We look at the opportunities for Retra members as part of Bira
INSIDE THIS ISSUE:
● The Road To Net Zero – AMDEA boss Paul Hide on selling sustainability
● Digital Marketing – Turning up the heat on the summer of sport
● What’s Hot In TV – Richard Stevenson puts us in the picture
● Built-In and Kitchens Feature – Experts give us their top trends
We
We
For further information please contact:
Howard Saycell Chief Executive Retra howard.saycell@retra.co.uk 01234 269110 www.retra.co.uk
In his final column, Howard Saycell reflects on more than 80 years of Retra but remains optimistic for the future of indies in our industry.
This will be my last foreword as CEO of Retra. While it is a sad day, I do believe that the future is bright for the independent electrical retail sector and our membership.
The dreaded ‘R-word’, which everyone feared – recession - has come to fruition, although the pundits think it will be short-lived and shallow.
In our industry, the numbers have not been good for some time, so the recession is not a big surprise.
It ’s not all doom and gloom, though, as tax receipts in January hit a record high. This will give the Chancellor some additional wriggle room in the Budget. It is very likely that there will be some tax cuts and attempts to stimulate the economy.
Even though the market is tough, many members tell me that they are still doing remarkably good numbers.
The suspicion is that several of the ‘big boys’ are suffering the most – the recent potential takeover bid for Currys has not been driven by its good numbers… It will be interesting to see how that plays out soon.
Memories
Forgive me for indulging myself with some memories in this last article. My association with Retra started back in the 1980s, when I was employed by Sony and we used to send a big delegation to the annual Retra Conference.
I go back as far as the days when the conference was always held in Torquay.
The event started on the Sunday evening with a welcome dinner, followed by two full days of presentations and a gala dinner on the final Tuesday night.
We were in an analogue world then and the big brands were the likes of Hitachi, Pye/Philips, Panasonic, Hotpoint, and Sony.
All of those were regular sponsors and there was great camaraderie between both the retailers and the brands. Brands such as Apple and Samsung were in their infancy and had yet to take such dominant shares.
When the conference moved from Torquay, there were different venues each year, with locations like Portugal, France, Ireland, and the Channel Islands.
In recent years, we moved the conference much closer to home, with events in London and Coventry.
Although they were in the main one-day events, we did host a couple of evenings – the first was to celebrate Retra’s 80th birthday in 2022.
Retra also used to host Study Tours, which were sponsored by some of the major brands and involved travel to places such as Japan, Hong Kong, New Zealand, and Australia. Those were the days…
I joined Retra in 2012. At the time, there was a total of 16 people working across Retra and RIS, which later become Retracare. With modern technology, that number of staff is now four.
We had a large head office in Bedford, but with the reduction in staff, this was closed in 2019 and sold.
Retra has operated since then as a ‘virtual business’, with everyone working from home.
The organisation is well-placed to transfer operations to Bira (member services) and Pacifica (warranties).
I am very confident that Andrew Goodacre and his team at Bira will deliver the levels of service that Retra members have enjoyed –and add some new ones.
Neil Martin at Pacifica is committed to delivering growth for Retracare and will be adding new opportunities for members to sell policies and make money.
Novuna will also continue to offer in-store and online finance.
The Retra board was keen to ensure that even though the association may be closing, the membership is left in the best possible place, with no loss of services.
It would be wrong of me not to say some thank-yous at this stage. Sorry if I inadvertently leave anyone out.
Firstly, I want to thank the current staff: Pat, Matt, and Louise. All have been very supportive, and, in particular, I want to thank Pat. I always refer to her as the engine room of the association. She’s the one that has organised the conferences, managed the finances, sorted out the membership renewals, paid all the suppliers etc.
I also want to thank some key players: Alert editor, Sean Hannam, in my opinion the best journalist in the industry; Paul Laville, for managing our website, and delivering our awardwinning online training, and Linda Dorling for consistently and persistently selling advertising in Alert and getting people to support our conference.
To our regular supporters, a big thank you and, again, a special thank you to Dave Andrews at Sony and Paul Hide at AMDEA, who have never let us down.
Finally, our board. At one time, there were over 20 board members – now there are just eight.
All of them have served for many years and have given their time freely and generously.
I’d like to give a special thank you to Robert Hughes. Although he chairs a very large business, he has always made time to help Retra and will only stand down as our chairman when we close.
My final thank you is to our membership. For over 80 years, Retra has existed to serve you, our members.
During that time many have retired, or closed or sold their businesses.
The industry has changed so much that the time is now right for Retra to close its doors. So, I say farewell with some sadness, but also great optimism for the future of independent electrical retailers.
It ’s been a pleasure to be your CEO and it’s also been an immense privilege and a lot of fun.
Sean Hannam 07932 586001 an95@gmail.com
Consultant Editor: Richard Stevenson 07974 926157 d@quickbrownfoxpr.com Linda Dorling 01256 321337 07785 142398 lindaedorling@gmail.com is a Retra publication
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Retra will close on March 31 this year, but members will be offered membership of Bira, which will create a new division dedicated to electrical retailers and repair agents.
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Rest assured that our commitment to the industry remains steadfast, even as Retra closes its doors. Thank you for your understanding, support, and dedication to Retra over the years
Howard Saycell, Retra CEO
Bira is a bigger trade association than Retra and it will continue to provide the current Retra support, with some additional enhanced services that are not currently offered.
The decision, which was taken after careful consideration of the current landscape and the best interests of Retra’s members, follows on from the Extraordinary General Meeting (EGM), which was held on February 1. At the meeting, 98 percent of Retra’s members voted for the closure.
However, to ensure that its members continue to receive support and benefits even after Retra ceases its operations, in partnership with Bira, Retra is pleased to offer all of its fully paid-up members – as of October 31 2023 – one year’s free membership of Bira. This cost will be covered by Retra and the membership will start from April 2024.
Bira is dedicated to supporting independent retailers, and Retra, which was founded in 1942, believes it will continue to
uphold the values and legacy of Retra, while providing valuable resources and networking opportunities to Retra members.
Retracare’s insurance offering will continue through the Pacifica Group, and the financial services company, Novuna, will also support any existing and new dealers directly.
“Rest assured that our commitment to the industry remains steadfast, even as Retra closes its doors,” said Howard Saycell, Retra CEO.
“We understand that this news may come as a surprise, and we are here to address any questions or concerns you may have during this transition period. Your satisfaction and continued success are of utmost importance to us.”
He added: “Thank you for your understanding, support, and dedication to Retra over the years. We believe that with the support of Bira and the continued efforts of Retracare and Novuna, our industry will thrive despite these changes.”
Speaking to Alert, Bira CEO, Andrew Goodacre, said: “On behalf of Bira, I would like to welcome Retra retailers to our association. We are sorry to see Retra wind down but it is our intention to retain the Retra name within Bira and integrate you in our membership as smoothly as possible.
“The great news is that as Retra retailers you will have access to many of your existing services, whilst also having access to important Bira services such as the legal helpline. On top of this, the membership subscription in Bira is less that you are currently paying, so hopefully you will see this as a ‘win-win situation.’”
He added: “Bira has been around for almost 125 years and we proudly represent independent retailers across many sectors throughout the UK. In the past three years, our membership has grown by 30 percent and the addition of Retra retailers will further boost this growth.
“I am sure you will enjoy Bira membership and together we can make a real difference for electrical retailers.”
Speaking to trade magazine ERT, Gavin Read, of TVC Electrical in North Yorkshire, who is a Bira member and has also been a Retra member for almost 30 years, said Retra’s absorption into Bira will be “a marriage made in heaven”.
“It is the best way forward for Retra,” he said. “The benefits far out-weigh any negatives as far as I can see. A division of Retra within Bira sounds like the perfect solution, and for us dealers that aren’t currently in any buying group, the buying power of Bira is an added bonus.”
For more on Bira, see our exclusive interview with CEO, Andrew Goodacre, on pages 22-24. Visit www.bira.co.uk
‘Bira is looking forward to campaigning and making a positive difference for Retra retailers’
In an exclusive interview, Bira CEO, Andrew Goodacre, tells Sean Hannam how Retra members can become part of Bira and outlines some of the services and benefits it offers independent retailers.
Alert: With Retra closing, Bira will create a new division dedicated to electrical retailers and repair agents. Can you tell us how this will work?
Andrew Goodacre: We value the Retra name, so although the current Retra members will become Bira members, we intend to retain Retra as a subgroup within Bira.
The integration process should be relatively straightforward. Retra will send Bira the details of the members who wish to transfer to Bira and we will set up the membership to start as of April 1 2024.
Retra members will receive information from Bira prior to this date, so that they can have immediate access to the Bira services. They will retain access to most of the current benefits and also have access to all of the existing Bira services. Last year, we incorporated the Association of Cycle Traders (ACT) in much the same way.
Alert: What kind of services and benefits will Bira be able to provide Retra members?
AG: The different services most used by Bira members include a free legal helpline, offering professional advice on employment law and health and safety. We also have an attractive package with Global Payments, offering very competitive rates on processing card payments.
We also operate a small buying group, but we accept that this will be less appealing, given the links with Sirius and Euronics.
Alert: What does it mean for Bira now having representation of independent electrical retailers in its portfolio?
AG: Bira already represents a wide range of retailers, from small pet shops to independent department stores.
Retra members joining Bira now adds the electrical retail sector to our portfolio and we look forward to campaigning and making a positive difference for Retra retailers. Bira has excellent engagement with the Department for Business and Trade (DBT), the Treasury, the Department for Work and Pensions (DWP), and Defra (Department for Environment, Food & Rural Affairs).
Bira also runs the Independent Retailers Confederation (IRC), is a member of the BRC, and a member of the Retail Sector Council. We also have representations with the Scottish and Welsh devolved governments.
Alert: What’s your take on the electrical retailing market? Did you get a feel for it after speaking at last year’s Retra conference and can you identify with some of the issues facing independent retailers in the sector?
AG: Like much of the independent retail sector, electrical retailers are facing many of the same challenges due to the cost of living crisis – low sales due to consumer confidence and higher running costs.
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Bira already campaigns to positively change many of the issues affecting electrical retailers, with a focus on reducing business rates
Bira already campaigns to positively change many of the issues affecting electrical retailers, with a focus on reducing business rates.
Bira was largely responsible for the introduction of the retail rates discount, back in 2019. However, there are issues that are specific to the electrical retail sector and we are already actively involved with proposed changes to WEEE and the introduction of EPR (Extended Producer Responsibility).
This isn’t an easy editor’s comment to write – Retra is set to close at the end of March, after almost 82 years in business.
I’ve dealt with Retra for more than half my life – I turn 50 this year and I first encountered the trade association in 1998, when I joined the industry as a staff writer on the B2B magazine, IER
When I moved over to work on the rival publication, ERM in 1999, and then later on, ERT – I became the editor of ERT in 2009 – my relationship with Retra grew stronger.
I regularly attended Retra’s conferences – I even spoke at a few – and helped to organise and champion ERT’s industry campaigns like Save the High Street and Turning Point, which Retra actively supported.
I was very grateful to Retra CEO, Howard Saycell, when, after I left ERT in late 2018 to pursue a freelance career, he asked me to become editor of Alert. Thanks for the opportunity and the support, Howard.
I’ve really enjoyed my time working with Howard and the Retra team, although it hasn’t always been easy – we’ve had to deal with Covid and the cost of living crisis, which both hit our industry and Retra members hard. I wish my Retra colleagues all the best for the future.
In a tough and competitive market, some might argue that perhaps it’s no surprise that Retra has decided to close its doors, but it’s still come as a shock.
It’s the end of an era, but, with Retra members being offered the chance to join Bira, hopefully the start of a new and fruitful chapter.
I’ve interviewed Bira CEO, Andrew Goodacre, in this issue and I’m confident that Retra’s move to the organisation he heads up will be a positive one for the members.
By sheer coincidence, Retra is closing on my 50th birthday, March 31 2024, so let’s raise a glass to all it’s achieved since it formed in 1942 and hope for a bright and successful future under Bira. Cheers.
Sean Hannam
hannamsean95@gmail.com Editor’s
MARCH
22– 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
21-22 Euronics (CIH) Showcase
– Members Only NEC, Birmingham
24-25 Retail Technology Show
Olympia, London www.retailtechnologyshow.com
JUNE
11-12 The Exclusively Show, The Business Design Centre, Islington, London https://www.exclusivelyshows.co.uk/
22–23 The North West Audio Show De Vere Cranage Hall Estate, Holmes Chapel, Cheshire www.audioshow.co.uk
25 TRIC Awards
Grosvenor House, London www.tric.org.uk
JULY
5 The IER Awards 2024 Riverbank Park Plaza London www.ierawards.co.uk
SEPTEMBER
1-4 Autumn Fair NEC, Birmingham www.autumnfair.com
6-10 IFA
Messe Berlin www.b2c.ifa-berlin.de
18-19 Ei Live!
Farnborough Exhibition Centre www.eiliveshow.com
OCTOBER
13-16 Hong Kong Electronics Fair (Autumn Edition)
Hong Kong Convention and Exhibition Centre (HKCEC), China www.hktdc.com/event/ hkelectronicsfairae/en/fair-at-a-glance
Pacifica Warranty has acquired Retracare, the extended warranty arm of Retra.
This acquisition continues the strong relationship between the two organisations.
Pacifica Warranty has been working with Retracare since 2018, providing insurancebacked appliance warranties to the independent retail sector, including claims management and customer administration.
As a result, there will be a seamless transition, with retailers continuing to be able to use the Retracare platform to register customer warranties.
To enhance the warranty offering, Pacifica Warranty is immediately introducing a suite of new warranty products enabling retailers to offer a greater choice to customers, with improved earning potential for independents.
In addition, a new Pacifica Warranty business development manager will act as a direct point of contact for retailers and will be travelling the country to provide training and support.
Alongside its established relationships with manufacturers such as Lamona and Hisense and
retailers including Buy It Direct , this acquisition represents Pacifica Warranty’s continued commitment to the independent electrical retail sector.
Pacifica has invested heavily in proprietary IT platforms, which support retailers’ and manufacturers’ warranty services, as well as a team of more than 300 highly skilled appliance engineers, who undertake around 400,000 repairs every year.
Pacifica Warranty will work closely with independent retailers to provide the most suitable repair and product replacement options where possible. This includes retailers with engineers being able to either undertake their own repairs or utilise Pacifica’s repair specialists.
Also, product replacements under warranty will be purchased, where possible, through the original appliance retailer.
Neil Martin, managing director of Pacifica Warranty, said: “This strategic move not only strengthens our relationship with the independent sector but also reinforces our dedication to providing comprehensive, flexible warranty solutions and unparalleled support.
“It will also build on our successful and longstanding collaboration in the sector, enhancing an already comprehensive service with increased support and new opportunities for retailers. They will be able to achieve increased and recurring commissions from more warranty sales while providing their customers with the peace of mind that comes with being able to call upon the expertise of Pacifica’s highly skilled appliance engineers.”
Bira (The British Independent Retailers Association) is supporting the Government’s latest initiative in the fight against fraud.
The organisation, which has just over 4,000 members and works with businesses of all sizes across the UK, is backing the Stop! Think Fraud campaign, which launched on February 12.
This initiative brings together eminent counter-fraud experts to provide the public with consistent, clear, and robust anti-fraud advice.
The evidence-led campaign, backed by Bira and other key stakeholders, aims to transform the way we combat fraudsters. It features an online fraud hub, which can be accessed at www.gov.uk/stopthinkfraud, offering concise and simple-to-follow advice.
The hub serves as a central resource where individuals can learn about potential risks, recognise signs of fraud, and discover effective ways to protect themselves.
Bira encourages its members and
John Halliday, marketing director of Bira, said: “We believe that collective action is crucial in the fight against fraud. By supporting the Government’s campaign, we aim to contribute to a united front against fraudulent activities, safeguarding the interests of both businesses and the public.”
For over two decades, we’ve had the privilege of being your trusted digital TV solutions provider. As a leading global supplier, we take pride in our established reputation for delivering topnotch, feature-packed products, designed to provide users with the ultimate viewing experience.
Bolton-based TV brand Mitchell & Brown has launched a campaign to drive customers from Morrisons supermarkets to local electrical retail stores.
The new initiative, which launched on February 12 and finishes on April 4, sees thousands of 12-page TV brochures, each featuring a prominent discount code of up to £75 off a Mitchell & Brown TV, strategically placed in the checkout ‘pick-up’ zone of Morrisons stores.
Spanning throughout Avonmouth, Aylesbury, Darlington, Deeside, Glasgow, Horwich, Kings Lynn, Maidstone, Newark, Portland, Redditch, Scarborough, and Southampton, the promotion is active in 30 Morrisons stores located in major towns and cities across the UK – double the number of stores compared with the brand’s last campaign, which launched in January last year.
With a discount code and guide to finding your nearest Mitchell & Brown stockist in the brochure, the aim is to drive potential customers to local high street retailers.
Over 120 Mitchell & Brown independent retailers are situated within 20 miles of each identified Morrisons stores, meaning more than half of the brand’s retailers are covered by this.
Dan Brown, operations director for Mitchell & Brown, said: “We are thrilled to unveil our most expansive supermarket promotional campaign ever, surpassing the scale of last year’s successful initiative.
“Leveraging the significant customer footfall in Morrisons supermarkets, we are propelling this momentum towards both our esteemed retailer network and our exceptional range of TVs.”
He added: “Morrisons, distinguished as one of the few supermarkets without a TV offering, provides an ideal setting for engaging with our target demographic. In addition to amplifying brand visibility, our strategic placement ensures that each brochure distributed becomes a potential catalyst for a sale, directly benefiting retailers surrounding every Morrisons supermarket.
“As we build upon the success of the previous year, we again guarantee that the applied discounts on sales will be credited, ensuring that not only our retailers increase sales but also maintain their customary excellent margin.”
The Kitchen Bathroom Buying Group (KBBG) is holding its 2024 Annual Members’ Meeting on Monday June 10 at the National Space Centre in Leicester.
The event will have a futuristic theme and is sponsored by software company, ArtiCAD.
Members and suppliers of the KBBG (part of Der Kreis, the European kitchen and bathroom buying group) will have exclusive use of the National Space Centre, which has the UK’s largest planetarium.
There will be a suppliers’ display area, as well exclusive offers and the chance to discuss new business opportunities. Following the event, guests will be able to access the galleries at the venue.
Bill Miller, managing director of the KBBG, said: “With the rise in technology such as AI and our industry’s natural desire to predict future trends and be ahead of market developments, we wanted this year’s Annual Members’ Meeting to look to the future, rather than dwell on the past. The National Space Centre embodies this theme perfectly and we are very excited to have exclusive use of the venue on June 10.”
He added: “The Sir Patrick Moore Planetarium will allow us to deliver engaging presentations, ensuring a memorable experience for those who attend. Building on the success of the suppliers’ display area, which was well received by members at our 2023 meeting, this year our suppliers will be able to showcase their services within the National Space Centre’s unique exhibition area. As ever, there will also be plenty of time for networking, so we encourage our members to save the date as this year’s event is not one to be missed.”
KBBG members will receive invitations and further details in due course.
For more on kitchens and the KBBG, see our feature –pages 26-30.
Glen Dimplex Home Appliances (GDHA) will partner with Pacifica to deliver its UK after-sales repair and customer service.
Through this exclusive partnership, the majority of GDHA’s appliance service engineers and regional managers, along with customer service personnel and support staff, will be transferred to Pacifica and integrated into its UK workforce.
Currently employing 460, with a team of more than 250 appliance service engineers, Pacifica, which celebrated its 20th anniversary last year, works closely with high-profile brands and insurance providers, delivering repair and maintenance services nationwide.
Alongside GDHA, Pacifica works closely with manufacturers such as Electrolux, Sony, Hisense, Vestel, Howdens, and LG, along with major retailers including Argos and Shop Direct.
Pacifica has also developed proprietary IT platforms, which are integrated into its customers’ repair processes, which will enhance the service received by GDHA’s customers.
Peter Brooke, managing director of GDHA, said: “Our partnership with Pacifica is a key element of our business transformation. We have chosen them carefully to ensure that we deliver on our promise of offering a best in class consumer journey.
“We have been impressed with their professional service and look forward to a successful partnership.”
He added: “As a business, we continue to transform to ensure a healthy, sustainable future for our brands and people, by offering our consumers exceptional products and after sales services.”
Kevin Brown, CEO of Pacifica, said: “We are exceptionally proud to form this new relationship with GDHA, which further emphasises the position we have secured in the MDA market over the past two decades.
“GDHA and its brands, which are household names, has an excellent reputation in the industry and we’re delighted to secure this exclusive outsourced agreement and to be selected as its appliance repair and customer service partner.”
He added: “We’re looking forward to welcoming our new colleagues, who bring with them many years of experience and product knowledge, into the business and supporting them in their career development with Pacifica, and we continue to provide our customers and their consumers with the highest levels of service and expertise.”
Spare parts distributor Connect has introduced a new brochure that includes an essentials checklist featuring a wide range of the most commonly needed parts to help fix household appliances such as fridge-freezers, dishwashers, washing machines, tumble dryers and ovens.
Part of a new ‘van stock essentials’ initiative, the brochure has been curated by Lee Braine, a senior engineer and technical trainer with over three decades of experience.
Thanks to the publication, repair professionals can now improve and prioritise their van stocks, allowing them to carry out repairs more easily the first time round.
By increasing their first-time fix rate and reducing the need for repeated call-outs to customers’ homes, engineers will be able to save both time and money for themselves and their clients, said Connect.
This, paired with the company’s 6pm cut-off time for next-day delivery, will help support and improve the efficiency of its services.
For more on Connect, see the Associate Insight article on page 34.
Buying group CIH, part of Euronics, is preparing for its membersonly Showcase event, which will take place on April 21-22 this year, at the NEC, Birmingham.
“We are excited to join together at Showcase to celebrate a momentous year,” said Paul Tyler, chief executive of CIH.
“As CIH turned 60, the hard work of the Euronics UK retail network was rewarded with a ‘Recommended Provider of Home Appliances’ award by Which? who also placed us top in their Home Appliances Retailer performance table.
“Feefo has also been capturing the good work, with customer ratings of 97 per cent. In this spirit, Showcase this year represents our continued endeavour to help our members and agents cultivate success.”
The event will be supported by more than 40 brands including Beko; Blomberg; CDA; Liebherr; Haier; Hoover; Asko; Vax; Product Care Group; Bosch; Neff; Siemens; Rangemaster; Whirlpool; Hotpoint; LG; Sony; Smeg; Shark; Ninja; AEG and Samsung, as well as many others.
Attendees can look forward to exploring the Euronics Store setup area, featuring a comprehensive lineup of national campaigns for the year and an array of promotional tools designed to drive footfall and boost online engagement. Additionally, the show home
will highlight the latest innovations and consumer preferences shaping the industry.
The ‘Euronics Garden’ area will feature several bitesize talks and sessions, diving into useful topics for members of the buying group.
Alongside this, CIH will be turning its latest news into a Showcase special episode for its brand-new, members-only podcast.
Euronics members will also be able to meet Indie, the CIH Euronics penguin mascot, who will be making several appearances around the show and hanging out in the Peng’win bowling alley.
“We are excited to build on our continued success and want to thank our members for everything they do within their stores and communities, that brings strength and uniqueness to our Euronics network. Also, we must thank our suppliers. as none of this would be possible without their unwavering support towards Euronics as a whole,” said Mr Tyler.
CIH, the electrical buying group, which is part of Euronics, has partnered with Fair for You, a charity-owned social lender providing affordable and ethical credit.
More than one million adults and children in the UK are in ‘appliance poverty’, meaning they live without at least one major household appliance.
With a third of UK adults having difficulty accessing mainstream credit, replacing broken appliances could be a struggle.
Fair for You’s responsible lending service gives Euronics agents the ability to support such customers, ensuring they do not have to go without essential items or turn to high-cost credit.
Since its formation in 2015, Fair for You has provided over 250,000 loans (totalling £70m) to more than 83,000 customers across the UK.
Owned by the Fair Credit Charity, Fair for You is dedicated to alleviating poverty through better credit provision. It is a three-time winner of Consumer Credit Provider of the Year at the National Credit Awards.
“We are delighted to announce our new partnership with Fair for You,” said Rich Knapman, new B2B acquisition and development manager at Euronics UK.
“Our relationship is built on similar values and our joint focus on the communities we serve. Euronics agents are at the heart of their local communities, being part of high streets across the country – we are ‘closer than you know’ – and have always been committed to being part of and supporting their areas.”
Chris Bennett, chief commercial officer at Fair for You, said: “We want to provide our customers, who often find that mainstream lenders and retailers do not serve them, with choice and a wide range of products from a wide range of retailers,
so they can find the product that truly meets their needs.
“Partnering with Euronics is a perfect fit, not just because of its product range, but because of our shared values of supporting local communities, which means we can build a strong relationship for us and our customers.”
Fair for You customers will initially be able to purchase products from the newly created bespoke Euronics website.
Euronics agents will be paid in full by Fair for You, with repayments made weekly, fortnightly, or monthly by the customer to Fair for You.
Customers can set up their payments in a way that works for them: they can change the frequency of those payments whenever they need – with no fees. There are no late fees for missing a payment.
Customers can increase their repayments on an ad-hoc basis if they prefer to do so or defer payments and catch-up to get themselves back on track whenever they can.
First time Fair for You customers can purchase products using the ‘Core’ loan, which is specifically for large household appliances. If they keep a good payment history with Fair for You, they can then become part of the lender’s ‘Good Payers Club’ solution, which Euronics is a part of, and gives them access to an even broader range of products through a Shopping Card.
Fair for You regularly commissions independent evaluations of its work, which demonstrate wide-ranging social impacts for customers including reducing stress and anxiety; making customers feel more in control of their finances; helping them to avoid loan sharks; and making it easier for them to enter or remain in employment.
For more information about Fair for You, visit https://www.fairforyou.co.uk/
We are delighted to be in such a strong position
Sirius Buying Group has taken on three new approved suppliers – Waterline, the Electrolux Group and Midea. Managing director, Steve Jones, highlights some of the benefits these appointments will bring to its members.
With a new financial year ahead, Sirius members are delighted by the addition of three new approved suppliers to the buying group, so that we can deliver the very best to today’s consumers who are increasingly style-led, eco-conscious and cost-aware.
The Sirius leadership is pleased to share the news that Waterline, the UK’s largest supplier to the independent kitchen retail sector, was a new approved supplier in January.
Established in 1985, Waterline is recognised as the UK’s largest supplier to the independent kitchen retail sector and in 2011, became part of the Crown Imperial Group.
With a product portfolio comprising 34 of the best brands in kitchen furniture, appliances, sinks, taps, wirework and ancillary kitchen products, Waterline delivers nationwide with a distribution head office in Newport Pagnell, and depots in Bolton and Bristol.
Bringing Waterline into the Sirius family indicates the growing footprint of the kitchen studio market nationally as consumers of all ages are increasingly preferring home comforts to going out.
In fact, a recent YouGov poll indicated that 65 percent of all UK adults would rather stay in than go out.
As Sirius members are always keen to develop new revenue streams int order to deliver the latest innovations and next-level customer service, the exclusive offer from Waterline definitely supports the Sirius mission to safeguard and increase profitability for the independent retailer.
Waterline can supply extensive British-made Crown Imperial collections with complete kitchens made to order by skilled craftspeople, plus there’s also scope for Sirius members to supply whole-home storage thanks to a range of options for bedrooms and working from home spaces too.
In addition to partnering with Waterline, Sirius also welcomes the Electrolux Group, including premium appliance brand AEG, as an approved supplier.
Since its inception in 1887, AEG has redefined expectations of the household appliance, in the belief that its customers should never have to settle for just good enough.
With a dedication to responsible innovations that stand out in today’s home and help build for a better tomorrow, AEG specialise in cooking, laundry, fridges and freezers, dishwashing, cleaning, HVAC, and wine cabinets.
Part of the Electrolux Group since 1994, AEG is widely regarded as a premium brand across the globe, with its head office in Luton, Bedfordshire.
Appliances within the kitchen living space have become even more sophisticated, so offering custom solutions is important at every level.
Sirius members can now benefit from AEG’s flair for innovation and commitment to surpassing expectations so they can deliver an even stronger, personalised service to their network of customers.
In fact, the latest research from Statista indicates that the global market for home appliances is projected to grow annually by 4.86 percent from 2024-2028, with a volume growth of 1.7 percent anticipated in 2025.
This upward trajectory is indicative of consumer demand for smart-enabled appliances, as more and more households embrace easy-to-use technology in the home.
The addition of the Electrolux Group aligns with Sirius’s mission to ensure its members have access to the necessary support from approved suppliers to continue to grow their share of the market, as well as deliver value back to the supplier.
Finally, the Sirius team are celebrating a fantastic collaboration with Midea, the world’s largest manufacturer of major domestic appliances, as it becomes another new approved supplier to the group.
Midea has an extensive range of globally recognised household names in its portfolio including Toshiba, Midea and Comfee.
The Midea UK sales, customer service and management offices are based in Manchester, with a mission to bring its innovative range of high-quality products with a focus on energy efficiency to more UK homes.
Maximising the benefits of Sirius’s distribution partners, DAD will play a vital role in distributing the exclusive range of products by Midea, which are developed with Sirius to provide members access to the entire product collection with the ability to order direct.
DAD has been an approved supplier to Sirius since 2001, and has established an extremely strong relationship throughout the group and with its members. By positioning itself as a key partner, DAD is in the prime position to fulfill the opportunities that Midea will bring to Sirius members.
We are delighted to be in such a strong position to champion independent retailers in 2024, as the market continues to evolve to support contemporary kitchen living at all price points.
We look at the Carer’s Leave Regulations, which come into force in April, and advise on employee references, wages and resignations.
Last December, the Carer’s Leave Regulations 2024 were laid before Parliament.
These regulations, which are due to come into force on April 6 this year, set out the framework under which your employees will be able to take statutory carer’s leave.
Whilst the right to such leave will be a day one employment right, any time taken for this reason does not have to be paid, i.e. this is an unpaid statutory right.
In any 12-month period, an employee will be able to apply to take up to one week’s unpaid carer’s leave if they have a dependent with a long-term care need and they wish to be absent from work to provide and/ or arrange care for them.
Unlike other types of statutory leave, carer’s leave is fully flexible, which means that your employees will be able to request consecutive and non-consecutive half days of work or full days of work in a way that best suits their needs.
Where an employee wishes to take carer’s leave, they will need to give you written notice of their intention and give you either three days’ notice or twice the amount of notice of the period of carer’s leave that they’ve requested.
Where an employee asserts their right to take carer’s leave, they must not be subjected to any detriment of dismissed for that reason. If you dismiss someone on these grounds, it will automatically be classed as an unfair dismissal.
If an employee taking casers leave will unduly disrupt your business, you can give them notice of postponement. This notice must be given before the carer’s leave begins and you must explain why this postponement is necessary. In this situation, you must permit the carer’s leave to be taken within one month of the start date of the leave dates originally requested.
Only postpone carer’s leave if it is necessary from a business perspective and never do it simply because the employee’s requested dates are a bit awkward or tricky. There must be a genuine business need.
We often get asked by members, “Am I obliged to give someone a reference?” when employees leave.
The only time you are legally required to provide a reference is when there is a contractual obligation to do so.
This could either be because the employment contract provides for a reference on the termination of employment or because the parties have entered into a settlement agreement
which includes agreed reference wording.
Also, although unlikely in our industry, some employers must provide references for certain jobs in the financial services sector.
In all other circumstances, there is no obligation to provide a departing employee or former employee with a reference. Neither are you obliged to provide one to a third-party employer.
If asked, you should say it is company policy not to provide references. We would recommend that you state when the individual joined the company, the date they left and their salary when they left. Anything over and above this is up to you. It’s safest not to give references, as sometimes ex-employees can challenge them and it can get messy.
On April 1 2024, the National Living Wage (NLW) and the National Minimum Wage (NMW) rates will rise by the largest amount since they were first introduced.
All the new rates are available on the Government’s website (www.gov.uk/national-minimum-wage-rates), so we would urge you to check that your business is compliant.
In addition to increasing the minimum wage rates, the Government will be extending the NLW to all workers aged 21 on April 1 2024 – it currently only applies to workers aged 23 and over.
Another area we get lots of questions about is employee resignations. An employee can resign verbally or in writing. Whilst both are legally binding, it is much safer for you to have it in writing.
What happens if an employee changes their mind? In most situations the law works in the favour of the employer. Once a resignation has been communicated to you, either verbally or in writing, it is usually binding.
There is an exception to this where an employee resigns in the heat of the moment. An example of this is where an employee says “I quit” following a major argument or difference of opinion with a colleague or manager.
Where an employee announces their resignation in the heat of the moment, you should treat it as invalid, i.e. non-binding on you and the employee.
This is our last Business Matters for Alert as Retra is closing at the end of March. It’s been a pleasure writing these articles and advising you on issues via the Retra Helpline. We wish you all the very best for the future.
How can you help members of staff to deal with personal crises?
The Retail Trust has some expert advice.
When one of the people you manage is facing a personal crisis –whether that’s bereavement, divorce, a medical diagnosis, money worries or domestic abuse – it can be difficult to know how to handle it.
“If you stick to what I call the five Cs of communication, you can’t go wrong,” says Andrea Woodside, wellbeing training lead at the Retail Trust. “They are commitment, curiosity, compassion, congruence, and consistency.
“Sticking to the five Cs means you’re committed to having the conversation that’s being asked of you, you’re curious about the person, and you demonstrate compassion by listening without feeling like you have to fix the person’s issues.
“Congruence is about matching your words to your body language and tone, and consistency is also key – your people need to know they can trust you to respond in the right way if they come to you with their problems.”
Follow these steps, which incorporate the five Cs, and you can add a sixth C to your repertoire: confidence that you can support your staff effectively.
The Retail Trust website (www.retailtrust.org.uk/your-healthand-wellbeing) is packed full of loads more articles, quizzes, videos and guidance on everything from mental health and wellbeing to your career and lifestyle. You can take charge and decide what’s important to you. Think of it as your very own support network.
Once you’ve registered on the Retail Trust website, you can personalise it and choose what topics interest you. Whether that be advice on how to cope with anxiety or financial worries to valuable tips on managing a team. You’re in total control. And remember, it’s completely confidential. Completely. That means, as with everything at the Retail Trust, no one at work will know what topics you choose, what you’re clicking on, what you’re reading or whether you’re reaching out for counselling or financial aid. Register today at retailtrust.org.uk choose ‘Retra family’ as your employer, and start your wellbeing journey.
1
Know your people
You can’t successfully support your team if you don’t engage with them on a personal level – and without that groundwork, they’re also unlikely to want to talk openly with you in the first place.
2
Don’t dig too deep
Although being personable and approachable is important, you don’t need to know every last detail of someone’s problems to be able to support them. Be careful not to push your people to share more than they’re comfortable with, or you might end up pushing them away.
3
Listen with empathy
A lot of people believe that being empathetic is about understanding exactly what another person is going through. After all, if you haven’t been there yourself, how can you possibly help? But this approach can make you a less empathetic listener.
4
To share is to compare
Offering advice based on your own experiences is perhaps the most common trap managers (and everyone else) can fall into when someone opens up about a personal problem. But it’s crucial to remember that this conversation is about the other person, not you – and that sharing your experience will only interrupt the story they’re telling you.
5
Avoid the ‘accidental counsellor’ role
If you find yourself regularly being thrown into the role of shoulder to cry on, it’s time to set some clear boundaries.
6
Look after yourself
You might think being unable to take the time out to support a team member is a failing on your part – but bear in mind that you might not always have the capacity to help in the right way.
Delve further into these steps and discover more tips at: retailtrust.org.uk/managers
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You can’t successfully support your team if you don’t engage with them on a personal level – and without that groundwork, they’re also unlikely to want to talk openly with you in the first place
We are always here for you.
As a valued member of the Retra family, you and your colleagues have free and confidential access to the charity’s wellbeing services. The Retail Trust wellbeing helpline is available 24 hours a day, seven days a week. You can contact the team on 0808 801 0808 for in-the-moment support and guidance.
Retra chairman Robert Hughes on how he is making his business, Hughes Electrical, more efficient, and why he is strangely optimistic for the year ahead.
Last year wasn’t a pretty one for non-essential retailers and nor was it expected to be.
In the 2023 spring edition of Alert, I said that the combination of lower volumes, higher prices and stable margins would leave gross profits unchanged in 2023.
Those doing more home entertainment would do a bit worse, those doing more appliances a bit better. What would determine success in 2023 was the ability to take mitigating action against the overhead uplifts led by the living wage, as the ability to borrow to finance losses or pay for increased operating expenses had long gone. Largely, these events played out last year.
At Hughes, this translated to a myopic focus on efficiency defined as gross profit per employee. It resulted in the following actions:
• The closure of eight smaller shops in the last 12 months, where the gross profit per employee is lowest and the scope to increase it the least.
• The opening of one larger store that does the work of three small ones while offering customer parking, click and collect services and manufacturer-supported ranges over longer opening hours. Gross profit per employee is almost double, while we are more relevant to customers. We plan to open two more this year.
• The sourcing of bigger vans, with drivers working longer but less frequent shifts. This improves efficiency and will be rolled out as vans come up for replacement.
• The opening of a WEEE recycling facility to turn a cost centre into an income source and get ahead of incoming Government regulations.
• Implementation of the Microsoft Dynamics ERP in our accounts department and Washco (our commercial laundry business) to benefit from the many AI features embedded within it.
The need to remain focused on efficiency has not let up. The near 10 percent uplift in the living wage in April may have met the Conservative Government target for low pay, but this remains over 30 percent short of Labour’s ambition of £15 per hour. However, it’s not all bad news, as I believe that there is some relief on the way.
I am strangely optimistic that the market will see both income and gross profit growth in 2024. I say strangely because the economic and geo-political background is as bad as it was last year and most forecasts offer little hope of improvement this year.
The cause of my optimism is the major kitchen appliance market – the graph accompanying this article showing volume sales of the seven biggest categories over the last four years tells the story.
Before Covid, there were annual sales of 10.9 million appliances, which rose modestly in the pre-lockdown panic buying and slumped amidst the uncertainty of the first lockdown.
In the following 100 weeks 1.3m more units were sold than this pre-Covid average, as people prioritised spending on their home.
In the 87 weeks that followed, they bought 2.3m units less than this pre-Covid average, as the cost of living crisis curbed purchases, of which 1.3m had already been brought forward.
This leaves the market trading at an annual level of 9.3m which is 1.6m units behind the average with one million lost unit sales to catch up on. This represents a 2.6m unit catch-up once normal trading resumes.
The return to normality could be very soon. Wage growth is now significantly higher than price growth, signalling an end to the cost of living crisis, household savings remain solid and consumer confidence is improving
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The return to normality could be very soon. Wage growth is now significantly higher than price growth, signalling an end to the cost of living crisis, household savings remain solid and consumer confidence is improving, supported by high job occupancy levels. Re-invigorating new house builds is a priority of both Labour and Conservative parties, and the appliance market has now stopped falling, so I believe that the only way is up for unit sales.
Finally, on a personal note, I have been chairman of Retra for over a decade and have witnessed first-hand the difficulty in running a trade association in a market with a declining number of retailers.
We streamlined Retra to minimise its costs and focused its activity on the areas most essential to the members – the provision of warranty, finance, business insurance, advice and helpline services.
Increasingly, service providers have been withdrawing facilities from smaller retailers and focusing on the larger opportunities as they too have to deal with cost efficiencies.
It was vital for many of our members that Retra kept these services going and Bira, Novuna and UK Warranty will continue the good work in our absence.
I would like to thank Howard, Pat, Matt and Louise for their unstinted work over this period and the Retra Board, who have committed their time at no charge to oversee the association.
It is a measure of their good governance that so much money will be returned to members when Retra closes.
Once we discovered CIH, a whole new world opened up to us…’ ‘
Alert takes a trip to Liverpool to visit white goods retailer, Lunts Electrical, which has been in business since the late ‘60s. Sean Hannam reports.
When Alert visits Retra retailer Lunts Electrical, in Fazakerley, a suburb of north Liverpool, our interview with business owner and Euronics board member, Fiona Lunt, is soon interrupted by a male customer who is looking to buy a new fridge-freezer – Fiona shows him some products and explains the technology to him, and he quickly decides which model he wants.
It ’s clear that Lunts is a friendly and knowledgeable local retailer – and it’s also a very busy one. The phone rings a lot while Alert is there – luckily, store manager, John Maher, is on hand to deal with the calls.
It ’s just Fiona and John running the operation now – sadly, Fiona’s husband, Neil, who played a big part in the business, passed away last year.
“Ideally, we need another person,” explains Fiona, who is recruiting for another member of staff – Lunts uses third parties to deliver and install appliances.
Lunts was founded in 1967 by Fiona’s father, John Drake – he’d worked for British Gas, like his father and his uncle, but he decided he wanted to go out on his own.
“His father, who was the manager of a showroom on Bold Street, in Liverpool, thought he was mad, but my dad knew what he wanted to do and he made sure he had accounts in the shop, so when people came in to pay their bills, they would browse the products,” says Fiona, who has worked in the business for most of her life, apart from a brief stint selling cars – she left because the company folded six weeks after she’d joined. “Not because of me,” she quickly adds.
Lunts’s first store was across the road from the current premises, which is on Longmoor Lane – the original building was sold a few years ago.
“My dad also opened a store in Tuebrook and one in Garston – we had three stores and we were an authorised dealer for British Gas, but then the gas board decided to get rid of its showrooms, so, in 1996, we became an independent,” she says.
“We traded with distributors for a few years, which was fine. I wasn’t aware of Euronics then, and you didn’t have the internet, so people weren’t so price-driven.
“We’d predominantly sold gas appliances – fires, wall heaters, back boilers and built-in. I got more interested in the built-in side. We only found out about Euronics because we were discussing prices with our New World rep, who suggested joining CIH, so we made enquiries.
“Strangely enough, at the time, a chap who knew my dad well and worked for a local retailer called Banners, who had around six stores in Liverpool and were predominantly brown goods, came in to see us – I think he was checking us out to see if we weren’t going to do browns. We joined CIH and within two years, Banners had closed down. Once we discovered CIH, a whole new world opened up to us.”
I like it when customers are doing their kitchens and they say they’d like me to do them a package. They ask me to recommend them appliances and I enjoy doing that
“
So, what are the benefits of being a CIH (Euronics) member?
“It ’s having access to pretty much every brand and being able to give customers a wide range of products,” explains Fiona.
“I like it when customers are doing their kitchens and they come to me and say they’d like me to do them a package. They ask me to recommend them appliances and I enjoy doing that – I like cooking and things in the home – it’s interesting.
“I can offer advice on brands and technology, and whether it’s suitable – many people want something, but you have to question whether it’s suitable for them and whether they’ll use it. A lot of people think they know what they want…
“You also have to look at the housing stock around you – a lot of this area is terraced property… Selling nine and 10 kg washers is fine, but not if someone has a small galley kitchen, where it will stick out too far.”
Customers Fiona’s business is split 50:50 between built-in and freestanding –her main suppliers are Haier / Hoover Candy, Whirlpool, BSH, Beko and Blomberg.
“Refrigeration and laundry does well for us – unusual built-in refrigeration has been popular – and we’ve just had a run on freestanding cookers,” she says.
Lunts will cover customers within a 30-mile radius: “We’re comfortable with that and we can control things a bit better. We also sell online.”
Lunts’s customers are also cottoning on to the benefits of buying more sustainable products, once they’ve had technology like heat pump tumble dryers and Smart Frost refrigeration explained to them.
So, how’s business? Fiona says January this year was a fairly good month sales-wise, although things slowed down in February.
“Christmas was fairly steady – I won’t say it was great, but it wasn’t awful either,” she tells Alert
Most of Lunts’s customers are aged 40 or over, but Fiona adds: “We do get younger customers – generally, we’ve been recommended to them by their parents.
“We also get younger customers who’ve moved to the area and are buying homes – they might wander in because they’ve seen a Euronics store in their home town. We’ve got a heck of a lot of students in Liverpool and a lot of them are settling here – it’s cheaper to get on the property ladder. There’s also a good buzz in the city centre.”
Lunts, like a lot of retailers, suffered from stock shortages during the Covid crisis, and, this year, getting hold of tumble dryers has proved challenging.
“It ’s like the last year’s air fryer situation all over again,” says Fiona. “People want the cheapest tumbler dryers and the trouble is that because the weather has been so awful since last autumn, the stock manufacturers built up during the summer is depleted – we have too many customers chasing very little stock.”
Suppliers introducing new IT systems has also caused a headache for Lunts and meant more stock delays.
“Hoover / Haier, Liebherr and BSH have implemented new computer systems and that has caused chaos,” Fiona tells Alert “You go to order things and there’s a delay of four-plus weeks.”
Fiona doesn’t have big plans to expand the business into other areas: “I don’t think doing kitchens is for me – you need a much larger team and a bigger showroom to be able to give it the time and dedication.”
On the future of the business, she tells Alert: “I’m quite happy continuing with what I’m doing. I like appliances, the excitement of opening boxes, seeing new products and chatting to customers – I still enjoy it and if I didn’t, I wouldn’t be here.”
This year’s summer of sport is a great opportunity to convince your customers to buy a new TV. Richard Stevenson, MD of Quick Brown Fox PR, puts us in the picture.
The Paris Olympics, Euro 2024 in Germany, the UEFA Champions League Final at Wembley, British GP, Wimbledon, NFL returning to London, US Open golf and the T20 World Cup cricket tournament are all set to fill our screens this summer, so how can retailers make the most of the action?
The TV market loves a summer of sport, and 2024 has an awful lot to offer for the team kit-wearing armchair enthusiast.
From European football to breakdancing in the Paris Olympics (no, really… it’s a thing this year), summer sporting events are a great time to convince customers to upgrade their TV.
Larger screens, more dynamic picture technologies, 4K UHD with HDR, and advanced smart features are all going to add impact and excitement to watching their tournament of choice.
With over 50 percent of the UK’s £2.3bn TV market still sold through bricks-and-mortar retail, high street electrical retailers can leverage the upcoming summer of sport to attract more customers in-store and secure more TV sales through a variety of strategic marketing initiatives.
Themed windows and in-store displays are a great place to start. Covering all the summer’s main attractions with sport-related POS and accessories will garner attention from sporting enthusiasts.
It easily allows you to pose the question about how they will be watching the big match, tournament or whatever form breakdancing takes.
Bigger, brighter and better features than their current screens will add impact and drama to their viewing and the largest events, like the Euros and the Olympics, only come around every four years. Logically, now is the best time to upgrade and enjoy.
Theme
With over 50 percent of the UK’s £2.3bn TV market still sold through bricks-andmortar retail, high street electrical retailers can leverage the upcoming summer of sport to attract more customers in-store and secure more TV sales through a variety of strategic marketing initiatives
“
Physical props naturally extend the theme, with goal posts, banners, racquets and bats around in-store displays and particularly the window.
Avoid balls, though. Speaking from experience working in an electrical retailer near Wimbledon, when we nearly filled the showroom with tennis balls in June, balls get everywhere and make for a health and safety trip hazard nightmare. And that is before your customers’ bored and riotous kids start kicking them around.
In-store events take capitalising on big sporting tournaments up a notch. This could include live viewings of significant matches (content licensing willing), meet-and-greet sessions with local athletes or sports personalities, and competitions or giveaways of signed sporting goods.
These events can create a buzz, draw crowds, and allow you to demonstrate the latest screens to a willing audience.
Partnerships and sponsorships with local sports clubs, teams, or athletes are often very cost-effective promotions. Being seen to support local sporting clubs, particularly youth clubs, garners respect from the local community and gets your brand in front of keen local customers. Relevant promotions could include sponsoring local sports events, offering exclusive discounts to club members, featuring athletes in promotional materials, and even bringing them in for your in-store events.
Use sports coverage for active TV demonstrations and background TV content throughout the store. This is one of those obvious tips that often gets forgotten in the heat of the summer.
If you are trying to capitalise on sport-related TV purchases, show sports on your TVs. Ensure your staff can talk relatively knowledgeably about the products and the content. Engaging customers in the talk about their favourite sport and upcoming tournaments creates near-instant affinity that allows you to ask about their current screen and demonstrate how much bigger/ better/brighter a new model is.
Other than passers-by admiring your golf-rugby-breakdancing mash-up window display, you will need to let customers know what is going on during these periods.
Turn to social media, not only posting about your store, events and sports-based offers but also following and engaging with local clubs and sports associations.
Build your customer community by reaching out to sports enthusiasts, and add sports trivia, polls, and contests to your own content. Use tools like Sprout Social or Google Analytics to calculate the best time and frequency to post to your specific audience.
If your customers are immune to the charms of these mainstream sporting events and relevant upgrades, there are always 21 days of Tour de France cycling coverage in June.
With up to five million of the UK’s middle-aged men in Lycra (MAMILs) on their sofas wearing skin-tight jerseys and revealing shorts, there is always the potential to sell a TV to the family for another room.
For more on TV, see pages 32-33.
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.
With Retra closing at the end of March, and members being offered the chance to join Bira (British Independent Retailers Association) Sean Hannam talks to Bira CEO, Andrew Goodacre, to find out what benefits it can offer, and get his take on the state of the independent retail sector.
Sean Hannam: You joined Bira in 2018, but before that you were chief executive of the Residential Landlords Association, and you’ve worked for the Federation of Small Businesses (FSB) and in the hospitality sector. What was it like moving into heading up an organisation for independent retailers?
Andrew Goodacre: When I joined Bira, it was quite a complex association with lots of parts and subsidiaries. The problem was that many of these subsidiaries were loss-making and a distraction from our core business. So, my initial strategy was one of rationalisation, to allow us to focus on membership growth and financial stability.
SH: How have the past few years at Bira been? What was it like heading up the organisation during the pandemic, which was a huge challenge for many independent retailers?
AG: When I joined Bira, I was told that retail would never be boring and that has been very true, but nobody could have predicted the last few years of Covid, followed by a cost of living crisis.
Covid came along and provided a lot of disruption – nobody had experience of lockdowns, high streets being closed, etc. However, we learned, with our members, and in a strange way we have come out of Covid stronger. Over the past three years, Bira has increased membership by 30 percent and is more financially stable.
SH: Please can you explain what the main roles of Bira are and how it can help independent retailers?
AG: We support independent retailers in two ways, but with the same overriding objective. Firstly, we offer business support service – the most used one being a free legal helpline. There are other services such as special deals on insurance, card processing services, free banking with TSB etc.
The second area of our focus is our advocacy/ representational work, where we work with government departments to ensure that there is support for the independent retailer. Whatever we do though, whether it is to introduce new business services of campaign for lower business rates – our one reason for existing is to help independent retailers succeed.
SH: How many members does Bira have?
AG: We have just over 4,000 but, as I previously mentioned, we are growing and increased by 30 percent in the past three years.
SH: Bira represents thousands of members across the UK, from single retail outlets to small chains, to large department stores, and you also cover a wide range of different sectors. Is that a challenge? Independent retailers are a diverse bunch, aren’t they?
AG: I am proud that we have such a wide range of retailers in our membership – it helps to really understand what is happening across the retail sector. There are lots of common areas – business services like the legal helpline are generic. There are also specific issues affecting certain sectors – like the sale of knives for hardware and cookshops.
Relevant to Retra members will be changes to WEEE and we are actively engaged with the relevant government department on this issue. We cannot fight every battle, but we are good at prioritising.
Lower sales and rising costs are a toxic mixture for retailers and really concerning for smaller independents who may not have the cash reserves to see them through an extended economic downturn “ “
SH: What do you see as the main challenges facing independent retailers today, and what are your members telling you are the issues they’re most worried about?
AG: The past 18 months have been dominated by the cost of living crisis and have been harder that the Covid period. I say that because even when shops were closed there was a sense – and a reality – that people had pent-up demand and wanted to spend when shops did open.
Over the past 18 months we have seen high inflation and high interest rates reduce consumer spending – especially on nonessentials.
This downturn in spending has happened when the cost of running a business have risen considerably – energy, wages, etc. Lower sales and rising costs are a toxic mixture for retailers and really concerning for smaller independents who may not have the cash reserves to see them through an extended economic downturn.
SH: What’s your take on the independent retail sector in general? Is it tough out there?
AG: It is easy to be pessimistic because of the current sales levels and knowing that so many smaller retailers are finding it difficult. I can also see reasons to be optimistic – economic stability is here and the penetration of online retail is falling all the time. Footfall on high streets is better than in locations like shopping centres.
I would urge retailers to become activists. Those retailers that work on the opportunities and that are able to adapt and adjust will find that there are customers who will want to buy from them. It will be challenging but I firmly believe that retail, especially independent retail, will still be a vital part of every high street.
For me it is about ‘owning’ the 15-mile radius around your shop, so that you are the first choice locally. Then you need to build in an omnichannel approach to make the most of the internet opportunity. Retailers must also capture customer data – legally –and use this to personalise their marketing and make it relevant to their customers.
SH: What about the state of the high street? What steps need to be taken to ensure it has a healthy and vibrant future?
AG: Footfall is lower but that that is a blunt measure. High streets still have 70 percent of the retail spend – the other being online – and so there is a need for it. We may have to accept that retail is no longer the dominant presence, with hospitality and leisure becoming more prominent. However, we need to see the money allocated for high street development to be well spent to create vibrant, accessible and safe places that people want to be a part of.
SH: Is sustainability a big issue for independent retailers and their customers? How can independent retailers be more sustainable?
AG: I believe there is a lot of interest in sustainability. The challenge for the small retailer is believing that what they do makes a difference compared to the large energy-intensive industries.
Many have tried to make their shops more energy-efficient, and many have introduced greener products.
There is no doubt that consumers want to see sustainability from businesses, but the recent cost of living crisis does appear to have challenged how much consumers are willing to pay for it.
Ultimately, I think retailers need more concise, clearer guidance about how to reduce their carbon footprint. At the same time, retailers need to shout about the work they are doing, the greener products they are using and the greener packaging etc. Consumers want to know that the businesses are doing something and that they can be trusted.
SH: What do you think the Government needs to do to help independent retailers?
AG: How long is a piece of string? Overall, I would say the Government of the day has to address the issue of rising costs to business owners with physical premises.
Any government need to give business confidence to invest, and to employ, and that can be done by providing economic growth and support where needed.
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There is no doubt that consumers want to see sustainability from businesses, but the recent cost of living crisis does appear to have challenged how much consumers are willing to pay for it
Specifically for retail this means fiscal policy to encourage consumer spending, make the retail discount on rates permanent at 75 percent and reduce the multiplier, and support in the form of grants to encourage investment in technology and green initiatives. There is much more but these are just three examples.
SH: What’s your gut feeling on the year ahead in retail? There’s a general election on the way, so what could do that for the sector and the economy? Are you gloomy or pessimistic about what lies ahead for retail and the economy?
AG: I will always be positive and optimistic. It is forecast that we will have a new government, but any government will need to accept that the country’s finances are not strong. There will be changes in policy, or a rebranding of existing policies – either way we need stability for businesses to succeed.
AMDEA CEO, Paul Hide, on how by making some simple changes to the way they use home appliances, consumers can save money, help the environment and contribute to a circular economy.
As temperatures continue to be low despite the hopeful signs of spring, average household energy bills remain at circa £2,000. It is with these household cost pressures in mind that AMDEA promoted phase three of our Know Watt’s What campaign from November to December last year.
Under the banner of ‘The Power of Knowledge’, we’ve been reminding all householders as to how simple changes to the way they use their home appliances can save money, benefit the environment and extend the life of appliances through simple care and maintenance tips.
AMDEA’s Know Watt’s What website (www.amdea.org.uk/ campaigns/know-watts-what/) advocates four routes to save money:
• 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.
Register My Appliance
Through our Register My Appliance campaign which ran from January 22-29 this year, AMDEA is strongly advocating for householders to register their appliances for safety and repairs updates to further prolong the life of their appliances.
We host the portal, www.registermyappliance.org.uk/, which allows householders to quickly find the registration link for all our member’s brands. When selling an appliance, we recommend that appliance owners register their products. A recent YouGov survey found that almost a third (32.2 percent) of people never or rarely register their large appliances. With an estimated 133 million fridges, washing machines and ovens in use in UK homes, this could mean some 42.8 million are unregistered.
While recalls on home appliances are rare, issues with the equipment can develop over time and a simple, free in-home adjustment by a qualified engineer can ensure a longer and safer life for machines. But, unlike our cars, a vast number of these valuable possessions are still untraceable because they are unregistered.
Eighty pounds can be saved each year by always washing clothes and dishes on the eco-cycle, while £60 can be saved by cooking food in the microwave rather than the oven
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Eighty pounds can be saved each year by always washing clothes and dishes on the eco-cycle, while £60 can be saved by cooking food in the microwave rather than the oven.
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.
You can check out all AMDEA’s support information via our website - www.amdea.org.uk.
We’ve prepared asset packs for retailers, as we encourage all industry and consumer-facing organisations to spread the message on efficient appliance use.
Our role, and that of our members and retailers, as the customer’s most common first point of contact, is to encourage maximum useful appliance life, through increasing awareness of how regular maintenance, occasional servicing and use of repair options can keep appliances going for longer, so either the existing user gains additional life, or these appliances fulfil a demand for those that welcome the opportunity to purchase second-hand refurbished appliances.
Of course, many manufacturers and retailers are concerned that a circular economy is likely to temper the overall sales volumes of new appliances, and that is a possible outcome of a changing world. However, business model change does not mean revenue of margin decline. Our expectation is that we will see growth in the revenue gained from serving, repair and refurbishment and that can offset revenue declines should overall new sales slow.
We’ve a way to go yet and today is an opportunity for us to take stock of the progress delivered. I share the confidence of many that we will get to a carbon neutral industry and net zero homes by 2050 - in some cases well before then. There is much to be hopeful about. We all have a role and responsibility to ensure this happens, so let’s work together to deliver a more sustainable appliance future.
The kitchen market is tough, but some suppliers think things will improve in the second half of this year. Sean Hannam reports on the latest trends in built-in appliances and furniture.
‘If you can’t stand the heat, keep out of the kitchen’ sang Bucks Fizz, back in 1982.
Well, that advice might be a little drastic – especially if you’re in the built-in appliance sector – but there’s no doubt about it that when it comes to the integrated kitchen products market, the heat is on. And there’s a cue for another ‘80s pop song…
‘It ’s tough out there’ is the message from the industry players Alert has spoken to.
“The general consensus is that the past year has been challenging for most independent kitchen retailers,” says Bill Miller, managing director of the Kitchen Bathroom Buying Group (KBBG).
“The regular rise in interest rates had a dampening effect on the
market, resulting in a significant reduction in new sales enquiries, with some cases being down by as much as 50 per cent on the same period in 2022. However, the enquiries that were being made were of high quality and value.”
He adds: “The feedback from our members across the country is that the premium sector is performing better than the mid to lower price sectors, and this is expected to continue throughout 2024.
“This is understandable, as consumers with a higher income, looking to make a large investment in a new kitchen or bathroom, are probably much less affected by the rising cost of living and interest rates, unlike many consumers who are struggling with higher living costs, leaving little left over to make a significant new purchase.”
Over at BSH, the German appliance giant has also seen a drop in the market, as UK and Ireland CEO, Gunjan Srivastava, tells Alert:
“We have observed a market decline in the past 12 months, influenced by various external factors. The rising cost of living has indirectly affected our market, causing people to postpone home renovation projects. Additionally, increased mortgage rates have led consumers to delay or cancel their plans to relocate.”
However, he is optimistic about the year ahead: “Despite the upcoming general election, which may introduce a period of instability, I anticipate a more stable economic outlook overall. “Towards the end of 2023, inflation rates began to decrease, and I hope this trend will continue.
“As a result, households will experience a positive impact, instilling consumers with greater confidence and certainty for largescale projects such as renovations or moving homes, which may have been postponed in the past 12 months. I expect a gradual improvement in the first half of the year, with a potential rebound in the second half.”
Miele GB’s kitchens manager, Tom Hopper, says: “The past 12 months have been tough for the kitchen appliance market due to less consumer confidence, inflation and the long-term impact of projects affected by Covid.
“With an election looming, we anticipate a challenging year ahead. However, parts of the market remain buoyant and we will continue to focus on the right opportunities and growth pockets.”
Simon Collyns, group marketing and retail sales director at kitchen furniture brand Symphony UK, tells Alert: “The market has seen a fallback from the highs of 2022 with a return to a more ‘normal’ trading pattern in line with pre-Covid levels.
“It has been challenging over the past 12 months with the impact of higher living costs softening demand for high-ticket items combined with continued pressure on costs and pricing.”
“ Eco-friendly appliances that help to save money, water and energy while still delivering the highest possible level of performance and minimal noise output are currently top of mind, so customers are also willing to pay more for them
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On the year ahead, he says: “The market will continue to be challenging, especially in the first half of the year, but we expect to see a gradual improvement in the second half, as inflationary and cost of living pressures ease. We are continuing to forecast growth despite the market as we continue to invest in service and new products, such as Haier appliances, all while expanding our customer base.”
He adds: “We still see new opportunities with those who want to expand into the kitchen furniture market – for example traditional electrical retailers who are looking for new revenue and profit streams to supplement their core appliance business.”
Italian brand Smeg says the kitchen market is still “tight”, but that its built-in sales are “steady.”
“With the current financial challenges consumers are facing within the UK, the market has had to become smarter in its approach to the built-in market,” says a spokesman for Smeg UK.
“Providing multi-functional products that remove the need for more than one appliance, create both energy-efficient and space saving solutions for consumers.
“For example, our Classic Matte Black 60cm SpeedwaveXL oven combines microwave and traditional cooking for professionalquality results. Along with an Airfry function, the optional BBQ and pizza stone accessories, you can extend the oven’s flexibility even further and maximise your valuable kitchen space.”
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The rising cost of living has indirectly affected our market, causing people to postpone home renovation projects. Additionally, increased mortgage rates have led consumers to delay or cancel their plans to relocate
BSH UK and Ireland CEO, Gunjan Srivastava
So, what other trends are suppliers seeing in the built-in and kitchen sector?
Haier highlights a demand for appliances with black and matte black aesthetics and says grey kitchen furniture is popular, but the use of stainless steel, particularly in more premium kitchens, is dropping off.
Vented induction is proving popular too – two-in-one appliances that combine both hob and hood functionality, leaving the space above for either more storage or a cleaner design. This is particularly key for island kitchens, says Haier.
Chris Grundy, senior cooking product manager at Haier UK and Ireland, is also seeing a big move towards connected appliances in the kitchen,
He says: “This is possibly the hottest trend in the kitchen market right now, as customers expect new homes to be connected.
“At Haier we offer a full suite of connected appliances, providing benefits to the end consumer, in making their everyday
tasks easier. Connectivity can also benefit the house builder. As appliances are registered with us via the app, any snags with the appliance can be dealt with via a service call through the app by the consumer.”
Dramatic
On design trends, Smeg tells Alert: “In terms of aesthetics, we can expect to see a rise in dramatic and experimental design.
“Through the use of playful colours, matte finishes and contrasting textures, we can expect to see trends including pops of colour, bringing the freshness of nature into the kitchen, and hidden storage solutions.”
BSH’s Mr Srivastava takes a different view: “When it comes to design and style, I believe it largely depends on individual consumers. For instance, someone with an open-plan kitchen/diner would prioritise the noise level of appliances and the design aesthetic, as this space serves both as an entertaining area and a kitchen.”
He adds: “While there will be variations among consumers, I believe the prevailing trends will focus on sustainability, energy efficiency, and additional support. Having products that can suggest a cooking program based on the ingredients in the oven, or a specific wash cycle based on the types of clothes in the load, are the types of value-added features that I anticipate will be increasingly utilised this year.”
Sustainability is a big theme in tech and retail at the moment, but for some brands it’s not new, as Mr Srivastava explains: “Sustainability is a concept that we at BSH have been mindful of for a while, and we have been releasing products with this in mind.
“However, we are noticing an increasing number of consumers emphasising energy efficiency and sustainability when entering the market. Especially during times of financial strain, it is helpful and reassuring for consumers to be able to monitor the energy or water consumption of their appliances.”
He adds: “In recent years, people have become more conscious of their personal environmental impact, which influences their choices when buying household appliances. It is our responsibility to provide products that align with their values and to promote them accordingly.”
Popular
Miele’s Mr Hopper tells Alert: “Our built-in appliances are popular with consumers for several reasons, including their energy efficiency and long-term durability, which resonates with environmentally-conscious consumers.”
“Eco-friendly appliances that help to save money, water and energy while still delivering the highest possible level of performance and minimal noise output are currently top of mind, so customers are also willing to pay more for them. In the long run, customers can even save money by investing more at the start. In the last 20 years, we have reduced the energy consumption of our ovens by 49 percent without compromising on performance.”
Mr Miller at the KBBG says: “Sustainability is now one of the key aspects of how many consumers choose where to place their business and it is going to continue to grow in importance. To help retailers, suppliers need to make sure that their products and services are as sustainable as possible and provide relevant information to their retailers.”
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The market will continue to be challenging, especially in the first half of the year, but we expect to see a gradual improvement in the second half, as inflationary and cost of living pressures ease
Simon Collyns, group marketing and retail sales director, Symphony UK
Smeg UK comments: “At Smeg, design and technology come together in a wide range of products that are designed to last – the result of a long-term vision derived from product design.
“In order to live and produce while protecting future generations, Smeg is committed to respecting the planet and its inhabitants. Smeg adheres to strict standards in terms of quality, safety and the environment. Consumers are willing to pay more for a product that is durable and offers a lower environmental impact.
”Sustainability can be interpreted in many ways, i.e. Smeg’s new Classic Matte Black SpeedwaveXL 60cm oven microwave reduces cooking times by up to 40 percent and avoids the need for multiple products, as only one is needed.”
Looking ahead, Miele GB’s Hopper tells Alert: “At Miele, we are always striving to innovate and enhance our product offerings.
“Recently, we’ve introduced a range of matte black appliances that align with the current trend towards sleek, modern kitchen designs.
“These appliances are set to launch from April 2024. We’re also seeing more multi-functional appliances being used in kitchens, such as our new oven with AirFry, which helps limit small appliances out on the countertop.”
Over at Smeg, a spokesman says: “Appliances are only getting smarter, and they will continue to do so in 2024. We’ll see a focus on tech that is more practical in nature and that delivers meaningful changes to the way people users interact with the product. As for styles, matte finishes will be popular – especially black.”
So, black might be back – again, but is the short-term future for the built-in and kitchen market looking bright?
“A recent survey found that 39 percent of homeowners would like to move house but are deterred due to the economic climate, interest rates and the cost of moving,” says Mr Miller of the KBBG.
“Therefore, it is likely that many will choose to invest in their current property instead. This provides an opportunity for independent kitchen retailers to attract those who may be considering a home renovation.”
He adds: “My gut feeling is that 2024 will be a steady year. I don’t believe we’ll see another large boom in business like we did during the Covid period, however there are consumers out there that want to renovate. It’s all about marketing your business to ensure that those looking for a new kitchen come to you.”
Mr Miller ends with some useful advice for dealers:
“Independent retailers should also be encouraged to offer additional services to ensure their business is at the top of its game.
“For example, with many consumers watching their spending more than ever before, why not consider offering customers consumer credit? Having a competitive finance package available may not only help to secure sales, it would also result in some very happy customers by enabling them to afford their dream kitchen.”
‘The kitchen is much more than a place to cook…’
We ask Bill Miller, managing director of the Kitchen Bathroom Buying Group (KBBG), to tell us some of the design trends he’s seeing in the kitchen sector.
1. Multifunctional kitchens
The kitchen is much more than a place to cook. It’s a space where families gather, work, entertain, and bond over meals. Open-plan kitchens that incorporate different zones, which cater to different activities, have therefore become very popular.
As well as sufficient space for cooking and preparing food, you should suggest (depending on your customer’s needs) a homework station, desk zone, a breakfast bar or kitchen island for entertaining, a technology hub, plus a quiet zone. There is also a noticeable demand for dining tables, or islands with a lower-level seating area, so families can enjoy mealtimes together.
2. Clever storage solutions
It ’s important to have ample storage in the kitchen to make it a tidy and functional space. Clever storage solutions such as floor-to-ceiling kitchen cabinets, deep drawers for storing pots, pans and dishes, as well as pull-out pantries are all popular choices when designing a kitchen. But it’s not all about hiding belongings away – the space must also allow for storage opportunities in which the character of the family can shine through, ensuring a kitchen that feels appealing, welcoming and inviting.
Containers, hooks, rods, and shelves can work together to create an optimal storage solution with everything within easy reach. However, it’s important that they look good too. Filling shelves with cookbooks or other accessories offers an easy injection of personality into the kitchen.
3. Outdoor kitchens
Consumer interest in outdoor kitchens has never been greater. There are several reasons for this, such as TV cookery shows featuring outdoor cooking and homeowners looking at ways to extend their entertainment space. Outdoor kitchens are usually simple in design, typically a straight or an L- shaped run.
Many outdoor kitchens use metal cabinets, so that they can withstand the worst of the British weather. A cover or awning will also protect the kitchen and allow it to be used during wet/inclement weather. These kitchens typically incorporate a professional quality BBQ and pizza oven, creating the ideal space for the outdoor chef.
AI and sustainability were everywhere at this year’s CES tech fest in Las Vegas. Alert reports.
You didn’t need a super-intelligent robot to tell you that AI was going to be one of the overriding themes of this year’s CES (January 9-12, Las Vegas Convention Centre).
At the Samsung press conference, Jong-Hee (JH) Han, vicechairman, CEO and head of Samsung’s Device eXperience (DX) Division, described how AI will enable connected technologies to improve people’s daily lives while always remaining nonintrusive and “in the background.”
The strategy that he outlined focused on the role of AI in enhancing connected experiences that are both simple and useful.
Throughout the press conference, Retra associate member, Samsung, presented a number of products and services that it said aims to help achieve these aims.
“With the emergence of artificial intelligence, smarter, better experiences will redefine how we live,” said Mr Han.
“Samsung’s broad portfolio of powerful devices, along with the pursuit of open collaboration, will help bring AI and hyperconnectivity to all.”
The Korean tech giant’s exhibition stand centred on the theme “AI for All: Connectivity in the Age of AI.’
During the CES press conference, Jonathan Gabrio, head of the connected experience centre at Samsung Electronics America, outlined the ways in which AI technology is transforming how visual display products and digital appliances are used.
For example, Samsung’s Neo QLED 8K QN900D TB boasts a built-in AI Processor, NQ8 AI Gen 3, equipped with an eight times greater AI neural network and two times faster NPU (Neural Processing Unit) than its predecessor.
Thanks to the NQ8 AI Gen3 processor, Samsung Neo QLED 8K automatically upscales low-resolution content to provide users with up to 8K quality viewing experience and sharpens fast-moving images via AI Motion Enhancer Pro.
Samsung also introduced Music Frame, a speaker with a customisable cover that is designed to integrate seamlessly into users’ homes.
Using Q-Symphony technology, the Music Frame syncs with Samsung TVs and soundbars.
Samsung also announced it had made major upgrades to Ballie, the rolling AI robot it introduced at CES 2020.
Ballie is now capable of interacting with other smart devices to tackle household chores, or projecting images and videos on walls.
In the kitchen, Samsung unveiled the bespoke four-door Flex refrigerator with AI Family Hub.
This appliance has a 32in screen that features the new AI Vision Inside technology, which uses an internal camera to recognise up to 33 different food items that are put into and taken out of the refrigerator and suggests recipes using those ingredients.
Users can also set use by dates for food items, which then allows the refrigerator to send a notification when the date draws near.
Samsung’s new AI Laundry Combo — an all-in-one washer and dryer — features the AI Hub – a seven-inch LCD display that acts as an intuitive control centre for managing laundry. It personalises washing and drying by remembering users’ habits and using machine learning to suggest cycles.
One of the other key themes at CES was sustainability – like AI, it’s a buzzword in the tech sector.
Samsung’s stand had a Sustainability Zone, which featured recycled plastic walls that were built using r-ABS and r-PP, materials developed by Samsung’s Circular Economy Lab – r-ABS is made using recycled Styrofoam that comes from inside Samsung product packaging, while r-PP is made by recycling various by-products generated during the production of household goods.
Retra associate member Sony highlighted how it was working to reduce the environmental impact of its exhibition stand by reusing materials from last year and adopting a layout design that reduced the use of large-scale structures.
The information panels on the booth were made from Original Blended Material – developed by Sony, it’s an environmentallyconscious paper material made from bamboo, sugar cane, and post-consumer recycled paper, whose origins are specified.
The Consumer Technology Association (CTA), which puts on CES every year, used the first day of the show to introduce a new voluntary pledge for tech companies to reduce their climate impact by recycling more materials and disposing of fewer consumer electronics.
Called The Consumer Technology Circularity Initiative (CTCI), it was signed by Lenovo, LG, Panasonic, Samsung and Sony.
The CTCI founding companies are committed to reducing the environmental impacts of materials used in consumer tech products to help the circular economy become a reality.
The TV market continues to suffer the slings and arrows of outrageous fortune after its Covid boost, but could a summer of sport reverse its small-screen fortunes? Richard Stevenson flicks through the channel data.
The list of pressures on the TV market in 2023 would make for an eight-part drama, although it wouldn’t be very believable.
Two years of lockdowns brought a lot of purchases forward from 2023 to 21 and 22.
Back then, manufacturing went into meltdown trying to supply the sudden demand, and at the same time, the global electronics supply chain fell apart.
Parts shortages, materials shortages, staff shortages and global shipping costs sailing four times higher than their pre-pandemic levels were always going to have a marked effect on the TV market in 2023.
And there’s more. After two years cooped up on UK shores, the UK public was determined to go abroad for a holiday in 2023, soaking up disposable income for TV upgrades, and then we had
Russia marching into Ukraine and bringing war to Europe.
That upset the global energy markets, leading to massive price hikes in domestic gas and electricity bills that robbed even middle England of disposable income.
And if the borderline hilarious run of prime ministers didn’t give UK consumers big enough jitters to stuff their fivers in a mattress and pull a pillow over their heads, Hamas action in Israel threw the Middle East into turmoil. Recent attacks on shipping in the Red Sea have meant re-routing a lot of goods around the Cape, leading to delays and additional costs. The UK’s dwindling high streets seem a trifling issue by comparison.
I may have missed a few factors influencing the TV market, such as big Amazon Prime and Netflix price hikes and the potential return of his Trumpness to the US political arena, but if aliens now landed on Broadcasting House and shut the place down to further stymie the TV sector, it wouldn’t surprise me.
GfK’s client insight director for consumer electronics, Nick Simon, Nick Simon puts the pain into numbers, telling Alert: “Given the myriad stresses and strains at home and abroad, it’s not surprising that the UK TV market was down nine percent in units in 2023 to just over five million sets, and down 12 percent in value to £2.3 billion.”
As is always the issue with the TV sector when the chips are down, heavy discounting and low margins prevailed in 2023. Combine this squeezed profitability with inflation touching close to 10 percent for most of the year, and the loss of real earnings for TV retailers must have been, frankly, epic.
Will we see a return to a more positive or at least more stable TV market in 2024 or 2025? Could
Well, maybe. A lot of the market issues are still in play, although supply chain logistics and energy prices are stabilising, and we have a summer of sports, including the Olympics, on the calendar.
Even CES was a bit of a non-event for TV tech, with Retra associate member Sony not announcing any new models at the Vegas event.
Hopefully, like 2023, we will see the brand’s new consumer wow factor models launch in March/April.
Mr Simon feels a flatline may be our best hope, “This year feels like a 0 percent to +1.5 percent range of possible outcomes,” he says, “with five million units and £2.3 billion value likely benchmarks for the 2024 year-end.
“Further forward, why would 2025 be much different from that? The Ukraine and the Middle East will likely roll on, and there will be elections in US and UK, which may make consumers a bit more pessimistic. That will be particularly true if the cost of living remains high, and the crisis in the NHS and the wider climate continues to bear down.”
Looking at the few highlights of the TV sector last year, bigger remained popular – the affluent premium market continued to grow, and pure independent brands like Retra associate Mitchell & Brown capitalised on consumers that still buy on the high street and still demand the highest level of customer service.
The brand added cutting-edge QLED technology screen TVs to its portfolio last year, enabling it to compete head-on in performance and features with the big four brands, but without the internet discounting pressure suffered by those players.
“The bigger, the better still seems to apply to the TV market, says Mr Simon, “with 65in becoming the standard and 75in, 77in, 83in, 85in and even 98in all vying for attention.
“What we did see in 2023 was growth in the TV sector over £900 and below £400, with a stiff decline between. This is perhaps not what Theresa May had in mind when she talked about the ‘squeezed middle’, but it is a suitable description of the TV market.”
Affordable
Cheaper, either heavily discounted or entry-level model, 55in and 65in TVs made for a more affordable option in 2023, inspiring a few customers to up the screen size when it came to changing their TV.
Given the myriad stresses and strains at home and abroad, it’s not surprising that the UK TV market was down nine percent in units in 2023 to just over five million sets, and down 12 percent in value to £2.3 billion
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Certainly, 65in seems to become the standard big-screen small screen of choice, but will those customers look to an affordable 75in screen next time or stick to the same? After all, 32in remained the standard widescreen CRT choice for years, despite several manufacturers pushing 36in options.
Smart
UHD 4K and smart features have also become the norm, and it’s quite tricky finding anything ‘just HD’ or ‘not smart’ above 42in screen size.
Meanwhile, 8K has not had the groundswell of public confidence that 4K had at launch, and European power regulations
For
information
richard@rspr.co.uk 07974 926157 www.retra.co.uk
are heavily geared against 8K screens due to power consumption.
“8K seems to have very limited appeal and the caveats, lack of content and power consumption, are relevant,” says Mr Simon.
“The EU’s opposition to 8K will certainly have an impact on the UK market, even though we are no longer in the EU. Manufacturers are unlikely to drive the technology into Europe at all if most highGDP countries are not interested.”
Looking to the rest of the year, will the big sporting events and Olympics provide a TV market boost?
“It hardly did in 2012 when we were hosting it,” says Mr Simon, “and not at all in subsequent Olympics. Look instead to the Euro 2024 football tournament in Germany, as football does have a small but measurable impact on UK sales.”
Although Europe might only make for a small uplift, particularly if UK teams are on the bus home before the quarter finals, it might take us nearer to the +1.5 percent growth at the most optimistic end, GfK estimates.
Like all good TV dramas, we need to end on a positive scene, though.
Around 50 percent of all TVs sold in the UK are purchased from high street retailers, and that has been roughly stable since the end of the pandemic.
That suggests there is still a consumer appetite for seeing big screen TVs in action before purchase, even if the cost for all that technology and screen acreage now amounts to not much more than the price of a few days in Benidorm. While the days of colour TVs costing more than the van they were delivered in have long gone, it does rather encourage early upgrade replacement sales.
“Online sales account for around half of TV market turnover in the UK,” says Mr Simon. “So, in an annual market of five million units and over £2bn in revenue, there is business scope for every channel, including the high street.”
Peering into the Nick Simon Crystal Ball (NSCBTM) on the UK TV market for the last time (Nick retires from GfK this year), what does Alert’s long-standing market analyst feel are likely to be the TV sector drivers for 2024?
“The aforementioned 70in +, and 65in screen sizes are likely to do well at a competitive price, particularly to get us – and friends and family – watching the Euros,” he says.
“However, what we should really be waiting for is the 2026 World Cup. That event will tie-in with the potential five or six-year replacement cycle of the TVs purchased during the pandemicfuelled boom. And everybody knows that the World Cup stimulates TV sales far more than any other event.”
Connect distributes spare parts to the trade, including large national customers, independent retailers and domestic appliance engineers, supplies direct to consumers through the website eSpares, and has the largest independent repair network in the UK and Ireland. Alert looks at some of the benefits it can offer Retra / Bira members.
Connect has come a long way since it sold its first spare part from the garden shed of its founder, Birmingham-based appliance engineer, Michael Depper, in 1969.
The business, which was acquired by Screwfix, part of the Kingfisher Group, in March 2023, has spent the last 55 years evolving and expanding to become the UK’s largest supplier of household appliance spare parts, accessories and consumables, to the trade while also adding new services and websites to help everyone keep their appliances running across the UK and Europe.
Connect is an approved supplier to the CIH (Euronics), Sirius and Bira buying groups. It stocks spares from more than 500 brands, including Whirlpool and Samsung, and it’s also the sole distributor of Kenwood and De’Longhi SDA spares, as well as its own Electruepart spare parts, consumables and accessories brand.
“Connect has grown to be a multi-million-pound business –we’re the largest provider of spare parts to the trade and retail sectors, and we also supply directly to an army of DIYers through our websites,” says Dominic Hull, director of sales and service.
“Our customers can browse over one million products and buy what they need to repair the products themselves, or they can contact one of our engineers, who will provide a repair for them. “Our B2B customers and partners can use our portal, Connections, to buy in bulk, or enjoy trade-only discounts.”
So, how will the Right To Repair affect the business? “As a spare parts supplier, the Right To Repair legislation has been a significant priority for our business for many years, as a provider of spares we help both trade and customers to keep appliances working for longer”, says Mr Hull.
Adds Kelly Pook, director of digital: “On eSpares, which is the UK’s biggest B2C spare parts website, it’s all about empowering the normal everyday customer to do their own repairs.
“We are rated Excellent on Trustpilot from over 370,000 reviews, and, along with our hundreds of advice articles and 850-plus YouTube videos, all produced by our specialist content team, this is what sets us apart: quality products and quality help, advice and guidance.”
“When it comes to the Right To Repair Act, we’re front and centre – we’re aiming to educate consumers and give them a sense of satisfaction from fixing something themselves. To repair not replace. Sustainability is the premise of what we do.”
Ms Pook tells Alert: “With the Screwfix acquisition, one of the reasons for them to believe in our business was our sustainability credentials, which are crucial to achieve our environmental responsibilities and ambitions.”
Mr Hull adds: “Screwfix is also in the market for selling to consumers and B2B customers, and to ensure that we’re able to maintain, repair or replace.
“Buying a business that is going to reduce e-waste and provide a solution for that seemed like a very good way for Screwfix to diversify its offering. Secondly, there’s also a synergy with our products.”
Adds Mr Hull: “We continue to operate as two separate businesses, but the acquisition allows us to explore future opportunities and synergies with the Screwfix brand and its stores network to hit more markets and provide delivery options that our competitors can’t.
“Screwfix has 900 stores across the UK and it’s expanding into France – we’re now able to use Screwfix’s warehouse in Paris to grow our international proposition.”
Explains Ms Pook: “We’re already operating in France, Spain, Austria, Italy and Germany – which will be a focus for growth for the next 18 months.”
• Connections - www.connect-distribution.co.uk (trade customer portal) offers a market-leading 6pm cut-off for next-day delivery to the trade.
• 55 years at the forefront of the spare parts and servicing industry.
• Acquired in March 2023 by Screwfix, part of the Kingfisher Group.
• Largest independent distributor of appliance spares and accessories in the UK and Europe.
• National distribution centre dispatching 1.5 million orders every year.
• Supporting appliance manufacturers to facilitate Right To Repair legislation.
• Access to 1.7m products.
• Largest independent repair network in the UK and Ireland with 100 engineers.
• eSpares – www.espares.co.uk: the UK’s largest website for appliance spares, accessories, and consumables.
• More than 850 How-To videos and hundreds of expert advice articles to help make repairs simple and easy to do.
• 115 million views for its How-To videos on YouTube.
• Rated excellent on Trustpilot from over 370, 000 reviews.
• Over one million parts available to order online with fast delivery.
• Websites in UK, France, Germany, Ireland, Austria and Italy.
ASWO, which celebrates its 50th anniversary this year, is the largest spare parts specialist in Europe. We find out more about the business and what it can offer Retra / Bira members.
Alert: Why has ASWO joined Retra and what services and benefits can it offer the members?
ASWO: We were invited to attend last year’s Retra Conference, which was themed around sustainability, and found the day hugely interesting and useful.
Retra and Bira members who discover ASWO and the services it offers to them can gain access to the largest range and stock of spare parts, accessories and consumables in Europe, which covers more than 3,000 brands across the spectrum of consumer electronics.
For retailers that don’t usually deal in repairs or spare parts, we can offer them the Repair Parts Team solution. This can help provide footfall in-store and incremental revenues for very little effort.
Alert: ASWO launched its online Repair Parts Team service –https://repairpartsteam.co.uk/ – last year. One of the benefits is the ‘Find A Repairer’ facility, which lets consumers put their postcode in and be presented with a list of local tradespeople, which each have their own details page. This helps to send potential repair job leads to ASWO customers. Has the service had a good reaction from the trade?
ASWO: We are delighted with the reception we have had from our customers regarding the Repair Parts Team concept.
For everyone who is registered, they can claim 50 percent of the profit made on each sale in their area, but, more specifically for retailers, when the customer selects them as a ‘pick-up’ point, it will increase their footfall.
For repairers, the ‘Find A Repairer’ index is a really simple way for them to increase the amount of repair opportunities they get. To help increase the benefits to everyone, we are inviting anyone with their own website to place a simple ‘Spare Parts’ link on it and in return we can give them a unique code which will prefer the sales payments to them rather than the nearest partner.
For further information, please contact:
Email: sales.uk@aswo.com Tel: 0808 234 3136 www.aswo.com
Alert: Please can you tell us about some of the recent developments at the company?
ASWO: We are constantly evolving and innovating – it could be the installation of a bio-gas pipeline from local farms to provide ecofriendly power to our northern Europe distribution centre, planning the first extension to our newest distribution centre near Paris, or developing a new ‘uber-like’ service called ProtechNeed, which has been created to help manufacturers and brands find professional repairers where they don’t have capacity, and give additional repair work to our trade customers.
Alert: This year, ASWO is celebrating its 50th anniversary – how does it feel to reach that milestone? What’s kept ASWO going for 50 years in a tough, competitive and rapidly changing market?
ASWO: We are extremely grateful towards our customers, who have enabled us to reach this milestone – without their trust and loyalty, we wouldn’t have made it this far.
That’s why we are so dedicated and loyal to professional/ trade customers, constantly looking for ways to serve them better through innovations and performance improvements. We owe them everything and that’s why we will never let them down.
Alert: How are you planning on celebrating the anniversary?
ASWO: Even though it’s a significant milestone, we prefer to focus our pride and energy into improving our services/ performance instead of celebrating. Indeed, our vision is to build a 200-year-old company – we are only a quarter of the way there.
Retra and Bira members who discover ASWO and the services it offers to them can gain access to the largest range and stock of spare parts, accessories and consumables in Europe
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Alert: ASWO is an approved supplier to the Sirius Buying Group –how is that working out for the business?
ASWO: Becoming an approved supplier to Sirius has been beneficial to both ASWO and the Sirius members, who were looking to improve availability of spare parts.
Since we joined 18 months ago, we have attended the Sirius trade shows and member events, where we’ve received many positive comments about our service.
In a 2023 quarterly supplier review, the Sirius members voted ASWO as number one for customer service and stock availability, which was a nice accolade for us to receive.
Alert: So, what’s next for ASWO. Where do you see the business heading in the future?
ASWO: Five years ago, we were relatively unknown in the UK market and have been on a steep and exciting growth curve, which has been achieved by simply doing the things that we do well and following the ASWO values of respect, reliability and honesty.
If we carry on with the same philosophy and continue to bring new innovations and services to our customers, growth and success will follow naturally.
