combine money worries because of the cost-of-living crisis, the increase in aggression from customers, and high levels of exhaustion, as well as the usual Christmas chaos, you could easily find yourself overwhelmed.

To help you get through the festive season with your sense of fun intact, we’ve pulled together these simple tips to help reduce stress and keep you on an even keel.

If we take care of ourselves as well as other people this holiday season, hopefully we can all enjoy a calm Christmas, and a relaxed new year…

When you combine money worries because of the cost-of-living crisis, the increase in aggression from customers, and high levels of exhaustion, as well as the usual Christmas chaos, you could easily find yourself overwhelmed “ “

1

Remember, no Christmas is ever ‘perfect’

When you make your Christmas plans, try not to put pressure on yourself to get every detail right. This season is all about spending time with your loved ones, and no-one will care if you haven’t had time to make a Christmas cake, or didn’t buy them exactly the right gift.

2

Try not to worry about things you can’t control

When faced with stresses you can’t do anything about, try to move your focus elsewhere.

You can’t take on everyone else’s behaviour and emotions as well as your own without risking burnout, so write down what’s in your remit, re-read it when things get heated, and try not to get dragged into dealing with other people’s issues.

3

Make a budget – and stick to it…

One of the biggest stresses of the season is the pressure to spend, spend, spend – but you don’t want the start of the new year to be marked by panic about the state of your bank balance.

Budget your Christmas right down to the last gift tag – and stick to it. If things are tight, you can plan in advance how to get creative with your food menus and gift-giving (for example, by batchcooking some festive chutney), and still have plenty of time to warn others that Christmas might be smaller this year.

4

Diarise your downtime

Amid the whirlwind of unavoidable commitments, festive planning and social events that descends at this time of year, it’s important to make time for yourself.

Go through your calendar and schedule some breathing space every week, whether it’s a walk in your nearest green space, a hot chocolate and a book in your favourite café, or simply an evening under a duvet on the sofa.

Treat these events as equal to any other commitment because a promise to give yourself a break is as important as all your other duties. If you put it in your diary, it will also make it easier to say ‘no’ to any extra obligations that arise, which might otherwise overwhelm you.

You can discover more top tips at: retailtrust.org.uk/winterwellness

Ad campaign highlights how Euronics store are ‘closer

than you know’

CIH, which is part of Euronics, Europe’s largest electrical buying group, has launched a new, advertising campaign championing Euronics agents and showcasing the neighbourly touch they deliver to the local communities they serve.

The advertising will form a foundation for the brand going forward. This new campaign is designed to resonate with Euronics’s key audiences, nurturing a deeper connection between the brand, its agents and consumers. It will take a multi-channel approach, with content for social media, online, point of sale, TV, and radio.

The advert follows the morning journey of a Euronics store owner, walking to work and interacting with her local community.

Many people know the Euronics name, without knowing or realising that their high street has its very own Euronics retailer.

With over 600 stores, Euronics aims to highlight that its stores are ‘closer than you know’; and how its Euronics Way brand promise, to give communities the helping hand they need, before, during and after a customer’s purchase, makes them different from their competitors.

“ “

With this new campaign, we wanted to highlight the dedication, knowledge and support our agents provide to their local area

Paul Goldsmith, head of marketing and e-commerce at Euronics UK

“At Euronics we’re dedicated to serving our local communities, many Euronics agents are family businesses based on high streets across the country – that is our power,” commented Paul Goldsmith, head of marketing and e-commerce at Euronics UK.

“With this new campaign, we wanted to highlight the dedication, knowledge and support our agents provide to their

local area. We also wanted to place the consumer at the heart of the story to creative a narrative that speaks directly to the needs and desires of our customers.”

The local community approach Euronics is showcasing with this campaign is also reflected in its recently updated website.

Euronics spent the last year developing the new site to guarantee a professional and consistent approach, whilst adding enhanced functionality to improve the consumer experience.

Over 2,000 products are now on the Euronics website, which local agents can tailor to suit the stock they have available in their stores, with every penny spent online going towards the customer’s local Euronics.

Mr Goldsmith concluded: “We have worked extremely hard to develop a collection of advertisements and content that speaks of our passion and commitment, as well as highlighting that Euronics ‘is closer than you know’. We feel the content truly delivers on our goals and we are looking forward to everyone seeing this campaign.”

The campaign will be rolled out from this month and will be visible across various platforms, ensuring a widespread and engaging consumer experience.

For further details on the campaign visit the Euronics website: www.euronics.co.uk or check it out on YouTube: https://www.youtube.com/@euronicsuk/videos.

A show of strength

This year’s two-day Sirius trade show, in Milton Keynes, offered members a range of exclusive offers and showed how premium suppliers can support the UK market. Steve Jones, managing director of the Sirius Buying Group, shares his thoughts on the event.

As the countdown to the general election begins, innovation and creativity will be key to the market in 2024, following the latest exploration of market trends at the Sirius UK trade show.

A key event on the calendar, its experts were keen to map out the direction for travel in 2024-5, as consumers increasingly demand eco-efficiency, intuitive controls, connectivity and practical luxury in the kitchen living space.

With two full days to explore the latest new product developments in smart technology attuned for today’s busy lifestyles, Sirius members had ample time to meet and connect with approved suppliers, at Marshall Arena, the home of the MK Dons football club in Milton Keynes.

With an extensive range of exclusive offers and a clear picture of how premium brands can support the UK market at a regional and local level, members were fully empowered to make key decisions.

Honest

The decision to move to a two-day event at a larger, purposebuilt venue was an honest representation of how far the group has come, as well as being highly indicative of the direction that the business is heading in terms of serving so many independent retailers at a national level.

The event is testament to the ongoing support of the near-200 members and approved suppliers who enjoyed all the facilities of the 2,500 square metre site, complete with the DoubleTree Hilton hotel.

The effort that all the approved suppliers put not only into the show, but also the day-to-day support with the group and its members, reflected the strength of the Sirius community.

Market

The UK housing market continues to be a hot topic, alongside extensive conversations about how best to develop new towns and brownfield sites.

There is a shortfall of 4.3 million homes, according to research from Centre for Cities, and independent retailers are well placed to work with builder and developers to tackle this situation in the coming years.

In fact, the range of new innovative appliances and furniture solutions for the kitchen living space coming to market in 2024 and previewed at the Sirius trade show was indicative of the ingenuity coming through with colourful refrigerators to nutrientboosting cooking.

Forward-thinking Sirius members can be confident of meeting the market’s desire for smart technology, accessible solutions and personalised lifestyle-friendly environments thanks to leading brands like Smeg, Neff and Hotpoint.

Bigger

The Sirius team prides itself on mapping out the bigger picture so that our members can decide exactly how they want to position themselves within it as key players in their own areas.

By providing a supportive space to celebrate success and tap into peer-support, independent retailers can grow together, as the electrical sector and kitchen studio industry continues to evolve and cater for sophisticated endusers at every pricepoint.

The Sirius community came together for an evening of fun and entertainment at the trade show, which allowed even more time for new connections to be made and longstanding relationships to be strengthened.

As a new generation of retailers stepped up into family businesses, established professionals headed for pastures new, including Peter Gilks, the co-founder and director at Sirius, who announced his retirement.

“ “

Pioneer

Consumers increasingly demand eco-efficiency, intuitive controls, connectivity and practical luxury in the kitchen living space

Steve Jones, managing director of Sirius Buying Group

A pioneer for members and suppliers within the electrical appliance industry and a highly regarded changemaker for the group, Peter established award-winning NE Appliances back in 1983, and has always been on the ground floor when it comes to product, service and distribution.

Playing a key role in the co-creation of Sirius over the last 22 years, he took on the role of director in 2005, and carved a niche for himself, furthering business operations within the group and leaving an outstanding legacy.

Generous

Sirius members and suppliers were also extremely generous with their charity efforts for this year’s event.

We were honoured to support Bristol-based charity, the Billie Elizabeth Wood Trust (BEWT), which fundraise for research in subarachnoid haemorrhage.

BEWT is a fantastic cause that is particularly pertinent for Danny Lay, managing director of Caple. A huge £12,000 was raised during the event, so thank you for all your support.

Lastly, none of this would be possible without our Sirius team and the events specialists at Incentivise, so I would like to make a special mention to our very own Mark Veysey and Ella Fry, the loyalty and rewards event manager at Incentivise, for their complete focus on making the event the success it was. Here’s to the future.

For further information on how Sirius can help you to grow your business, please contact:

Sirius Buying Group

siriusoffice@siriusbuyinggroup.co.uk

01395 277103

siriusbuyinggroupltd.co.uk

Mobile Working

We look at the implications for banning the use of personal mobile phones at work and clarify consumers’ rights under the Sale of Goods Act 2015.

Can you ban personal mobile phones at work?

You’ve noticed that some employees are often glued to their mobiles. While you understand they may need to respond to the odd message or make an urgent call, it’s really impacting productivity.

Most reasonable employers permit employees to carry personal mobile phones with them during the working day.

In certain situations, they may need to answer an emergency call or reply to an important message.

However, when an employee starts to overuse their personal mobile phone, they will be distracted and unproductive during the time they should be working.

So, you might be wondering if you can take the blanket approach of simply banning all employees from carrying their personal mobile phones during working hours, i.e., they must stay in the employee’s bag or locker.

Many employees believe that they have the right to always carry their personal phone with them during working hours, but no such legal right exists. That means you can, if you so wish, ban the use of personal mobile phones in your workplace.

Unpopular

This would no doubt be a very unpopular decision to make. To justify it you would need to claim it was necessary on the grounds of health and safety or perhaps confidentiality.

If you can’t really justify a complete ban, the other option is to introduce strict rules on usage.

You could prohibit employees from using mobile phones while they are working but permit them during break times, however, you’ll need to explain to employees why you’re taking this decision, and not single out any member of staff. Instead, explain the decision in general terms.

You’ll also need to make alternative arrangements for employees to receive and make emergency calls in private.

This may not be practical, and you may decide that on balance allowing employees to keep their mobile phones with them is preferable.

If you have a mobile phone policy in place - the Retra Staff Handbook does – you could remind employees of its existence and advise them that it’s going to be strictly enforced going forward. This will hopefully curb the worst offenders and you’ll be able to take disciplinary action if they continue to flout your rules. Employment contracts and the Retra Staff Handbook are available free of charge to all members.

Sale of Goods Act 2015

Calls to the Retra Helpline (01234 269110) can be very varied, but there are some commonly asked questions.

The one that we are asked the most about is the Sale of Goods Act 2015, which spells out in some detail the relationship between the consumer and the supplier.

What is abundantly clear is that the contract for the sale of goods is between the retailer and the consumer.

Many manufacturers have field-based engineers and carry out repairs under guarantee or warranty.

Some of our members think it is OK to rely on the manufacturers to support the consumer when things go wrong. The legal responsibility to put things right actually sits with the retailer.

Remember the old saying, ‘Follow the money?”

If the consumer paid you, the retailer, for the goods, all their rights in law are against you, not the manufacturer.

In most cases, problems get resolved amicably, and we are proud of the levels of customer service given by our members.

The problem is that some consumers are extremely demanding. The number of times we get copied in on a customer’s e-mails stating, “I know my rights” is quite staggering.

In many cases they don’t know their rights. The act enables a consumer to bring a case in a court of law for up to six years from the date of purchase (against the retailer).

The most common claim is that the goods were not fit for purpose and not of sufficient durability.

These claims come in when a product is out of warranty and the consumer has chosen not to take out an extended warranty.

When an employee starts to overuse their personal mobile phone, they will be distracted and unproductive during the time they should be working

There is a misconception that the Act gives you a free six-year warranty – it doesn’t.

You can bring a claim for up to six years and must prove to the satisfaction of a judge that your four-or five-year-old TV or washing machine has been faulty from the first six months you bought it. There are automatic rights in the first 30 days and the first six months.

When products are relatively new, it is understandable that consumers expect prompt and effective service. Our members would support this. It’s when something has clearly been used over a good number of years and the consumer demands a free repair or exchange that the problems start.

The Sale of Goods Act 2015 does not say that goods should never be faulty or that a consumer should not have to pay for a repair.

There is a whole industry in extended warranties which would not exist if everyone automatically got a free six-year one.

So, the next time a customer tells you they know their rights, it’s worth checking if they really do.

Business Matters

Vision of the future

TVD Group, which owns the Mitchell & Brown TV brand, recently unveiled its impressive Experience Centre at its HQ in Bolton. Sean Hannam went to see ‘the tech hub of the north.’

Bolton-based TVD Group recently opened a new Experience Centre billed as ‘the tech hub of the north.’

The AV tech supplier and installer of commercial AV projects has made a £600,000 investment in its existing headquarters as part of a year-long upgrade.

In mid-October, Alert was invited to a special opening event for the showroom, which was attended by several members of the press, as well as suppliers.

The TVD Experience Centre features immersive display areas, innovative products and fully-integrated solutions from TVD’s key partners including Samsung, Philips, LG and over a dozen bigname brands in the AV sector.

Highlights of the Experience Centre include Samsung’s £130,000 110-inch ‘The Wall’ MicroLED display, Vestel’s latest commercial display range, TVs from Mitchell & Brown, and premium commercial audio products.

Innovative technologies on show include LG’s LED 136-inch all-in-one smart series, Philips power-free Tableaux ePaper displays and Accenta hanging digital posters.

The TVD Group grew out of a TV retail business, when Jim Brown and his sons, Mat and Dan, opened TV and Video Direct in 1996.

It has grown to be one of the UK’s leading AV technology distributors to the commercial and retail trade, including launching its own TV brand, Mitchell & Brown.

TVC Technology Solutions, a division of TVD Group, that supplies a range of industries including betting, retail, leisure, hospitality, care, education, sports stadia and corporate venues, has this year been nominated for two major AV industry installation awards for the project it completed at the Formula 1 Arcade in central London.

Employee-owned

The TVD Group is now an employee-owned company – 51 percent of business is owned by the staff, with the other 49 percent retained by the Brown family.

Speaking at the opening of the showroom, Mat Brown, TVD Group’s co-founder and director, said: “We wanted to offer both new and existing customers the opportunity to explore the very latest AV technologies from some of the world’s biggest brands, fully integrated into complete solutions in one engaging venue in the north of the UK.

“The TVD Experience Centre provides a level of unrivalled personalisation for clients who want to experience what technology can bring to their business and how it can enhance their brand.”

Following the official launch of the TVD Experience Centre, the venue will be used to host a series of bespoke brand-specific events, hosted by TVD’s partner manufacturers, and sector-specific events covering AV for hotels and leisure venues, retail premises, care homes, betting shops, offices and commercial enterprise.

Training

Events will cover UK new product launches, integrator training and showcases of what the latest AV technology can do to revolutionise audience, customer and employee engagement.

TVD also wants to encourage businesses to host their own small events and meetings in the Experience Centre, giving businesses access to the latest technology and further promoting the venue.

TVD Group’s TV brand, Mitchell & Brown, will also make use of the venue for retailer and press launches, demonstrations, and retailer training sessions.

The Experience Centre features the brand’s latest range of both small-screen TVs and flagship QLED smart TVs up to home cinema sizes.

With the Experience Centre now fully open and the transition to employee ownership complete, this previously family-owned business is perfectly placed to continue its strategic growth across the UK AV sector

Dream

Lucia Maguire, managing director of TVD Group, commented: “To open this has been our dream, our vision and our ambition – the reality is now here.

“With the Experience Centre now fully open and the transition to employee ownership complete, this previously family-owned business is perfectly placed to continue its strategic growth across the UK AV sector.

“Our ambitions of continued growth, growing our local team, creating a great place to work and our dedication to our customers and the level of service and quality we deliver remains a core focus.”

Talking about the Mitchell & Brown TV brand, Ms Maguire said: “Mitchell & Brown was born out of TVD in 2016 – we sell the TV brand to retailers up and down the UK.

“The name comes from Jim Brown’s surname and his mother’s maiden name – it’s a homage to the heritage of the business and the brand is now in its seventh year. I like it to call the rising star of the business – it’s gone from strength to strength.”

TVD Group co-founder and director, Mat Brown, and managing director, Lucia Maguire
Mitchell & Brown is a brand for the independents and we’ve never wavered from that’

British TV brand, Mitchell & Brown, which is part of the TVD Group, is aimed exclusively at independent retailers. Sean Hannam spoke to director of operations, Dan Brown, and sales director, Rob Greenlees, to get an update on the business.

Sean Hannam: With the new Experience Centre you can easily show customers the breadth of services that TVD offers under one roof. How long has the TVD Group been planning the showroom?

Dan Brown: It was before Covid – we had several people come and quote for us, and it was just down to pushing the button. We kept thinking ‘shall we do it?’ or ‘shall we not?’

We started it during Covid – when it was safe for people to come in. We built the shell – some of our engineers are builders as well.

SH: TVD Group owns the Mitchell & Brown TV brand, which is on display at the Experience Centre. What’s your take on the TV market now? Is it tough?

DB: Yes – it’s tough and competitive, but it’s been like that for the past 26 years – nothing really changes. Since the internet came in, which was a long time ago, a lot of things are more visible – you do come up with some discounters…

SH: Have you had a good year?

DB: So far, so good. We’re up on last year – both Mitchell & Brown and the TVD Group. Last year was our best year ever.

Rob Greenlees: With our brand, we’ve stuck to our word – it is for the independents and we’ve never wavered from that. You won’t see us on AO and discounters.

DB: We’ve been approached and we’ve talked to them but we thought it would affect our business.

SH: You sell through Euronics and Sirius, and other independents…

DB: We do – and we have Pik-a-Pak, or Bluestem, as they are now, who distribute our products.

SH: You’ve made a big thing of the seven-year parts and labour warranty on your products, which sets you apart…

DB: Exactly.

RG: We’ve had a central stand [for the TVs] from the beginning, which is a big thing for independents.

DB: What we tend to do is listen to our customers and then act on it.

RG: We can’t cater for everyone, but we try our best.

DB: In the early days, we had some comments about improving the sound – with a lot of flatscreen TVs, the sound isn’t that brilliant… We addressed that and we improved the sound by putting speaker boxes within the screen.

RG: We were asked for a big button remote, so we brought that to market in the past few months – it’s been greatly received by the independents and the end users.

SH: Is that because your customers tend to be older?

DB: Our demographic is 60-plus.

RG: The big button remote is a good add-on sale for dealers – they can package it with the TV.

SH: The TVD Group started out as an independent retail business –TV and Video Direct in Bolton, in 1996…

DB: With us being independents, the independent channel is very

important to us. I’m glad to say there are still a lot of independents, but there has been a decline. The independents have customers from various different generations and they have same the same ethos as us, which is service.

Dealers can make money from us and our demographic buys into our story – we’re not just a manufacturer bringing out a TV with a name on it. There’s added value to it – the dealers can tell the story about our British brand and they can make a margin from it.

The TV market is tough and competitive, but it’s been like that for the past 26 years – nothing really changes

SH: Your retail operation is still a part of the business – how’s it going?

DB: It’s still performing… It’s a small shop.

SH: And it’s a Euronics retailer… DB: It is.

SH: You sell Mitchell & Brown in the store, but what other brands?

DB: We sell Samsung and LG, and Bosch, Blomberg and Beko.

RG: We also run our Mitchell & Brown customer service helpline from there.

SH: Are you looking for more Mitchell & Brown dealers?

DB: We’re always looking for more. They’re guaranteed a 20 to 25 percent margin across the year and we also offer next-day delivery –whether it’s single or multiple items.

RG: We also offer POS and bespoke walls for shops, and 50/50 advertising with the dealers in their local area.

SH: You launched QLED TVs last year – what are your future plans for Mitchell & Brown?

DB: We’re currently looking at OLED, but whether that’s going to happen the early part of next year…We’ve got to negotiate a little bit harder.

SH: But you’re confident for the business going forward?

DB: Yes – we’ve got more or less a screen size that suits everybody. █

Dan Brown and Rob Greenlees
We want you to play your part in helping us all reach our net-zero goals’

We report from this year’s AMDEA 2050: Appliances of the Future Conference: The Road to Net Zero.

This year’s AMDEA 2050: Appliances of the Future Conference: The Road to Net Zero was especially timely as it took place the day after UK prime minister, Rishi Sunak, announced a U-turn on the Government’s climate commitments, by pushing back the deadline on key green targets, including the ban on the sale of new petrol and diesel cars, and the phasing out of gas boilers.

Organised by AMDEA (Association of Manufacturers of Domestic Appliances), the UK trade association for manufacturers of small and large domestic appliances, the event (Thursday September 21), which is now in its third year and was supported by City, University London and the OPSS (Office for Product Safety and Standards), saw guest speakers from manufacturing, retail, regulation and policy focus on the next steps for achieving a sustainable home appliance industry, as we move towards a net-zero future.

More than 98 percent of UK homes have at least one large appliance and annual UK sales exceed 12 million large appliances and 50 million small appliances. This equates to a UK market worth close to £8 billion a year at retail and supports many thousands of UK jobs

The one-day conference took place at the Oliver Thompson Lecture Theatre, in the Tait Building, Northampton Square, City, University, London.

Sessions were split into three plenary sessions ‘How Are Manufacturers Advancing on the Road to Net Zero?’; ‘How Are We Supporting Sustainable Householder Choices?’, and ‘How Will Regulation Enable the Delivery of Net Zero?’

Each session comprised a keynote speech and a panel discussion, with the chance for delegates to ask questions.

The conference was chaired by broadcaster and technology expert, Maggie Philbin OBE.

Keynote

Kevin Hollinrake MP, Parliamentary Under-Secretary of State for Enterprise, Markets and Small Business, gave an opening keynote address via video.

In his speech, Mr Hollinrake said achieving net zero targets and ambitions would impact on every aspect of our lives – home, work and play – and would have implications for the lifecycle and the safety of the products we use, including how we operate, produce, dispose of and recycle them.

He said the OPSS, which is currently undertaking a Product Safety Review on regulatory framework to make sure it is fit for now, as well as for the changing landscape ahead of us, has a key role to play.

“Now that the UK has left the EU, we have a unique opportunity to design and implement a framework that works for better for us, using our new-found agility to forge our own path, delivering a regulatory framework that prioritises the needs of UK consumers and reduces the burden on business,” said Mr Hollinrake.

Ahead of the manufacturer-led panel discussion, AMDEA CEO, Paul Hide, gave a keynote presentation in which he explained how AMDEA is supporting its members to deliver a more sustainable future for the home appliance sector, but also helping to provide more sustainable choices for householders when purchasing appliances.

Achievement

Said Mr Hide: “There’s no doubt that appliances have a big role to play in supporting the achievement of net-zero homes. Estimates suggest that within the 29 million UK homes, there are at least 130 million large appliances and over 300 million small appliances.

“More than 98 percent of UK homes have at least one large appliance and annual UK sales of this industry exceed 12 million large appliances and 50 million small appliances. This equates to a UK market worth close to £8 billion a year at retail and supports many thousands of UK jobs.”

Mr Hide said AMDEA’s responsibility is to ensure there is a netzero action plan across the full supply chain – from sustainable raw materials and sourcing precious minerals to carbon-and water-neutral manufacturing, net-zero delivery to the customer’s home, net-zero impact in use and full recyclability and material recovery at the end of a maximum useful life. “That’s a true circular economy,” he said.

Smart appliances

Also at this year’s 2050: Appliances of the Future Conference, City, University of London announced that AMDEA is sponsoring PhD research into the self-engineering of smart appliances using AR/ VR. Delegates had an opportunity to visit City University’s AR/VR suite and see manufacturers’ product demonstrations in a showcase area.

Commenting on the conference, AMDEA’s Mr Hide said: “There is no other UK event that brings together such a wide range of stakeholders and it allows us to pause and reflect on our joint progress in delivering net-zero homes, to consider how far we’ve come in the past 12 months, and to discuss the priorities and milestones – both near-term and on the pathway to 2050.”

AMDEA CEO, Paul Hide
The biggest challenge is to get entry-level consumers to understand there are savings to be made if they can stretch to a more expensive product’

Retra CEO Howard Saycell has highlighted the challenge retailers face selling environmentally-friendly and energyefficient products to consumers who have a limited budget.

He called on the Government to step in and offer financial support to people with low incomes to help them purchase products that were more energy-efficient and environmentally-friendly.

Speaking as part of a panel session at this year’s 2050Appliances of the Future conference, he said: “I think the brands have done a really good job – I’m most impressed by the strides they’ve made in terms of protecting the environment – our world – but we still get customers who come into our members and say: ‘What’s your cheapest washing machine? Mine’s gone wrong and it’s a distress purchase.’ ”

He added: “Our members will take them through the range and explain the benefits of spending a little bit more money on a product rather than just the entry-level model – they will explain energy efficiency and water efficiency. But, if they’ve only got a very limited budget, it’s a difficult decision for a consumer to make.

“You could argue that they could be helped by a finance package, but if someone hasn’t got the ability to afford an extra 20, 30 or 50 quid, then it might be a bridge too far.

“At the entry-level, the biggest challenge is to get consumers to understand that there are savings to be made if

they can stretch to a slightly more expensive product. A lot of people out there are really struggling.”

Mr Saycell called for the Government to provide subsidies for people with low incomes so they could be encouraged to choose an appliance that was more appropriate for them and the environment.

He said: “If it costs the Government a few quid… well, it wastes a lot of money on other things, doesn’t it?”

As manufacturers – and human beings – we are realising that we have to contribute to some part of net zero’

AMDEA chair and Beko UK and Ireland managing director, Teresa Arbuckle, told delegates at the 2050- Appliances of the Future conference she was pleased that energy efficiency is high on appliance manufacturers’ agendas and in their marketing activity.

Speaking as part of a manufacturer panel session, alongside senior representatives from BSH, Miele and Haier Europe, she cited the IFA 2023 trade show in Berlin (September 1-5) as a good example of how eco messaging is everywhere, saying: “This year it was energy efficiency to the max – every

single manufacturer was showing off recycled materials in their products.

“It made me so happy because it says that we all as manufacturers – and human beings – are realising that we have to do something, and that we have to contribute to some part of net zero to get there.”

Also on the panel, BSH UK CEO, Gunjan Srivastava, said: “The most heartening part of it for me is that consumers – the end users – are becoming more and more aware of the topic.”

He added: “If you look at the hard facts in terms of appliance sales, energy efficient appliances are becoming more and more important.”

Mr Srivastava said that BSH research showed consumers are interested in using more energy-efficient programs and features on home appliances and are also more aware of products that last longer.

David Meyerowitz, the UK and Ireland CEO of Haier Group Europe, who was speaking on the panel, said: “The energy crisis has really heightened the awareness of sustainability.”

On the role connected appliances have to play, he commented: “I think the industry is coming to terms with connectivity, the IoT and the belief that you can remain connected to the consumer and the product, and how you can generate significant changes in product design and consumer behaviour through that lifetime relationship with the product and the customer, rather than just manufacturing, selling and then walking away to wait for a phone call for a repair.”

He said this was accelerating progress towards 2050 sustainability goals and that the journey had only just begun. █

Sirius Buying Group MD, Steve Jones, and Retra CEO, Howard Saycell
Left to right - Teresa Arbuckle, MD, Beko UK & Ireland; David Meyerowitz, CEO, Haier Europe; Gunjan Srivastava, CEO BSH Home Appliances, UK & Ireland; Helen Pyman, marketing director, Miele UK, Ireland and South Africa

A Sustainable Industry

This year’s Retra Conference was themed around ‘A Sustainable Industry’. Sean Hannam reports on some of the highlights.

The Panel

Matthew Todd, managing director, Dacombes of Wimborne, Dorset

Sean Hannam, editor, Alert /owner, Ipcress Media

Luke Gammon, director of Wades, Ramsey, Cambridgeshire

Matthew Todd, partner, Herbert Todd, York and Harrogate, North Yorkshire

‘How sustainable is your business?’
The industry panel at this year’s Retra Conference answered members’ questions on a wide range of topics, including sustainability. Host Declan Curry asked the retailers what steps they were taking to make their businesses more sustainable.

Declan Curry: Matt Renaut – how sustainable is your business? What’s your score card?

Matt Renaut: It’s OK – we do recycling and in February, we’ve got 100 solar panels going on [the building], so we’ll be completely sustainable – we’ll generate all the power we need and hopefully a little more for electric vehicles, when we get them.

DC: What’s your reason for doing it?

MR: Electricity bills, firstly – it’s a lot of money per month. Secondly, it’s great PR.

DC: It’s the right and practical thing to do. Luke – what about your business? How sustainable is it and what improvements are you planning?

Luke Gammon: It’s pretty sustainable – we do recycling and we’ve just had a big redevelopment, so every light bulb is LED. That helps us and it helps the planet.

DC: Matthew Todd - how sustainable is your business and what are you planning?

Matthew Todd: Hopefully, it’s pretty sustainable – we moved to a new out-of-town building about six years ago and we put solar panels on the roof. We have an electric vehicle and we’re seeing how it works for us – so far, it’s been really good. About 10 years ago, I got a compactor for polystyrene because that was one of my bugbears – putting it all into a skip and having it taken away was horrendous. We’re trying to do our bit.

DC (to all the retailers}: Is there anything you would like to do but not just yet because it’s too expensive, too complicated or the technology’s just not there yet?

MT: Our heating system isn’t great – the cost of using it is so prohibitive that we’re cold in the winter and hot in the summer.

If there was a grant to help with heat pump technology, we would definitely look at that.

DC: So, a grant would make a difference?

MT: For the cost of it – yes.

MR: I got a grant from the local government – it will pay half of the cost of our solar panels, a Tesla battery and electric vehicle chargers. I want electric vehicles – that’s the next thing.

DC: Sean, it’s an interesting conversation – the factors that play into the decisions on making businesses more sustainable.

Sean Hannam: As part of my job editing Alert, I interview a lot of retailers and, over the past few years, I’ve seen a lot more of them embracing sustainability and contributing to the circular economy, but the challenge for a lot of independent retailers is that they need some help and guidance on how to do it.

If you’re a mini-multiple or a large chain, you have a fleet of vehicles and more staff and departments to deal with it.

I visit retailers all over the country and they’re doing their bit – recycling batteries and putting solar panels on the roof… It’s small steps but there definitely needs to be more education – I think a lot of retailers find it hard to implement.

But retailers, brands and customers are taking it more seriously – sustainability is higher up on customers’ shopping than it was before, but price is still top.

DC: (To the retailers): Do you feel there’s enough information and support out there to make the decisions on sustainability for the business?

LG: There’s enough information, I’d like electric vans as well, but it’s the cost implications. We don’t travel a lot of miles, so electric vans would be perfect for us, but it’s the initial cost.

MR: It’s bit by bit. Like any retailer, we’re not loaded – it has to be part of our business plan over the next three years.

The car industry needs to better explain the overall cost of ownership of electric vehicles’

Guest speaker, motoring journalist, Steve Fowler, highlighted the benefits of electric vehicles and tackled some of the issues surrounding the sector.

“There are an awful lot of questions around electrification – it seems to be the hot topic,” said Steve Fowler, editor-in-chief of Auto Express,” while addressing delegates at this year’s Retra Conference.

When it comes to the electric vehicle agenda, there is a lot of misinformation and hearsay out there, he said.

He also highlighted Prime Minister Rishi Sunak’s recent decision to push the ban on petrol and diesel cars back until 2035.

“In my view, this was a very political decision. Was it the right decision? I’ll let everybody else decide – I’m not going to get into that world, but what disappoints me is that the car industry had absolutely no clue that this was coming. It would’ve been nice to engage with them before a decision was made,” said Mr Fowler.

He commented that the 2035 pushback was ‘a bit of a sideshow’, adding: “What’s far more important is the ZEV [Zero

‘Think about the benefits of being seen to be green’

ERT editor, Sean Hannam, asks Steve Fowler, editor-in-chief of Auto Express, what advice he has for retailers who are thinking about moving over to electric vehicles.

Sean Hannam: What would be your message to smaller independent retailers who are looking at buying electric vehicles for their business?

Steve Fowler: Number one is ‘do the sums’ – from a business point of view, there are huge incentives to run electric vehicles. You need to look at the overall purchase or lease price and the running costs. If you make the right choice and you charge it at the right time – if you charge your vans overnight – the running costs can be very cheap.

All that has to be offset by the fact that they [electric vehicles] are more expensive and it might not suit your business. If your van is doing 150 miles a day – just running around locally delivering stuff – then that works, but if you’re driving from London to Newcastle then clearly an electric van isn’t going to work for, but it might for part of your fleet.

Futureproof yourself if you can, because taxation is only ever going to go one way and think about the benefits of being

Emission Vehicle] Mandate, which comes into effect next year and states that 22 percent of all manufacturers’ cars they sell must be fully electric and 10 percent of their vans, or they risk fines of up to £15,000 per vehicle over that amount.”

By 2030, said Mr Fowler, that figure will increase to 80 percent for cars and 70 percent for vans, so the crossover to electrification has got to happen by that time.

“The big issue that everybody talks about it is the charging infrastructure,” he said, adding that for most people the worry is whether they’ll be able to charge their vehicle quickly and reliably when they’re out and about.

“For a lot of people, electric vehicles aren’t the way forward,” said Mr Fowler, but he said the charging infrastructure will improve in the future.

He explained how there are huge incentives for owning both small and large electric vans, including tax benefits.

“The car industry really needs to better explain the overall cost of ownership of electric vehicles – the reasons for buying an electric vehicle do start to stack up,” said Mr Fowler.

On display outside this year’s conference was the Auto Express Electric Van of the Year – a Volkswagen ID. Buzz Cargo.

“It ’s really good to drive,” said Mr Fowler. “It has a limited range of 260 miles, but that might be a lot for a lot of people, depending on what you do. Yes – it’s reasonably expensive, but it’s becoming hugely popular because it says the right thing about businesses and it’s quite a cool thing to look at and it’s really shaken up the LCV (Light Commercial Vehicle) market.”

seen to be green. A lot of people will look at the businesses they spend money with and see how environmentally-friendly and sustainable they are – they will spend money with those that align with their own views.

SH: At the Retra Conference, you said there was a lot of scaremongering around electric vehicles. That’s putting some people off buying them, isn’t it?

SF: Absolutely – the mainstream media is doing a great job of getting it wrong. I don’t know why they have this anti-EV [Electric Vehicle] agenda – a lot of it is very misinformed. We know that an electric vehicle isn’t right for everybody right now – they are expensive, and they don’t go far enough on a full charge and the charging network is a nightmare, but you’ve only got to look at the Tokyo Motor Show and the Munich Motor Show to see that battery ranges are getting better all the time and prices are coming down.

Stand by your van – Sean Hannam with the Volkswagen ID. Buzz Cargo electric van, on show at this year’s Retra Conference
Steve Fowler

Think of AI as less Terminator robots and more as an Excel spreadsheet with ambitions to change the world’

AI technology will transform the business world soon, says Tim Gordon, partner at consultancy, Best Practice AI, who was speaking at the Retra Conference.

Artificial Intelligence (AI) will have a huge impact on businesses in the next 10 years, according to Tim Gordon, partner at consultancy, Best Practice AI.

Speaking at this year’s Retra Conference he commented on how there is a lot of talk about AI being a massively overhyped tool and pointed out how that could be the case, but he stressed that technology that exists now is going to transform business in the coming decade.

“Think of AI as less Terminator robots and more as an Excel spreadsheet with ambitions to change the world,” said Mr Gordon.

“AI is a new way to write software. Machine learning takes data and a bunch of answers, and then it goes away and it works out what the rules might be.”

He added: “We’re moving to a world where text – whether spoken or written – can be used an interface for anything, such as images, audio, video, motion, design functionality, music, marketing and software coding. It will begin to change the entire way in which we interact with computers.”

Mr Gordon said AI will provide a huge opportunity to transform customer service, adding: “AI is like having 1,000 interns working for you or a co-pilot. It’s a superpower – if you’ve got someone who is really good at what they do, AI can vastly scale that up – it can take smart people and massively extend their ability to do things.”

AI will take away a lot of the boring stuff and enable your retail staff to be focused on interacting with customers’

Tim Gordon, partner at Best Practice AI, tells Sean Hannam how AI could transform retail and manufacturing in the future.

Sean Hannam: What effect do you think AI will have on retail? Where are the opportunities?

Tim Gordon: I think there are a few things – one of those is in terms of getting customers in the first place. The way that marketing works is going to change – now Google controls everything – but we will have a new way of discovery and of accessing information.

The second thing will be the way in which we interact with retail sites online – you will have different ways of accessing content. You may have someone talk to your website.

SH: So, the customer journey will change, and retailers will be able to learn a lot more about what consumers want…

TG: Yes – it will change. A lot of marketing is increasingly telling stories or generating content – AI could produce that on a far greater scale. It will be cheaper to create content – the cost of it is going to go down massively and that means you can create far more of it and make it more personalised. How that gets deployed as part of the retail journey will be a powerful change.

It will also change how you offer customer service to people – you could point your phone at a malfunctioning machine and it will help you back.

SH: AI will also enable chatbots to become more advanced, won’t it?

TG: Yes, and they will become multi-modal – you’ll able to use them with pictures as well as text, and in any language. It will also speed up and become more natural. Now, chatbots are quite stilted and try to drive you down a specific path – they have no flexibility.

SG: How will AI affect the backend operations for retailers and brands?

TG: Products will be produced to more personal specifications. Manufacturing, like designing a machine, for example, will be far more bespoke.

There will also be stuff around distribution networks – making sure the supply chain works better, and predicting when people want things and what they want. That should shorten the time needed to go from production to delivery.

SG: It’s about AI working alongside humans, isn’t?

We’re not going to replace retail staff with robots, are we?

TG: No – hopefully it will strengthen the retail experience. For example, how you check for shoplifting. You also hope it will take away a lot of the boring stuff, like stocktaking, and enable your retail staff to be focused on interacting with customers. The more time they can spend on that rather than doing admin and the backend stuff is a real win.

Tim Gordon
Help your consumers make informed decisions – if you’re being more sustainable, tell them – they will respond’

Andrew Goodacre, the chief executive of BIRA (British Independent Retailers Association) looks at the future of the high street and the role sustainability has to play.

“The high street is challenged but there are opportunities as well,” said Andrew Goodacre, the chief executive of BIRA (British Independent Retailers Association).

Speaking at this year’s Retra Conference, he explained: “We have seen changes in consumer behaviour – more people go online and shop but, interestingly, internet shopping as a percentage of its penetration has dropped each month since Covid ended – from 60-70 percent to below 30 percent of total retail sales. People still like to shop in shops and go to high streets.”

Mr Goodacre said that if you are a retailer in a non-essential market, it’s tough, adding: “The place not to be is in the middle. If you’re not sure what people’s perception of you is and if you’re not value or real good quality – and you’re not convincing people that you are – then that’s when you’ll be in trouble and you’ll struggle to compete.”

He called for retailers to not lose their identity, citing the recent failure of hardware chain Wilko as an example of a retailer that didn’t know where and what it wanted to be.

“Sad as it is to see a big family business decline, and, ultimately, fail, it failed because it had lost its identity to its competitors.

“Consumers were choosing to follow brands that they trusted and what they offered in terms of value and quality.”

Sustainability

On the role of sustainability in retail, Mr Goodacre said: “Some of the heavy lifting is being done by large retailers – the BRC, of which Retra and BIRA are members, has a roadmap that talks about putting greenhouse gases and sustainability at the heart of decision making when thinking about future strategies.”

He added: “It talks about energy efficiency and zero-carbon logistics – how you get the goods to your consumer – and sustainable raw materials – the products you’re selling – and it talks about helping consumers and employees to be more sustainable.

“The timescale for the roadmap is 2040 to get a zero-carbon rating – that’s ambitious. Retail is a massive sector and there’s a huge amount of effort needed to go into the supply chain – the brands and manufacturers have a massive role to play.

“For independent retail, it’s about your business running efficiently and being truly energy efficient. If you are doing deliveries, how are you making them more energy efficient and reducing wastage?”

He added: “Help your consumers make informed decisions – if you’re strategy is about being more sustainable, no matter how small it is, if you tell your consumers, they will respond. It makes a difference on where they purchase from and in an ever-competitive market, where it’s difficult getting the money out of them in the first place, then information about your sustainability credentials will be absolutely crucial.”

For independent retail, it’s about your business running efficiently and being truly energy efficient. If you are doing deliveries, how are you making them more energy efficient and reducing wastage?

Mr Goodacre said that the future of the high street is about retailers being trusted – particularly on sustainability issues.

“I think consumers want high streets – if we’ve learnt one thing from Covid it’s that isolation isn’t great for humans. When high streets reopened, the surge of people wanting to be back in bars, café, restaurants and shops was palpable.

“We need that interaction – high streets do have a future.”

Appliances have a big role to play in supporting the achievements of net-zero homes’

Consumer education on appliance use is key if we are to achieve net-zero goals and a circular economy, says Paul Hide, chief executive of AMDEA.

Sustainability is one of the greatest challenges we face – not just the electrical sector, but industry in general – and we need to address it.

That’s the view of Paul Hide, chief executive of trade association AMDEA (Association of Manufacturers of Electrical Appliances), which was one of the sponsors of this year’s Retra Conference.

Speaking at the event, he said: “We are collectively on a pathway to 2050 net zero – a target that even the current opportunist Government rhetoric is unlikely to derail.

“As an industry, we have to agree on the steps and the milestones that will enable us to reach this required end goal. Appliances have a big role in supporting the achievements of netzero homes.

“Estimates suggest that within the 29 million UK homes, there are at least 130 million large appliances and over 300 million small appliances – more than 98 percent of UK homes have at least large appliance.”

Mr Hide said that even in tough times, the electrical retailing sector was still selling a lot of products, with annual UK sales of large appliances being over 12 million units this year and more than 50 million for small appliances.

He added: “Part of our responsibility is working with our manufacturing partners to ensure there is a net-zero action plan across the full supply chain – from sustainable raw materials and precious mineral sources to carbon-and water-neutral manufacturing, net-zero delivery to customers’ homes and net-zero impact in use and full recyclability and material recovery at the end of a maximum useful life. If we achieve that, we will have a true circular economy.”

Impact

Unsurprisingly, said Mr Hide, it is the usage stage of appliances that has the largest impact on energy consumption, which is covered by Scope 3 emissions.

“Appliance manufacturers have made great strides in improving energy and water efficiency,” said Mr Hide.

“One of the reasons energy labelling was reset back in 2021 was because more than 80 percent of washing machines sold had already reached A++ or A+++, and as many as 90 percent of fridges and freezers sold were A+ or A++.”

He added: “Even under the new rescaled energy labelling, we’re fast approaching a position where the majority of washing machines sold will already meet the much tougher A rating for efficiency.

“There’s no doubt we are making constant progress, but even if we bring net-zero products to consumers’ homes, until we have a 100 percent green electricity supply, energy in the usage stage is critical in delivering a net-zero home. User behaviour matters. Education and awareness building are key.”

Earlier this year, AMDEA partnered with Exeter University, commissioning research to understand householder awareness and motivations on sustainable appliance use.

Exeter University spent three months studying real-home user activity and how it can make us more sustainably aware.

Said Mr Hide: “The recommendations focused on four areas: using education to improve behavioural intentions – how we interact with our appliances day-to-day – improving householder education on energy efficiency and product life extensions; building relationships with your customers through maintenance and repair education, and also optimising smart technology that can assist with maintenance and repair.”

We are collectively on a pathway to 2050 net zero – a target that even the current opportunist Government rhetoric is unlikely to derail

Campaign

AMDEA has used those learnings from the study to help shape its current Know Watt’s What consumer campaign that focuses on sustainability messaging.

“It ’s our collective industry route to support an increase in appliance users’ awareness of how to use appliances at their most efficient and the impact this can have on household energy and water consumption,” said Mr Hide.

He highlighted how research showed as many as 90 percent of people don’t use the eco settings on their appliances.

The information from the AMDEA Know Watt’s What campaign is available for retailers to use – please visit: www.amdea.org.uk

“We want you to play your part in helping us all reach our netzero goals,” said Mr Hide. █

Bespoke Insurance Services for the Electrical Retailer Industry

Arranged by our experienced team, 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:

• 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

Emily Bailey T: 01202 647 423 E: Emily_Bailey@ajg.com

Our intention is not to be a retailer’

In his first interview for Alert, BSH UK CEO, Gunjan Srivastava, gives Sean Hannam his views on the challenges of Covid, its reasons for selling direct-to-consumer, the supplier’s relationship with independent retailers, the importance of sustainability and where he sees the opportunities to grow the business.

Gunjan Srivastava took over as the CEO of BSH UK in April 2020, just as Covid restrictions came into force. It was a baptism of fire.

“I started on April 1 – April Fool’s Day – and lockdown started the week before. It wasn’t the most perfect start,” he says, speaking to Alert in his office at the appliance manufacturer’s UK HQ in Milton Keynes.

For the first few months in his new role, he was running the UK from Singapore due to travel restrictions – he was previously head of BSH’s Asia Pacific region and responsible for business in India, South East Asia, Australia and New Zealand.

“It took a while for me to physically come to the UK – I couldn’t get there until early September, so for five months I was in Singapore, running a second shift,” he says, adding: “It took me quite a while to get to know my team, my customers and my stakeholders face-toface – more than six months.”

Covid meant that BSH was hit by severe supply issues and stock shortages, caused by increased consumer demand, the closure of production sites and a shortage of components, including chipsets, semiconductors, and materials like steel and plastic.

We’re not doing anything disruptive when we’re directly accessing the consumer. From a pricing or stock perspective, we’re treating our direct-to-consumer channel the same as any other retail channel “ “

“Typically, what tends to happen is that either you are being squeezed by demand or you have a supply problem – since 2020, as an industry, we have been hit with a bit of everything,” says Mr Srivastava.

“That kind of demand surge wasn’t anticipated by the industry. Factories and facilities were also shut down during lockdown, which resulted in us not being able to cope with the demand surge that happened, and, before that could settle down, we ran into a shortage of chipsets and semiconductors, which further amplified the backorder situation.

“Some of the waiting lists were getting up to six months or more. It took time to fix it – at least six months. But now sell-in/ sell-out are more or less in tandem. It’s all calmed down – the current demand is the current sell-in.”

Sean Hannam: What’s your take on the major appliance market now? It’s quiet out there and quite tough, isn’t it?

Gunjan Srivastava: It’s been like that since the beginning of the year. Post-Covid, we had a bumper 2021 because people had stayed at home and were renovating and replacing their appliances as quickly as they wanted to.

Since 2022, we’ve seen a decline in the market and that’s continued into 2023 as well.

From an AMDEA perspective, we see the market down almost six percent by value year-to-date, and about 11-11.5 percent by volume.

The collective estimate is that the market will remain similar for the remaining months of the year and isn’t likely to bounce back until the second half of next year.

SH: Is BSH’s business in line with your expectations?

GS: We’re doing better than the market, so, from that perspective, we’re doing OK – our market share is slightly better than it was last year, however, we didn’t expect the market to decline as much as it did. What we plan to do is to hold on to our position in the market and to further consolidate.

SH: How does the UK compare with other markets you’ve been responsible for?

GS: Online penetration in the UK market is quite high – more than 50 percent for our industry, which is probably one of the highest in the world I’ve seen.

If I compare the UK with some of the markets in Asia – leaving aside the North Asian markets – it’s much more advanced and it’s been like that for the last five or 10 years.

When Covid hit, it resulted in the consumer journey getting disrupted – online moved up to 80-90 percent because offline wasn’t possible, but, after that, it stabilised again to 50 percent.

What’s interesting is that the consumer journey has moved – the usage of online and social media… Whether you’re buying offline or online, a lot of your journey is online.

From a channel perspective, I think the fact that there are still thousands of independent trade partners spread across the country is unique – both in the [electrical] retail side and on the kitchen side. They do a great job in combining the relationships [they have with their customers] with great service, and they also have a good online presence – they are improving their online abilities.

From our go-to market perspective, we have to make sure that we are where the consumers are – that makes it quite interesting.

SH: So, does that justify why BSH sells direct-to-consumers, while at the same time having a strong independent dealer network? It’s a balancing act, isn’t it? You need to be where the consumer is, but retailers get upset when brands sell direct…

GS: Exactly – our intention is not to be a retailer, but our entire goto-market approach is to be where the consumers are.

I went to an AMDEA meeting where I saw a recent YouGov study, which asked more than 10,000 consumers spread across the UK about where they purchase their white goods from.

Obviously, the majority of MDA purchases are bought offline still, but a good nine to 10 percent [of consumers] are buying them directly from the manufacturers. We need to be present there, otherwise we’d miss that part of the market completely. We aren’t the first ones opening up this route to market – I think we’re probably one of the last.

More importantly, we’re not doing anything disruptive when we’re directly accessing the consumer who is out there looking for an exclusive environment.

From a pricing or stock perspective, we’re treating our directto-consumer channel the same as any other retail channel we have. There is no favourable treatment.

SH: It’s about being transparent, isn’t it?

GS: Absolutely. We have been very transparent and will continue to do the same by proactively providing information to our retailers. There is a small percentage of consumers who want to buy direct from a manufacturer or in an exclusive environment. Having direct access also gives us more information and understanding.

SH: Data is key – it’s about getting that information on consumers…

GS: Absolutely, and that helps us to design our proposition much better. It not only helps our direct-to-consumer channel but also how we go-to-market overall – how we do business with our independents and key accounts. Everything improves because we get more insight.

SH: At this year’s Retra Conference, it was clear that more consumers are placing importance on sustainability and energy efficiency when they are buying home appliances…

GS: That message is cutting through because of what we’re doing as an industry, although we would hope to see more of it.

At a recent AMDEA meeting, we discussed how we could amplify that message even more – all the manufacturers will have their own individual messages, but it helps us an industry if we all amplify it.

One of the things I’ve noticed in the UK market is the awareness of sustainability – even in the last three years I’ve been here it’s gone up. More and more people are aware of energy efficiency and sustainability topics, and there is also a strong sense of brand loyalty in the UK – once they like a certain brand, they stick with it.

“ “

We have been very transparent and will continue to do the same by proactively providing information to our retailers

SH: Where do you see the opportunities for BSH to grow its business?

GS: We are looking at the replacement side – largely freestanding appliances. We have opportunities in cooling, where we have a strong ambition to further grow our market share and become the largest manufacturer in that segment.

We do see opportunities in the built-in side as well – we are very strong in cooking, but we believe there are opportunities in surface and ventilation, which we want to explore further.

In the replacement market and the kitchen planning market, we have scope to improve – not just in terms of our share. We’re also looking at how we become a more attractive and trustworthy brand for consumers, and from our trade customers’ perspective, we want to be even more attractive and easy to do business with.

SH: So, independent retailers are still a key part of your strategy?

GS: Absolutely they are. We continue to provide support in terms of training, promotions, relationships and service – all of that won’t slow down. In fact, it will strengthen and that is something that is absolutely at the core of our go-to-market approach. █

Siemens WG56B2A1GB washing machine

Cooking with confidence

Christmas is coming and the goose is getting fat, but what effect has the cost of living crisis had on the cooking market and what are consumers looking for when it comes to kitchen appliances?

Sean Hannam peers into the oven and takes a look...

Peak season is a crucial time of year for most Retra members, as cooking appliances are often flavour of the month in the run-up to Christmas, with customers look to upgrade their ovens and cookers to cope with the rigours of creating festive food for their families.

But with the UK in the grip of a cost of living crisis, what effect has the lack of cash in consumers’ pockets had on the cooking market?

“The cost of living crisis has affected both the built-in and freestanding categories. Raw materials, energy, and wages have all increased markedly, resulting in a series of necessary price increases from manufacturers” says Steve Dickson, head of marketing at Glen Dimplex Home Appliances (GDHA).

“Consumer confidence reached a 40-year low earlier this year but, while the outlook for the coming year is uncertain, there are signs that consumers are more willing to invest in major appliances.”

He adds: “With any economic crisis, consumer spending turns to needs rather than wants – therefore we see sales more focused on ‘distress purchases’ and replacements rather than upgrades.

“In this situation, the consumer is looking for reliable products, within their price point, that do the job and will last. Investing in a major purchase like a range cooker is a considered purchase, even in a strong economic climate. In tougher times, consumers will look to purchase a brand they can trust, and with features and benefits that actually benefit them.”

Soft

Over at Creda Home Appliances, which is a new Retra associate member, brand ambassador, Harriet Pavet-Golding, tells Alert:

We are cautiously optimistic about the cooking market for the festive season. We expect consumers to be very rational and careful, concentrating more on cost-efficient, lowenergy and easy-to-use models, rather than complex, high-energy use products

Harriet Pavet-Golding, brand ambassador for Creda Home Appliances

“In the first three quarters of the year, the market – both freestanding and built-in – has been soft, due to lockdowns ending and the base effect from 2022. We have seen double-digit decline in both freestanding and built-in, and volume going back to prepandemic levels in 2019.

Cooking Feature

“Increased interest rates have impacted on mortgage rates, which has further affected consumers’ disposable income.” She is, however, slightly more confident about what lies ahead, saying: “We do expect slightly a better market in Q4 and we are cautiously optimistic about the cooking market for the festive season.

“We expect consumers to be very rational and careful with their cooking buying habits, concentrating more on cost-efficient, lowenergy and easy to use models, rather than complex, high-energy use products.”

From

a colour point of view, we’ll see more matte black finishes, as these offer a sleek and modern edge, while embracing the trend for darker cabinetry and matt finishes in 2024

Tom

Hopper, kitchens manager at Miele GB

“Consumers still love flexibility and multiple cooking zones operating simultaneously, especially with Christmas approaching, so we will still see a demand for range cookers and double cookers.

“Wok burners will remain very popular for home chefs improving the home cooking experience and this will keep gas demand at a reasonable level.”

Ms Pavet-Golding adds: “The new build-market impact will be felt more in 2024, as housebuilders have slowed down starting new projects, as they are focused more on the completion of current work.”

Premium

At the premium end of the market, Italian brand Smeg says it’s doing OK.

“The cost of living crisis is continuing to have a large impact on the kitchen and appliance industry – we’ve noticed some of the mid-market has squeezed and purchasing has been delayed – but the trends for entry-price points and top-end appliances continue to be holding up,” says John Davies, Smeg UK’s head of marketing.

“At Smeg we understand that when investing in premium appliances, consumers are looking for added value – products offering solid build quality, a choice of programs and specifications, well-performing energy ratings and multi-functional features.”

Fellow top-end brand, the German, family-owned Miele, is also performing well, as Tom Hopper, kitchens manager at Miele GB, tells Alert: “There is no doubt that consumer confidence has been affected by the current climate. However, the premium end of the market for built-in and freestanding has performed strongly and we see this continuing.

“It ’s important as an appliance brand that we ensure consumers are aware of how our products will be the right choice for them at this time – whether that’s energy efficiency, water usage, performance or how Miele products will enhance their lives for many years to come.”

Tech trends

On key tech trends in cooking, GDHA’s Mr Dickson says induction range cookers are the only fuel sector still growing in value.

“When consumers reinvest in this category, they are looking for technology that is safer, smarter, faster and greener. Our Deluxe range cookers includes a world-first FreedomFlex true zoneless induction system. This allows consumers to place up to six pans, of any shape, anywhere on the hotplate, using only the energy required for each pan – delivering flexibility and efficiency.

He adds: “Alongside technical features, capacity is still top of the agenda for most families. Stoves is the only brand to offer four working ovens in their range cookers, even in their Deluxe 90cm models, so it maximises cooking capacity.”

When it comes to functionality, Miele’s Mr Hopper says consumers continue to prioritise multi-purpose appliances, such as combination ovens, which benefit from both steam and fan heat,

These help to save space and are ideal for those who love to experiment with a wide range of dishes, he explains.

On design and colour trends in the kitchen, he says: “From a colour point of view, we’ll see more matte black finishes, as these offer a sleek and modern edge while embracing the trend for darker cabinetry and matt finishes in 2024.”

Design

Smeg’s Mr Davies says: “Darker, earthy tones have become an increasingly popular trend in the design market this autumn/winter, and models like Smeg’s Classic matte black built-in appliances and the launch of matte black range cookers are a good example of this trend.”

At German appliance giant, BSH, John McLauchlan, head of business unit - cooking, also has some insights on design trends.

He tells Alert: “In recent years, there has been a significant shift in what consumers like when it comes to the look of their oven.

“Specifically, there has been a clear trend towards black models rather than stainless steel. This is possibly because black is a neutral colour that blends well with any kitchen decor.

He adds: “As a response to this shift, we made the strategic decision to introduce graphite grey versions of our Neff ovens.

“This was done to not only meet the evolving preferences of our customers but also to provide them with a wider range of options to choose from.

Touch control

“Touch control and electronic displays are also in high demand, although there is a slight generational divide in preferences.

“Younger people generally prefer touch control, while older individuals may still prefer traditional control dials. However, it is important for us to prioritise the future and embrace electronic control and touch control as the direction we are heading.”

Mr McLauchlan also highlights the continuing trend for healthy eating and more efficient cooking methods, saying: “As a result, steam ovens are becoming a must-have appliance in modern kitchens, and for good reason. Unlike traditional ovens that rely on dry heat, steam ovens use moisture to cook food. This results in healthier meals as the moisture helps to retain the natural vitamins, minerals, and nutrients present in the food. Additionally, steam cooking helps to preserve the flavours of the ingredients, resulting in tastier dishes.”

Creda C90CHX chimney cooker hood
Smeg PX375LMB matte black hob

Connected kitchen

So, consumers are embracing tech such as steam cooking and induction, but what about more recent innovations like connected kitchen appliances? These products often steal the show at trade fairs like IFA but are people getting behind them, or are they putting them on the back burner?

“Consumers are now accustomed to household features being smart-enabled. Using an app or voice command is increasingly becoming the new normal,” says Miele’s Mr Hopper.

“Smart homes benefit consumers by giving them ease of control over their appliances anytime, anywhere, so cooks can monitor food from another location, and even turn the oven off from outside the house.”

However, Creda’s Ms Pavet-Golding thinks connected cooking appliances have been something of a slow burn, telling Alert: “Connected use has been slower than expected in the cooking category, however consumers are becoming more aware of its benefits, like monitoring and controlling cooking processes remotely and remote diagnosis if there is a fault.”

She adds: “Manufacturers are continuously adding more apps to their software. Recipe guides that choose the correct program, temperature and duration for your chosen dish and use the exact amount of energy will be a key benefit for connected ovens.

“We do expect connected models to be more mainstream once service and diagnostic solutions are made more available in the market, but this will take time – until the late 2020s.”

Sustainability

Sustainability is a key marketing message in the appliance industry and GDHA’s Mr Dickson thinks it will remain so for the foreseeable future.

He tells Alert: “Sustainability will drive manufacturers’ new product strategies in the next few years. We are now used to seeing the sustainability message across several MDA categories but it will gather pace as consumers become more aware of the benefits of buying reliable and sustainable products.”

Mr Dickson adds: “Repairability is another area where we will see improvements, as consumers readopt the “make do and mend” attitude from the middle of the last century.”

We may not have a white Christmas this year, but kitchen appliance manufacturers are doing their best to ensure we have a green one.

We enjoy working with retail partners on their own marketing plans’

GDHA’s head of marketing, Steve Dickson, on the support it can offer retailers when it comes to selling cooking appliances.

Training and understanding the products is hugely important for retailers in order to support consumers in choosing the right product for them.

Most manufacturers, including ourselves, have in-house trainers who retailers can take advantage of to get first-hand experience of the products.

At Glen Dimplex, we also have a fully-equipped showroom where retailers can come and experience the products for themselves.

We also enjoy working with retail partners on their own marketing plans to support them and ensure our brand is included in any activity – providing photography, videos and written content to support them with web and above-the line activity.

Retailers also need to make the most of the bespoke in-store POS that is on offer from manufacturers like ourselves, which draws attention to our products, highlights key features and enhances the showroom floor.

We currently have POS offerings on the Belling ComfortCook collection as well as the new Stoves DX.

Each element has been specifically designed to help the consumer not only learn about the product they are looking at but all the other options within that collection, presenting the retailer with a route to up-sell.

Bosch Series 8 HMG7764B1B built-in oven with microwave function

caution Christmas Ahead

Consumers will be spending less money on Christmas overall this year and making more considered purchases, due to the cost of living crisis. Sean Hannam unwraps the latest trends and looks inside.

UK consumers are expected to buy fewer and cheaper items this Christmas – especially online – as the cost of living crisis forces many to rein in their festive spending.

In a report by The Guardian, Nick Gladding, lead retail analyst at GlobalData, said: “Sharply higher prices mean shoppers will spend less in real terms than last year, choosing either to trade down or trim the number of presents they buy.

“Last year sales growth was supported by shoppers spending savings built up during the lockdown. But with those savings now depleted by cost of living increases and mortgage rate hikes, consumers are likely to shop more cautiously and more savvily.”

This view is echoed by Salah Sun, head of product at Beko UK and Ireland, who tells Alert: “The GfK Consumer Confidence indicator in the UK hit -25 in August this year, demonstrating that consumers are spending more cautiously due to the cost-ofliving crisis.

“At Beko, we expect that this might be reflected in our sales during the festive period, as consumers will be spending less money on Christmas overall. However, our range of high-quality, affordable products that are equipped with cutting-edge technology offer consumers added value.”

BSH is confident for the festive period – Steve Green, director of small electricals, says: “We anticipate a strong peak season, as the replacement market has remained robust for essential products.

“However, non-essential purchases have been affected, as consumers are now taking more time to consider them due to the increased cost of living.

“This has led to some people deciding to delay their purchase.

“Nevertheless, I believe that Christmas trading will be similar to previous years, as individuals still desire to indulge themselves and others.”

Wellbeing

So, what will be on shoppers’ Christmas lists this year? Miele’s kitchens manager, Tom Hopper, has some ideas: “Consumers are looking to purchase timesaving products that increase comfort and wellbeing at home.

“Household SDA items like luxurious coffee machines for an at-home barista experience make excellent gifts for those who love coffee. These types of gifts also help the receiver save money in the long run - no more trips to the local café required.

“December is also a strong month for dishwasher sales, as consumers look to prepare for a busy month of entertaining.”

The new Siemens TQ907GB3 fully automatic coffee machine

Haier is hoping its first SDA products will be a big hit this Christmas – a spokesperson tells Alert: “Haier’s entry into the small domestic appliance market has brought a new level of efficiency and usability to small household appliances. They are stylish and slick-looking and offer a new level of functionality.”

With Haier ’s new toaster, you can check the toasting progress without having to cancel the appliance. It also has a full LED touch panel, cord storage and an anti-dust lid.

The brand’s new kettle has an internal gauge, meaning users can enjoy up to 40 percent savings on the energy they use by boiling only what they need - you can boil enough for a single cup at 0.25L. The maximum you can boil is seven cups or 1.7L.

Smeg UK’s marketing director, John Davies, says his brand has plenty to offer consumers this Christmas: “There are many areas of the Smeg portfolio which electrical retailers can look to from a Christmas gifting point of view, whether a foodie coffee fan, or that tricky person who has it all.

“Foodie-wise – for bakers, of course, a Smeg stand or hand mixer would be a top gift, along with cookware, all highly rated and available in a choice of colours.

“For those into fitness and healthy living, there’s even an array of blenders and juicers to choose from. For those into coffee take your pick – from pod to bean to cup, espresso to milk frother, to our newest coffee machine that does it all for the avid barista – our EGF03 espresso coffee machine.”

Robot

After all that unwrapping of presents and festive food preparation, there’s always a lot of cleaning up to do – so why not let a robot vacuum cleaner take care of it?

“One of the big product trends for Christmas 2023 is gifting small domestic appliances, such as robot vacuum cleaners - a great time-saving gift for those with busy lives, have pets, or elder members of the family who need assistance with chores,” says Beko’s Mr Sun.

There are many areas of the Smeg portfolio which electrical retailers can look to from a Christmas gifting point of view, whether a foodie coffee fan, or that tricky person who has it all

John Davies, Smeg UK marketing director

The Beko robot vacuum cleaner has an added mop attachment feature, which means the appliance can sweep and mop hard floors simultaneously – it’s a traditional Christmas gift but with a twist, making a house look smart and modern.”

Air fryers will be another popular choice this Christmas, says Mr Sun: “They are ideal for any household size, time efficient and help keep energy bills down. A nifty kitchen appliance that is compact and requires a smaller space to clean up after, Beko’s ExpertFry

Dual Zone air fryer boasts nine cooking functions, which allows consumers to be versatile with their meals.

And after all that cooking and cleaning, your customers will definitely need a coffee… “Bean-to-cup coffee machines have always been a popular Christmas gifting trend and can add a statement piece to any consumer’s kitchen,” says Mr Sun.

“It helps consumers save time and money on buying shopbought coffees, especially as many Brits are affected by the cost-ofliving crisis. Beko’s CaffeExperto bean-to-cup coffee machine has a dual nozzle that allows consumers to make two cups of coffee simultaneously, alongside a built-in 19 bar pressure to achieve a full-bodied, rich shot of espresso.”

Multiple uses

BSH’s Mr Green tells Alert: “There is a growing interest in products that provide multiple uses for users.

“Food preparation items, in particular, are in high demand, and consumers expect their kitchen appliances to offer two, three, or more functions.

“For instance, a kitchen machine with built-in scales not only provides added precision, but models that allow for interchangeable attachments to blend, whisk, chop, and mix also save consumers time, counter space, and money by eliminating the need to buy separate appliances for each function.”

He adds: “Another product design trend that we’re noticing is the use of bolder colours. As people delay full kitchen renovations, they are turning to smaller appliances that can give their kitchen a fresh look and feel.

“Traditionally, these appliances have offered fairly neutral colour options. However, I believe that products available in a range of bolder colours like red, blue, and pink will be popular choices next year.”

Mr Green also highlights the growing trend for connectivity in the kitchen: “It’s safe to say that technology will continue to grow in interest among consumers. Connected appliances are becoming increasingly popular, as more consumers recognise the significant benefits of owning smart appliances and how they can make their lives easier.

“Our Siemens EQ900 coffee machines are a prime example of this. With Home Connect capabilities, you can operate the machine using voice commands or remotely via a smartphone or tablet. These features make it incredibly convenient to preheat your coffee machine on your way home, enjoy barista-style coffees from the comfort of your kitchen, and explore a variety of coffees from around the world using the coffeeWorld feature in the Home Connect app.”

Christmas is a great time for Retra members to make the most of in-store product displays and retail theatre (see page 39).

Miele’s Mr Hopper has some parting advice: “Being able to show consumers and demonstrate the products before a purchase is one of the key benefits of selling in-store. This also means there is less reliance on online delivery which can become more difficult as Christmas gets closer. It’s a great time of year to take advantage of being independent, local, and having stock that customers can take away that same day.”

Haier small appliance range
Smeg PBF01 Personal Blender
Sustainability will continue to be a large consideration for consumers in 2024’
We ask Sony UK marketing director, Jonathan Wild, to tell us the big CE tech trends for this Christmas and next year.

Alert: As we approach the festive season, what are the big product trends in CE and what should independent electrical retailers be stocking and selling this Christmas?

Jonathan Wild: We have seen some interesting consumer trends emerge throughout 2023, across multiple product categories, which will be particularly pertinent for retailers with Christmas just around the corner.

The first clear trend that we are seeing is that homeowners are looking to create a more at-home cinema experience largely because streaming platforms, such as Netflix, are increasingly showing exclusive streaming-made movies for subscription holders to watch from the comfort of their own homes.

Sony’s suite of Bravia TVs are the ideal companions to help create a cinema-like atmosphere in your own home. The new Bravia A95L is the latest in Sony’s flagship range of OLED TVs and is powered by the hugely powerful Cognitive Processor XR.

The A95L TV offers the widest and definitive contrast, excellent for films, streaming apps, and games. The QD-OLED screen boasts the widest-ever palette of shades and hues, pure OLED black, and outstanding brightness, which make this TV perfect for the ultimate movie-theatre experience.

To boost this set-up even further, Sony’s HT-3000 soundbar provides authentic surround sound to any living room. With a centre speaker for clear dialogue, and a built-in subwoofer, listeners can immerse themselves in blockbusters with multidimensional sound.

We’re also seeing that consumers are becoming increasingly interested in brand and talent partnerships, which have an undeniable impact on sales, because consumers then recognise products in-store.

Music partnerships can strengthen brand direction and association, as well as provide meaningful support to the artist. In July 2023, Sony announced its ‘For the Music’ campaign in collaboration with US singer-songwriter Miguel for the release of the WF-1000XM5 noise-cancelling headphones, which offer premium sound quality. Their specially designed dynamic driver enables a deeper bass, which produces a smooth and natural sound, making them the perfect product for musicians to use and support.

Especially towards the Christmas season, we always see an increase in appetite for portable speakers. With sound technology advancing year-on year, consumers can now purchase speakers that have premium sound quality that can be

moved around, without a high-price tag.

The SRS-XG100 speaker is the perfect speaker option for office Christmas parties or for at-home celebrations. The newly developed X-Balanced Speaker Unit in the XG100 provides powerful sound in a portable, durable body. With technology to enhance music and filled with usability features, this is the perfect device to blast your soundtrack to Christmas.

Alert: What are the big product trends – styles, design and tech – going to be for 2024?

JW: We’re seeing that consumers are leaning further towards feature-packed products that combine versatility, portability and innovation. Sony is aiming to develop its products with this in mind, ensuring that a focus is put on creating devices that incorporate all of these factors.

The newly-launched HT-AX7 from Sony also introduces portability to the home cinema world. Using 360 Spatial Sound Mapping, the speaker has been developed to envelop listeners in spatial sound by creating multiple phantom speakers, so that they feel completely immersed. It’s lightweight design and portability mean that it can be placed anywhere around the home for crystal clear listening and room-filling sound.

Sustainability will continue to be a large consideration for consumers when purchasing devices in 2024. In 2010, Sony announced ‘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.

To achieve this, Sony is taking action by setting mediumterm environmental targets in stages, aiming to completely eliminate plastic packaging materials for newly designed small products by 2025 and working to reduce the amount of virgin plastic used inside the main unit of our devices.

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. SORPLAS is used across Sony consumer electronic products, providing solid durability and a good surface appearance.

Currently, the material is used in Bravia TVs, Xperia smartphones, vlogging cameras, including the ZV-1F and ZV-1, and digital cameras like the A7RV. █

Sony A95L Bravia XR 4K OLED TV
Sony XB100 portable wireless speaker

Deck the halls with boughs of lolly

How can you add some sparkle to peak season sales?

Richard Stevenson, managing director of Quick Brown Fox PR, has some top tips on getting your shop and your social media strategy fit for the festive period.

Ho, ho, ho, high street heroes! Christmas is just around the corner, the goose is getting nervous and it’s time to fully charge your marketing plans to electrify your sales across this festive season.

The Christmas consumer is the least fickle of all shoppers, oft filled with good cheer and/or mulled wine and coming into the store with the express intention of ticking off some of their Christmas present conundrums.

Riper than Brie from that hamper that arrived back in September, these consumers offer the year’s best chance for impulse, up-sell and down-right frivolous sales.

First impressions matter at this time of year. Transform your store with festive decorations, giving a warm and inviting feel.

Consider window displays featuring best-selling electrical goods adorned with twinkling fairy lights or wrapped in festive bows, or step it up to full festive theme window displays – a trick that has worked for Hamleys in London for well over two centuries.

Themed window displays and in-store décor attract customers, set the right ambience for gift purchasing, and help to get staff in the right mindset for cheery Christmas sales.

Don’t underestimate the extra energy and enthusiasm staff will need to deliver the extra turnover during this period.

Not every member of staff is happy dressing up as an elf and smiling inanely at customers’ screaming kids for 10-hour days, sixdays a week, while fielding an infinite number of questions about the chances of delivery and installation before Christmas. (Yes, that was me back in the day… bah humbug).

As the store’s most valuable asset, arguably the people you need to keep happiest in December are your staff - and that means bonuses, incentives, treats and staff events to ensure they are fully engaged with festive sales activities throughout.

Demonstrations

Taking the festive theme a stage further, there is no better time of the year for in-store events and demonstrations, complete with seasonal snacks or drinks, and a gift wrap service if you can afford the manpower and sticky tape. Gift-buying evenings, ‘top tech for the family’ days or demonstrations leveraging festive recipes using premium products in the booming SDA market are sure-fire winners, doubly so if backed up with a mince pie and a festive tipple.

While events have always been a winning formula across retail in the silly season, today’s time-pressed shoppers are looking to complete as much gift idea generation and purchasing as possible at a single destination.

The obvious solution is Amazon, so to attract customers and get them to buy with you not online, creating the right ambience, specialist events and adding nice touches that cannot be replicated online has never been more important.

There is very little point in going to town with festive décor, elf uniforms and shares in Mr Kipling if you are only going to attract passers-by.

Enhancing your online presence with the same level of festive fun, advertising your events and promotions across social channels well in advance, and ensuring your existing customers know what’s going on through email marketing campaigns or loyalty programs are vital to increasing traffic in-store.

Exiting customer-specific promotions and dedicated evenings make those customers feel special, and let’s not underestimate the power of guilting customers into a purchase when they are feeling all warm and fuzzy from a bellyful of your shortbread.

Shifting

The shifting tides of social media mean keeping your posts spread far and wide.

The days when Facebook was king have long gone, with Instagram and TikTok creating far more engagement with customers across almost all buyer demographics.

Film a product demo or in-store clip on a smartphone, make it fun, edit it down to under 20 seconds with any number of free apps, and it’s good to post.

From staff building widow displays to the boss trying on that elf uniform, it’s all good content for TikTok.

As Luke Gammon of Wades noted at this year’s Retra Conference, he did a short air fryer demo on TikTok and immediately sold 70 units via the store’s e-commerce platform. Powerful stuff.

Not every member of staff is happy dressing up as an elf and smiling inanely at customers’ screaming kids for 10-hour days, six-days a week, while fielding an infinite number of questions about the chances of delivery and installation before Christmas

Pivotal

The Christmas season remains a pivotal time for retailers, particularly on the high street, and keeping your marketing, décor, staff and events on point during this period is vital to make the most of the period.

By creating a seamless integration of festive in-store experiences, incentivised staff engagements, and robust online strategies, it remains eminently possible to boost Christmas sales and lay the foundation for an enlarged loyal customer base year-round.

Embrace the festive spirit - mulled wine included! Wishing you a prosperous and successful Christmas.

Digital Marketing

High Volume

The market for headphones continues to sit at the top of the sales charts, but are we heading for a difficult second decade, and can Richard Stevenson find any new puns?

Headphone sales have been frankly astounding over the past decade, with the market regularly topping a whopping 10 milion units and average price points continually rising up the charts.

The lockdown era boosted sales further, thanks to people working and living at home, trying to zone out the rest of the household.

Post-Covid, the market is levelling out. Pulled-forward sales are biting home, many people have returned to work, and the economic climate for discretionary spending has forced many households into cost-cutting measures Ebeneezer Scrooge would have been proud of.

High

It’s far from canned doom and gloom, though, as volumes remain high, average value continues north, and a growing number of ultra-premium models are finding favour with more affluent buyers looking for the next must-have gadgets after the Tesla Model S Plaid has been delivered.

In terms of movers and shakers, True Wireless continues its inexorable march to category domination, having found favour with pretty much anyone with ears

The premium end of the market is those buyers not simply prepared to read a review and click to buy, arguably offering independents with demonstration facilities an edge in the sector.

Our long-term man on the inside at GfK, Nick Simon, client director, market intelligence, paints a fairly loud picture given the economic backdrop.

He tells Alert: “It has not been a bad year for headphones and stereo mobile beadsets, but unit sales that have regularly exceeded 10 million units a year look set to drop just below that all-important landmark in 2023.

“Fortunately, good news at the higher end of the price spectrum keeps market turnover edging upwards to where it should comfortably clear £700 million in 2023.”

True Wireless

In terms of movers and shakers, True Wireless continues its inexorable march to category domination, having found favour with pretty much anyone with ears.

Having lost two sets of premium True Wireless headphones myself in 2023, I am personally convinced that a significant chunk of this market is replacement purchases from absent-minded or clumsy people who have accidentally left these bijou devices on trains, planes and in public spaces.

Mr Simon argues a more logical case for the growth of True Wireless: “More brands and models have come to this market over the past couple of years, and at the same time, the most obvious positive effect in this sector comes from the ever-increasing incidence of True Wireless models incorporating Active Noise Cancellation (ANC) technology.”

Innovation

While genuine innovation has been a little sparse in the True Wireless sector since ANC emerged in the category, a number of brands have been talking about wi-fi-enabled True Wireless headphones. Theoretically, these devices would offer a much longer range from the source transmission device or a router/AP and higher bandwidth for higher-resolution audio codecs.

They could also provide direct connectivity with any number of streaming services and direct voice integration without the need for a separate smart device.

January’s CES is rumoured to see several wi-fi True Wireless launches.

Larger-sized wireless (Bluetooth) headband models, more in tune with the audiophile buyer, thanks mainly to their larger drivers, continue to do well in solid sales numbers and ever-increasing average price points.

The days when £200 bought you a serious, premium set of audiophile headphones have long gone, and £200 is now seen as entry-level for serious music aficionados, with the £200-£500 sector doing very well.

“It is certainly good news for Bluetooth headband models,” says Mr Simon.

“The ever-popular upper echelons of price classes are doing

very well, and the sector overall is now worth nearly 30 percent of total headphone market turnover.”

Sales of £250 units are not uncommon for specialist retailers, with models up to £999 making significant sounds in the headphone market mix.

Buoyant

Whether the market will remain buoyant in terms of average price points throughout 2024 is less clear.

In addition to continued high inflation, political turmoil and potentially a general election (legally due by January 2025), the wars in both Europe and the Middle East and ever-chillier relations with the global manufacturer that is China, consumers are far from filled with “spendy” confidence.

Yet the drive for ever more eco-friendly products and brands, and new technologies could well keep the tills ringing.

As Mr Simon argues, the market is in such good shape at 10 million units and £700m value, even flatlining would not be a disaster.

“At the moment, 2023 is looking stable at best compared with last year and it may well be that 2024 comes in with similar values rather than exhibiting any dramatic growth.”

Spatial Audio

Surround sound, something of an old chestnut in audio that dances with consumer favour like the weather, may also be making yet another comeback.

Spatial Audio, using codecs like Dolby Atmos, Sony’s 360 Reality or Apple Spatial Audio, are driving a large sector of the headphone market thanks to widespread adoption by some streaming services (Tidal and Apple Music in particular) and the gaming industry. This premium sound feature is keeping prices healthy too.

“We have been tracking this sector for a while,” says Mr Simon “and I can reveal that Spatial Audio enabled headphones are already hitting one-third of total turnover. They have doubled in value in the 12 twelve months compared with their 2021/2022 equivalent.”

We can safely say that the weather is set to be fair for surround sound headphones in 2024, although don’t call them that, as you will sound like an old fogey. It’s now ‘Spatial Audio.’

Small, easily posted high-value items driven by internet-based reviews and media will never be a key category for the high street, so independents’ share of that £700m overall remains small.

Christmas will provide an avenue for lower-priced models for impulse gift purchases, but premium headphones (£200+) that customers would like to hear before they buy still have real business value.

For further information please contact:

Richard Stevenson

Consultant Editor Retra Alert richard@rspr.co.uk 07974 926157 www.retra.co.uk

Yet, with most of the most prominent name players in headphones moving to Direct-To-Consumer (DTC), mass retail and Amazon, getting an account and stock, let alone demo samples, can be a challenge for smaller retailers.

Trade-up

Sadly, we are not likely to see multiple manufacturers supporting POS displays like Laskys’s headphone wall back in the day, but it did encourage trade-up. I know – I went in for a well-reviewed Sennheiser model, and came out with some ludicrously large Jecklin Float electrostatics.

Thankfully, there are some solid Retra associate manufacturers who will still work with independents, including Sony, Yamaha and Vivanco – all with solid offerings across various price points.

If you can find suppliers that will deal with you, polarise your range into commodity/impulse and premium, and offer demo facilities, there is still a healthy slice of the headphone market to be had.

It’s all about the add-ons…

AV accessories are great for incremental sales – don’t forget them.

The accessories market continues to push cash through high street tills, either as addons to main TV/audio sales or a ‘popping in because I just need a…’ purchase.

Cables, cleaning, stands and brackets will never support your business, but they do add some increment to the bottom line.

“TV mounts account for more than 80 percent of TV furniture that also includes stands,” says Gfk’s Nick Simon, client director, market intelligence.

“These were very popular products among those who were adding to home comforts during lockdown but became less popular post-pandemic. They dropped from around one and a half million to little more than one million units when comparing 2023 with 2021, while market turnover dropped from just under £50 million to just over £40 million in the same time frame.”

Having good stock and variety is vital to capture some of that revenue, particularly in TV brackets.

Although with eight different types (fixed, tilt, swivel, fullmotion, corner, ceiling, motorised and recessed) and multiple screen sizes to cater for, that isn’t always possible. Your best bet is to have a supplier with a healthy catalogue of models and fast delivery. █

Sony WF-1000XM5 wireless noise-cancelling headphones

Stay ahead of the curve

Louise Grantham, chief executive of REPIC, outlines some of the forthcoming changes to the WEEE Distributor Take Back Scheme (DTS) and waste exemption requirements that could affect retailers.

In the ever-evolving landscape of the electrical industry, it is imperative for independent retailers to stay ahead of the curve. Two key regulatory matters that demand attention currently are around the WEEE Distributor Take Back Scheme (DTS) and changes to the waste exemptions regime.

As of December 31 2023, phase six of the Distributor Take Back Scheme ends.

The current DTS operator has submitted a proposal to Defra to obtain approval for a new phase seven, which would run from January 1 2024 to December 31 2026. Defra requested industry feedback on this proposal.

The DTS Journey So Far

The DTS has been operating since 2007. It is the only scheme which allows some retailers an alternative to providing free of charge take back of waste electricals on a like-for-like basis when a consumer buys a new electrical product.

Retailers who sell less than £100,000 of new electricals per year or only sell online can opt to pay a fee to the DTS that releases them from this take back obligation.

The money raised goes towards supporting the recycling centres run by local authorities.

If your business sells £100,000 or more of new electricals per year and has physical stores, you have not been able to use the DTS since December 2020.

Instead, under the UK WEEE Regulations, you need to take back WEEE in store on a like-for-like basis or set up an alternative free take back service.

Distributors who supply new electricals from retail premises where the sales area relating to electricals exceeds 400 square metres must also provide facilities to collect very small WEEE free of charge, regardless of whether similar new electricals are purchased.

What could change?

The DTS is reviewed regularly by Defra to ensure it keeps pace with changing circumstances. The key changes proposed for phase seven include providing options for retailers who are above the £100,000 per year electrical sales threshold and have physical stores to join the DTS on a store by store basis if every store sells less than £100,000 electricals per year, and, to take a voluntary membership in relation to their online sales (takeback must still be offered in any physical stores).

It is also proposed that retailers selling vapes in physical stores will only be able to opt out of in store takeback if their total electrical sales are below £100,000 per year and their vapes

turnover is less than £50,000 per year.

Defra’s consultation closed on November 1 2023 and we await its decision.

Waste exemptions are changing

Spring 2024 will bring about changes to the waste exemptions regime, with new fees expected to be brought in by the Environment Agency.

The changes will affect everyone who operates waste exemption activities. Some exemptions are being removed entirely, but most exemptions, including S1 and S2, which covers the storing of waste in secure containers and in a secure place respectively, will have changes to conditions.

If your business is a current exemption holder, you must work out what these changes mean for you and act accordingly.

What is a waste exemption?

The changes will impact operators who currently register waste exemptions, which allow low-risk waste management operations to be carried on without an environmental permit.

Operators need to register their waste exemptions. The T11 is the waste electrical and electronic equipment (WEEE) exemption which you will be most familiar with. By registering an exemption, the operator is confirming that they will comply with the limits and conditions of that exemption.

Why are waste exemptions changing?

The changes, including introducing an annual application fee for all exemptions (T11 has always had an annual application fee), are designed to raise standards and support legitimate businesses, whilst stopping poor performance and crime in the waste sector. The changes specifically target the 10 most abused waste exemptions.

Preparation is key

The Environment Agency is currently writing to all waste exemption holders in preparation for the changes to check if all current exemptions are required.

If your business still needs its current exemption(s), you can continue to operate under the exemption(s) conditions until the end of the transition period. On the translation date you must check the new criteria and either, comply with the new exemption conditions, complete a new environmental permit or completely stop your activities.

Knowledge sharing

Further advice is available from the Government website, with preapplication advice to help you understand the type of permit you may need and the relevant application fee.

The Environment Agency is also available via its National Customer Contact Centre at enquiries@environment-agency.gov.uk or by telephone on 03708 506 506.

Staying ahead

The potential changes to the DTS and waste exemption requirements present both challenges and opportunities for independent electrical retailers.

REPIC will be happy to provide Retra members with a fact sheet on the criteria changes within each waste exemption relevant to WEEE when the changes come into effect.

Access all areas

Neff believes it’s possible to create useable and inclusive accessible kitchen designs for people of all abilities. Sue Flowers, the brand’s group marketing manager, explains how the latest appliance innovations can help.

People with disabilities often face specific challenges in their daily lives, such as mobility issues, sensory impairments or cognitive limitations.

In addition, everyday tasks such as preparing and cooking a meal can significantly add to those challenges, particularly when the kitchen isn’t designed to be accessible for all users.

Fortunately, thanks to increasing awareness and clever technology, there are ways to overcome some of these obstacles and make mealtimes more of a pleasure than a chore.

Neff’s cooking appliances can help make a kitchen more accessible.

According to Scope, there are 16 million disabled people in the UK. By offering specialised products and services specifically designed to cater to their unique requirements, retailers can not only address the needs of this significant portion of the population but also tap into an underserved market

Sue Flowers, Neff group marketing manager

Slide&Hide

It’s over 20 years since Neff launched the Slide&Hide oven and although it wasn’t designed with accessibility in mind, it is the perfect appliance for wheelchair users.

The unique slide-under door retracts completely, giving full access to the cavity without having to lean over or around a door, and reducing the risk of accidental burning as well.

Additionally, the ovens can come equipped with Neff Comfort Flex shelves, which are designed to pull out fully without tipping, allowing users to check on dishes without the risk of spilling hot food.

The door also opens and closes softly and quietly with its selfregulating damping system, a benefit for those who struggle with excessive noise.

Another significant advantage of Neff ovens is their touch controls, which can be easier to operate for people with limited dexterity or hand strength. However, this is not always the case, which is why Neff’s N 50 range of ovens feature dial control.

Safer hob cooking

Induction hobs offer a safer cooking experience when compared to traditional gas or electric cooktops.

The absence of open flames reduces the risk of accidental fires and burns. Plus, induction hobs only heat the cookware and its contents, rather than the surface itself. As a result, even if someone accidentally touches the hob, the likelihood of getting burned is reduced. This enhanced safety feature is especially important for individuals with limited mobility or sensory impairments, as it helps minimise the risk of accidents and injuries in the kitchen.

Taking hob control to the next level is Neff’s magnetic Twist Pad. Users can easily activate a cooking zone by touching the Twist Pad and then rotating the button to select the desired temperature level.

The other key advantage of the Twist Pad is that it can be removed from the surface of the hob. This is particularly useful for caregivers who want to prevent the hob from being turned on when they are not present.

Get smart

Much of the Neff range now features Home Connect smart technology, which can be a real help in the accessible kitchen. It allows users to control appliances using their voice via Amazon Alexa or Google Assistant, as well as via the Home Connect app on a phone or tablet.

This means that tasks that were once challenging or impossible to perform can now be accomplished more easily.

For example, someone with limited mobility can use a smartphone app to turn on a wi-fi-enabled oven, adjust the temperature and notify them when the food is ready.

They can also use the Home Connect app to get inspiration for their next dish. This level of control and automation empowers disabled people to live more independently and with greater autonomy.

Home Connect also enables a wi-fi-enabled hob and hood to communicate with each other. It’s possible to set up the hood to switch on automatically when the connected hob is turned on, so it’s ready even before cooking starts. Furthermore, the hood will automatically regulate the fan level based on cooking conditions, keeping the air in the room clear.

The retailer’s role

According to Scope, there are 16 million disabled people in the UK alone. By offering specialised products and services specifically designed to cater to their unique requirements, retailers can not only address the needs of this significant portion of the population but also tap into an underserved market. This is a chance for retailers to not only make a positive impact on the lives of people with disabilities but also to grow their businesses.

Furthermore, by demonstrating an understanding of the challenges and barriers faced by disabled people and actively addressing them, retailers can build long-lasting customer relationships based on trust and empathy.

By creating an inclusive and welcoming environment, retailers can foster a sense of belonging and make individuals with disabilities feel valued and respected.

Neff N 90 B58VT68H0B built-in oven with added steam and Slide&Hide door
Neff Home Connect app

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