Cabinet Maker 16th November 2018

DESIGN

MANUFACTURE

RETAIL

Machinery supplier Apropa talks about their forthcoming anniversary and its plans for the milestone year.

Bed manufacturer Breasley reflects on its past year’s success with a little insight on what to expect in 2019.

Bed manufacturer Kaymed reveals the findings of its recent consumer satisfaction survey.

16th NOVEMBER 2018 £3.75 ●

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DAN SQUIRES

CABINET-MAKER.Co.UK 01223 846 825 PUBLISHER Stewart Rickersey stewart@cabinet-maker.co.uk EDITOR Dan Squires dan@cabinet-maker.co.uk PRE-PRESS PRODUCTION Chris Randall production@cabinet-maker.co.uk SALES Sharon Rickersey Operations & Sales Manager sharon@cabinet-maker.co.uk Kacem Ellabbar kacem@cabinet-maker.co.uk Chris Manning chris@cabinet-maker.co.uk

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The number of shoppers leaving their homes for a retail destination during October proved to be another month of gloomy figures. In fact it was the third consecutive month of decline with overall footfall down by 2%, according to the latest BRC-Springboard data.

The high street continued to suffer, experiencing a decline of 2.3%, a slight acceleration on September’s decline of 2.2%.

Despite the fall, Northern Ireland and Greater London were the only two regions to see growth on the high street of 4% and 0.2%, respectively.

In the month where Halloween sets a spooky scene, even retail parks suffered with a decline of 0.2%, dropping from its growth of 0.2% last month. There was no U-turn in form for shopping centres either as footfall fell at a deeper rate to 3.3%, marking the 19th month of consecutive decline.

So what does this mean? Well, it’s not great, especially when the current month of November sees the frantic season of ‘Black Friday’ reach its peak. This downward trend is primarily driven by a move from in-store to online purchases. With retail becoming more digital, physical shopping locations are working to reinvent themselves as places people go for days-out rather than just for day to day purchases. November’s data will be an interesting read to see if retailers adopt the American ‘Black Friday’ event both in-store and online. Currently in the Cabinet Maker poll, the furniture industry seems to be highly in favour of ‘not bothering at all’ with the promotion a ‘waste of time’ at 81%. Only 13% stated that they always offer something, whilst 6% were still on the fence.

As you’re contemplating your businesses approach to ‘Black Friday’ or indeed ‘Black November’ as some promotions are already well underway, take a moment to absorb the latest findings from Kaymed’s latest survey results on showroom displays. The bed manufacturer sat down with Cabinet Maker to exclusively discuss the findings of its recent consumer satisfaction review survey, which has become a key ingredient of ‘marketing gold dust’ for the company.

Also in this week’s editorial is the latest company developments from furniture and bedding machinery specialist Aporpa, who reveal an insight into its brand’s as it prepares to celebrate its 65th anniversary. We do love a birthday at Cabinet Maker! Bed business Breasley took some time to reflect on 2018, which has been a ‘very, very busy’ year for the company, as well as hinting at what to expect come 2019.

And finally, to round off the issue, Bernard Eaton, MD of Greenwood Retail, returns with another slice of Retail Intelligence, focusing on ‘how to plan a sale’ correctly. The insight delivers five key steps to sales promotion success, which is timely as ‘Black Friday’, the Christmas period and the January sales are either upon us or swiftly around the corner.

The combination of a well planned sales event and timing could be the difference in driving footfall back up into positive territory, although with the constant threat of online looming over retail destinations, the future continues to be in hand of the consumer.

Dan Squires Editor

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INSIDE ThIS wEEK’S ISSUE

NEWS

06

FEATURES MADE TO LAST

20

Machinery supplier Apropa talks about their forthcoming anniversary and its plans for the milestone year.

MARKETING GOLD DUST

22

Bed manufacturer Kaymed discusses the latest findings of its recent consumer satisfaction review survey.

IT’S A WRAP

24

Bed manufacturer Breasley reflects on its past year’s success with a little insight on what to expect in 2019.

STATE OF TRADE

26

The BFM reveals the details behind its latest State of Trade analysis within the furniture industry.

RETAIL INTELLIGENCE

28

Bernard Eaton returns with another slice of Retail Intelligence, focussing on how to plan a sales promotion.

LAST WORD

30

Maria Morais, CX Industry Principal, Consumer Industries, SAP, has the Last Word.

24

22

20

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NEWS IN BRIEF ChRISTMAS CAMpAIGN Top of the list Department store retailer Debenhams has announced the launch of its new Christmas campaign. ‘Do a bit of you know you did good’ celebrates the work of the gift giver and follows the retailers September launch of the ‘joy of shopping’. The campaign will run across all channels including TV, digital, social media and print to support the department store’s premium gifting offer.

PR appointment Luxury lighting brand Bert Frank has announced the appointment of Caro Communications to handle its UK and international PR. Since Bert Frank debuted the Shear Pendant Lamp in 2013 the collection has grown to include striking new ranges that pay homage to the company’s industrial roots.

Store expansion Global bed manufacturer Tempur Sealy International, Inc. has announced the opening of its 25th TempurPedic flagship retail store in Las Vegas. Next scheduled to open is a new flagship store in Albuquerque. Looking ahead, the business is targeting 60 to 80 company-owned store locations by the end of 2019.

16th November 2018 | 06

Home and Garden products took centre stage from EU searches during the third quarter of 2018. According to the latest data from the British Retail Consortium, overseas mobile searches for UK brands grew by 18% year-on-year in Q3 2018. This is slightly up from 17% in Q2. Home & Garden saw the highest growth for overseas mobile searches with 38% in Q3 2018.

MANUFACTURE

REGISTRATIoN lIvE FoR ThE 2019 loNDoN FABRIC Show The BFM organised London Fabric Show returns to Chelsea F.C. at Stamford Bridge, London on Monday 4th March and Tuesday 5th March 2019.

Once again the show will be a must for manufacturers of upholstery, beds and soft furnishings and will feature over 35 fabric producers and suppliers. The exhibitors will include the popular and luxury fabric producers from Belgium alongside new and returning producers from Spain, Turkey, Italy, Germany and the UK. New patterns and fabric mixes will be on display as well as the latest fire and stain retardant treatments.

Jackie Bazeley, MD of the BFM said: “The London Fabric Show is now a firm fixture in the diary for our upholstery and bed manufacturers. It is the perfect opportunity to see a varied and rich collection of fabrics from expert fabric producers in one hit, with the added bonus of a first class venue. We are already excited about the 2019 show and look forward to welcoming visitors.”

Attendance is free and registration is now open.

w www.londonfabricshow.uk

RETAIl

‘STIFF CoMpETITIoN’ Shop prices went back in deflationary territory in October ending two months of mild inflation. According to the latest BRC-Nielsen Shop Price Index, overall shop prices decreased by 0.2% compared to the 0.2% increase seen in September. Deflation in non-food prices deepened to 1.1%, reflecting the strength of competition due to weak consumer demand leading retailers to keep prices low.

Law firm appointment Value homewares retailer B&M has announced the appointment of law firm Gordons. Gordons will handle its nationwide defendant personal injury (PI) brief as the business continues to grow.

B&M has been a Gordons client for the past 15 years.

During that time the firm has sourced and secured more than 500 B&M stores, as well as advising on various other matters.

Furniture retailer opens new flagship store Furniture retailer Habitat has announced the opening of its first city centre flagship in a decade.

The new 6,500sq ft store officially opened in Brighton on 9 November 2018 and is situated on North Street and forms part of the 1.3 acre Hannington Estate redevelopment.

The new location becomes Habitat’s third largest store in the UK and has been designed by Habitat’s own in-house Design Studio, featuring over 3,000 products from the Habitat collection across, furniture, lighting, textiles and home accessories.

Clare Askem, managing director of Habitat, said: “This is our first city-centre flagship store for 10 years so a really exciting development for Habitat. As our digital sales go from strength to strength, we’re also seeing customers who want to shop in an immersive environment and touch and feel the Habitat products we create. Since we’ve opened our doors we’ve had a phenomenal reaction from customers delighted to see us back.”

Habitat has also unveiled a collaborative project partnering with local artists from the area. Working with Sophie Abbott, Becky Blair and Lauri Hopkins, artwork has been translated into a limited-edition series of rugs that will retail at the new store.

Habitat plans to continue this project each year, asking local artists to submit artwork to be turned into products that will feature in the Habitat collection.

w www.habitat.co.uk

aQO DESIGN

MANUFACTURE

Design partnership a continued success

Bedding supplier impacted by cost increases

Specialist furniture manufacturer Gratnells celebrates collaboration with designer.

Harlow-based Gratnells first commissioned furniture designer Chris Dolan back in 2013 with the pair going onto continuously work together over the following five years. In that time the collaboration saw the launch of its Callero range where Chris was appointed as a design consultant.

In 2003, Chris co-founded reVerb, a specialist industrial design company that works collaboratively with manufacturers to develop distinctive and innovative new products.

Chris now extends his expertise across a number of industries such as furniture, packaging and products for industry; with the aim of applying rigour and imagination to each stage of a development process, from initial concept through to 3D-CAD and design for manufacture.

Specially designed to work flexibly as either standalone units or in combinations, the Gratnells Callero range brings flexibility to any environment requiring modular storage.

Chris Dolan said: “Working with Gratnells has also seen the launch of new school table ranges as well as an ongoing workbench project.”

w www.gratnells.com

Manchester-based bedding products supplier Trendsetter Home Furnishings Ltd has reported a slight decline in turnover.

According to its latest filed accounts for the year ended 31 January 2018, total sales fell 2.9% to £20m from £20.6m in 2017.

Gross profit was also down 4.6% to £6.2m from £6.5m, whilst pre-tax profit went into the red at a loss of £1.5m compared to its profit of £474,791 recorded last year.

Stated within its report, Trendsetter said that an increase in costs and experiencing price pressures during the year led to the fall in the group’s profitability.

The group added that it has entered into new supply agreements to mitigate the impact of raw material cost increases, as well as expanding its UK market into the hospitality and European retail sectors.

During the year, the business appointed Gavin Perkins as its new production director and Chris Rushby as its sales director.

Looking ahead, the company, which supplies duvets, pillows and other bedding products under brands including The Fine Bedding Company and Nimbus, said that it will continue its development of products manufactured from sustainable materials, with the last year seeing the launch of its first duvet made from 100% recycled bottles.

w www.trendsetterinternational.com

16th November 2018 | 07

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MANUFACTURE

Bed retailer looks to enhance omnichannel platform

Sofa specialist to open fifth UK showroom

Bed retail specialist Dreams has announced a new partnership with digital solutions provider Envoy.

Under the partnership Dreams will revolutionise its omnichannel capabilities and digitally transform its store estate using Envoy Digital’s, part of the KPS Group, platform.

Dreams recognised the need to integrate its sales channels to better meet the needs of customers at each stage of their buying journey, whether it was online or in-store - something its disparate legacy systems were no longer able to sufficiently deliver.

The solution from Envoy Digital, which will be implemented via the SAP Hybris Commerce platform, brings together the siloed offline and online customer journeys into a single unified journey, affording Dreams a 360-degree view of the customer.

This will enable Dreams’ sales teams to drive enhanced interactions with its customers, while delivering shoppers more seamless omnichannel experiences, no matter which channel they engage with the brand in.

Mike Logue, CEO of Dreams, commented: “At the moment our business is very separate – from customers operating with us online to a customer being looked after by our store teams. The solution will totally change the way our business operates.

“A 360-degree view of the customer will enable us to follow that buying journey all the way through and allow for greater interaction for all our store teams with the customer. This means all of our 200 stores will turn into ‘digital stores’ and, instead of talking about online sales and offline sales, all our sales will become ‘digital sales’.

Designer sofa specialists Darlings of Chelsea has announced the official launch of its new London flagship store in Parsons Green.

Officially opening on 2 January 2019, the 5,500sq ft showroom will showcase their latest designs before any of their four other stores.

It will also display their designer collections from Duresta, Content by Terrence Conran and Scandinavian designer, Andreas Engesvik.

John Darling, owner, said: “Renovating the showroom from its previous life as a Porsche garage has been a mammoth task, but we are really pleased with the transformation.

“Drawing on feedback from our customers, we’ve diversified our range to offer a variety of sofas that fit different living spaces.”

The Parsons green flagship store marks their fifth UK store, adding to its others in Birmingham, Fulham, St Albans and Ash Vale in Surrey.

w www.darlingsofchelsea.co.uk

RETAIL

Bed firm wins court case over ‘defective’ claims Beds and mattresses business Beds Are Uzzz has won a court ruling following a dispute with a customer.

“This is a significant initiative for our business, and it’s important that we futureproof ourselves. We all know the world – and retail – is changing at such a rapid rate, even without all the digital changes that are taking place, and we need to keep up with that. The solution for us is all about the future – that Dreams is futureproofed for a number of years ahead.”

Claire Busby took Berkshire Bed Company, trading as Beds Are Uzzz, to court after she suffered a serious injury to her spine when falling from the bed she purchased from the business.

w www.dreams.co.uk

The business responded by stating that the couple had ‘simply lost balance and toppled backwards’ due to being too close to the edge of the mattress.

RETAIL

Retail group secures new funding Retail group Haddow has secured new funding to allow the business to continue to grow.

Haddow Group, which operates through three divisions in interiors, clothing and beauty, has secured a £500,000 funding package from Bibby Financial Services (BFS).

The funding will be used to help manage cashflow through Bibby’s Invoice Finance facility, which will release cash against outstanding invoices before they’ve been paid.

Tristan Haddow, CEO, said that the investment would be ‘crucial’ to grow the business, which also allows the company to ‘concentrate on business development’.

w www.haddowgroup.com 16th November 2018 | 08

The High Court heard claims that the bed was in a ‘defective state’ at the time of her accident. Ms Busby was injured while having sex with her partner John Marshall.

Judge Barry Cotter found the bed was not defective and that Ms Busby’s fall was a ‘tragic accident’.

Following the judgement, The Berkshire Bed Company said in a statement that they were ‘delighted’ with the ruling and passed on their best wishes to Ms Busby and her family for the future.

Richard Manders, director, on behalf of Berkshire Bed Company Ltd, said in a statement: “We are delighted the court has ruled in our favour. We are sorry that Ms Busby was injured and we wish her and her family well for the future.

“We look forward to continuing to supply quality products to our many valued customers. Our beds and mattresses can be trusted to provide comfort and are perfectly safe.

“We would like to thank our insurers and legal team who have provided their utmost support over the past three years.”

w www.bedsareuzzz.co.uk

aQO RETAIL

MANUFACTURE

Boxed mattress founder wins award

Bed maker opens three new showrooms

CEO of online boxed mattress retailer OTTY Sleep, Michal Szlas, has been named Entrepreneur of the Year at the 2018 Yorkshire Post Excellence in Business Awards.

British bedmaker Rest Assured has announced the launch of three brand new showrooms in the UK. The showrooms are now open in Alfred Smith and Son in Penzance, Calverts of Taunton, and Happy Home Furnishers’ in Llanelli.

The Yorkshire Post Excellence in Business Awards is an annual event, which celebrates standout and innovative businesses and entrepreneurs from across the Yorkshire and Humberside region.

Rest Assured has over 115 years of bed making expertise and will add to the current ranges of quality bedroom, dining and living room furniture in these stores.

Michal Szlas and OTTY Sleep fended off tough competition in a range of sectors to secure the award, with judges praising OTTY’s success over the last 12 months.

Rest Assured aims to help customers achieve their ultimate sleep space, offering style inspiration and comfort advice from specialist in-store experts.

The past year has seen OTTY significantly increase the number of employees working at its Leeds headquarters, expand into Berlin and the Netherlands, and boost its year-on-year turnover by more than 450%, with projected third year turnover figures expected to hit £20m.

Louise Boden, brand manager for Rest Assured said: “We’re delighted to be opening the first Rest Assured showrooms in Cornwall, Somerset and Carmarthenshire.

Commenting on the accolade, Michal Szlas said: “I’m over the moon to have been announced as Entrepreneur of the Year at this year’s Yorkshire Post Excellence in Business Awards. It’s been a really exciting 2018 for OTTY, which has been highlighted by our turnover growth, increasing staff numbers and expansion into Europe.

“The new showrooms give us the chance to showcase our latest products in fantastic new stores where customers will receive outstanding service, to ensure they find the right mattress and bed for them.

“While the award has my name on, it’s one dedicated to the OTTY team – all of whom work hard daily to make the company so successful.”

“All Rest Assured mattresses are handmade here in Britain and feature quality zoned pocket springs, partnered with premium comfort fillings such as natural wool or latex, to deliver comfortable mattresses at affordable prices.”

w www.otty.com

w www.rest-assured.co.uk

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10/09/2018 20:59:06

|N E w S MANUFACTURE

RETAIl

BoND pRICING hIGhER ThAN ExpECTED; SCRApS pRopoSAl

Shopper numbers continue to decline in gloomy October

Kidderminster-based flooring group Victoria Plc has confirmed that it has resolved to continue with the Company’s existing bank facilities, rather than refinance them with a senior secured note as proposed last week.

Victoria said that the Bond would have been suitable for the Group to meet its long-term financing objectives, but the indicative pricing for the Bond, which was higher than had been anticipated, was such that it did not warrant changing the Group’s debt financing arrangements at this time.

Commenting on the update, Geoff Wilding, chairman of Victoria PLC, said: “We embarked on the Bond process in good faith and with the intention of delivering benefits for all shareholders in the form of long-term funding at an attractive, fixed interest rate.

“It is very disappointing that despite the positive, stable credit ratings, the indicative pricing for the Bond moved unfavourably over the course of last week, particularly when there have been no fundamental changes to the Group or its business.

“I want to reassure shareholders that, as with our strategy of only paying the right price for acquisitions, the Board applies a high degree of rigour to our long-term financing arrangements.

Therefore, as we continue to have a close and positive relationships with our lending banks and operate with significant headroom with respect to covenants under our existing 2-year facilities put in place in August 2018, we will continue with these facilities. The banks have been, and continue to be, very supportive of our strategy and performance. Any suggestion to the contrary is untrue.

“Nevertheless, last week was not the Board’s finest hour in terms of the clarity of our communication. For the last six years, the Board has endeavoured to maintain an open dialogue, fully appreciating that it is the shareholders who own the company.

Unfortunately, we placed too much emphasis on technical guidance and market convention and not enough common sense was applied in terms of communication with shareholders.

“By failing to communicate clearly last week and in the run-up to the Bond launch, the Company needlessly left shareholders feeling uncertain about the future. Critically, this also left an open goal for those with less than pure motives to spread outrageous untruths. This has damaged the value of the shares, although, of course, there has been no impact on the underlying business, which is high quality and continues to successfully design, manufacture, and distribute flooring products around the world as it always has done.

“Victoria’s operational management are firmly focused on delivery of our organic strategy. Separately, the Board continues to identify and very selectively pursue attractive acquisition opportunities.

“We have adapted our usual acquisition structure in such a way that remains attractive to potential vendors but ensures that future acquisitions remain value-enhancing for shareholders by reducing requirements for new equity whilst staying within our internal debt limits. As such we continue to see opportunity to pursue our acquisition strategy to meaningfully enhance the Group alongside organic growth.”

w www.victoriaplc.com

High street footfall fell during October, marking a third consecutive month of decline.

According to the latest BRC-Springboard Footfall and Vacancies Monitor for October 2018, overall footfall fell by 2%.

High street footfall declined 2.3%, a slight acceleration on September’s decline of 2.2%.

Northern Ireland and Greater London were the only two regions to see growth of 4.0% and 0.2%, respectively.

Retail parks experienced a decline of 0.2% in October, slowing from the 0.2% growth last month.

Shopping centres saw a continued fall in footfall of 3.3%, a deeper decrease than the 3% decline of last year. October 2018 is now the 19th month of consecutive decline.

Northern Ireland was the only region to record growth of 2.7%, with footfall growing by 4% in both its High Streets, an improvement from September’s sharp declines of 6.1% in both of these locations.

The East and East Midlands experienced the deepest footfall decreases of 6.1% and 4.8%, respectively. Wales saw a deceleration in footfall decline, from -5.5% recorded in September to -2.3% in October.

w www.brc.org.uk

RETAIl

Save the date Stephen Sidkin, partner at Fox Williams LLP, has confirmed he will host an agent law seminar later this month.

Taking place on Tuesday 27 November 2018 at Fox Williams on Finsbury Square in London, the event is free to attend and will host a number of guest speakers.

During the session, speakers will consider the following topics: • Duties and obligations - how parties to an agency or distributorship agreement can use duties and obligations to their advantage - Rebecca Richardson • What happens if your agency or distributorship dispute ends up in litigation: why you can be caught out by disclosure - Tom Custance • 25 years on - are there still unanswered questions about the Commercial Agents Regulations? - Oliver Segal QC • Using agents or distributors overseas / acting as a UK agent or distributor for an overseas principal or supplier – where will we be after Brexit? - Stephen Sidkin The seminar will be chaired by Stephen Sidkin, partner and head of the agent law team at Fox Williams. It will take place from 6:00pm for 6:30pm start until 7:30pm, followed by networking drinks and canapés.

Contact Stephen Sidkin on +44 (0)2 0 7614 2505 or slsidkin@foxwilliams.com

w www.foxwilliams.com 16th November 2018 | 10

aQO

9th November 2018 | 11

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RETAIL

Currency rates impact furniture wholesaler

European furniture retailer posts third quarter growth

Altrincham-based furniture supplier Halo Furnishings has reported a second year of declining sales.

According to its latest filed accounts for the year ended 31 December 2017, total sales fell 23.2% to £13.5m from £17.6m in 2016.

Gross profit was also down by 50% to £1.4m from £2.8m, although the company did report a reduction in pre-tax losses, narrowing from a loss of £1.3m to £1m.

Stated within its report, Halo said that currency fluctuations impacted both margins and overall consumer sentiment in the sector, which led to reduced stock buying.

The company added that ocean freight rates, along with the FX rate, also played a key factor in margin erosion with the business turning towards more finished goods from its parent company to provide shorter lead-times for customers.

Halo Furnishings is part of the Halo Group, which also includes Halo Asia, Halo International and Timothy Oulton.

w www.haloliving.co.uk

RETAIL

Argos drives growth at parent group Supermarket group Sainsbury’s has reported a growth in underlying profit, driven by Argos synergies.

According to its latest half-year results for the 28 weeks ended 22 September 2018, Sainsbury’s saw overall group sales rise 3.5% to £16.8m, with retail sales up 1.2% and like-for-like sales up by 0.6%.

Underlying pre-tax profit increased 20% to £302m, an uplift of £51m from £251m, with the group outlining its Argos division supplying a boost in performance.

General Merchandise sales, including Argos, grew 1.5% and ‘outperformed the market’ although margins remained ‘under pressure’.

Sainsbury’s added that the hot summer boosted sales, particularly in categories such as garden furniture.

During the period, the group opened 60 Argos stores in Sainsbury’s supermarkets, bringing the total to 251.

Sales in Argos stores which have been trading for more than three years are around 45% higher than they were in their first year and sales in those that have been trading for more than two years are around 35% higher.

Sainsbury’s added that it is ‘on track to achieve our guidance of 280 stores by the end of the financial year’, with plans to open a further 29 stores. The group also added a new stand-alone Habitat store in London’s Westfield Shopping Centre, bringing the total number of Habitat stores to 16.

w www.argos.co.uk

French furniture retailer Maisons du Monde has reported a growth in sales during its third quarter.

According to its latest trading update for the three months ended 30 September 2018, total sales rose 5% to 251.2m euros with like-for-like sales up by 1.1% as online sales continued its strong momentum, growing by 17.6%.

International sales, including its UK footprint, increased by 11.5% to 103.6m euros, whilst its native France sales also rose by 0.8% to 147.6m euros.

Within its product categories, Furniture sales experienced an increase of 10.5% to 115.6m euros, closing the gap on its Decoration division with sales in this sector growing by 0.7% to 135.6m euros. Maisons Furniture division now represents 46%, up from 43.7% in 2017.

During the period, the Group successfully deployed the in-store and digital Home Decoration Advice Services, which includes a 3D app allowing customers to visualise their furniture items at home.

Julie Walbaum, CEO of Maisons du Monde, commented: “Growth momentum remained strong in online sales and international business, which both grew at double-digit rates, offsetting the anticipated soft retail environment in stores in France and an unfavorable base effect. Thanks to its successful integration, Modani also contributed to the overall sales growth in the third quarter.

“We have also updated our forecast for net openings and we now expect to open 22 Maisons du Monde stores. This includes a first test of the Maisons du Monde concept in the US, with the opening of a store in Miami before the end of the year.”

w www.maisonsdumonde.com

MANUFACTURE

furniture brand sees UK growth return French luxury furniture brand Christian Liaigre has reported a return to UK sales growth and profit.

According to its latest filed accounts for the year ended 31 December 2017, total sales rose 20% to £3.6m from £3m in 2016.

Gross profit increased 16.6% to £2.1m from £1.8m, whilst pre-tax profit results at £76,710, marking a return to the black compared to its loss of £97,961 recorded last year.

The return to bottom line growth was still some way behind its record profit of £1.1m achieved in 2012. Although since then it had consistently seen year-on-year declines with 2015 also reporting a loss until its most recent result.

In 2016 Christian Liaigre Group was acquired by Symphony International for an undisclosed sum. Paris-based CLG operates a network of 26 showrooms in 11 countries across Europe, the US and Asia.

w www.liaigre.com 16th November 2018 | 12

aQO MANUFACTURE

RETAIL

Concessions withdrawal impacts turnover

DIY retailer closes four stores

St Helens-based soft furnishings supplier Ena Shaw has reported a reduction in turnover for a second straight year as losses increased.

Home improvement retailer Homebase has confirmed it will close its Scunthorpe store early next year.

According to its latest filed accounts for the year ended 27 January 2018, total sales fell 15% to £15.2m from £17.9m in 2017, with all geographical markets posting a decline.

UK sales reduced 15% to £14.7m from £17.3m, whilst EU sales fell 21% to £355,916 from £455,131. Outside the EU, sales slipped by 36% to £73,130 from £115,170.

Group gross profit decreased 18% to £5.7m from £7m, whilst pre-tax losses resulted at £413,077, growing from its loss of £167,012 recorded in 2017.

Stated within its report, the business said that turnover was impacted by its planned withdrawal of unprofitable concessions through Debenhams, which accounted for £1.6m.

The company added that gross margin decreased by 1.16% due to increased raw material prices and a continued ‘prudent approach’ to stock valuation.

Ena Shaw did highlight a growth within its contract sales division, with demand remaining ‘strong in a number of sectors’.

w www.enashaw.co.uk

MANUFACTURE

FIRA International expands flammability lab FIRA International has announced the opening of a newly expanded flammability laboratory within its UKAS accredited facilities in Hertfordshire.

The expansion now gives FIRA International experts four flammability cabinets in which to test domestic and contract furniture, including all types of upholstery, foams, fillings and mattresses.

Howard James, operations manager of Testing Services at FIRA International, said: “We’ve been seeing an increase in demand for our testing services since 2017, and decided that the time was right to make a further significant investment in our capabilities.

“Now this phase of expansion is complete, we’ll be in a stronger position to meet customer demand and support customers with turnaround times by having four flammability cabinets in operation.

“Alongside investing in equipment we’re also investing in our people, recruiting additional testing experts to ensure we make the best use of our additional capability to support our customers.”

Alongside the completed flammability expansion, FIRA International are also currently expanding their structures department. This includes additional investment in further machines which test the safety, durability and stability of chairs, tables, beds, cabinets etc. Further details on this programme will be released shortly.

w www.fira.co.uk

The store on Lakeside Retail Park will close for the final time on 7 January 2019 and is an addition to the 42 stores the retailer announced it would close earlier this year.

The news also follows its recent announcement that its store in Bath on Pines Way will close on 24 November and is also an addition to the marked closures previously listed.

Homebase has also confirmed that it will close its Portsmouth store at Ocean Retail Park in Burrfields Road on 21 December, as well as its store in Wrexham on 14 December. These were also not on the initial store closure list.

The closures are part of the Homebase’s restructuring process under a Company Voluntary Arrangement (CVA).

w www.homebase.co.uk

RETAIL

Steady sales growth continues Department store retailer W.J. Daniel, otherwise known by its trading name Daniel Stores, reported a fifth straight year of turnover growth as sales continued to edge towards £13m.

According to its latest filed accounts to 28 January 2018, total sales rose by 1% to £12.8m from £12.7m in 2017.

The family-run business, which boasts three stores in Windsor, Ealing and Chiswick, saw gross profit decrease by 5% to £6.4m from £6.8m, whilst pre-tax profit resulted at £1m, down from £1.3m recorded last year.

The decline marked a second straight year of falling profits.

Founded in 1901, the company, which specialises in bedroom, dining and living room furniture, said the business had performed well in ‘what has been a difficult trading environment’.

w www.danielstores.co.uk

RETAIL

DIY market ‘very challenging’ Home improvement retailer Wickes has reported a decline in sales during the third quarter of 2018.

According to Travis Perkins PLC’s latest trading update, its consumer division, which house the Wickes brand, posted a fall in revenue of 1.8% with like-for-like sales down by 4.2%.

The group said that the market environment in UK DIY ‘remains challenging’, resulting in continued volume declines in both core DIY and Kitchen & Bathroom showroom categories, with ‘significant pricing competition across the sector’ preventing the recovery of cost price inflation within its Wickes business.

w www.wickes.co.uk 16th November 2018 | 13

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RETAIL

Furniture supplier grows sales towards £30m

Fire destroys one furniture business; damages another

Furniture manufacturer and wholesaler Oakwood Door Designs has reported a seventh year of successive turnover growth.

The company, which trades under the name Uform and specialises in kitchens, furnishings and accessories, posted a rise in total sales by 29% to £29.3m from £22.7m for the year ended 30 April 2018.

Gross profit also rose by 38.2% to £9.4m from £6.8m, whilst pretax profit resulted at £3.5m, up by 52% from £2.3m, marking a sixth straight year of bottom line growth.

The Northern Ireland-based company posted an increase in gross profit margin by 2% to 32% due to continued product and process innovation.

During the year, the company, which is located in Toomebridge, County Antrim, invested £1.8m in fixed assets.

Earlier this month, Uform further bolstered its senior management team with the appointment of Gary Hutton as its new operations director and Derek Douglas as its new plant manager.

w www.oakwooddoors.co.uk

MANUFACTURE

A fire in Nottingham has affected two furniture businesses with one being completely destroyed.

Nottinghamshire Fire & Rescue Service attended a fire at the Cattle Market in Nottingham, which started around 5:30pm on 4 November 2018.

Four buildings have been completed destroyed in the fire, and at its height, around 85 firefighters and 15 fire engines were on scene.

Among those businesses that were affected included beds and mattresses retailer Bed City, which has seen the property gutted.

The other furniture business included 4K’s Kitchens, which saw its storage building also destroyed.

The fire service has confirmed that a joint fire investigation between the Service and Nottinghamshire Police is currently underway to determine the cause of the fire.

According to reports in local media, sources have indicated that the fire broke out at the Bed City premises, although no official statement has yet been released by the fire service.

Simon Glew, station manager was the incident commander at the scene, said: “This was a significant fire, and our crews worked through the night to bring the incident under control, and our praise goes to them for their hard work in keeping the public safe.

Flooring supplier to introduce sustainable packaging

“The fire involved a number of buildings and an investigation is now taking place to determine the cause of the fire. The incident has had a safe resolution, and we would like to thank the public and commuters in the area for their patience whilst we have dealt with this.”

Austrian hardwood timber and flooring supplier Danzer has announced a new initiative to reduce plastic packaging.

w www.notts-fire.gov.uk

For two years, a project team at Danzer has been researching different ways to cut the amount of plastic used in packaging.

RETAIL

After conducting extensive research, the company has now taken the first steps towards addressing the issue: from the end of 2018, Danzer will change over to oxo-biodegradable packaging for a significant portion of its veneers and hardwood flooring wear layer products.

Furniture retailer continues store expansion plan

Oxo-biodegradable plastic is made of recycled plastics. The main difference to conventional types is that it breaks down under exposure to ultraviolet light in around two years, due to its chemical properties.

Furniture retailer The Cotswold Company has revealed that it plans to open a new store in Harrogate.

The Cotswold Company has agreed to take over four units at Station Parade, which will be redeveloped to create a single 8,000sq ft store.

Hans-Joachim Danzer, CEO, said: “Using oxo-biodegradable plastic rather than conventional plastics represented the best alternative open to us right now. In most cases, progress comes in small steps.

The units at the site were previously occupied by Raft, Games Workshop, Indulge café and Santander. The Cotswold Company has appointed CEG to complete the project, which will see the new store expected to open in January 2019.

“The project teams will continue to work on further optimising the use of packaging materials in every area of production at the company.

The new store will bring the retailers presence to six and follows the recent opening of its store in Godalming and Chelmsford earlier this year.

“The new material will be introduced gradually. Our plant in the Czech Republic will set the ball rolling, with all of our other production facilities set to follow suit one after the other.”

It has been a year of growth for the business, which posted an 80% rise in turnover to £35m for 2017 earlier this year, with pretax profit increasing by over 40% to £2m.

w www.danzer.com

w www.cotswoldco.com

16th November 2018 | 14

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bedfed.org.uk 9th November 2018 | 15

24/04/2018 13:52

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MANUFACTURE

Stores continue to close on British high streets

group continues to ‘outperform the market’

The rate of store closures on British high streets remained at 14 stores a day, says new data from PwC. A combination of growth in online shopping, shift to in-home leisure, heightened restructuring activity and ongoing digitisation of services has seen the half-year net reduction in stores on Britain’s high streets reach record levels, according to research compiled for PwC by the Local Data Company (LDC).

A net 1,123 stores disappeared from Great Britain’s top 500 high streets in the first half of this year as only 1,569 shops opened, compared to 2,692 closures (H1 2017 net loss: -222 stores).

The rate of store closures in H1 2018 remained at 14 stores a day.

However, store openings were down by a third year on year (H1 2018: 1,569 openings; H1 2017: 2342 openings).

Lisa Hooker, consumer markets leader at PwC, said: “The continued rate of store closures reflects the new reality that many of us prefer to shop online and increasingly eat, drink and entertain at home. The high street is adapting to an overcapacity in retail and leisure space resulting from these channel shifts.

“Openings simply aren’t replacing the closures at a fast enough rate. Specifically, the openings across ‘experiential’ chains, such as ice cream parlours, beauty salons and vape shops, haven’t been enough to offset closures in the more traditional categories.

“Looking ahead, the turmoil facing the sector is unlikely to abate.

Store closures already announced in the second half of the year due to administrations and CVAs already will further intensify the situation.

“The British high street is in urgent need of new ways of thinking and new forms of retail. Encouraging this should be a priority, and it remains to be seen if recent packages of support for the high street and reductions in business rates for smaller retailers will be sufficient to stimulate this.”

w www.pwc.co.uk

MANUFACTURE

Kitchen firm sold out of administration Kitchen cabinet and door manufacturer Summerbridge Doors Limited has been sold out of administration.

Keith Marshall and James Miller, both of RSM Restructuring Advisory LLP, were appointed joint administrators of the company on 6 November 2018.

Following their appointment, the business was sold to Humber Doors Limited, which shares common ownership.

Commercial furniture manufacturer Ocee Design has reported another growth in turnover as sales climbed towards £20m.

According to its latest filed accounts ended 30 June 2018, total sales rose by 4.1% to £17.6m from £16.9m.

Gross profit also increased by 14.5% to £5.5m from £4.8m, whilst pre-tax profit significantly swelled to £1.1m compared to £123,074 recorded the previous year.

The company said it has continued to ‘outperform the market’ with sales growth of £3m on a like-for-like 12 month period.

Ocee Design also stated that it has continued to invest within its business with new technology in its P-con planner and virtual reality to visually enhance the customer experience.

The company has also expanded outside the UK for the first time with a new business development manager appointed in the Middle East, with the move being ‘very well received’.

Furthermore, Ocee Design has acquired a new 22,000sq ft production space to facilitate future growth, which will be mainly used to expand its upholstery production division.

Ocee’s parent group Ocee International, which also owns Four Design Group Aps and Race Furniture, posted an overall group turnover of £39.6m, an increase of 11%, with pre-tax profit growing to £1m from £410,731 year-on-year.

UK sales totalled £20.7m, up by 4.8% from £17.3m (driven by the Ocee Design business), whilst EU sales rose 3.1% to £16.5m from £16m. Sales outside the EU remained consistent at £2.3m.

w www.oceedesign.com

RETAIL

Discount department store returns to profit Home furnishing and fashion discount department store chain TJ Hughes has reported a fourth straight year of turnover growth as sales edged closer to £70m.

According to Lewis’s Home Retail Limited’s, owner of the TJ Hughes and Lewis’ brands, latest filed accounts for the year ended 31 January 2018, total sales registered an uptick of 3.7% to £69.7m from £67.2m in 2017.

Gross profit remained consistent at £27.1m, whilst pre-tax losses returned to growth, resulting at a profit of £1.3m compared to its loss of £714,646 last year.

Humber Doors Limited was incorporated on 31 October 2018 and has David Bean listed as named director of both businesses.

Stated within its report, the company confirmed that it moved into a new distribution centre as well as investing in new technologies to push further growth, whilst adding that it will continue its ongoing store expansion strategy but only in ‘attractive locations’.

The sale of Summerbridge Doors, which operates from its premises on Springfield Way in Anlaby, Hull, has saved over 100 jobs.

Furthermore, the business added that it plans to move towards a more concession based strategy with the aim to reduce stock holding an improve liquidity.

w www.summerbridgedoors.co.uk

w www.tjhughes.co.uk

16th November 2018 | 16

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RETAIL

Belgian furniture imports into the UK falls

Search for next John Lewis chairman begins

Belgian furniture imports into the UK declined by almost 10%, whilst British exports into the nation also fell.

According to the latest market data for the first six months of 2018 for the Belgian furniture industry, total exports decreased by 0.3% to EUR 725m compared to 2017, whilst imports fell 2.3% to EUR 1.15bn.

Belgian furniture exports to the EU countries increased by 0.5%, although the UK market declined by 8.2% to EUR 16.4m (£14.3m) from EUR 17.8m (£15.5m), representing 2.3% of overall exports.

British furniture imported into Belgium also declined by 8.8%, representing a total of 0.9%, to EUR 10m (£8.7m) from EUR 11m (£9.5m) over the six month period.

Stated within the report, the Federal Planning Bureau expects the euro zone economy to grow ‘less rapidly’ during the year, as well as in 2019 with a number of factors implicating growth.

These include a decline in consumer confidence, higher raw material prices and market uncertainty, with the UK highlighted in relation to ongoing Brexit talks, which remains unclear on clarity surrounding future trade relations.

w www.fedustria.be

DESIGN

Furniture business launches new sustainability campaign Swedish furniture giant IKEA has announced the launch of its new campaign to inspire the nation to take small steps which have a positive impact on the planet.

The ‘Last Straw’ installation is located at the Design Museum in London and symbolises the end of an era of single-use plastics.

The campaign reflects that IKEA will no longer serve or sell singleuse plastic straws in any of its UK and Ireland stores, restaurants and bistros.

As a call to action for broader systemic change, IKEA’s ‘Last Straw’ is part of the company’s global commitment to inspire and enable more than one billion people to live a better everyday life within the limits of the planet.

This is the first of many milestones in the retailer’s journey to removing all single-use plastic products from its range globally by 2020 and to becoming a truly circular business.

Hege Sæbjørnsen, country sustainability manager, IKEA UK and Ireland, said: “Plastic straws have become such an important emblem for change when it comes to single-use plastic, but this campaign is not just about straws.

“We want to harness people’s energy behind ditching single-use plastic straws and disposables to draw attention to the thousands of everyday changes we can all make to have a big impact on the planet.”

w www.ikea.com

The John Lewis Partnership has begun the search for a successor to Sir Charlie Mayfield, who will step down as the Partnership’s fifth chairman in its nearly 100 year history during 2020.

The new chairman will be announced in the second half of 2019.

John Lewis said that the process for selecting a new chairman has been ‘extensively modernised’ and will be overseen by a Nominations Committee, comprising of two elected directors, two independent non-executive directors and the chairman.

The Committee is chaired by Keith Williams, the deputy chairman, and supported by independent recruitment consultants, who will be considering both internal and external candidates.

Sir Charlie Mayfield, partner & chairman of the John Lewis Partnership, said: “Although my departure is still a considerable way off, the appointment of my successor is a key responsibility.

It is for this reason I have decided to lay out the timetable now to enable an open and thorough process to select the next chairman of the Partnership.”

w www.johnlewis.com

RETAIL

Restructuring programme ‘on track’ High street retailer Marks and Spencer has reported a growth in profit despite a decline in half year sales.

According to its latest trading update for the 26 weeks ended 29 September 2018, total group sales were down by 3.1% to £4.9bn from £5.1bn.

Clothing & Home revenue was down 2.7%, which was impacted by store closures, with like-for-like sales down 1.1%. Online sales within the category rose 9.1% as M&S continues to develop its website.

Pre-tax profit increased 7.1% to £126.7m from £118.3m, whilst including adjusting items of £96.8m including £47.6m for UK store closures, the figure rose by 2% to £223.5m.

Stated within the announcement, M&S said that it is on track to close over 100 full-line stores and have now closed 29 to date.

“The sales transfer rates from these early closures has been encouraging and most colleagues have been successfully redeployed. We are also at the early stages of planning the redevelopment of some of our older sites in city centres, a statement said, continuing: “Our UK stores are predominately leasehold and while around half of our lease liabilities fall due within 10 years our average remaining tenure on market rent leases is around 20 years.”

Steve Rowe, CEO, added: “We are on track to restructure our store portfolio with over 100 full-line closures and expect to see newly remodelled stores open next year. We are fixing the basics of our online channel and there are very early signs of improvement.”

w www.marksandspencer.com 16th November 2018 | 17

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RETAIL

Scottish fit-out firm sees profit surge

Turnaround continues at department store retailer

Scottish-based furniture fit-out contractor Thomas Johnstone has reported a third year of successive turnover growth.

According to its latest filed accounts for the year ended 31 December 2017, total sales rose 5.2% to £48.1m from £45.7m in 2016.

Gross profit increased 10.6% to £8.3m from £7.5m, whilst pre-tax profit jumped to over £1m compared to its profit of £656,000 recorded last year.

The bottom line figure was the highest profit achieved since 2007 when pre-tax profit resulted at £1.2m.

Renfrewshire-based Thomas Johnstone commented within the report: “As expected trading conditions remained stable for the majority of 2017 and it was once more pleasing to note that for the third year in succession we witnessed continued growth in our market place.

“This was based on ongoing level of client confidence which in turn reflected an increased demand for our services and a general upturn in economic activity as a whole.”

w www.tjl.com

RETAIL

Retailer eyes up vacant unit Furniture and homewares retailer Dunelm has revealed its intention of opening a new store in Bristol at Cribbs Causeway, taking over the vacant Toys R Us unit.

Dunelm posted an advert through totaljobs.com stating: “We have some exciting opportunities for sales assistants in our brand new store in Bristol Cribbs Causeway.”

w www.dunelm.com

MANUFACTURE

Office firm continues to grow turnover Office furniture manufacturer Mobili has reported a fourth consecutive year of turnover growth.

According to its latest filed accounts for the year ended 31 December 2017, total sales rose 6.7% to £12.4m from £11.6m in 2016.

Gross profit increased to just over £5m, whilst pre-tax profit resulted at £596,556, down from its profit of £2.3m recorded the previous year.

Stated within its report, Skipton-based Mobili said that its bottom line was impacted by ongoing investment into the business during the year.

The company added that performance has been in line with expectations despite operating within challenging conditions.

w www.mobili.co.uk 16th November 2018 | 18

Department store retailer Oldrid & Co has reported a drop in sales for a second consecutive year.

According to its latest filed accounts for the year ended 27 January 2018, total sales fell 4.1% to £40.6m from £42.4m in 2017, with like-for-like sales down by 6.3% year-on-year.

Oldrid’s said that big ticket sales were down 7.8%, with like-forlike sales down 5.3%, small ticket items were also down 4.7%, whilst outdoor product sales declined 7.1%. Only fashion sales improved by 2.4%.

Gross profit was also down by 3.7% to £15.4m from £16m, whilst pre-tax losses amounted to £1.5m, reducing from its loss of £1.8m recorded last year.

Stated within its report, the company said all of its store network reported a decline in sales, whilst its newest store in Scunthorpe produced a net profit of £27,000 in its first year of trading.

The company also added that its store in Gainsborough to closed on 28 January 2018 after serving its notice on the property lease.

Sales during its final period were down 7.2%.

Oldrids said that following the closure of its two loss making stores in Gainsborough and previously in Lincoln, the business is in ‘much better shape’ to deal with the challenges ahead as it continues to implement its turnaround plan.

Both closures generated a combined closing down turnover of £1.5m, however the losses for the stores amounted to £727,094.

Furthermore, the company has appointed a new head of ecommerce and marketing to bolster its growth as well as implement saving strategies, resulting at £1.4m, to improve productivity and profitability moving forward.

w www.oldrids.co.uk

RETAIL

Etailer expands furniture offer Online retailer Amazon has announced the launch of a new furniture brand.

The Ravenna Home brand, which includes living room furniture, headboards and lighting, becomes Amazon’s third furniture collection adding to its Rivet and Stone & Beam brands.

Amazon said the move behind the launch was to expand its ‘everyday furniture offer’ a year on from its two other furniture brand launches, with the collection set to feature over 300 products.

The retailer has recently reported a growth in third quarter revenue to 30 September 2018 with total sales up 29% to $56.6bn. International sales, including the UK, also increased to $15.5bn from $13.7bn.

Net income increased to $2.9bn in the third quarter, compared with $256m.

w www.amazon.co.uk

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9th November 2018 | 19

F E A T U R E |A p R o p A

Baumer horizontal CNC for foam and latex

Furniture and bedding machinery supplier Apropa talks to Cabinet Maker about their forthcoming anniversary and its plans for the milestone year.

The year 1954 marked a number of milestones achieved in British history, particularly from a sporting standpoint. You may remember it was the year England, France and Wales were all crowned as the rugby union Five Nations Champions, with England also winning the Triple Crown and Calcutta Cup. Or perhaps you’re a football fan who may recall Wolves winning their first ever First Division title, whilst West Bromwich Albion were crowned FA Cup winners for the fourth time in their history with a 3-2 result over Preston at Wembley.

Then there’s the England Cricket team who reclaimed the Ashes by beating Australia on their own turf 3-1 over a five test series, however, there was also one milestone that saw the birth of a machinery business that has continued to grow through the decades, which may have gone under the radar. The business in question is of course Apropa Machinery, who is currently preparing to celebrate its 65th anniversary.

Since 1954, Apropa Machinery has supplied cutting edge machinery to the foam, bedding, furniture and building industries. As agents for world leading machinery suppliers, its aim is to help its customers increase productivity, reduce costs and downtime as well as boost revenue through technology.

“For mattress production, Apropa supplies equipment from start-to-finish including foam cutting lines, automatic glue lines for foam and spring mattresses, covering machines and ‘bed-in-a-box’ mattress wrapping, pressing and rolling equipment to significantly reduce shipping costs,” Jonathan said.

The London based business supplies machinery to the UK and Ireland from a number of major European brands mainly out of Germany, Italy and the Netherlands. In fact, when the business started out its first ever partnership was with German company, Baumer, who produced foam cutting machines and who at the time had just 15 employees. Today, Baumer are the world’s largest producer of foam cutting machines and Apropa are working as closely as ever with them as their brand representatives for the UK and Irish markets.

pre-cut parts for which you pay a premium.

The fact that the technicians at Baumer produce the fastest foam cutting machines on the market means you will be able to maximise your output with minimal floor space. An important job and consideration when cutting foam is to reduce waste as much as possible. Baumer have developed advanced nesting software, BaumerNest and MattressNest, as an important solution to ensure maximum value is obtained from every foam block.”

Jonathan continued: “Looking at foam and latex mattresses in particular – you can achieve significant cost-savings by cutting your foam or latex in-house using our Baumer foam cutting machines rather than buying in

The company, led by Jonathan Borchardt and Andrew Chadbourne, has continued to build on its foundation, experiencing rapid growth over the past five years with the mattress market proving to be a particular success story.

16th November 2018 | 20

Lamit mattress laminating lines

FoR FUll SToRIES AND DAIly NEwS UpDATES: WWW.Cabinet-maker.Co.uk

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Apropa’s supplier Grauff also offer a solution to further reduce foam waste through their foam granulating and blowing machines which are used to create high quality filling material to fill cushions, pillows and even futons. “The combination of Baumer and Grauff machinery allows you to both reduce waste and increase your revenue streams while helping save the planet,” said Jonathan.

Another key partner in the Apropa portfolio is Lamit, who are regarded as the global leader for automatic mattress glue lines. Jonathan explains: “Through Lamit’s technology, you can greatly increase your output per shift and also benefit from complete control over the amount of glue applied to your mattresses which means far greater consistency in product quality. Importantly, Lamit lines also help companies significantly reduce their use of glue compared to other machines on the market and in particular when moving from manual hand glue-guns where over-spray is common.”

For traditional mattresses, Apropa are proud to confirm they represent the market leaders in quilting machinery: Mammut. With their unique patented sewing heads, quick looper and material change systems, Mammut offer unmatched production speed being able to operate at up to 1,700 stitches per minute.

Other bed-focussed brands that form part of the Apropa umbrella include mattress foam drilling business Boers Techniek, large product packaging experts Desco and specialists for the boxed mattress market Sala.

Apropa offers a complete supply service, with one concept in particular experiencing a market boom. Andrew explains, “The biggest revolution in the mattress industry in recent years is arguably the ‘rolled mattress’ and ‘bed-in-a-box’ product. Apropa Machinery are deeply involved in this field having supplied many of the major bedding companies who produce such mattresses with machinery from their Italian supplier Sala.”

Sala Macchine Speciali were the world’s first company to produce mattress vacuum packing machinery back in the 1980s and have constantly innovated and developed this technology for more than 30 years.

Today, Sala are a key supplier of mattress wrapping, pressing, folding and rolling lines to companies all over the U.K. and worldwide.

Sala mattress wrapping, pressing, folding and rolling line

achieved as they can also be folded prior to being rolled which means all U.K mattress sizes can be shipped in a box just 1m high.”

Jonathan added: “The market is changing with over 50% of mattresses in the U.K now being bought online rather than in store which is a major shift. The huge marketing campaigns from the bed-in-a-box market has further fuelled this growth and influenced how people shop. We are proud to confirm that one in two rolled mattresses sold in the U.K. are made using our machinery with leading companies like The Belfield Group and many other key mattress makers choosing our technology to automate their mattress production. Over the past few years our business has seen rapid growth and we are looking to maintain this momentum.”

So what does the business have planned to keep this momentum rolling into its anniversary year? Jonathan continued: “We are investing heavily in our online presence with a new website, which is set to go live mid 2019. The whole website is being redesigned with a fresh, modern new look which we are incredibly excited about.

“Our vision is to continue to improve in what we are doing and be ready to adapt to future market changes. If Brexit negotiations go well and a good deal is secured, then that will give

a boost to mattress business and industry in general.”

Apropa also points out that its supply chain extends outside the bedding industry with brands Bornemann, Eagle, Croma, GEW, Kottmann and Tara offering milling, CNC routing, flame laminating and hot wire CNC machines to process all types of foam. Eagle also supply rebond foam block plant and carpet underlay production machinery.

Apropa’s German supplier Desco are renowned specialists for packaging machines for virtually any large product such as divans, sofas, chairs and even insulation boards.

One of the key advantages Apropa has is its comprehensive after-sales support with highly trained UK based engineers covering installations, servicing and repairs so you can rest assured you are being looked after by the best in the industry.

As Apropa gets ready to celebrate its milestone year, Jonathan concluded by saying that the team will raise a glass to the company and its customers. For a business to stand the test of time is an achievement in itself, but to continually build momentum recognises that its machinery is made to last.

w www.apropa.co.uk

Mammut multi-needle chain stitch quilter VMK 250

“A shift of perception in the market, aided by huge marketing campaigns from bed-in-abox brands like Eve and Casper, now means something which was previously regarded as just for budget mattresses has become the norm for middle and even upper range mattresses too,” Andrew said, continuing: “Transport costs for mattresses are a significant factor and given that considerable money can be saved by roll packing due to the space savings it provides, as well as added convenience for the final customer, it is easy to see why more companies are rolling mattresses today than ever. Sala machines can roll foam, latex, pocket spring and bonnell spring mattresses. For foam mattresses in particular even greater savings can be 16th November 2018 | 21

F E A T U R E |K A y M E D

Bed manufacturer Kaymed sat down with Cabinet Maker to discuss the latest findings of its recent consumer satisfaction review survey.

Jeremy Navrady, UK marketing manager, and Terry Bridger, UK sales manager, at Kaymed revealed all behind its recent consumer satisfaction survey to Cabinet Maker over an afternoon pint that left plenty of food for thought when it comes to product display in stores.

“The original satisfaction review took place in July 2016, targeting consumers who had purchased a Kaymed Mattress or divan set”, explained Jeremy Navrady, UK marketing manager. “At the time we were seeing a myriad of bed manufacturers using celebrities to endorse their product and we realised it might be a better idea to ask real consumers what they thought. After all, they had all paid good money to sleep on Kaymed, rather than 16th November 2018 | 22

being paid to say that they liked it.”

“We realised that we could learn from the survey results, so we asked some specific questions; notably about other brands considered and why they ultimately chose our product”, added Terry Bridger (UK sales manager). “I have to be honest and say that for the first survey our focus was far more from a marketing perspective. After all, if the consumers rated our product highly we had produced some credible Marketing Gold Dust. It was only a few months later that I realised that I had underestimated the value of the work that Jeremy was doing on this project and failed to take full advantage of the opportunity.”

“The first survey confirmed a customer satisfaction rating of 93%, so ‘Marketing Gold Dust’ was exactly what we got” explained Jeremy. “This allowed us to run a campaign with our retail partners instore and not only gain the confidence of the consumer, but also other potential retail partners. In fact, the consequent growth we saw post the survey was a big factor in Kaymed becoming the NBF Manufacturer of the Year 2016-17.

However, we both felt that an opportunity might have been missed to delve a little

deeper, in terms of understanding more about a consumer’s behaviour, likes and dislikes, through the buying process.”

With two years passing since the first survey, it was decided to repeat the survey process.

However, the Kaymed team felt that they had missed an opportunity to overlay the businesses performance with the results in 2016. So, they set about revising some of the questions for the 2018 survey, with the intention of using the data to identify the optimum store type and layout that seemed to work best.

Once the survey results were collated in late August 2018, they set about challenging the answers received by analysing performance versus several criteria that would be easy to quantify. “We have always known that whilst our perceived wisdom and opinions can often be wrong, the maths never lie”, added Terry. “So we took the opportunity second time around to use what we knew about our size and proximity of display to other brands at similar price points and then compare our performance on a store by store basis.

“Once this exercise was completed, it became clear that there are two distinctly different schools of thought being used when retailers set out a bed display. To be specific,

FoR FUll SToRIES AND DAIly NEwS UpDATES: WWW.Cabinet-maker.Co.uk

“wE hAvE AlwAyS KNowN ThAT whIlST oUR pERCEIvED wISDoM AND opINIoNS CAN oFTEN BE wRoNG, ThE MAThS NEvER lIE.”

whilst some independent retailers do what they can (within the confines of the space and shape of department available) to display product by similar price point, a significant number are looking to sub categorise by type of mattress filling. Furthermore, we can see a direct parity between performance with Kaymed and the strategy being used, in that our product (as well as similar product at different price points), performs far better in a price point orientated lay out.

“What we can’t say for sure is that a price point layout equates to a better overall performance for a retailer”, commented Jeremy. “However, the likelihood is that we cannot be the only manufacturer doing well in the accounts where continued growth was seen over a very tough trading period.”

The result of the second Kaymed satisfaction survey was a 93.5% rating. This survey involved consumers who purchased from August 2016-July 2018.

Terry continued: “When we were able to predict the type of layout by account, then confirm this with our sales team with a 99% accuracy rating, we realised that we might be onto something. The question is whether a specific layout suits us, or the retailer, or indeed both, best?

“We concluded that since consumers say that comfort comes first and price second, that displaying by price point makes it more convenient for a consumer to shop a store’s range. It’s also quite obvious that this makes the sales persons job far easier in the process, as the alternative might well be attempting to march Mr and Mrs Consumer

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backwards and forwards across a store, to look at models from £1299 - £1599. In such a situation as a sales person, I might be tempted to ask a question such as ‘would you like a natural bed or a technology one’, in order to identify where to take them.

“This process of elimination might become a necessary evil with such a layout, but results in the sales person homing in on one brand or type of product and having no course of redress if that product doesn’t fit the customers needs. This then leads to consumers going to another retailer, and we know that the average buying journey involves two retailers and three possible models, before the final purchase decision is made. This might be part of the reason people shop around, rather than buying first time from the vast majority of stores.”

Kaymed plan to share their findings with key customers over the next few months, in much greater detail. On a personal note I found the data enlightening, whilst as a consumer with a specific amount of money to spend the conclusions seemed very logical. After all, as birds of a feather flock together, a floor laid out by price point would be far more convenient for me to shop. It also makes little sense to ask questions, such as type of bed, that allow any sales person to offer less choice of product from the outset.

Food for thought indeed.

w www.kaymed.co.uk

Therma Phase +

Pouffes

Mighty Cascade

16th November 2018 | 23

F E A T U R E |B R E A S l E y

Bed manufacturer Breasley reflects on its past year’s success with a little insight on what to expect in 2019.

As 2018 draws to a close, the time for reflection is upon most businesses, which go hand-in-hand into the following year’s preparations. For Breasley, 2018 has been another ‘very busy’ year with new product launches for both the Salus and Uno brands, including a boxed mattress collection, as well as a revamp of their Uno vacuum sealed range and large-scale investment in new machinery at their Derby factory.

Early 2018 saw Breasley’s Product Development team honing the first boxed product under the Uno label, the ‘Breathe’ mattress, with a top comfort layer of next generation breathable memory. Following its successful launch, hot on the heels was the development of the Uno Natural Affinity boxed collection, which had its first showcase at the Manchester Furniture Show in July. Exhibiting at the event was a first for Breasley, and Joint MD, Darren Crowshaw said: “Manchester was a new venture for us, but we were keen to see what opportunities it could bring. We are always looking at ways to support our independent customers, and this was a great platform to show them our new range of Uno boxed mattresses, enabling the indies to become part of the hugely successful box mattress market.”

The main launch for the Natural Affinity

Salus Chester headboard

Collection was at the Telford Bed Show, where the range was very well received.

Featuring a natural sleep surface with wool, silk and cashmere, there is a choice of three spring counts: the Spirit 1000, Tranquil 2000 and Halcyon 3000. “Customers were impressed with the luxurious cover design and the very individual feels, and the order book reflected this, with sales exceeding expectations” said Sales Director, Rob King.

“Plus, of course, we offer our market-leading 10 year guarantee on all of our products, and customers will also be able to take advantage of DHD plus selected models on fast track next day delivery.”

UNO Memory Pocket 2000 16th November 2018 | 24

The Bed Show also saw the launch of the new-look Uno vacuum packed collection, featuring upgraded cover designs in quality contemporary fabrics to keep the range fresh and appealing. Darren commented: “Although we have updated the overall look, we have not compromised on the specification, and we are still offering the same innovation and technologies such as Adaptive® and Fresche® Bioscience, which

f o r F u l l st o ries and dai l y ne w s u p dates : W W W . C a b i n e t - m a k e r . c o . u k

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UNO Pocket 2000

UNO Memory Pocket 2000 our customers have come to expect from Breasley.”

To keep pace with all these developments, Breasley has invested in a new vacuum packing machine featuring the highest specification in the UK. Darren said: “We now have the ability to fold and roll a 35cm deep California King mattress (7ft x 7ft), which is very exciting for future development, plus we have installed new glueing lines and a market-leading mattress filling machine. This, combined with our unique RFID technology, means we are the ‘numero uno’ in vacuum packed and boxed mattresses.”

So, with major steps forward with the Uno range, what has been happening with Breasley’s premium bed brand, Salus, this year? Sales Director, Rob King, revealed all: “We knew that we had got the Salus mattress offering pretty much right with regard to the look and feel and price points, but we were conscious of the fact that we didn’t have the best selection when it came to headboard styles and colour options, and customer feedback reflected this. So we focused on designing a new range of premium headboards in a choice of colours and fabrics that would ‘wow’ our customers and consumers alike. The fact that we now find ourselves referring to the new headboard collection as ‘furniture’, shows the quality of the products we now offer.”

UNO Natural Affinity Collection Also a first for Salus is a bespoke swatch book for retailers to use in-store, to help customers create their own individual look and style. This comprehensive marketing asset will contain a fabulous choice of 17 different colours and three different fabric options, ranging from cool greys and pastel blues to soft lilacs and vibrant jewel-like teal green. The book will also feature the 10 new headboard designs; these range from the ‘Alderley’ headboard with subtle curves, which bring a contemporary twist to a classic French design, to the taller ‘Chester’ headboard which has a more traditional feel with sumptuous, deep buttoning.

Breasley’s momentum has certainly been building throughout the year and the business has no signs of slowing down during 2019 as Rob concluded: “We will hit the ground running in January with the NEC Furniture Show (Hall 5, stand D-70), closely followed by the Scottish Northpoint Show. Being Breasley, we do, of course, have some very exciting projects under development for both Uno and Salus, and we are very much looking forward to launching these during the course of next year.”

So, for now, it’s a wrap.

“We focused on designing a new range of premium headboards in a choice of colours and fabrics that would ‘wow’ our customers and consumers alike.”

w www.breasley.co.uk 16th November 2018 | 25

F E A T U R E |B F M

The British Furniture Manufacturers Association reveals the details behind its latest State of Trade analysis within the furniture industry.

16th November 2018 | 26

FoR FUll SToRIES AND DAIly NEwS UpDATES: WWW.Cabinet-maker.Co.uk

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Difficult Summer Increases Redundancies The BFM have released their latest State of Trade data analysis which shows a growth in confidence, but signs of a difficult summer were revealed in incidences of short time working and redundancies.

The overall state of trade compared to last year’s data continues to be seen as less than desirable, but now by a far smaller amount than in the previous two surveys.

In fact, the view of the general business situation compared to 4 months ago is seen as more positive by a significant balance.

Both new order intake and the volume of output improved far more than was predicted in June this year, with more than half of the respondents expecting gains in both orders and output as we approach the Christmas period.

The BFM know from anecdotal information that the summer heatwave had a major adverse effect on trade for many businesses and suspect that much of the improvement shown in this survey came in the latter period.

This initial difficult trading period is reflected in the number of companies reporting having to implement shorter working times. More than one third reported having to reduce working hours, which is the largest number since June 2010. Also, 22% of companies reported that redundancies were made in the last 4 months. This is more than has been reported since June 2012.

Order intake and output volume has improved

Rising material input costs are still a concern but nevertheless has the lowest reported figure since October 2016. A balance of 41% reported having to pay more for foam in the last 4 months, which is surprising since a principal chemical in its manufacture, TDI, has fallen sharply in price this year.

Topping the list of price increases in terms of the numbers reporting them, were timber, glass, board and fittings.

A portion of companies increased their product prices in the last 4 months, but profit margins remain under pressure with a quarter reporting reduced margins.

“RISING MATERIAl INpUT CoSTS ARE STIll A CoNCERN BUT hAS ThE lowEST REpoRTED FIGURE SINCE oCToBER 2016.”

Half of the respondent businesses exported products and the median level jumped from 5% to 10% of total sales turnover, and Russia has emerged again as an export destination.

Jackie Bazeley, md of BFM stated: “This rise in the median level is great news but it may reflect the particular survey sample, so it will be interesting to see if this trend is repeated in future surveys, as will be the case too with Russia.

41% paid more for foam in the last 4 months

‘tHe bFm iS a traDe aSSoCiation tHat HaS rePreSenteD tHe intereStS oF tHe britiSH Furniture inDuStrY For more tHan 70 YearS.’

“The export data is also presented in a different way because of variations that can occur in each survey sample and also between sectors.”

If you would like a detailed Trade Data Analysis, contact BFM to become a member today.

w www.bfm.org.uk 16th November 2018 | 27

R E T A I l |R E T A I l I N T E l l I G E N C E

The five key steps to sales promotion success.

With just about everything in life, the more you put in, the more you get out. Planning a record breaking sale is going to require a good amount of time, thought and effort, especially these days, given the increasingly complex array of available media and the confidence of the internet connected modern consumer. Here follows my answer to five frequently asked questions about how to plan your next big sale for maximum success.

Where do I start with the planning process?

Firstly, decide why you are having the sale and create an attention-grabbing title for the event based around that reason or story.

Instead of just advertising the same old ‘SPRING SALE’, why not shout about your ‘SPRING STOCK CLEARANCE SPECTACULAR!’ or ‘THE GREAT £1,000,000 EASTER BONANZA! The event title should be business orientated, newsworthy, exciting and true. The tag line and immediate copy should also convey a positive message regarding the reason and purpose of the event.

When is the best time to hold a sale?

That depends on what you want from the sale. Would you like to boost a quiet trading period? Or, to absolutely maximise a busy period? Both strategies will yield beneficial results. But, the ratio between the marketing spend and the sales total (and crucially your R.O.I.), will be far higher if you run your event when the market is naturally active.

How long should a sale run for?

A common mistake is to run a sales event for too long. A worse mistake is to run a sale indefinitely. It is a serious mistake to have permanent SALE signs on display. As well as ruining your hard earned reputation you will attract the interest of your local trading standards officer. Whatever you do, don’t ignore trading law.

However, once the effort has been made to set up the event, it would certainly be a missed opportunity not to make the most of it. A well planned sale will be busiest during the first and final weeks with the middle period being slightly quieter – providing the opportunity for you to catch up after big the launch, and to prepare for the Grand Finale. There is no standard duration for all types of retailer. There is however an optimum duration which can be determined from the variable factors such as season, event theme and product type.

Throughout most of the year, durations of two or three weeks are the optimum. Longer durations of four or five weeks will optimise your return when the market is most active such as January.

How do I maximise the sales and profit?

There’s no point giving your stock away or being a busy fool. Getting the discount/profit margin balance just right IS the trick. Selling a lot of product very quickly while maintaining a decent margin, IS the very thing you are trying to achieve and it requires the following considerations: Set a realistic sales target based on the current performance of your business. Allow a proper marketing budget which represents around 4% to 6% of the sales target and spend it on what you know works best for your business. Negotiate hard to get the maximum weight of campaign for your money.

Now set out a genuine discount plan. There’s no ‘across-the-store’ discount rate which will suffice. You’re going to have to rob Peterto-pay-Paul across the range to balance out an acceptable margin overall. Your best selling ranges will carry the slightest discounts – still genuine reductions but maintaining good margin. At the other end of the scale you’ll need to spice up the offer with some literally eye-watering bargains. Don’t forget the dark art of ‘Loss Leadering’. I have met very few who are truly comfortable doing it but, these ‘Uber-Bargains’ create the talk in the town and bring in the crowds, yet should not amount to more than a small percentage of the overall sales total.

Other good ways to increase margin include strategic buying in advance of the sale. And don’t forget t ask your suppliers for support in the way of special promotional products, advertising subsidies and/or a temporary extra discount for the sale period. After all, you’re going to be spending £££thousands promoting their products. You should be asking them – What are you going to give me?

Are there any negative consequences from holding a high profile sale?

No. providing that, the sale was honest and genuine. Even though there will always be a slight natural dip in sales after any successful and busy sale, for a few weeks at most, the next month after that should be up on where it would have been. And that lift effect can easily last anything from six to twelve months, because when you ran your big sale, you put your store back on the map, restored awareness in your local market and won new customers.

Overall your year should be far more successful for having held a good quality, well planned and honest sales event. And never forget the value of winning a new customer. It’s not one purchase, but several purchases over many years along with the compound effect of their ongoing recommendations to family and friends. Make no mistake – a good honest effective sale can be the secret of growing your business.

Bernard Eaton, Greenwood Retail Ltd, greenwoodretail.com

16th November 2018 | 28

CLASSIFIED

TO ADVERTISE A JOB PLEASE CONTACT KACEM Q 01223 846825 m KACEM@CABINET-MAKER.CO.UK

casa bella furnishings

SALES AGENT REQUIRED AREA: EAST ANGLIA

Heritage Furniture is on the lookout for a results-driven Sales Agent with a sense of passion and pride to join its UK Sales Team.

ABOUT HERITAGE FURNITURE Heritage Furniture is an established, reputable design-led company serving independent furniture retailers with well designed, value driven product portfolio for the Bedroom, Living and Dining room, operating from a 100,000sq ft distribution centre in Blackburn, Lancashire.

For us it’s all about being different and unique in the way we do business, from our products to our service, it is all about the customer.

With phenomenal growth since the inception of new ranges this year, there is now an exciting opportunity for the right candidate who is fired up for success.

TRADE ASSOCIATION MEMBER

TRADE ASSOCIATION ASSOCIATE MEMBER

British Furniture Manufacturers British Furniture Manufacturers

British Furniture All of our products are manufactured in Lancashire.

Manufacturers Just one of our fast-selling lines.

THE ROLE REQUIREMENTS - Actively seeking out new opportunities - Managing exisiting accounts - Building relationships and continuing growth with existing customers The Company will provide support with product training, show van, active marketing, including participation in key industry exhibitions.

TRADE ASSOCIATION REPRESENTING THE INDUSTRY

CONNECTED SALES AGENTS REQUIRED FOR E&W MIDLANDS, STAFFORDSHIRE, NORTH WALES, YORKSHIRE AND NE.

01254 661 661 or 07720 073 043 casa.bella@btconnect.com for more details Regular delivery service to NI and ROI

YOUR PROFILE You are a people person with a positive work attitude who can maintain and build strong relationships with customers. You have a charismatic personality and are self motivated. You need to have flair for the current trends in furniture design, be good at structuring your work and time with a goal oriented focus in your approach to sales.

Please email your CV and covering letter to Heritage UK Sales Manager: sid@heritagefurnitureuk.com or call 01254 660777 W W W. H E R I TA G E F U R N I T U R E U K . C O M

16th November 2018 | 29

LAST WORD MARIA MORAIS, CX INDUSTRY PRINCIPAL, CONSUMER INDUSTRIES, SAP Which retail business models will be trending in 2019?

3. Unique Innovation Proposition (UIP)

Here are some of the trends behind new retail business models that can make the difference in 2019.

1. Customer-centric retail in Businessto-Home (B2H) Going direct-to-customer (B2C) or businessto-business (B2B) are well known business models, but a new trend is slowly emerging in the retail market: business-to-home. The best way to define a B2H business model is this: the piece of furniture exposing the product catalogue (i.e. fridge, mirror) is a rental service, which the customer can decide to opt out of at any time.

A unique selling proposition (USP) is not enough anymore to create differentiation.

Retailers must strive to design a unique innovation proposition (UIP) and make deeper connections in context, focussing on the experiences and feelings that products can evoke.

Customers are multidimensional, and companies resisting the wave of change will find themselves on the edge of extinction, despite their confidence that current brand loyalty will keep them afloat.

Innovative companies are making shifts towards cloud data, connecting commerce, marketing, sales and service capabilities into one single data base.

2. The omnichannel movement Another business model that can gain traction in 2019 is digital centralisation.

The customer being at the centre of all touchpoints is the standard, but once retailers achieve customer centricity, another challenge around centralisation will arise.

Typically, it starts with merging store operations with ecommerce operations and the wholesale business (B2B) with the directto-customer business. It’s the emergence of the omnichannel platform.

A centralised business model for retail involves investment in digital transformation for new end-to-end processes. The demand is there and the technology can deliver on the promise, the only question is: is your business ready?

YFM BAKER BRUSSELS

4. Sharing is caring The sharing economy is increasing in traction in the retail space, with economic, peer-topeer (P2P) models for access to goods and services through online platforms.

For traditional retailers this model is highly disruptive, but there is a reason why this should be a priority for investment – millennials are not aiming to own material goods as the previous generations were; they simply want access to products and services when they need, and move on to the next thing the minute after.

5. Cross-Industry Collaboration Blockchain technology’s utilisation is becoming widespread in an economy that is aiming to bring more and more transparency to the supply chain. But whilst many companies are discussing advantages of

collaborating with other businesses across the supply chain, a certain secrecy around the way things have always been done is in many cases stopping innovation from happening at a fast-paced rhythm.

Perhaps 2019 is the year where we will see old paradigms being disrupted by retailers looking to create purpose-driven business cases that can be tied up to profit.

Perhaps 2019 is the year that retailers will want their customers to know where every single product came from, how it was assembled, the shipping route, and, ultimately, the social and environmental costs associated with it. In practical terms this would mean information during checkout, with customers being able to receive intelligent recommendations on how to reduce plastic consumption and atmospheric carbon impact.

Can a redefinition of rules of engagement between suppliers and buyers be the starting point for this transformation? Are customers really interested in this ‘ultra transparent’ supply chain? If so, what does this mean to traditional retail?

TO HAVE YOUR LAST WORD OR OPINION PLEASE CONTACT DAN@CABINET-MAKER.CO.UK

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09/11/2018 09:27:51