22 minute read
The Word
SOUND UNITED IN PRELIMINARY AGREEMENT TO ACQUIRE BOWERS & WILKINS
Sound United LLC, parent company to brands such as Denon, Polk Audio
Advertisement
and Marantz and a portfolio company of Boston-based private equity fi rm Charlesbank Capital Partners LLC, has entered into a preliminary letter of intent to acquire audio manufacturer Bowers & Wilkins.
Bowers & Wilkins was founded in the UK in 1966 and has been at the forefront of high-performance audio technology for more than 50 years. The company designs and manufactures precision home speakers, headphones, custom installation and performance car audio products. The proposed transaction remains subject to ongoing discussions, confi rmatory diligence, regulatory approvals and other required consents.
HAIER LAUNCHES IN THE REPUBLIC OF IRELAND
Haier has launched in the Republic of Ireland (ROI) with products available from a
range of retailers including Harvey Norman, DID, Power City, buying group Euronics and independent electrical retailers.
As the parent company of the Hoover Candy Group, the manufacturer will utilise the group’s existing channel infrastructure which has been operating in the ROI for more than fi ve decades.
David Meyerowitz, chief executive o cer, UK & Republic of Ireland at Haier Europe, said: “The Republic of Ireland has been a key market for the business for many years and we’re delighted to be expanding our product o ering in the country with the introduction of Haier models.”
F&P PARTNERS WITH MHK GROUP
Fisher & Paykel has become a
member of the MHK Group, which describes itself as “Europe’s leading retail and kitchen furniture specialist”. The Group was formed in Frankfurt in 1980 and is now established in eight European countries, with more than 3,200 commercial partners.
Marcel Crezee, Director Expansions, said: “With the collaboration of Fisher & Paykel we not only broaden the product range for our members with great high-end products, we also empower them to make a di erence towards their consumers. It is a win-win situation and a perfect example of staying together in these challenging times.”
HISENSE ESTABLISHES NEW TV FACTORY IN EUROPE
Hisense Group has confi rmed the
decision to establish a new TV factory in one of the existing production halls on the Hisense Gorenje manufacturing site in Velenje.
Production will begin in January 2021, with products intended for the European market.
The factory will employ around 350 people. In the fi rst year it is expected to produce 1.5 million units, and in the following phases up to 4 million per year.
At the end of April, Hisense announced it was to cut around 2,200 jobs in Europe due to the impact of the coronavirus pandemic on orders. Gorenje d. o. o. employees included in the redundancy programme may have the opportunity to work in the new facility, the company said.
AO OPENS THIRD WAREHOUSE IN CREWE
Online electricals retailer AO has opened a new warehouse in
Crewe, its third in the area, adding a further 110,000 sq ft to its distribution space, which is now just under 1,000,000 sq ft in the Cheshire town.
The new facility has been named after the late Alan Latchford, a co-founder of DRL (which later became AO) and the person responsible for the famous £1 bet that led to the creation of the company.
John Roberts, Founder and CEO, said: “On Christmas Eve 1999, he bet me £1 that we couldn’t use the internet to transform how people buy white goods. Twenty years on, the opening of our Latchford warehouse is a lasting tribute to Alan.”
The facility will cater for retail sales and also help AO to grow its third-party logistics business. AO said it is now searching for more warehouse capacity to manage demand for its products and services.
INDESIT LOGO A SIGN OF THE TIMES…
Indesit has redesigned its logo in what is said to be part of the brand’s ongoing initiatives to support its employees, consumers and the community, during the COVID-19 pandemic.
The familiar circle with central “i” now features a publicly accepted symbol of a person and the strapline ‘Social Distancing: Do It Together’. “The move aims to broaden awareness around the importance of social distancing and to express the brand’s solidarity with those a ected by the crisis,” the Peterborough-based brand said.
CIH SUPPORTS MEMBERS IN REOPENING STORES
Buying group CIH announced extensive support for its
members to help them reopen stores in compliance with COVID-19 Secure guidelines from 15th June 2020, including the supply of PPE and COVID-19 marketing materials.
CIH said it would deliver one free-of-charge starter PPE kit to every store, this containing face masks, gloves, fl oor tape and protective face shields manufactured by LG. Special BSH hand sanitiser units may be ordered and supplied according to members’ needs.
A suite of CIH COVID-19 marketing collateral, including door and window posters has been provided for retailers to communicate the key in-store health & safety measures to customers, and members also have access to resources and information on a range of topics such as the Government’s recovery plan, Retra’s support services, advice on safe working practices and suitable Sneezeguard protection equipment for retail installation.
The buying group said it is “continuing to work with Government bodies, suppliers, credit insurance providers and Euronics International for the long-term good of its members and their local communities in these di cult times.”
KBBG CREATES BUSINESS SUPPORT PLAN FOR INDEPENDENTS
The Kitchen Bathroom Buying Group, part of DER KREIS, created a Five Point Business Support Plan to benefi t independent kitchen, bathroom and bedroom retailers in reopening showrooms to the public, with suppliers backing the plan committing to:
1. Continue to o er credit facilities to independent retailers 2. Sustain prices until the end of the year 3. Maintain stock levels and pre-lockdown delivery schedules 4. Introduce special o ers and promotions exclusively for independent kbb retailers 5. Where there is a DER KREIS bonus scheme for members, the fi rst tier of target will be cancelled to ensure that sales achieved throughout 2020 will receive at least the fi rst level of bonus payment
“Nearly all of our suppliers have agreed to the plan, o ering signifi cant support for our members and independent kbb retailers,” said KBBG Managing Director Bill Miller.
“We appreciate agreeing to the Five Point Business Support Plan is asking a lot of our suppliers at a very di cult and uncertain time; however, commitment to our plan will give a boost for independent retailers at a time when they need it the most.”
KBBG has also o ered support to qualifying members by paying their 2019 bonus two months early, and has teamed up with one of its suppliers to o er a range of solutions to meet the needs of members in achieving the necessary COVID-19 preventative measures to protect sta and customers.
SEE GCMAGAZINE.CO.UK FOR THE STORIES BEHIND THE NEWS...
Currys PC World launches live video shopping and blueprint
for safe shopping
Hughes to reopen 12 of its largest stores John Lewis announces shop reopening plan Streets of silence as consumers go underground Further clarity needed for stores to reopen Coronavirus Statutory Sick Pay Scheme launches AGA Rangemaster to re-open factories Full service resumes as Caple reopens for business John Lewis factory to make gowns for NHS Hisense Europe cuts 2,200 jobs due to
economic impact of coronavirus
KBBG Annual Members’ Meeting postponed AO.com launches TV ad and “local heroes”
daily giveaway
Sirius o ers members help in upping web
presence
AMDEA members pledge support for key
health workers
Commusoft releases free remote diagnosis
app for installers
IT’S RETAIL, BUT NOT AS WE KNOW IT, ACCORDING TO NEW SURVEY
As retailers in England readied stores for reopening on June 15th, a survey by online scheduling and customer engagement platform Appointedd provided a glimpse of what the public expected a safe return to retail to look like.
The poll, undertaken during the fi rst week of June, showed store capacity to be vital in the return to physical retail. Although 65% of people expected the shops to be quieter than normal, 79% said they would be more likely to visit those that limited the number of visitors in-store and 75% would rather book a guaranteed entry time rather than join a queuing system.
The fi gures pointed to a clear shift in how comfortable people feel entering physical stores at this time: 55% said they didn’t expect to return to their normal shopping habits when non-essential shops reopened, and 25% went as far to say that they didn’t think they would ever return to the same level of in-store shopping.
Concerns around shopping safely in-store were of high priority. When asked how shops can make customers feel safer, hand sanitiser (84%) and capacity management (71.5%) were placed highest, with PPE ranking at 25%.
Shoppers signalled that they are ready to engage across a number of channels, even within a single transaction. 76% said that they would like to reserve or buy an item online and then book a guaranteed click & collect time, and 20% of respondents indicated they would be interested in attending a virtual shopping experience on Zoom, either by themselves or with friends.
So, what is the “new normal” for retail? According to Appointedd, two actions are clear: “Shoppers want online access to a full omnichannel suite of retail services and, where shoppers need to visit a physical F our in ten small business owners believe
it will take at least fi ve years for the UK economy to fully recover from the impact of Covid-19, according to a poll carried out by the #ForgottenLtd Campaign, a movement pushing for fair and equal Government support for small limited companies.
The study asked more than 1,000 small business owners how long they think it will be before the UK economy fully recovers from the e ect of the virus and subsequent lockdown, and found that only 15% believe this will happen by the end of 2021.
More than a quarter (28%) said a full recovery
HOW MUCH IS TRADITIONAL RETAIL SUFFERING FROM COVID-19?
Retail was already su ering extreme
pressure even before the outbreak of the coronavirus, with both large and small bricks & mortar outlets feeling the strain and several high-profi le names disappearing from the high street, but with the nation in lockdown and the temporary closure of nonessential shops, analytics fi rm Dun & Bradstreet is predicting a signifi cant rise in retail liquidations in 2020 and 2021, despite the Government launching several support measures specifi cally for the sector.
The company’s Q1 Industry Report shows that the number of liquidations increased by 0.8% compared to Q4 2019, with 380 businesses liquidated between January and March. However, as the data relates mainly to a prelockdown period there are expected to be many more casualties in Q2.
Markus Kuger, Chief Economist at the fi rm, said: “As the coronavirus pandemic continues, the global more than it did during the global fi nancial crisis in 2009, and Dun & Bradstreet has downgraded ratings for around 100 countries worldwide.
“The retail sector is likely to be one of the hardest hit and we have seen several household names completely disappear from the high street, even before the pandemic took hold. The mandated closure of non-essential stores and furloughing of sta , coupled with the accelerated trend for eCommerce, means that traditional retailers are facing yet another year of decline and uncertainty.”
SMALL BUSINESSES PREDICT ECONOMIC BOUNCE-BACK COULD TAKE FIVE YEARS
economy is set to contract in 2020
store, queue-less shopping is essential.” will take up to three years, while 18% believe it will take up to fi ve years. But the biggest proportion of respondents, 39%, were those who believed it will be 2025 and beyond before the UK economy is back on its feet.
Gina Broadhurst, co-founder of the campaign, said: “The results of this snap poll send out an unequivocal message to the Government, namely that the small business community believes it will be a very long time before the UK economy bounces back.
“The small businesses we polled are unanimous that a full economic recovery will take years, not months. But it’s these very same businesses that so many people depend on for their jobs, big companies for their supplies, and customers for their products and services.
“We are all linked, so if small businesses are in trouble, we are all in trouble. But it’s not too late to save them.”
The #ForgottenLtd Campaign exists to raise awareness of the lack of meaningful support for the UK small business community and is calling on the government to address this disparity by extending COVID-19 support packages to directors of small limited companies.
REVENUE AND PROFITS AT AO EXPECTED MEET ANALYSTS’ EXPECTATIONS
ONLINE SALES PARTIALLY OFFSET LOST STORE SALES FOR DIXONS CARPHONE
Online electricals retailer AO has said it expects to release its D ixons Carphone reported UK&I Electricals sales up 10% for the 11 weeks to 21st March with a 23% rise in online growth, but sales for the succeeding fi ve weeks Preliminary Results for the year declined by 16% due to the temporary closure of the retailer’s stores following the ended 31 March on 14 July 2020, coronavirus outbreak. Online growth rose 166% in the fi ve-week period, recovering stating that the revised timing will around two-thirds of the lost store sales. allow a greater amount of clarity In an update prior to entering the close period for its full year results for the 53 weeks on the outlook for the current fi nancial year. to 2nd May 2020, the company reported like-for-like sales in the Nordics up 5% and 24% respectively but sales in Greece for the 11 weeks to 21st March were fl at, followed by a 40% decline in the subsequent fi ve-week period.
The business expects its headline fi nancial results, excluding The UK&I and Greek stores which temporarily closed would normally have operations in the Netherlands, which do not continue into been expected to contribute a further c.£400m of sales in this fi nancial FY21, for revenue and adjusted EBITDA to fall within the year, the retailer said. range of analysts’ expectations. April brought strong demand for home o ce equipment The company said it made substantial progress against immediate strategic priorities during the year, including UK MDA growth of 10% and acceleration of the journey to profi tability in Germany. Despite a decline in the overall market of the categories in which the business operates, AO has “April brought strong demand for home o ce equipment including computers and home including computers and home networking as people worked and communicated remotely. Gaming and TV sales were also strong. In kitchen products, refrigeration and food preparation including bread makers sold particularly well, with the latter part of the month seeing increased sales for personal care products and fi tness trackers. In contrast, sales for other grown market share and seen increased demand and networking...” major domestic appliances fell as home moves stalled and the sales across all sectors since the lockdown measures imaging market continued to decline. came into force. It also expects the online market Group Chief Executive Alex Baldock said there will be no in electricals to maintain a higher share than prior to corporate bonus payment in UK&I this year. Covid-19.
John Roberts, AO Founder and Chief Executive O cer, said: “For the last 20 years I believe we have been a driving force of change, making things better, easier and cheaper than ever before for customers with outstanding levels of service.
“In terms of online shopping behaviour, I believe we have seen fi ve years accelerate into only fi ve weeks and we will plan to cement that change as we impress more new customers than ever with the AO Way.” Swift Electrical has appointed Richard Buckley as Operations Director, responsible for the business’s entire warehousing and transport proposition.
Richard Buckley
Exertis has appointed Jamie Brothwell (pictured) as commercial director and Sam Williams as sales director of its accessories business.
JOHN LEWIS IN 3-YEAR DEAL WITH D&G
John Lewis has partnered with warranty and appliance
care provider Domestic & General to launch a new customer scheme named Protect Plus.
The arrangement, which will initially run for three years, provides cover for products including domestic appliances, TVs, technology products, mobile phones and furniture.
Sean Allam, Director of Services at John Lewis & Partners, said: “This partnership is part of our commitment to provide the highest level of service for customers across our product ranges and complements our existing warranty proposition.”
Jamie Brothwell
Clare Humphrey DCC Technology has appointed Clive Fitzharris as managing director of Exertis International.
Clare Humphrey has been appointed category manager at the professional division of white goods manufacturer Miele.
Clive Fitzharris
Sales agency Big Red Sales has appointed Patricia Smith as a sales agent for Scotland and the North East and Cumbria, and Graham Leach as sales agent for the Midlands region.
SOUND UNITED IN PRELIMINARY AGREEMENT TO ACQUIRE BOWERS & WILKINS
Sound United LLC, parent company to brands such as Denon, Polk Audio
and Marantz and a portfolio company of Boston-based private equity fi rm Charlesbank Capital Partners LLC, has entered into a preliminary letter of intent to acquire audio manufacturer Bowers & Wilkins.
Bowers & Wilkins was founded in the UK in 1966 and has been at the forefront of high-performance audio technology for more than 50 years. The company designs and manufactures precision home speakers, headphones, custom installation and performance car audio products. The proposed transaction remains subject to ongoing discussions, confi rmatory diligence, regulatory approvals and other required consents.
HAIER LAUNCHES IN THE REPUBLIC OF IRELAND
Haier has launched in the Republic of Ireland (ROI) with products available from a
range of retailers including Harvey Norman, DID, Power City, buying group Euronics and independent electrical retailers.
As the parent company of the Hoover Candy Group, the manufacturer will utilise the group’s existing channel infrastructure which has been operating in the ROI for more than fi ve decades.
David Meyerowitz, chief executive o cer, UK & Republic of Ireland at Haier Europe, said: “The Republic of Ireland has been a key market for the business for many years and we’re delighted to be expanding our product o ering in the country with the introduction of Haier models.”
F&P PARTNERS WITH MHK GROUP
Fisher & Paykel has become a
member of the MHK Group, which describes itself as “Europe’s leading retail and kitchen furniture specialist”. The Group was formed in Frankfurt in 1980 and is now established in eight European countries, with more than 3,200 commercial partners.
Marcel Crezee, Director Expansions, said: “With the collaboration of Fisher & Paykel we not only broaden the product range for our members with great high-end products, we also empower them to make a di erence towards their consumers. It is a win-win situation and a perfect example of staying together in these challenging times.”
HISENSE ESTABLISHES NEW TV FACTORY IN EUROPE
Hisense Group has confi rmed the
decision to establish a new TV factory in one of the existing production halls on the Hisense Gorenje manufacturing site in Velenje.
Production will begin in January 2021, with products intended for the European market.
The factory will employ around 350 people. In the fi rst year it is expected to produce 1.5 million units, and in the following phases up to 4 million per year.
At the end of April, Hisense announced it was to cut around 2,200 jobs in Europe due to the impact of the coronavirus pandemic on orders. Gorenje d. o. o. employees included in the redundancy programme may have the opportunity to work in the new facility, the company said.
AO OPENS THIRD WAREHOUSE IN CREWE
Online electricals retailer AO has opened a new warehouse in
Crewe, its third in the area, adding a further 110,000 sq ft to its distribution space, which is now just under 1,000,000 sq ft in the Cheshire town.
The new facility has been named after the late Alan Latchford, a co-founder of DRL (which later became AO) and the person responsible for the famous £1 bet that led to the creation of the company.
John Roberts, Founder and CEO, said: “On Christmas Eve 1999, he bet me £1 that we couldn’t use the internet to transform how people buy white goods. Twenty years on, the opening of our Latchford warehouse is a lasting tribute to Alan.”
The facility will cater for retail sales and also help AO to grow its third-party logistics business. AO said it is now searching for more warehouse capacity to manage demand for its products and services.
INDESIT LOGO A SIGN OF THE TIMES…
Indesit has redesigned its logo in what is said to be part of the brand’s ongoing initiatives to support its employees, consumers and the community, during the COVID-19 pandemic.
The familiar circle with central “i” now features a publicly accepted symbol of a person and the strapline ‘Social Distancing: Do It Together’. “The move aims to broaden awareness around the importance of social distancing and to express the brand’s solidarity with those a ected by the crisis,” the Peterborough-based brand said.
IN-PERSON EVENT PLANNED IFA 2020 IN BERLIN WILL BE FOR CES 2021… SAMSUNG AND LG RETHINK IFA PLANS A “REAL-LIFE EVENT” BUT WITH SAFETY MEASURES
CES 2021 is to go ahead as an in-person event in Las Vegas but with more focus on virtual sessions, organiser of the event, IFA has announced that it has been given the go-ahead to take the Consumer Technology Association, has announced. place in 2020 as a real-life event in Berlin, “based on a special
With planning for the world’s biggest technology show underway, concept that puts health and safety fi rst.” the CTA said: “For CES 2021, we will continue to expand the show’s
December 2020.
Indesit is o ering consumers a free three-month supply of
Fairy Platinum Plus dishwasher tablets on the purchase of selected dishwashers in a promotion running until 31st
August 2020.
Spanish appliance manufacturer Pando has introduced a fi veyear parts & labour warranty, with service covered by Pacifi ca
Appliance Services – better known as 0800 Repair.
KBBG has announced Getley UK as a new supplier with a new kitchen and bedroom furniture brand under the Alku name.
Whirlpool UK has donated around 75 appliances to 19 Golden
Lane Housing developments. The company has also donated £25,000 to the charity.
Hughes Electrical has donated four LG 32-inch Smart TVs to the James Paget University Hospital in Gorleston for installation in the Children’s Ward.
BSH has donated 100 Bosch Tassimo co ee machines and a selection of co ee pods to around 20 NHS Trusts nationwide for distribution to hospitals.
digital reach. You can expect to see a wider selection of livestreamed CES content, along with many other engaging digital and virtual T his year’s IFA 2020 “Special Edition” will take place over just three days – from 3 to 5 September – and according to the organisers “falls well within the restrictions opportunities… imposed by the COVID-19 pandemic.” It will be by invitation only, with no access for the
“We will showcase our exhibitors’ products, technology public, and will have strict limits on the number of attendees. breakthroughs and ideas to the world, both physically in Las Vegas Jens Heithecker, Executive Director of IFA Berlin, said: “After all and digitally.” the event cancellations during the past months, our industry
Amongst the plans to protect exhibitors and attendees are urgently needs a platform where it can showcase its regularly sanitised spaces in the show venues, and the innovation, so that it can recover and rebound. The provision of sanitisation stations throughout. Widening recovery of our industry starts here at IFA Berlin.” of the aisles to better enable social distancing in “The exhibition While virtual events were useful, he added, they many exhibit areas and more space between seats in conference programmes and other areas where attendees congregate are also in the planning. will e ectively be run as four standalone were “missing the immediacy, hands-on experience and human connections that make events like IFA Berlin so incredibly useful.”
Major brands are committed for the show, events, with not more The concept for IFA 2020 was developed in according to the CTA, which said it was also looking than 1,000 attendees close collaboration with public health authorities forward to announcing another line-up of top-tier speakers. for each event per in Germany to ensure the health and safety of all participants.
Meanwhile, it is reported that Korean tech day...” The exhibition will e ectively be run as four companies Samsung and LG are considering scaling standalone events, with not more than 1,000 attendees back on their participation in IFA 2020 this year due to the for each event per day: the IFA Global Press Conference, ongoing coronavirus pandemic. which has moved from April to September and turned into this year’s Global Showcase for Innovation and Technology. Around 800 journalists covering 50+ countries will be invited to SHORTCUTS Berlin; IFA NEXT meets IFA SHIFT Mobility, where, for 2020 only, the two innovation platforms will be combined into an exclusive live event for the international tech community; IFA Global Markets, now acknowledged as “Europe’s largest sourcing show for OEMs and ODMs”, will, says IFA, “be this year’s fi rst dedicated sourcing show in the world”;
Bosch Home Appliances is o ering a fi ve-year warranty on a IFA Business, Retail & Meeting Lounges, an important marketplace for consumer electronics lineup of its most popular built-in and freestanding models. and home appliances, where brands and retailers struck deals worth more than €4.7 billion
Hotpoint is o ering a 100-day money-back guarantee on a For those who may not be able to obtain entry to the “real life” event, or may be subject to selection of dishwashers in a promotion running until 31st travel restrictions, virtual opportunities to be part of the IFA Berlin experience will be o ered.
