FIRING UP THE BARBIE

How does a legacy brand transition into a forward-thinking, experiential retailer? Barbeques Galore CEO Angus McDonald explains the steps taken to shift the business.

By Sarah Stowe

Two years ago a Barbeques Galore store looked much as it had done 20 years earlier. Take a stroll through a revitalised retail outlet now and it’s a world apart.

Let’s start with the obvious.

Barbeques Galore is experimenting with two different kinds of formats – the Explorer stores will be 1000 square metres with a sizable demonstration area, while the Express stores will be half that size.

The new store format of the Explorer stores puts the focus back on the merchandise. A defined pathway helps customers clearly navigate their way through the store, while wall merchandising has been replaced with graphics and signage, sharing the stories behind the brands and products.

In the centre is a large demonstration area known as “The Steakhouse”, set up like an outdoor kitchen, where employees can fire up any barbeque and cook a meal for customers.

“We’re defining a much clearer customer proposition and purpose: bringing people together around flame. This has a significant cultural role – since the dawn of time, people have gathered round fire to tell stories, enjoy a meal,” says CEO Angus McDonald.

“We sell a product at the heart of this. But it’s also about how we present our brand. We’ve been looking at other dimensions: store experience, how the range is put together, our digital capabilities in terms of omnichannels.

“As we think across each dimension we have to consider how we complete the solution.”

Another major change to the store format is the switch from blanket fluoro lighting to dramatic track lighting, focusing only on the merchandise and creating atmosphere and ambience.

“We’re not just selling a barbecue, we’re helping customers use it well, embrace different styles of cooking.”

This approach has translated into adding rubs and sauces, and fuel, to the customer offer, even introducing barbecue cuts of meat through a “BBQ In A Box” online offer launched late last year.

“We’ve seen some really promising feedback early on in small trials,” says Angus.

Innovation has been critical for the retailer, he says.

“We focus on product development, offering exclusive brands that lead on innovation in the Australian market. We’re very focused on accelerating the introduction of new product.”

He reveals that more than one-third of sales come from new products.

The business has employed a strategic thought process around building the customer value proposition centred on consistency – how customers engage with the brand, a consistent level of engagement.

Barbeques Galore’s social media campaigns highlighting the pleasures of enjoying a home-based lifestyle have been well received: social traffic grew at 485 per cent while overall traffic grew 143 per cent over the period.

The high level of interest translated into digital sales as e-commerce revenue also grew by 328 per cent.

But Barbeques Galore is on a much broader journey through repositioning, says Angus.

“A good retail strategy has to be at the heart of everything: the customer value proposition, what makes us unique, how we can bring this to life.

“It is more important than before to deliver consistency across every challenge – so to succeed at omnichannel we have to have all our plumbing working for consistent representation of the brand.”

BEHIND-THE-SCENES IMPLEMENTATION

This has required acceleration of incoming systems and processes. An auto management system, a new e-commerce platform and CRM system are recent implementations.

Maximising back-end efficiencies means franchisees and store managers can spend more time on the floor with customers, growing the business.

“We’ve taken a broad agenda – store network, design, the range, systems and processes – and it’s a real challenge to make sure we do it at the right pace.

“It’s been important to take franchisees on the journey with us. I’m connecting directly with the franchise community, ensuring they understand the journey and support us,” says Angus.

Now the focus is on scaling across the network, and continuing to evolve with new products introduced every year.

The Barbeques Galore footprint is a mix of corporate and franchised stores.

“Our formula today is that metro is typically corporate, that’s what allows us to have a national store network. In regional areas with franchisees we have a more engaged local presence that is bringing the brand to life in that market. We’ve got a very experienced group of franchisees who have been in this for a long time.

“We see opportunities for franchisees in various catchments around the country. With the investments we’ve made, we are aggressively going after opportunities to deliver a rich onmichannel experience.”

Lessons learned from the new format stores will inform the rollout across the rest of the network.

Right now there are nine new format stores up and running, and transitioning the whole network will be a long-term process, tied in with lease renewals.

“This year has been a very big year for us,” says Angus. n