February 2014
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Letter from the editor Welcome to another jam-packed issue of Hardware & Homestyle! We are delighted to bring you yet another issue full of News, Views, Analysis, Features, Products, Inspiration and Practical Advice. This month we thought it timely to look at the topic we are calling ‘Springtime RMI’. This really is the time of year when the trade begins to come alive! This is no accident of course as, right around the country, householders are considering their first tentative steps outside to see what needs doing after a rough Winter. This year it really has been tough. Recently storms have left us with a major clean-up job to do. One can be sure that local merchants will, to varying degrees, be involved in many ways here. This month we continue to see something of an upturn in construction activity, and again, this is to be welcomed. As for gardening, there is something of a horticultural theme this month. First, we speak with the inspirational Mike Neary of Bord Bia. Mike gives us the lowdown on activity in the sector and tells us about an exciting international event that is coming to Ireland this year. We are also delighted to feature the success story that is Horkans Garden & Lifestyle in this issue. We speak with Paraic Horkan – widely known for his work on TV3 – who tells us about developments and plans there. Apart from that we have all of our regular items and our usual mixture of well-known personalities on hand to advise, inform and perhaps even cast a wry look at events! Talk to you soon,
Martin Foran, Editor
News 4 Retail Ireland News 13 McKeown’s world 14 On The Record 15 Mike Neary of Bord Bia
Business-wise
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With Russell Brennan Keane
Horkan’s Profile Springtime RMI
19 25
A special feature
Buy The book / Me And My Job Mark Delaney The Home Front Wholesalers In Conversation Product News The Room Outside HR Guidebook The Final Say
33 34 36 37 40 42 45 46
Hardware & Homestyle is Published by Ocean Publishing 14, Upper Fitzwilliam Street Dublin 2 Tel: 01 678 5165 Fax: 01 678 5191 Publisher: Patrick Aylward Editor: Martin Foran Editorial Email: martin@hardwareandhomestylenews.ie National Sales Manager: Dermot Casey Email: dermot@hardwareandhomestylenews.ie Design/Layout: Jim Heron Email: jim@hardwareandhomestylenews.ie Printed by: W&G Baird Ltd, Antrim
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Hardware & Homestyle
Retail can create 40,000 new jobs Retail Ireland’s ‘Strategy for Retail 20142016’ shows that the sector can create up to 40,000 new jobs by 2020 ‘if the sector can be put on a sustainable path to recovery’.
Healthy
Hardware & Homestyle contributor Stephen Lynam of Retail Ireland
A healthy retail sector is vital to the Irish economy and to the commercial life of our towns and cities, says Retail Ireland. ‘If the economy improves, and we put in place the right policies to support the development of the sector, we have the potential to create up to 40,000 new jobs. Retail Ireland’s comments will no doubt be welcomed as positive news regarding the future potential of the sector which is a major employer right across the country and very labour intensive. ‘Any significant increase in retail activity will immediately lead to job creation,’ points out Retail Ireland. ‘A resurgent retail sector will also have a direct impact on the social and commercial lives of our towns and cities, which have been badly hit by shop closures and the resulting job losses.’ Key findings set out in the strategy include:
• Retail employs over 275,000 people and is the largest employer in the country • 75% of retail jobs are located outside Dublin • Retail generates over €5 billion in taxes every year and pays over €8 billion in wages • 90% of retail businesses are Irishowned and 77% are family owned. • A similar number have an annual turnover of less than €1 million • If retail sales can start to grow by 3-4% per annum from 2016, the sector can create 40,000 new jobs.
Potential
The strategy sets out what needs to be done ‘if we are to realise the sector’s true potential, including putting in place a retailer-friendly policy environment, improving the skills of retail staff and developing the online potential of stores’. The retail sector has borne the brunt of the recession, with store closures and thousands of job losses. ‘If the tide turns, however, there is enormous scope for growth and job creation,’ says Retail Ireland.
Glennon Brothers joins Octabuild Timber processing firm, Glennon Brothers, has been selected to join the Octabuild group of Irish manufacturers.
Benefit
Octabuild (est. 1984) promotes the benefit of high quality Irish manufactured goods to the Irish building and construction sector, and makes a significant contribution to the Irish economy, employing over 1,400 people throughout the country. Glennon Brothers tells Hardware & Homestyle that it is delighted to be associated with a group who, even though all members operate independently, share common attributes, namely: ‘They operate to the highest technical and management quality standards; they are market leaders in their business sectors; have a solid manufacturing base in Ireland and use builders’ merchants as their primary sales route to the end-user.’ Mike Glennon, Glennon Brothers, stated: ‘We are delighted to have been invited to join Octabuild which champions excellence across the builders’ merchant sector. ‘The Octabuild Builders Merchant Awards recognise the quality, innovation, and customer service that builders’ merchants provide to their customers
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Pat Glennon (Joint MD); Taoiseach Enda Kenny; Mike Glennon (Joint MD); Dominick Chilcott (British Ambassador to Ireland); Tom Hayes (Minister for Forestry)
every day, contributing to the economic well being of their local communities.’
Excited
Pat Glennon, Glennon Brothers, added: ‘Glennon Brothers are excited to join the Octabuild group especially as we begin our second century in business. ‘Octabuild companies have more than 650 years’ combined manufacturing experience in Ireland, working closely with Irish builders’ merchants to deliver a quality product to the customer.’ Jim Loughran, Octabuild chairman, said: ‘We are very pleased that Glennon
Brothers has agreed to join Octabuild. ‘As a long established Irish manufacturer their experience and expertise in the timber sector will strengthen our ability to promote quality Irish manufactured building materials. ‘With manufacturing facilities in Longford and Fermoy, Glennon Brothers also add to the geographic spread of the Octabuild manufacturing presence throughout the country.’ The members of Octabuild are: Dulux, Glennon Brothers, Gyproc, Irish Cement, Kingspan, Sanbra Fyffe, Tegral, and Wavin.
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Hardware & Homestyle
An Expert ‘line out’ ‘We always make it clear that, whilst in another group, regardless of how unhappy you are there, we cannot and will not consider an application until you are fully independent again.’
in town’ for 2014, if you own, and /or run a hardware store. David Baker says: ‘For too long the independent hardware retailer has been the poor relation of our industry. ‘Because of our individual business size we had no clout or muscle.
Groups David Baker (white shirt) with Feargal Quinn and staff members at the launch of Hardware & Homestyle magazine
Just look at the results that Joe Schmidt & his team have achieved in our first matches of the Six Nations. Only then can you understand why it is that the Expert Hardware event on 28 March is nearly fully booked.
Success
Just in case you missed it, we’ll give it to you again: in our last two issues we flagged up the Expert Hardware information
afternoon where Joe Schmidt is going to share his secrets of success – which, according to Expert’s chairman David Baker, ‘if applied in a retail hardware business environment will guarantee success’. Expert Hardware, surely becoming one of the highest profile names in hardware independent retailing, invited over 200 independent hardware retailers to what is proclaimed to be ‘the only game
‘Yes there are other groups, but they only want and cater for the shed-style independents. They had no time for us. ‘Believe it or not we have several members of the other groups looking at the Expert Hardware model with envy,’ David confides. ‘However we always make it absolutely clear that, whilst in another group, regardless as to how unhappy you are in that group, we cannot and will not consider an application until you are fully independent again.’ David tells us that there are still some limited places
,available for this event on 28 March. So our advice is this: if you are an independent hardware retailer, get on the phone immediately to David at 01 4781377 and see if they can fit you in!
Glennon Brothers Glennon Brothers celebrated 100 years in business in Croke Park, Dublin, on the 7 November 2013. Guest Speaker on the day was An Taoiseach, Enda Kenny. Over 500 people were in attendance at the event, including Minister for Forestry, Tom Hayes and British Ambassador to Ireland, Dominick Chilcott.
Medal
On 6 June 2013, Glennon Brothers were awarded a coveted Ruband’Honneur medal in Istanbul, by the European Business Awards. In 2012, Glennon Brothers became the sponsor of Longford GAA Football and Hurling teams on a three
year deal, to run through the 2014 season. Glennon Brothers was the winner of the Industry category award at the 2010 Ernst & Young Ireland Entrepreneur of the Year awards. Glennon Brothers is now a premier name in the Irish and UK timber processing industry.
One-stop-shop
Through its plants in Ireland and Scotland, the firm offers a one-stopshop solution, supplying both the Irish and UK markets with products for the construction, pallet wood and fencing industries. This one-stop-shop approach ensures the firm continues to push the boundaries of machinery and
technology to produce home grown timber to the highest international standards. Glennon Brothers are also a leading provider of quality timber frame homes and engineered Mike and Pat Glennon roof trusses in the UK and Ireland through Alexander Timber Design based in Troon, and Dempsey Timber Engineering (DTE) based in Arklow.
Environment
The Group is committed to reducing its impact on the environment and has gained Forest Stewardship Council (FSC) certification for its products across all timber processing sites, ensuring that they are sourced from sustainably managed forests.
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Hardware & Homestyle
Consumers making larger cash withdrawals The National Consumer Agency has published consumer research which shows a significant increase in the number of consumers who are making larger cash withdrawals and using their debit cards less often as a result of losing their free banking.
still avail of free banking, down from 37% in June 2013 •1 in 7 (14%), of current account holders don’t know whether they are being charged fees. Mr O’Leary added: ‘Consumers should be aware of the charges they are paying for using their current account as the cost can be significant over the course of a year. ‘Consumers can make changes to how they use their current account to reduce these charges, for example using the cashback option to get cash when you use your debit card to pay in a shop. ‘Also, while there is now much less choice in the current account market, the current account cost comparison on consumerhelp.ie shows all of the fees and charges for the current accounts in the market so you might be able to switch and get a better deal. ‘We also have detailed information on how consumers can reduce their banking fees.’
Banking
According to the research, carried out on behalf of the Agency by Behaviour & Attitudes, more than a third (34%) of current account customers said they no longer qualified for free banking. These customers were then asked if the loss of free banking in the last year prompted a change in the ways they use their account. A total of 28% said they take out more cash when making withdrawals – almost double the figure (15%) from the previous year. A quarter (25%), also stated that they use their debit cards less often compared to 13% 12 months ago and 13% are using their credit cards more for routine transactions. Furthermore, approximately a third of consumers who no longer qualify for free banking said that they intend to use their debit card less often and/or switch to a bank that offers free banking or lower fees.
Consumer Sentiment improves in December
Meanwhile, the overall KBC Ireland/ESRI Consumer Sentiment Index increased to 79.8 in December, from 71.0 in November. The 3-month moving average increased from 73.4 to 75.7.
Director
Climbed
Commenting on the results, Fergal O’Leary, Director of Public Awareness and Financial Education at the National Consumer Agency, said:
House prices to rise again Nearly 50% of people believe house prices will again increase over the next 12 months, according to the ESRI/AIB housing survey. More than 800 people across all areas of the market were questioned and the expectation was that house prices would rise by more than 2% this year, nationally. David Duffy of the ESRI said: ‘The survey is not specifically confined to people buying. It’s asking all consumers to try and get an assessment of the housing market on the broader economy.’
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‘It is clear that consumers are altering their behaviour to reduce costs in light of changes in charging structures on current accounts. ‘The research clearly shows that many consumers are making larger cash withdrawals and using their debit cards less, which is a concern in the context of the National Payments Plan and its objective to increase the use of electronic forms of payment such as debit cards.’ The research also found that: •57% of all current account holders have never checked to see if there is a better deal or package available elsewhere •6% had switched their current account in the last 12 months with 8% planning on switching accounts in the next 6 months •32% of current account customers can
Commenting on the results, Kevin Timoney, ESRI, said: ‘Consumer Sentiment climbed from 71.0 in November to 79.8 in December, its highest reading since June 2007. ‘The 3-month moving average is now at 75.7 and has gained continuously since April. The annual average of the index increased by 10.5 per cent, from 61.0 in 2012 to 67.4 in 2013. ‘December’s strong performance is reflected across all categories. Forwardlooking views on the economy over the coming 12 months improved to a sevenyear peak. ‘Household perceptions of their present financial situation were more upbeat in December.’
Easing
In addition, Austin Hughes, KBC Bank Ireland, noted: ’The driving force behind the improvement in Irish consumer sentiment through 2013 was an easing in fears about the outlook for the Irish economy.’
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Hardware & Homestyle
Over 90% of SMEs contribute to charity and local causes The main findings of the survey
‘A massive 92% of Irish SMEs give voluntary financial contributions to charities and good causes.’ Mark Fielding
‘Danger of being overshadowed in PR blitz from larger firms’ ISME, the Irish Small and Medium Enterprises Association, (ISME) released the results of its SMEs and CSR survey which assessed the level of SME contributions to charitable and local causes as part of the corporate social responsibility (CSR) activities by Irish SMEs.
Causes
The survey results found that, despite the economic difficulties, 92% of Irish SMEs give voluntary financial contributions to charities and good causes. According to ISME CEO, Mark Fielding: ‘The CSR activities of large businesses tend to be well-documented and publicised as part of their reputation building strategies.
‘However, the CSR contributions of SMEs are usually informal and are considered to be a normal part of business life. ‘In many cases, the business owner does not recognise the term CSR but believes that playing an active role in the community is their responsibility.’ .
Unrecorded
When asked if their company participates in CSR local businesses might answer ‘no’ or ‘don’t know’, without realising that their actions often amount to exemplary, but unrecorded, CSR, says ISME. ‘The informal nature of these activities makes them more difficult to record and quantify,’ says Fielding. ‘The results outlined in our report show that Irish SMEs make a significant contribu-
tion to their local communities through financial, time and product donations. ‘These contributions often go unnoticed and unacknowledged. ‘They are appreciated only by their direct beneficiaries and while it is difficult to exactly quantify their economic value, the value of their contribution to local initiatives and organisations is im-
• 72% of Irish SME owners voluntarily give their time to support charitable and local organisations each year • 45% of SMEs give employee time to charitable organisations on an annual basis • 34% of respondents had a charity partner which it was committed to supporting on a long-term, year-on-year basis • 7% of SMEs donate more than €5000 to charities or voluntary organisations every year • 10% of SMEs give more than 50 hours of employee time per year • 28% of SME owners give more than 50 hours of their own time each year • A quarter of businesses donate between €1,001€5,000 each year • 54% of SMEs donate products or inventory to charities every year, 10% of these give goods valued at more than €1,000 mense.’ The survey of over 1,100 SME respondents showed half of the respondents employ less than 10 persons, while a further 40% employ between 11 and 50 and one in 10 employ between 51 and 250.
IPSO announces new completion date for full migration About IPSO: to the SEPA payment schemes The Irish Payment Statistics released by the European Central Bank show that migration to SEPA gathered pace strongly in December.
Compliant
According to the latest figures at time of writing, 74% of credit transfers and 41% of direct debits in the euro area are SEPA
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February 2014
compliant. Commenting: IPSO’s SEPA Ireland programme manager, Michael O’Neill, said: ‘It is important to maintain momentum towards 100% SEPA compliance. ‘However, to enable companies who have yet to complete their migration to SEPA, IPSO
and its member banks have agreed to extend the migration date to 31 March 2014.’
Renew
IPSO urges all customers to renew their migration pace and to complete the successful migration to SEPA as early as possible.
Services Organisation Limited (IPSO) is the representative industry body of the payments industry and the strategic interface with all payments stakeholders. Its fundamental principles are to preserve the integrity and security of the payment systems and to promote and oversee the strategic development of such systems in the interest of the industry and the general public.
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Hardware & Homestyle
2013: a good year for IKEA Group Consumer spend recovering in many markets The IKEA Group net income increased by 3.1% to EUR 3.3 billion for the financial year 2013, and market conditions continued to improve with strong growth in China, Russia and the US. ‘Consumer spending is improving in many countries.
Positive
‘While the challenging economic situation may not be over, there are positive signs. Important consumer markets such as the US are coming back and Europe in general is starting to recover. ‘Even some of the challenging markets in Southern Europe are showing good signs of activity,’ says President and CEO Peter Agnefjäll.
‘Sales increased by 3.1% from last year to EUR 27.9 billion and the IKEA Group gained market share in almost all markets. ‘Together with the rental income from our shopping centres, the total revenues amounted to EUR 28.5 billion (+3.2%). The largest markets were Germany, the US, France, Russia and Sweden. ‘This indicates that value for money is increasingly important.
Embracing
‘I’m especially happy to see customers embracing our range of products designed to help them live a more sustainable life at home. ‘For example, customers bought more than 22 million
LED products in FY13 alone, saving them energy and money,’ continues Peter Agnefjäll. The IKEA Group has an ambitious growth agenda, aiming for EUR 50 billion in
People & Planet The IKEA Group Sustainability Report for fiscal year (FY*) 2013, shows strong progress on its People & Planet Positive strategy, building on its long history of working with sustainability.
people with a good quality of life,’ said Peter Agnefjäll, President and CEO, IKEA Group. ‘I am convinced there is no other way of doing business than in a sustainable way.’
Progress
Ireland
This is the first year IKEA Group reports progress against this new sustainability strategy. Highlights from FY13 included the fact that IKEA Group has committed to own 137 wind turbines and installed 550,000 solar panels, taking the company a step closer to producing more renewable energy than the total energy it uses by 2020. ‘Everyone, including IKEA, has a part to play in tackling the expected shortages of resources and the impacts of climate change while providing
Last year IKEA announced it was investing in the purchase of a new wind farm located in Carrickeeny, North-West Leitrim. The electricity generated from the wind farm would be used to supply its Dublin and Belfast stores, becoming one of the first corporate businesses in Ireland to operate a wind farm in this way. Financial year 2013 encompasses the period between September 1, 2012, to August 31, 2013.
sales by 2020. The large emerging markets are important sources of future growth. In FY13, the IKEA Group opened two more stores in China – another step in the expansion of the Chinese market.
Focus
‘We have a long-term focus. We’ll keep developing better products at lower prices, improving the shopping experience and becoming more accessible to our customers, for example through an improved service offer, e-commerce and continued expansion. ‘Our ownership structure and sound financial principles give us independence and the possibility to grow in a balanced and sustainable way,’ says Peter Agnefjäll.
Northern Ireland Shopper numbers down in December In December, shopper numbers in Northern Ireland were 8.7% lower than a year ago, down on the 6.3% decline in November 2013.
Lower
These figures are lower than the whole UK where shopper numbers were down 2.4%. Aodhán Connolly, director of the Northern Ireland Retail Consortium, said: ‘It’s deeply concerning to see that Northern Ireland suffered by far the steepest drop in footfall in December,
especially after some tentative signs that growth was starting to go the other direction in November. ‘Although disposable incomes are feeling the squeeze across the UK, budgets in Northern Ireland are under the greatest pressure, and there are weighty tasks in the year ahead to build and maintain confidence among customers and retailers.’
Multichannel
There are some other factors
at play, says Connolly, who refers also to sales figures which show that multichannel was the story of the season, ‘so increased online browsing and buying and use of services like click and collect has undoubtedly filtered through to these figures’, he says. ‘We also saw a last minute shopping surge as expected, as many people took the weekdays leading See more at: http://www.brc. up to Christmas off and used org.uk/nirc_news_detail.asthem to finalise their festive p?id=2563#sthash.xW9QH1BL.dpuf spending.’ February 2014
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Hardware & Homestyle
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Best of the Web:
Creating a satisfying experience Consumers are not loyal because of fancy packaging. They keep coming back because of the experience, appreciation (think coupons and rewards points), and whether or not the retailer cares to know about them.
Developed
People today have a much more developed and complicated loyalty palate that can only be satiated through the use of technology. The question for retailers is how are they able to tickle the customer’s taste buds in such a way that leaves them wanting more and therefore ensuring their loyalty and, more importantly, what technology can they put in place to help them foster that loyalty? QR (quick response) codes (as at the bottom of this piece), the small black and white two dimensional square codes, are a physical link that connects the online and offline world. QR codes can instantaneously tell you a lot about a person simply by the fact that customers chose to scan the code, which allows retailers to make the shopping experience personal either through service or discounts or both. For instance, after scanning a QR code in an ad, a consumer would be directly
linked to a product, a special coupon or offer, or other exclusive content.
Instant
Instant gratification is part of society and this is the technology that has allowed retailers to adapt to that new standard of easy living for the on-the-go consumer. This is where RFID or ‘Tap to Pay’ technology comes into play as it is included in most smart phones. Whether it is getting on a train or bus, gaining access to an apartment/ office building, or filling up your gas tank, many consumers have come to expect the ease and convenience that accompanies tap-to-pay technology especially with the next generation able to recognize a smart phone rather than relying on a separate sensor cluttering your keychain. While the concept of data storage has remained constant, the need for security is becoming increasingly important to the consumer. Integrated Circuit Chip (ICC) cards each have a small microprocessor, programming and storage on them.
security that most similar technologies can’t. Chips may be both read and updated, a feature that is unique to ICCs. Essentially, all the perks mentioned above but with an enhanced security feature. Understanding the needs and tastes of consumers is essential in creating a dynamic environment that when implemented correctly can create the kind of loyalty that every retailer is looking for. By leveraging the right technology, retailers can create a full bodied and flavourful shopping experience that fosters unwavering loyalty. -See more at: http://loyalty360.org/loyalty-today/ article/creating-a-satisfyingexperience#sthash.3yXyuALM.dpuf
Additional
Through encryption and dynamically changing keys, they provide additional
Ireland prepares for International Garden Centre Congress Preparations are underway for the 56th International Garden Centre Congress which takes place in Ireland this year.
Johnny Cash to pen the song of that title while touring here in the 1950s,’ is the message to attendees.
Showcase
Amazing
The August event will showcase ‘the best of our Irish Garden Centres, Gardens and Irish hospitality’. An exciting programme has been put together for the week of the event, incorporating visits to some of our most beautiful and innovative garden centres, historic and stately gardens, historical sites and some of our best tourist destinations. The base, at the historic Carton House Hotel in Co. Kildare, is just 14 miles (22.5 km) from Dublin city centre and 30 minutes from Dublin Airport. This is a perfect point from which delegates will explore the destinations on the itinerary.
Mike Neary, Bord Bia, has more in ‘On The Record’.
‘As we travel to our various destinations, you will be enthralled by the scenery and the “forty shades of green” that inspired
Many amazing public gardens and spaces will be on the itinerary – whittling them down to fit into the programme was a difficult job. The same can be said for the awardwinning garden centres on the schedule where owners are now busy preparing to welcome guests in style. From small plant-focused garden centres, to large home, garden and lifestyle centres, attendees will experience the diverse range of garden retailing on offer to Irish consumers. The 56th International Garden Centre Congress: 10 – 15 August, 2014. For further information go to www. igccireland2014.com
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Hardware & Homestyle
Small business sentiment continues to improve set of sentiment data we have seen in a few years. ‘The survey indicates that the economy has stabilised. The challenge is now when the economy will commence to grow in a meaningful way. ‘However, the business performance is encouraging and companies are looking to the future with an increasing sense of optimism.’
Overall Business Environment The Small Firms Association (SFA) has released the findings of its Q4 Business Sentiment Survey. Commenting on the figures, a spokesperson tells us: ‘Business confidence levels have shown further improvement through the final quarter of 2013. This is the strongest
The results show that 35% of respondent companies rate the overall business environment to be either ‘very good’ or ‘good’ – an 11% increase on Q2 2013. Overall, 48% rate their own business as ‘very good’ or ‘good’ (a 6% increase on Q2, 2013). The business activity indi-
cators also show expected changes in the first three months of 2014 are more positive than previously experienced. •Over a third of small firms (31%) expect order books to improve. •Domestic market sales are expected to increase for 26% of small firms while 39% of those companies who export expect to see an increase in sales. •Over three in 10 companies expect an increase in their customer base (33%). The SFA stated that, while the weak performance of the wider European economy remains a concern, the biggest challenge for small firms, especially those trading on the domestic market, is the fragility of the domestic economy and confidence among consumers.
Merchants play their part in clean up!
Merchants can play a big part in addressing the fall out of the recent bad weather. Apart from selling the usual cleaning materials there is the whole area of rodenticide to bear in mind.
Shelter
Householders have been warned to be on the watch out for mice and rats that may have been displaced from drains and sewers and rivers. The worry is that they will seek to take shelter in homes and outbuildings. Rentokil’s technical manager, Colm Moore, has been quoted as saying that rodents carry a raft of diseases and ‘can easily cross-contaminate our homes with a variety of bacteria, viruses and other pests’. ‘It is critical, therefore, that properties are fully disinfected once the flood waters have subsided.’
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Hardware & Homestyle
National Certificate in Polymer Technology
Plastics Ireland, the Ibec group which represents the plastics industry, has launched a new National Certificate in polymer technology as part of the Springboard suite of programmes.
Designed
This new programme was specifically designed to fill a
gap at Level 6 for technicians in the plastics industry and is jointly being delivered by Plastics Ireland and IT Sligo over one year and is due to finish in May 2014. There are 30 people enrolled on this new programme and successful completion will help participants gain the necessary technical skills to secure employment as technicians in polymer processing, in the plastics manufacturing/ medical device industries. The polymer and plastics sector is very important to the Irish economy, employing 11,831 people, equivalent to 4.6% of the total manufacturing employment and current annual turnover is estimated at €1,986 million.
Shortage
Marian Byron, director of Plastics Ireland, said: ‘There is currently a major shortage of polymer technicians in industry and companies are finding it increasingly difficult to find people with polymer processing skills.’
Home Retail Group plc chief executive Homebase, part of the Home Retail Group
Retail ireland News
Retail Ireland launches Strategy for Retail: 2014-2016 Stephen Lynam
Retail Ireland recently published its Strategy for Retail: 2014-2016. This significant piece of research sets out our vision for the future of the Irish retail industry and explains what can be achieved if the potential of the industry is fully realised and supported. Key findings discussed in the paper included the following: •Retail directly employs over 275,000 people and is the largest employer in Ireland •75% of retail jobs are located outside Dublin •Retail generates over €5 billion in taxes every year and pays over €8 billion in wages •90% of retail businesses are Irish-owned and 77% are family owned •If retail sales can start to grow by 3-4% per annum from 2016, the sector can create as many as 40,000 new jobs. Commenting on the publi-
cation of the paper, Stephen Lynam, director of Retail Ireland, explained: ‘A healthy retail sector is vital to the Irish economy and to the commercial life of our towns and cities. ‘If the economy improves, and we put in place the right policies to support the development of the sector, we have the potential to create up to 40,000 new jobs. ‘The strategy sets out what needs to be done if we are to realise the sector’s true potential, including putting in place a retailer-friendly policy environment, improving the skills of retail staff and developing the online potential of stores. ‘The retail sector has borne the brunt of the recession, with store closures and thousands of job losses. ‘If the tide turns, however, there is enormous scope for growth and job creation.’ The paper has been warmly received and will be used to support our advocacy work over the next two years. To access a copy, visit us at www.retailireland.ie
Consumer spending to rise by over 1% in 2014
Home Retail Group plc has announced the appointment of John Walden as its new chief executive. Following a period of handover from Terry Duddy, John will join the Board as chief executive with effect from 14 March 2014. John Walden said: ‘I am delighted to have the opportunity to lead the Group at such an exciting time. The retail landscape is changing quickly, and I am optimistic that Home Retail Group is well positioned for a successful future.’
Our research indicates that consumer spending will rise by 1.3% in 2014, the first such increase since the start of the recession. Despite ongoing pressures in the retail sector, there have been several recent indications that consumer confidence is building. While forecasted growth of 1.3% is admittedly low, it is a significant move in the right direction. Consumer spending fell in 2012 and was largely static in 2013. At present, goods inflation is in negative territory as shops battle for footfall. This intense competition in the retail sector is likely to keep prices down in 2014, thus stimulating consumer activity, resulting in a welcome increase in spending. February 2014
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McKeown’s World
Hardware & Homestyle
So the provisional CSO figures for 2013 show an improvement in retail sales at last. The total figure for December 2013 showed volume growth of 0.6% for the month and 3% for the total year. Within the overall figure, there are some marked differences in the various sectors, notes David McKeown, who casts his eye over the market with his own inimitable style.
‘Improvement at last?’ The strongest categories at the end of the year were Books, Newspapers and Stationery (up 4.2% in December), Pharmaceuticals, Medical and Cosmetic Articles (+3.8%) and Furniture/Lighting (up 3.4%).
Hardware
The most relevant category in our area, Hardware, Paint and Glass finished the year up 1.1% in December, slightly behind the annual growth rate of 1.4%. The all-important Consumer Confidence figures would also suggest that things are improving slightly. The figures for December and January have both shown a measure of confidence returning to consumers, with the index now at its highest since May 2007. January does tend to show an improvement every year due to postChristmas sales, particularly with regard to high-ticket consumer durables, but the bounce this year has been especially strong. Taking one or two months in isolation is never a good idea, but the three- to 6month rolling trend also looks slightly positive.
Pick up
As well as the Consumer Confidence index showing a positive trend, the more considered construction Purchasing Managers Index is also picking up. In 2014, this measure, which tracks changes in total construction activity, indicated another month of additional activity in the construction sector. This now makes five consecutive months of increases in new orders, activity and therefore employment. All of this extra activity has been in the relatively small-scale home-building and commercial sectors, at the expense of larger civil engineering projects. Admittedly, all this positive news from construction is hedged with caveats and health warnings about small sample sizes. So are things really looking up, and can
About David
we expect these positive trends to filter through into our industry? All measures of consumer confidence are based on comment and opinion, but with regard to the money in your pocket, actions definitely speak louder than words and the retail sales figures do suggest a return to confidence.
Car sales
Trends in new car sales, travel and savings also give a good indicator of how people really feel about their immediate financial future. On the plus side, new car sales started the year really well – sales were up 33% in January. Van sales were up even more – 42%, although the figures from the Society of the Irish Motor Industry don’t say if they were all white vans or not. These two figures definitely support the tentative view that confidence is returning. Households buying new cars is a good sign, and SMEs and bigger companies buying vans is certainly a sign of increased commercial activity across a number of sectors. The overall results in holidays and travel are less clear, but there is a definite shift from travel abroad to domestic trips. Expenditure within Ireland was up
6% in July-September 2013 vs 2012, and expenditure on trips abroad was down 8%. Given the fact that trips abroad cost more than trips within Ireland it is safe to say that this area is still showing a negative.
Savings
Savings rates also indicate that consumers are still cautious about the recovery. Domestic savings rates, which were at the already high rate of 14.5% in the early part of 2013, actually rose to 16% in the third quarter of the year. This was seen as a ‘precautionary’ move by households concerned about their future. To put this in context, this rate was around 4% through the glory years of the boom, and should really be around 9%-11% to ensure medium-term growth. This means that one of the three indicators of practical consumer confidence is very positive (new car sales), one is ambiguous (travel) and one is still fairly negative (savings). I had a big night at the rugby at the weekend so I’ll leave you to draw your own conclusions!
David McKeown is a sales and marketing professional with wide experience in the construction and DIY industries in Ireland, the UK and Germany. He runs his own sales agency, xSell Sales and Marketing, providing consultancy and agency services to a number of clients.
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Hardware & Homestyle
On The Record
There’s a lot happening on the horticulture front this year, not least the arrival of the International Garden Centre Congress to these shores, which, it is hoped, will give the whole sector a further boost. Meanwhile, whether you have a fully-fledged garden centre with trained horticulturalists on site or your offering is confined to smallsized items like weedkiller and twine, there’s always some way in which you can reap a reward from this ‘growing’ business – as a chat with Bord Bia’s horticulture division manager, Mike Neary, clearly illustrates...
Growing profits! Outside of the traditional garden centre sector, many of our readers still cater for ‘the room outside’ in a serious way. And throughout the country we have seen standards increase exponentially over the past decade. World class merchandising and display, excellent use of signage and advice and information from trained horticulturalists are all at hand in every county in the land. But even small, land-locked stores in busy town centres can stock serious product offerings – take many of the stores in the Expert Hardware Group for example. Yes. You may not have the room for giant displays but you can still be a ‘go to’ outlet for smaller items like weedkiller and hand tools. And when you are part of a group like the above retailers, then you can get pretty much anything the gardening customer requires – and get it fast. The message is simple: There’s hardly a store in this sector that can honestly say that it ‘doesn’t do gardening’ in some shape or form. Yes. There is a level at which even the smallest stores can reap some of the rewards of this ‘growing business’. For those with the space and the commitment, the sky is the limit. But ‘garden’ as a product area does not necessarily mean acres of shrubs, flowers, trees and large-scale items such as ride-on lawnmowers
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On The Record
and top-of-the-range barbecues.
Overview
Mike Neary of Bord Bia is a good person to talk to for an overview of the gardening and ‘amenity horticulture’ business. His job as horticulture division manager takes him and his colleagues into close working proximity with, among others, growers, garden designers, and of course retailers. The latter would include the independent retail sector as well as chain-style outlets. Mike is understandably upbeat about the sector. From the figures (see panel over), he has every reason to be. One of the points that Mike gets across early on is about the passion involved here, particularly at the supplier end. ‘People in this business are resilient,’ he says. ‘They love the sector and they are passionate about what they do.’ (A lot like our retailer readers then.) This is all important to mention because there have been some tough years here, as in the rest of the economy. ‘The gardening market in general was going very, very well up to 2008,’ says Mike. ‘Then there was the downturn, the fall-off in construction and two bad winters.’ Mike particularly cites the years 2010 and 2011 when it comes to the cold. Last spring (2013) was very cold too – although most householders/customers will probably only remember the good summer that followed at this stage. Retailers and people like those in Bord Bia have better memories perhaps – it’s
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Hardware & Homestyle
got to do with their jobs! ‘Last summer was good,’ recalls Mike, ‘but we have been told that up to the end of April sales were down. People weren’t coming out. ‘But the good weather meant it picked up. Some would say it didn’t make up for it though. Springtime is a key time.’ This year the hope is for a more ‘normal’ spring if such a thing exists any more. ‘There are a lot of things that impact on us but the most important thing is to have the right weather,’ says Mike. ‘It gets people outside – a good spring and nice weather and people starting thinking about gardening early on.’ As to the bigger picture, is there any sign of the much-talked-about pick up in the economy from what Mike sees? ‘Most commentators would say things are starting to turn slowly,’ says Mike. ‘But it’ll be a long slow climb out of it. Confidence among consumers would be very important.’
Recession trends
A number of trends emerged in recent years in this sector. What people have done is, rather than buying the tall, mature plants they buy them younger. They are looking for value. One of the big trends of the recession years was of course grow-your-own. ‘It has been huge for us,’ says Mike. ‘Our research has shown that the spend by households for grow-your-own is up 60 per cent from 2001.’ It seems as though some people thought that it might have been an initial
reaction to the downturn and wouldn’t last so well. But that is not true, says Mike. It has been maintained over the last few years. It all feeds into the viability and profitability of stores and garden centres. Another of the trends that were noted during the ‘recession’ years was that of the ‘staycation’ where people spent their holiday time at home. The theory was that as they spent more time at home (and particularly in the garden when weather permitted), they spent more on their surroundings. It was a factor much cited over those years. Did it really exist? ‘There is no doubting that the trend was there,’ says Mike. ‘It is certainly said that gardening can do better when people are staying at home and there is no doubt that we have seen that.’ And he should know. As you’d expect, Bord Bia carry out lots of research on the market. ‘We measure the size of the gardening market every two years,’ says Mike. The last time was in 2012. ‘It peaked in ‘05/’06,’ says Mike. ‘And we estimate it has come back to the levels of 2002-2003 and is now valued at approximately e516 million. That includes the purchase of gardening products and services by households. ‘The market in total has contracted by about a third since its peak.’
Responsibility
Clearly the team are not just concerned with plant sales, they look at these other areas too. However their main responsibility starts with growers, says Mike. ‘We want to see the production of amenity horticulture grow,’ he says. ‘That is at the core.’ A lot of initiatives are involved. ‘We have a quality assurance scheme where the nurseries can become approved and use the Bord Bia Quality Mark on plants,’ says Mike by way of example. This helps the consumer in making buying decisions where local products are concerned. ‘We also support the retail sector with our Garden Centre Quality Awards,’ says Mike. ‘These are very well established and responsible for driving standards. ‘Entrants also get feedback in terms of what they need to do to improve.’ Once again the awards have been instrumental in helping drive up standards. As to the general developments noted in recent times, merchandising, information, signage have developed a lot. Another trend we have reported on is the addition of food offerings. The increase in availability of food has
On The Record
Hardware & Homestyle really been noticed by those involved with the awards. It has been introduced in places that it didn’t exist and where it did exist it has been improved, says Mike. The result is that a visit to a store is so about an ‘experience’ now in this sector. It’s more than just going out to buy plants.
benefits are huge in terms of profile-raising, exposure and networking.
Bloom
Meanwhile another major event is firmly fixed in the calendar for the June bank holiday weekend: Bloom encompasses so much and is universally recognised as a great success. Again Bord Bia carries out research and looks at the impact that the show has had. The impact of Bloom is considerable and consistent over time where one in three people who are aware of Bloom are inspired to do some garden-related activity. It has become a huge showcase. But Bloom is also about getting people to take up gardening. ‘A large part of our gardening community tend to be older or middle-aged people,’ explains Mike. ‘Our big thing is to engage and bring younger people in. One of the initiatives that Bord Bia is involved in is Agri Aware’s Incredible Edibles project (see panel). The timeframe for this is usually around February to June and it is about getting the children involved.
Conference
Now with the International Garden Centre Congress coming to Ireland in August of this year standards may well be expected to rise again. Mike is chair of the organising committee and was at the last two conferences. The process, he explains, is very practical. The International Garden Centre Association congress committee visit the prospective host country well in advance and look at the industry and at garden centres there. Obviously they were impressed by Ireland. This will in fact be the second time that the event will take place here. ‘What I have seen in several garden centres in Ireland compares very favourably to international standards,’ says Mike. No doubt others thought so too. All in all it is, as one might imagine, a big compliment to our industry that this conference is coming to Ireland. It is also noteworthy that
INCREDIBLE EDIBLES the current president of the International Garden Centre Association is Rachel Doyle from Arboretum in County
Carlow. Delegates will be coming to the event from all over the world, points out Mike. The
The Numbers
Retail Gardening Market (Household purchase 2011/2012)
€516m € 2 0 1 m €218m €97m Total Garden Market size
Plants
Gardening Products
Landscape services
Source: Ipsos MRBI research on behalf of Bord Bia
Agri Aware’s Incredible Edibles project is a healthy eating initiative for primary school students across Ireland. It encourages schools across the country to grow fruit and vegetables and to learn about their nutritive value and food origin. This project is funded by Bord Bia and the Irish horticulture industry. Its Garden Time section on the Bord Bia website is also worth looking at in this regard. It provides guidance on how to set up a school garden, says Mike. ‘As they go through their lives they will carry this with them,’ he adds. It seems the future is in good hands!
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Business-wise
Hardware & Homestyle
The success of a business is directly related to those involved in it. But what happens to a business financially when suddenly, and unexpectedly, a key person is no longer there due to injury, illness or death? All businesses should consider this and take steps to put in place appropriate insurances to mitigate the impact of such eventualities. This is the message in the second instalment of our new series, Business-wise, presented in conjunction with Russell Brennan Keane.
Family Businesses – Insurance Protection According to Yann Harrison, Wealth Management Director with Russell Brennan Keane, ‘the success of a family business is most often directly related to the direct input and work of the business owner. ‘However, for many business owners, their business is their primary incomegenerating asset. ‘Their ability to sustain a continuing income is, therefore, inextricably linked with their ability to work. ‘At an early stage, it is prudent of, if not incumbent on, business owners to ensure that adequate provision is put in place to safeguard their income from significant change, in the event of their inability to continue working as a result of illness, accident, or injury or in the event of their untimely death.’
Replacement
An income protection policy is designed to provide a replacement income in the event of the business owner being unable to work for a prolonged period of time due to accident, illness or disability. Policies work in such a way as to pay a monthly cash benefit, or replacement income, in lieu of earnings from the business. This ensures that business reserves are not unnecessarily depleted during a period of illness or, in a worst case scenario, that the business owner has a replacement income for life if, due to illness, the business has to be discontinued. Payments from the policies commence after a deferred period of time, generally 13 or 26 weeks, and continue until the earlier of the business owner returning to active employment, expiration of the policy, or death.
Trust
The success of a business is also often directly attributable to personal relationships of trust built up over time between key employees and business customers, or to the unique, or difficultto-replace, income-generating ability or
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February 2014
intellectual skill set of an employee considered vital to the business. The loss of a key employee, due to death or serious illness, could put the business at financial risk. It is vital to consider and plan for events that could adversely affect the ongoing and long-term success of the business. Risk can, at least partially, be mitigated by putting in place a key person insurance policy. Generally, but not exhaustively so, this is a policy taken out by the business to compensate it for the potential financial loss that could arise from the death or extended incapacity of a key member of staff. Key person insurance does not indemnify the actual losses that may be incurred, but it can provide for compensation within the context of a fixed monetary sum specified in the insurance policy undertaken. The benefit paid under the policy will generally be used to abate costs (such as recruiting a successor) and the potential loss of income and profits consequent either of a decreased ability to transact business or the attrition of customers and clients.
an illness, or death, of a stakeholder may have on a business. ‘Consideration should be paid to ensuring that provision is in place to afford the business the financial resources to enable it to provide for the deceased stakeholder dependents,’ continues Yann. It may also transpire that, in the event of the untimely death of a stakeholder, their successors may be insufficiently experienced or interested in business matters to add value or bring expertise to the business. As such, it may be preferable for all involved that the business would buy back the deceased’s shareholding, such that the surviving stakeholders would retain full control of the business and the deceased’s successors would benefit from a lump sum equal to the fair value of their shareholding. Co-directors or Partnership insurance policies are commonly used to provide a business with an available cash sum sufficient to buy back a stakeholder’s shares on death. Where business insurance is concerned, not all policies are the same. Professional advice and assistance should be sought prior to undertaking a policy, to ensure its sufficiency, appropriateness, cost and tax efficiency is in order.
‘For many business owners, their business is their primary incomegenerating asset.’
Dependents
As businesses mature, the implementation of strategic or succession plans may see the introduction of further stakeholders to the business and, If you have any consequently, an queries or would like to disextension of the cuss your affairs in confidence, business’s potential please contact Yann Harrison, financial dependents. email yharrison@rbk.ie or ‘It is important to phone (01) 6440100 / (090) understand not only the 6480600. emotional but, crucially, also the financial impact
Horkans Profile
Hardware & Homestyle
Garden
centred!
Horkans Lifestyle and Garden Centres have been busy of late. Having recently opened their sixth outlet at Glen of The Downs in County Wicklow, they plan to expand their current model throughout Ireland. They are also looking for suitable sites and existing retail businesses where a boutique garden centre operation will work. Martin Foran gets to the heart of a ‘growing’ business.
The rise and rise of Horkans Garden and Lifestyle brand ‘We were brought up with a retail back ground from the get go,’ says Paraic Horkan, of his formative years in the family business. ‘We were taught that the customer is King and service is central.’
Success
All of this goes a long way towards explaining the success of Horkan’s Lifestyle and Garden Centres whose distinctive purple signage has been growing ever more conspicuous around the country in recent years. To tell the full story of Horkans it is necessary to go back to 1850 when Paraic’s great-great grandfather started
business with PA Horkan’s in Castlebar. By all accounts Horkan’s traded well but it was really when the second generation, represented by Paddy Horkan and his wife Sarah (nee Hearst), took on the business, that the foundations were laid for the future development of the organisation, especially on the growing side. Paddy and Sarah Horkan further developed the grocery business in the early 1900s. Sarah it seems was the green-fingered one, however, growing her own flowers and vegetables which were sold instore.
Greenhouses
A plumber by trade, Paddy set up
greenhouses with heating which allowed his wife to generate seeds and grow nectarines, peaches, grapes and other ‘exotic’ produce. All of this was a little ahead of its time for the West of Ireland. In this regard, it can be seen as setting the trend for innovation which would become the hallmark of the Horkans’ businesses in subsequent years. In time, Paraic’s own father Sean took on the VG Brand. He opened a second shop in Castlebar and continued to expand. Sean kept on the gardening and growing element, now well established. Often he would buy plants from supplier Paul Sexton. Paul Sexton’s was a name that would feature prominently in the development February 2014
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Horkans Profile
Paraic Horkan
of the organisation 40 years later when Horkan’s would take on two of his premises on the east coast.
Botanic gardens
Jump forward to the early 1980s now, and Paraic Horkan had clearly inherited the green fingers and love of all things horticultural. After studying at the Botanic Gardens, Paraic worked abroad for a few years before returning to Castlebar and setting up Horkans Garden Centre with brothers Thomas and John. ‘Dunnes had come to town and we had seen the writing on the wall,’ explains Paraic. ‘Grocery was getting more competitive. But there were opportunities in gardening. ‘TV programmes had started to make gardening more attractive,’ he explains. ‘Previously, the season had been very short and gardening wasn’t very strong. However the TV programmes grew interest in the sector. ‘It became quite fashionable.’
Renovate
Around 1990 the Horkans renovated their original Spenser Street site and set up a fully-fledged garden centre. In 1992 that site won the Bord Bia garden centre of the year award, still in its infancy. Previous winners had been
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Hardware & Homestyle
‘We have been contacted by people in the hardware business who have the space but who maybe don’t understand the garden market.’
Newlands Garden Centre and Johnstown Garden Centre. ‘We were therefore the first garden centre outside of the greater Dublin area to win,’ says Paraic. ‘It was a great achievement and a lot of publicity came with it. It also gave us a belief in our own business.’
Reputation
By now Horkans were gaining a solid reputation in the West and moving fast in their industry. A few years earlier Paraic had become involved in local radio with a weekly garden programme. The radio station was covering Mayo and Sligo. This added to the Horkans reputation as experts in the region. ‘The whole retail experience that we had also gave us a great foundation of course,’ adds Paraic. ‘A lot of people in the industry at the time had come from the nursery business and weren’t retailers as such.’ Paraic, his brothers John, Michael and Thomas and his sister Mairead were all involved in the business and, as a next step, they decided as a team to open in Sligo. This was the mid-1990s. They opened an in-town garden centre in Sligo. It was relatively small with lots of colour – ‘a convenience garden or boutique garden centre’ says Paraic, ‘rather than a fully fledged garden centre’. Two years after this they opened in Galway bringing the total number of outlets to three.
Site
The next move came with the realisation that Horkans had outgrown their Spenser
Horkans Profile
Hardware & Homestyle
who their customers are: predominantly female, homeowners by definition, tending to be over 50 and having, in the main, little debt. They may also be empty nesters and are often pet owners.
Experience
There is one common and key thing that many of these customers are looking for. And it can be summed up as: ‘an experience’. This is shown to be the case time and again in research carried out by Horkans using their database of 80,000 customers. ‘Functional shopping is probably going to go on-line,’ Paraic says, ‘but garden centres provide an experience. ‘It is the sum of a number of things.’
Plants
Street location when it came to physical size. ‘We bought a 10-acre site at Turlough,’ continues Paraic. ‘We went for planning permission and built the unit over two phases.’ Part of the success at Spenser Street had been their Petworld department. It had traded very well with a consistent turnover. Horkan’s expanded on this concept and opened a 3,000 sq ft pet department at the new store.
Petworld
‘We decided to take the Petworld brand and open a standalone store after this,’ says Paraic. ‘We opened at Terryland in Galway and Petworld has been very successful.’ So successful in fact that Petworld now has seven standalone stores and sits under the same umbrella as Horkans Garden and Lifestyle centres. Petworld is run by John Horkan. After the opening of the first standalone Petworld Horkans went on to open a new garden centre store in Westport. Again, this was a small boutique garden centre. The development of a coast-to-coast
presence for the garden centre brand was completed next with the acquisition of Paul Sexton’s stores at Cornelscourt in County Dublin and Glen O’ The Downs in Wicklow.
Presence
‘It gave us national presence,’ says Paraic. ‘The brand is widely recognised now and this was particularly noticeable at last year’s Bloom. People knew who we were more than ever before. They knew our brand.’ Of course it is not only important that people recognise the brand but it is also essential that the values connected to it are communicated clearly. Paraic is very clear on this. As to what those values are he is equally clear. ‘We have done a lot of work on this,’ he stresses. ‘The customer is first, our staff are extremely knowledgeable and there is a huge trust around the brand.’ Reinforcing the customer relationship are initiatives such as Horkans’ five-year plant guarantee. This means that if a customer loses a plant – for whatever reason – it will replaced. Horkans are also very clear about
While the face of the modern garden centre may be changing rapidly it is important to keep the balance, believes Paraic. ‘Plants are always at the core,’ says Paraic. ‘Plants have to be number one. They are synonymous with what we do and they are what bring people in. ‘They are also more difficult for others to do in the quality and standard that we do.’ Garden products follow on from here. Other departments that are performing well are Gifts and Lifeysytle where we find items like barbecues. The market here has switched from high end to midrange says Paraic. ‘A few years ago we were selling 3 and 4,000 euro furniture sets. That market has come back to e499 and e399 with people looking to perhaps get three or four years out of a set. ‘You are still selling perhaps same quantity of furniture but it’s been at those mid-market prices. People are not too worried about it lasting a lifetime.’
Grow your own
Grow-your-own (GIY) is still a big hit. ‘People are looking at it from a lifestyle sense rather than an economic point of view, believes Paraic. ‘People have learned from mistakes but there is a strong cohort involved in growing their own and a very big market there.’ In Galway, Sligo and Castlebar there is a huge emphasis on grow-your-own. This is indicative of the differences that Horkans have spotted between town and country locations. Gardens tend to be bigger in the West with more spent on them by rural customers. Consequently the pack sizes sold are also bigger in general. ‘We sell lots more small furniture, lots of colour and lots of houseplants in the
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Horkans Profile town locations, says Paraic. ‘There is a lot of small packet stock and more ready-to-go units sold. ‘There is definitely a different market. Cornelscourt was a very different experience for us.’
Future
In the near future, Horkans are looking at further developing the sites that they have. ‘In Turlough we have 10 acres but only six are developed. We are looking to develop more franchise units,’ says Paraic. ‘At Glen O’The Downs we have tidied up the site and expanded the garden offer. We are looking to bring in more concessions and we will also bring in food. ‘We are looking for other sites too. We have actually been contacted by a number of people in the hardware business who have the space but who maybe don’t understand the garden market. ‘They are looking to develop
Hardware & Homestyle
here. We have the expertise and are looking to expand still. We can bring the garden centre department and a pet offer.’
Trust
They can also bring a fantastic brand of course. ‘With six stores we are well-known and accessible,’ says Paraic. ‘People trust us and trust is extremely important. In fact, it’s one of the pillars of our brand. We are here for four generations, we are nationwide, we are Irishowned.’ And of course that famous no quibble guarantee is a real selling point. ‘We also have our price promise,’ says Paraic. ‘If you can buy something cheaper within the locality we will refund the difference. ‘That has been a great thing as customers feed us back market intelligence. Research is being done for you AND you retain your customers.’ And that is what it all comes back to here – nurturing the
lifelong relationship. ‘It is about looking at the lifetime value of a loyal, repeat customer,’ explains Paraic. ‘I may have to replace an odd dead plant but that is miniscule in terms of overall value.’ There is trust here from the world go. ‘For example, we train staff that they don’t sell a customer the wrong product
– even if it means they don’t get the sale.’
Loyalty club
One of the key tools in nurturing the customer relationship is the loyalty club. ‘Our intention is to have seventy per cent of customers in the loyalty club,’ says Paraic. Members benefit from
Continued success to Horkans. From Ireland’s Number 1 Christmas supplier.
Designers and Importers of • Christmas Lighting, Trees and Decorations • Garden Lighting and Outdoor Living Products • Halloween Products and Party Decorations
www.premierdec.com TraDe only
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February 2014
Horkans Profile
Hardware & Homestyle being invited to special events and regular talks. ‘There are real and tangible benefits,’ says Paraic. ‘We invited our top 100 customers to come to classes for six weeks in November and December. They had a free gardening session. Each night they were given a discount in the store.’ So what do they buy, and, are the Irish getting more adventurous? ‘Yes they are adventurous,’ says Paraic. ‘However,’ he adds, sounding a note of caution, ‘the winter three years ago led to a certain move back to traditional frost-hardy shrubs. Frost hardiness is something that people will ask about.’
Future trends
Continuing on the topic of the Irish weather, Paraic sees a future trend in covered structures which will enable people to make the most of their gardens. There is a need, he feels, to make gardens functional right the year round. ‘There is a market there for making space more usable,’ he says, referring to literally covering part of the garden over. Maintenance-free material will be important here too, he stresses. ‘The next generation will be looking for far more functional garden space,’ Paraic believes. ‘That is one trend that will emerge. There is a space there where people are not getting the most out of their gardens. ‘That will certainly be a space that we will be looking at – helping people to enjoy their gardens more!’ You can catch Paraic Horkan’s garden slot on TV3’s Ireland AM programme.
TIME FOR
A CHANGE
?
A NEW VOICE FOR RETAILERS! A New Trade Representative Association where the retailer is placed firmly at the heart of the matter? Expressions of interest are being sought nationally in relation to an innovative new trade association for retailers. Members will serve the Hardware, Gardening, Home Enhancement, Lifestyle and allied sectors and display a passion for retailing along with a determination to achieve the highest standards in all areas.
Compost & Barks - Plant Food - Lawn Seed & Treatments Weed & Pest Control - Seeds - Bird Care Tel: 048 8772 7500
Fax: 048 8772 3800
Reply in strict confidence to: hardwareguild@gmail.com
February 2014
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SETTING THE STANDARD PROFESSIONAL SEALANTS & ADHESIVES
AVAILABLE NATIONWIDE FROM ALL MAJOR RETAILERS For more information about Geocel and our product ranges, you can speak to your Sales Representative, call our Customer Service team or visit our website: Customer Sales/Customer Service: 00 353 1294 4009 - Email: orders@ronseal.ie - Web: geocel.ie
Hardware & Homestyle
Springtime RMI RMI and Springtime go hand-in-hand. So this month we spoke to a range of suppliers who are set to help you to meet the demand!
Springtime is RMI time! Ladders. For springtime work requiring ladders, Irish Wire Products suggest Hailo. From light household ladders and mini-steps for the DIY market to scaffolding, combination and extension ladders for the professional – Hailo has an offering for every customer. Irish Wire distributes Hailo products to hardware merchants nationwide. As a leading manufacturer of ladders, steps and waste bins, Hailo offers customers a wide range of innovative products that set standards. All their products are developed, manufactured and tested in Germany under the new European standard EN131. Hailo helps to make DIY work requiring ladders safer and easier. As a quality brand, they are a strong partner for the retail industry. Ladder Accessories. Ladder accessories can make the most of any ladder. Irish Wire’s Easifix Ladder Accessory range includes adjustable ladder stand offs, ladder platforms, clamps and universal roof hooks. This range is a very popular add-on, especially for the painter and decorator sector.
Main picture courtesy of Ronseal
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Springtime RMI Attic Ladders. Make use of that attic space this Spring! Irish Wire have recently launched an addition to their own brand Easi-Fix range – attic ladders. These attic ladders are European
Hardware & Homestyle manufactured and available in two sizes 120/60 and 120/55 and with two different insulation levels, giving the right choice for every customer. They come fully assembled with insulated hood, dovetail joints, non-slip steps and metal handrail. They are also tested for heavy loads (150kg). For more information on any of the products from Irish Wire featured see www.irishwire.com or contact Irish Wire on 061-221100. Kilsaran. Introducing the Diarmuid Gavin Range from Kilsaran. Leading paving and walling specialists, Kilsaran
International, have announced an exclusive collaboration with renowned Irish celebrity garden designer, Diarmuid Gavin, to design and produce a high-end, bespoke range of contemporary paving products and accessories for a wide range of gardens and landscapes. The Diarmuid Gavin range, from Kilsaran, will comprise paving flags, decorative walling, decorative stone and patio bedding products along with kerb edgings and accessories and is aimed at both domestic homeowners and commercial landscapers looking for an aesthetically pleasing, design-led paving scheme, with a difference. The full range
Diarmuid Gavin (right) with Tom Tevlin, managing director of Kilsaran Paving.
Your Complete Supplier
Since 1935
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Hardware & Homestyle
For all your interior woodcare
EXCELLENCE LTD. SOLE DISTRIBUTORS OF RUSTINS PRODUCTS Unit 43, Baldoyle Industrial Estate, Dublin 13. Tel: 018323300 Fax: 018323584 February 2014 27 email: pnicholson@excellence.ie mreilly@excellence.ie www.excellence.ie
Springtime RMI
Complete Garden Care Solutions www.ronseal.ie
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Hardware & Homestyle
Springtime RMI
Hardware & Homestyle is available nationwide. Combining five decades of Kilsaran quality paving expertise with Diarmuid’s unique, trademark style, the collection will be designed with the end result in mind, available in a designer range of colours and finishes. The new paving range promises something new and exciting for the patio, driveway and hard landscaping market. Speaking about the new range, Diarmuid said: ‘I have long been impressed by the Kilsaran commitment to innovation and quality and am really delighted and excited to join their team. ‘We have been busy working together at impressive facilities for some months, developing a product range which both reflects current outdoor trends and adds some totally new ideas into the mix. ‘Our aim is to excite the consumer with the new potential of paving!’ Kilsaran International, which celebrates 50 years in business and, has invested significantly in tailoring its offering to homeowners in the last few years. A state-of-the-art showroom opened in 2009 at the company’s Dunboyne manufacturing facility allowing customers to experience the full Kilsaran range in a series of high-impact show gardens. Commenting on the new partnership, Kilsaran director, Roy McKeown, said: ‘Concrete paving has come a long way in a short space of time. ‘Our world-class facility in Dunboyne is now manufacturing a huge range of products with innovative and unique finishes. ‘Diarmuid Gavin brings an exciting wealth of experience and creativity to the Kilsaran brand, from his renowned and world beating innovative displays at the RHS Chelsea Flower Show, to his experience in creating eye-opening, fascinating gardens around the globe. ‘He knows what consumers want and how to deliver something that’s just that little bit different. Our exciting new partnership will allow us to deliver an exclusive range of branded paving products, inspired by the ideas and individual creativity that Diarmuid brings to this process.’
Spring clean up – Dargans
‘Now that we have weathered the storms – here comes the clean up and maintenance! Time to remove leaves and debris from drains. ‘The perfect product is Drain Boss,’ is the message from John Dargans & Sons. ‘This powerful solution does the job in a jiffy. It cuts through grime and grease and encrusted matter.’ Boss Quad Outdoor Cleaner – newly Launched in 2013, cleans virtually anything outdoors: Brickwork, Decking, Roofs, Greenhouses , Garden sheds, Flower pots , Bird baths , Boats, Tiles, Steps. It is particularly effective on Decking and Patios, we are told. ‘It is a NO BLEACH product and is perfect for decking without harming the wood.’ This year Dargans have launched new concentrate products: Stone and patio, Cement and Grout and Red Brick Cleaner - all in 500ml concentrate which makes 10 litres. ‘Also re- launched, our new formula STEROL powerful disinfectant very competitively priced in 5 litre and 1 litre dilutes to 10 litres.’ These hard wearing, water-resistant, oils not only enhance the colour of your decking, but also leave a natural finish. They contain Ultra Violet light inhibitors, plus biocide which protects the oil against mould and algae growth. Available in 2.5ltr and 5ltr, in Clear, Natural Pine, Natural Cedar and Natural Oak.
Yacht Varnish. Rustin’s Yacht Varnish is specially formulated with tung oil to give maximum protection and durability to marine and other external woodwork. Available in gloss and satin. It has excellent adhesion and will not flake or peel when correctly applied. Ideal for exterior doors and window frames.
Rustins. Quick Dry Furniture Oil. Rustins Quick Dry Furniture Oil is a blend of natural oils and other special ingredients that nourish, protect and enhance your wooden garden furniture. It is a penetrating oil that dries to a hard, durable and water-resistant seal that brings out the beauty of the grain within the timber. Containing UV light inhibitors that protect against sunlight, the oil dries with a low gloss sheen. Available sizes: 500ml & 1Ltr New colours added to Rustins Decking Oil range. Rustins has added Natural Pine, Natural Cedar and Natural Oak to their Decking Oil range.
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Springtime RMI
Hardware & Homestyle
Let’s be honest, not everyone finds DIY easy or enjoyable. So Ronseal are here to help DIYers get the job done quickly and easily!
Ronseal Trends Report 2014 ‘We’ve not just got easy-to-use products, but we spend a lot of time making sure they fit the latest trends,’ is the message. ‘Ronseal has just released its second Trends Report, and it’s packed with predictions for 2014’s key trends in the home and garden, fun facts about products, and an insight into “what we have been doing to make DIY easier”.’
New Luxe
The new luxury is not about out-and-out decadence, but about refined quality. Nothing is perfect, and this year is about celebrating the natural imperfections of wood, with dark wood making a comeback.
to achieve and effective. Worn hardwood floors are also a hot trend. Your wooden floor no longer needs to be perfect to look amazing. Get the look: Use Ronseal Diamond Hard Floor Paint in Olive Green
Matt Gloss contrast
For a more radical approach, use a Matt base throughout an area or a piece of furniture and create an accent with gloss, for a subtle but classy finish. Get the look: Use Ronseal Interior Varnish in Gloss
Imperfect nature
Pale Scandinavian-inspired wood remains a key player for 2014, with reclaimed and recycled wood still very much on the radar. Think refined, clean and less rustic. The variety in tones will create a textured pattern within the home and is bang on trend. Get the look: Use Ronseal Interior Wax in Almond Wood
Super high-gloss floorboards are to be the focal point in a low-key room, with flickers of warm metallics coming through. Get the look: Use Ronseal Diamond Hard Floor Varnish
Flooring
2014 will spell the end of boring floors in our customers’ homes. It’s the year to be bold and embrace the patterned look. Checkerboard chic – this look is easy
Warm woods
Warmer wood tones – so teak, oak and walnut – will be gracing the home décor market this year and will be found in furniture and flooring throughout the home. Try balancing different wood tones throughout the room. Get the look: Use Ronseal Interior Varnish in Medium Oak
Coloured decking
This year is all about having fun in the garden as our outdoor spaces take inspiration from what’s happening on the catwalk. Start with a small area and see how this transforms a drab corner. Then, when you realise how great it looks, be brave and try it on a bigger scale. Get the look: Use Ronseal Ultimate Decking Stain in White Wash
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Hardware & Homestyle Available sizes: 500ml, 1ltr, 2.5ltr Wes Chem is an Irish distributor of chemicals for the home and business. Wes Chem provides quality cleaning products to the home, hardware, catering and automotive sectors. Their flagship gardening product is the incredibly effective Mossbuster. They are committed to providing quality products and a reliable and professional backup service. The company is based in Tubbercurry, County Sligo, 8 miles from Sligo town, on the main Sligo – Galway road. From this base, in partnership with sister company Knight Logistics, they are well positioned to serve Ireland, UK and European customers. Moss buster. Wes Chem Moss Buster with fast 4-in-1 action. Kills moss, algae, lichen and fungi. Moss Buster is rainproof in 180 minutes lasts for 12 months and you can see results in 90 minutes. Moss buster contains no bleach or acids and is biodegradable. Fungi buster. Wes Chem Fungi Buster with fast 2-in-1 action. Formulated to clean and remove red and green fungi on all masonry. Eliminates powerwashing, will not discolour walls and no scrubbing required. Fungi Buster contains no bleach or acids and is biodegradable and quick drying.
Fungi Buster is formulated to remove red discolouration found on houses, kerbs and outside walls. Concrete buster. Wes Chem Concrete Buster with fast 3-in-1 action. Removes dirt, grime and algae, cleans footpaths,
walkways and patios for a new looking safer surface. Concrete Buster is a biodegradable user friendly cleaner. News! Power Blaster Moss & Fungi Cleaner is a new product on the market launched in January 2014. This product is
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Dexterous
Ultra Lightweight 360° Breathability Certified Skin Friendly ®
MaxiFlex Ultimate Extreme Durability ™
Ultra Lightweight
MaxiFlex MaxiFlex
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Hardware & Homestyle
formulated to clean Moss and Fungi from all hard Surfaces. The ATG MaxiFlex. Since their launch in Ireland in 2010, the ATG MaxiFlex has become the glove of choice for anyone who works with their hands in either a professional capacity or simply around the home or garden. The MaxiFlex Ultimate is Ireland’s most popular general ® purpose work glove, we are told. Its lightweight breathable construction gives unrivalled fit, dexterity and comfort, allowing the wearer complete the most intricate of tasks. This is married with extreme durability which makes MaxiFlex, not only the most comfortable glove on the market, but as they can be laundered normally up to 5 times to extend their life, also the best value. ‘Available in 8 sizes, we have the right glove to fit every hand perfectly, no matter how big or small they may be,’ is the message. As a fully integrated manufacturer, ATG controls every facet of the manufacturing process. Each pair of gloves is washed three times before being packed to ensure it is clean and fresh for the wearer. ‘The water used is rainwater harvested and filtered in our own water treatment facility,’ Hardware & Homestyle is told. ‘We are certified by Oeko-Tex and are REACH compliant to ensure our environmental impact is minimal. ‘Additionally, we are the only glove manufacturer in the world to have allergy tested all our products and to have achieved accreditation from the skin health alliance across the full range www. skinhealthalliance.org. ‘This transparency in the supply chain gives our customers the confidence that our gloves are environmentally friendly, skin friendly and the cleanest work gloves on the planet.’ As they say: ‘ATG MaxiFlex
– The Best a Hand Can Get. With over 200 million pairs sold worldwide, why would you wear anything else?’ ATG Gloves are imported and distributed exclusively in Ireland by Keypoint Abrasives Ltd. www.keypoint.ie Customers choose Tec7 we are reminded ‘because it is renowned for being: better value, having extra product, being stronger and being trusted. ™ ‘Tec7 has become the number 1 choice for the trade person and DIY enthusiast because they know it gets the job done first time every time: even under water. ‘Because of its overall strength, flexibility, sealing and mounting quality, customers know that Tec7 sticks to almost all building materials, including most plastics and with each cartridge containing 310ml of product, they are getting better value compared to most other MS Polymer’s on the market.’ With customers expecting high quality from the Tec7 range of products, the all New Multi-Clean7 introduced last September as part of the range is no exception. ‘This unique all-purpose fast-acting foam spray cleaner is ideal for professional use, for cleaning up after any job, on tiles, counter tops and glass to name just a few – along with being perfect around the house on windows, cooker hobs, shower doors, stainless steel and mirrors as it does not contain any abrasives. ‘It will even remove nicotine or pencil marks from a wide variety of materials. ‘Multi-Clean7 is also ideal for cleaning your car and use on dashboards, carpets or fabrics without leaving any traces. ‘To see just how good this and our full range of products are: contact Contech Buildings Products on 01 6292963 or simply log on to our website www.tec7.ie or join us on Facebook,’ is the message to Hardware & Homestyle readers.
Certified Skin Friendly The best a hand can get™ ™ MaxiFlex Ultimate
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ATG ad.indd 1 February 2014
20/02/2014 11:23
Hardware & Homestyle
Buy The Book
RHS Vegetable & Fruit Gardening – the definitive guide to successful growing. Dorling Kindersley £20.00 ‘Everything you need to know about growing your own,’ from the experts at the RHS. A new edition of the classic guide to kitchen gardening from the RHS experts with all the latest advice on how to grow over 150 vegetables, fruits and herbs. This is bound to be of interest.
Step-by-step
Here you’ll find easy-to-follow step-by-steps of tried-and-trusted techniques, as well as specialist tips on seasonal tasks, yields per crop, sowing and harvesting times and controlling pests and diseases. Organic options are considered throughout and traditional gardening practices are combined with up-to-date methods to guarantee success. RHS Vegetable & Fruit Gardening may be the only advice you need to grow healthy and tasty crops for your own table. Yes. This looks like a useful guide which is bound to be of interest – especially given the number of householders who have been getting involved in grow-your-own (GIY) in recent years.
Phenomenal
It really has been a phenomenal development and looks like remaining a major feature in our trade. Like the whole move towards a greater involvement in DIY, it is often about taking control in one’s life in a time when uncertainty abounds. Yes. It seems the desire to be able to ‘do it for oneself’ runs deep and extends right into the Room Outside. So we believe this book will be a popular choice. Our interview with Bord Bia’s Mike Neary has more on the topic of GIY, in this issue.
Marketo publishes ‘the definitive guide to lead generation’
Me And My Job Name: Michael Reilly Current position: Field Sales Manager, Excellence Ltd. Length of time in present role: 6 Years. Professional background: Specialist Product Technician What attracted you to your current position? What attracted me to my current position was being out in the sales field with our team, listening to customers’ needs and concerns as market trends were changing, particularly over the last few years. Business for everyone has become so much more challenging, being able to find solutions for our current customers while forming new business relationships in difficult times is hugely rewarding for me and my colleagues at Excellence. What do you see as your main goals and challenges in 2014? There are many ongoing goals and challenges within our business, for me this year I would like to see our business grow in terms in both sales and relationships and hopefully end out the year having successfully met our customers’ expectations. What have been the highpoints for you? So far high points for me have been watching our company develop and grow the hardware end of our business. We have new additions to our range and more to come this year which will position us very well in the current market. This is a welcome change and challenge for us all at Excellence.
Free 160-page guide shows companies how to use lead generation to increase brand awareness, build relationships and ultimately drive revenue. Marketo (NASDAQ: MKTO), provider of a leading cloud-based marketing software platform for building and sustaining engaging customer relationships, has published the Definitive Guide to Lead Generation, it tells us.
What makes you feel most fulfilled in your job? Like all jobs to see the results of hard work and commitment pay off in, firstly, customer satisfaction and secondly, seeing our product on shelf properly merchandised and of course the orders flying in!
Strategies
What do you see as the main challenges facing the industry? The main challenges at the moment I would think are increased competition from retailers in the grocery sector which we welcome. Competition is good for all to keep us on our toes! Government taxes, rates and our economy always pose as a challenge for businesses in general as well.
‘The 160 page guide takes the reader through detailed strategies for every step of generating and nurturing leads, as well as better aligning the sales and marketing departments.’ Marketo operates its EMEA headquarters and support centre in Dublin. ‘A question as simple as: “what is a lead?” can reveal layers of nuance and complexity,’ said Jon Miller, Marketo vice president of product marketing. ‘Marketers constantly strive to create effective lead generation strategies to accelerate revenue growth.
Master
‘Marketo is all about helping marketers master the complex world of marketing, and this latest entry in our Definitive Guide series is a key part of that. ‘The Definitive Guide to Lead Generation peels back the layers of how to generate leads and turn them into customers, and along the way shows marketers how to become more strategic and enhance their value as part of the revenue team.’ http://www.marketo.com/definitive-guides/lead-generation/
Is there anyone who has been inspirational to you or who you particularly admire in the industry? I would have to say John Murphy Castlerea Co Roscommon. John is a former president of the Hardware Association and member of the Amber group. John has enjoyed a lot of success throughout his career and this is no doubt as a result of his great leadership qualities and skills. What are your interests outside of work? I have a keen interest in most sports, I enjoy keeping fit by running and cycling.
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Mark delaney
Buying at a trade show Ah February, and it’s show time! Or rather, it’s Trade Show time. For most independent retailers attending a trade show is one of the most stressful times of the year. Often, just the travelling to the show causes stress, as it is not something that is done very often. If you’re planning to visit a large trade show, Mark Delaney has some good advice for you. First, preparation is crucial. Start as soon as you find out the location and time of the show; try to book your hotel and flights as soon as possible to save yourself money on travel expenses. If you can, combine the trip with some ‘free’ time over a weekend (if you can get someone to mind the store!) Staying for a Saturday night can work out cheaper than a mid-week trip. This will also allow you to spend some time looking at other stores in the city that you are travelling to, and taking time to acquire new ideas is an added benefit of the buying trip.
Are you here to buy or to shop?
Buying is the process where we select products for our customers while shopping is what we do when we buy for ourselves. Being aware of the difference is critical for your success in retail. You are the eyes of your customer and you should have a clear vision of what is important to your customer as you prepare for the trade show.
Some Tips
Here are some ‘tips’ that will help you make the time spent at the show most
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productive: •Know your numbers – Use Open to Buy (OTB). If you don’t have it, commit a budget for the trip based on your best analysis of your figures. What are your top five categories in sales and, if possible, profitability? High volume sales may have been the result of discounting, so check behind the sales numbers. •NEVER use up all of your OTB – spend no more than 85% – save the balance for last minute deals. •Make a shopping list. Go to the show only looking to add to your most profitable, best-selling categories. •Decide on the key suppliers/ categories you want to buy for. Get the show catalogue and identify where the key suppliers are located and mark them on your show map. •When you arrive walk the hall(s) quickly, don’t spend any time at any one stand; try to get an entire overview of the products that are on offer. •Mark your map with the stands you want to return to – make appointments if you think that they will be busy when you want to see them. •Keep a diary/note pad of what you see and why you like or think that you need it for your business; staple their business card to the page with your notes.
•A smart phone is a great tool – include supplier name with each picture (many shows don’t permit taking photos, but it is ultimately up to each supplier so don’t be afraid to ask). •Use your own purchase order forms, not supplier forms and clearly write a description of the item as well as quantity, price, delivery date and CANCELLATION date! Never give an order without a cancellation date. It will avoid problems later on. •Bring plenty of your business cards! •Trade shows are hard work, so take care of yourself. Wear very comfortable shoes! Take frequent breaks, drink lots of water, go to bed early every night and limit your alcohol intake. You’re not on a city break.
Mistakes buyers make
There are five common mistakes that buyers make at trade shows. Knowing them will help you avoid making them: •Overbuying – many independent business owners are chronic overbuyers. It’s so much fun to go to Frankfurt or Paris to buy stuff! You can’t keep adding merchandise, if sales were down 10% last year then inventory should be down 10% also. •Rushing to make a decision – there is a tendency to buy the first things that
Mark delaney
‘By failing to prepare, you are preparing to fail.’ – Benjamin Franklin
we see and then later see even better items and buy them too! Don’t place any orders until you have walked the entire show. •Not using your own purchase orders – use your own purchase order as it has (or should have!) your terms of doing business and your cancellation date and other requirements of your business; the supplier form is built in their favour, not yours. •Accepting too big a delivery window – an order that may come in any time between March 1 and August 31 is not acceptable. Make sure that every order clearly states delivery date and a cancellation date no more than 30 days after the scheduled delivery date (and if it comes in past the cancel date, and you still would like it, call and tell the supplier that you will keep it if you get 30% off the invoice). •Not negotiating terms – it never hurts to ask! Ask for longer payment terms (60+
days), supplier-paid shipping, co-op advertising, free stock for displays, promotional items, fixtures, and other items.
Supplier speak
Some suppliers will sometimes ‘blur’ the truth and some of the most common ‘fibs’ include: •‘That’s the best price.’ In most cases this means that you are paying what every other independent retailer is paying, not what the larger customers are. •‘This is a special deal, only available at the show.’ Usually, a show special is available for up to fortnight after the show closes. •‘It’s our best seller.’ It may be the best seller to their customer, but that’s no guarantee that it is the best
seller to consumers. •‘There are no delivery problems.’ Not today, but after the show when all the orders are collated, you may not receive the item. Don’t be afraid to question everything and make sure that you’re happy with the answer.
checking out. Prepare your numbers, use your Open To Buy, or at the very least give yourself a budget to spend. It will help to stop you from overbuying for your business.
Summary
Plan well in advance, at some trade shows I have attended regularly I’ve rebooked the hotel for next year as I’m
Mark Delaney is founder and managing director of Detail Consultants, providing interim management solutions, strategy development and business enhancement expertise. A seasoned senior executive with a 20+ year track record with leading organizations including: Brown Thomas Group, Arnotts , Heatons, Homevalue, and A-wear. As CEO, he recently led the successful turnaround of Associated Hardware plc.
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The Home Front
Hardware & Homestyle
Exclusively Housewares – looking good! Long-standing
Show sells out in record time
Exclusively Housewares organiser, Brooke House Exhibitions (BHE), has a full line-up for its 2014 show. The 2013 edition of the show attracted its biggest audience to date with visitor numbers up 6% on 2012. So we could say it’s going from strength to strength.
Delighted
‘We are delighted, once again, to be in the position of having a sell-out show!’ So said show director, Simon Boyd. Boyd tells Hardware & Homestyle: ‘We are extremely lucky to have a fantastic waiting list for space in the show, and we are steadily working towards being able to expand the show in 2015 by introducing an additional hall dedicated to small domestic appliance (SDA) exhibitors, which will also allow us to free up some space to bring in additional housewares manufacturers.’ New exhibitors for 2014 include: Everyware Global, Kitchen Aid, Melitta Europa, Root7 and Smart Worldwide, with Fiskars, OXO Good Grips and Sodastream returning to the show after a break. Exclusively Housewares continues to be a very successful show, enjoyed by exhibitors, many of whom return to the show year after year. ‘We have some very loyal exhibitors who really form the backbone of the show; their renewal every year gives the show stability and the confidence of presenting a great line up for visitors every year,’ said Simon.
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Some of the show’s long serving exhibitors include: Addis Housewares, Amefa, Arthur Price, Charles Bentley & Son, the BHL Group, Brabantia, Creative Tops, David Mason Design, DKB Household, DNC, The DRH Collection, Eddingtons, Elia International, Epicurean Europe, Ethos, Forma House, GEH, Gilberts Food Equipment, I Grunwerg, Hahn Cookware, Haus Marketing & Distribution, Imperial Group, Jean Dubost, Jeray, Joseph Joseph, Just Mugs, JVL Homeware Solutions, Le Creuset, Mason Cash & Kilner, Mastrad, Maxwell & Williams, Metaltex, Meyer Group, Portmeirion Group, Premier Housewares, Pyrex, Rayware, H & L Russel, Sabichi Homewares, Scott Brothers, simplehuman, T & G, Taylors Eye Witness, Tefal, Tradestock, UP Global Sourcing, Wesco, Western House, WMF, WWRD and Zodiac Stainless Products, which have all once more confirmed their support for the 2014 show. Simon further tells us: ‘We’re also very pleased that the majority of our new exhibitors from last year will be returning for 2014.’ This includes Allsorted, Anniversary House, Gimi, JWP, Make International, Rosti Mepal, Tontarelli, Vitamix and Whitbread Wilkinson which all made their Exclusively Housewares debut in 2013.
SDA – growing numbers
In addition, Exclusively Housewares has a growing number of SDA exhibitors as part of its product mix, including Ascaso, Bamix, Bodum, Bugatti, De’Longhi, Dualit, Graef, Groupe Seb, Horwood Homewares, Hostess, Jura, Kenwood, Meyer, Morphy Richards, Salter, Starbucks, Swan and Vitamix. It is this increased interest from SDA suppliers that prompted BHE to announce in August of last year that it would like to create a dedicated SDA hall at the show in 2015. ‘The reaction to our plan so far has been very positive. The reaction from the market has been constructive and optimistic, so we are confident we will find a good mix of manufacturers to support the concept,’ said Simon. The new hall will include all the small electrical product categories as reported on by GfK; linencare, electrical cooking including microwaves, beverage making, food preparation and floorcare. The 2014 Exclusively Housewares show will run at the Business Design Centre in London on Tuesday, 10 and Wednesday, 11 June. If you would like to attend get in touch with the team via info@exclusivelyhousewares. co.uk or +44 (0)121 237 1130.
Wholesalers
Hardware & Homestyle
This month we decided to check in with a few of our suppliers to the market to see what’s new and how they are looking forward to the year ahead.
Suppliers to the fore!
Whiteriver Monolam Oak Limewashed. Picture courtesy of Wogans
Wogan Distributors is looking forward to the rest of 2014. It has grown through the recession to become Ireland’s leading supplier of interior and exterior finished timber products it reminds us. During this time their aim has been to work closely with customers to help them focus on the repair and home improvement market. Wogan Distributors large products range provides a one-stop-shop solution. Products include: Engineered flooring, Laminates, Underlay, Doors, Skirting Profiles, Cladding, Composite and Hardwood Decking. They also carry a full range of accessories to complement these products. In 2012 they acquired Seadec doors and the door business is headed up by Declan Gorman and continues to operate from its own premises in Ferbane, Co. Offaly. The new Seadec 2014 brochure has been launched which includes new door designs, white primed mouldings and full selection of fire doors. Whiteriver flooring is now recognised for its quality and Iain Wogan is delighted to announce that they will be launching a new Whiteriver engineered flooring brochure in March. Iain believes this will become a very valuable sales tool. The brochure will see the introduction of a new range of extra wide plank floors. Their success has been built on service and is January 2014
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Wholesalers Ashtown (Wholesale) Trading is a company with something to celebrate – they are celebrating 35 years in business this year. Ashtown (Wholesale) Trading Limited was set up in 1979 in Co. Dublin. A leading wholesaler in the trade, Ashtown is a distributor to the hardware and electrical industries. Top brands distributed by Ashtown include Premier – a wide range of pre-pack hardware, nails and fixings; Powermaster – a comprehensive range of wiring and electrical accessories; Fiskars – a top quality range of garden cutting, cultivating and digging tools; Stanley decorating; Eveready – with its extensive range of lamps, GLS, CFL, Halogen and LED; JCB, consumer battery range, zinc alkaline, rechargeable and button cell and Hallsbeeline – complete range of decorating requirements.
customer orientated, this is supported by large stock levels and warehousing of over 100,000 sq.ft. Wogan Distributors are now FSC and PEFC certified and are growing the range of products that can be offered with certification.
Hardware & Homestyle Iain Wogan is looking forward to the year ahead, as they have a large number of new products to introduce to market. Powerline. The outlook for 2014 and beyond is bright for lighting suppliers, Powerline and their customers. At least it has that potential, they say, where lighting is concerned. It may come as a surprise to some to hear that Lighting has the potential to be the second best sales category after paint over the next five years. That is the claim by Powerline, distributors of Osram products in Ireland. As Powerline’s Mark Lester explains: ‘there are 1.8m homes in Ireland and a lot of these have been built in recent years. ‘Many recently built ones have up to 40 lighting points. That is a lot of bulbs to be changed. ‘It’s a huge market.’ Add to this the fact that, according to Powerline, 25 per cent of a household’s electricity bill can be lighting-related. Then consider that, with LED use, you can save 90 per cent of this, they tell us. At Power Line, they provide a one-stop service for all a retailer’s lighting needs with the Osram brand. Osram is one of the top brands in the world of lighting of course, known for its quality performance. Osram makes five million light bulbs
Powerline’s Mark Lester
per day worldwide. In essence these are quality German products with all the advantages that this implies. It has been in existence for over one hundred years. With 10 van sales persons on the road, Powerline not only call to premises around the country regularly but they also merchandise and do planograms for stores and generally advise in whatever
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February 2014
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Wholesalers
Hardware & Homestyle
‘Reason for optimism’ – John Dargan & Sons John Dargan & Sons Ltd in Carlow tell us that after six years of doom and gloom ‘we finally have reason for optimism’. ‘There is a growing confidence amongst consumers which is having a positive knock-on effect for us wholesalers. We had battened down the hatches, re-drawn our plans, revised our budgets and downsized accordingly. ‘We now find a new challenge as there appears to be something of an up-turn in renovation and refurbishment.’ Dargan Tools started the new year with many of their customers working on a full programme of re-vitalising shops’. A number have just completed a refit or revamp to include expansion in tools and DIY products . ‘There is a mood for improvement and moving forward and 2014 looks very promising,’ is the message from Dargans. ‘Our customers believe there is an upturn and want to be ready.’ way required. This is to make sure that the retailer achieves the best return from this
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potentially huge product area. And their approach is paying great dividends. The company lists off a range of top retailers who they are now doing business with. ‘This is what we do – it is our area of expertise,’ says Mark Lester, whose knowledge of this area clearly equals his passion for the job. ‘What we are doing here is offering a one-stop-shop for lighting solutions,’ says Mark. Not surprising then that they are often called in to advise on and supply lighting solutions for the actual store premises as well as to provide stock to sell to customers. They offer the following: Hallogen – replacing old incandescent. They last twice the length of time. CFLs – these, says Powerline, are slowing down where household demand is concerned. ‘They can be slow to start and the wattage didn’t always suit. However in certain business applications they are huge.’ LED – the ‘new kid on the block’. These can last 10 to 15 years. They can reduce costs by 90% says Powerline. However the advantages are only there for those who use trusted, quality brands, warns Powerline.
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February 2014
39
Products Carhartt celebrating 125 years
Founded in 1889, Carhartt® are an American, family-owned, global company making enduring products to serve and protect hard-working people.
Hardware & Homestyle types of hole saws. They focus mainly on the Multi-Purpose (for wood, plastic and rubber) and the Diamond Dry (ceramic and porcelain tiles).
The Multi-Purpose
Premium ‘We lead the way in developing durable, premium, high quality products for workers on and off the job,’ is the message to Hardware & Homestyle readers who will be familiar with this well-known and respected brand. ‘In our culture of trust and respect, we work together with a passion for excellence,’ continues Carhartt. ‘We are builders of the Carhartt Legacy. We are the brand for hardworking people. We are the brand for the worker who challenges bitter cold and brutal winds to put food on the table.
Rugged ‘We are the uniform for anyone who chooses to take on any rugged corner of the earth. At any given time. ‘We celebrate the hard working men who rise to the occasion every day to bring out their best when Mother Nature brings out her worst. ‘After 125 years we still stand strong and proud as a family-owned global company, that is respectful of its heritage. This is Carhartt.’ For more contact David Fallon on 083 425 5212 or dave@dfallon.com
ProFit – ‘world’s smartest hole saw system’
ProFit developed the patented Click and Drill system which makes the hole saw arbor obsolete, we are told. They are using this system on several
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February 2014
‘Our Multi-Purpose hole saws drill 5 times faster and have a 10 times longer tool life,’ says ProFit. This hole saw offers some unique advantages: ‘Due to the unique carbide teeth and the fast evacuation of the sawdust, our Multi-Purpose hole saws cut five times faster than a bimetal hole saw,’ we are told. The special tooth geometry provides a smooth cut. Also the Multi-Purpose hole saws have 10 times longer tool life: Carbide is harder than bimetal. The teeth do not burn during sawing thanks to the fast dust evacuation, These carbide teeth remain sharp much longer than bimetal. The teeth can be re-sharpened. The Multi-Purpose hole saw is suitable for cutting: Wood, tropical wood, MDF, plywood, particleboard, multiplex etc., soft bricks, wall tiles (until scratch hardness 5), fiber cement, gypsum, aerated concrete, plastics (PVC, nylon, trespa, polyester, rubber, laminate, fiberglass etc.). More than 75 diameters from 16 to 330 mm, available from stock. ‘For metals we advise cutting with the ProFIT Bimetal PLUS Cobalt hole saws,’ says ProFit. For hard stone (scratch hardness > 5) use the Diamond Dry hole saws from ProFit. ‘With the Click & Drill system the time savings are even greater!’
The Diamond Dry The Diamond Dry is the new diamond grit hole saw from ProFit. ProFit brought the Diamond Dry to the market equipped with the new Click & Drill system. It offers a number of unique advantages:From 18 to 110mm, all the Diamond Dry hole saws are fitted with the patented Click & Drill adapter. Difficulties with centering the hole saw belong to the past – a normal drilling machine suffices. ‘Our Diamond Dry range enables you to first pre-drill a pilot hole with our 7 mm Centre drill. Then you click the Diamond Dry hole saw on to the center drill. The Diamond Drill bits come in sizes from 5mm
to 12mm.’ More advantages of the Diamond Dry hole saws from ProFit: •You can use a normal cordless drilling machine (>18volt) with these hole saws with a hex shaft . •In addition you do not have to mess around with water. •Due to the high Diamond grit collar the dust is better evacuated and the tool life extended. •The Diamond Dry hole saws have the Click & Drill system and make the angle grinder obsolete. •The Diamond Dry is the first diamond hole saw with a Centre drill. Runaway whilst cutting belong in the past. Damage to materials, such as an expensive kitchen counter, can now be prevented. •Diamond Drill Bit comes in sizes 5 -12mm. •Diamond Hole Saw comes in sizes 18 – 110mm. www.southcoastsales.com
From Wes Chem
Wes Chem is an Irish distributor of chemicals for the home and business. Wes Chem provides quality cleaning products to the home, hardware, catering and automotive sectors.
New product Power Blaster Moss & Fungi Cleaner is a new product on the market launched in January 2014. This product is formulated
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to clean Moss and Fungi from all hard surfaces. Meanwhile, their flagship gardening product is the incredibly effective MOSSBUSTER. They are committed to providing quality products and a reliable and professional backup service. The company is based in Tubbercurry, County Sligo, 8 miles from Sligo town on the main Sligo – Galway road. From this base, in partnership with sister company Knight Logistics, they are well positioned to serve Ireland, the UK and European customers. www.weschem.ie
Products
Hardware & Homestyle
Colm Warren Polyhouses
Covering Ireland since 1976 ‘Start talking to us now about our canopy structures and covered outdoor areas,’ is the message from Colm Warren Polyhouses. ‘Protect your stock and customers from the unpredictable Irish weather.’
to your budget and at the fraction of the cost of traditional buildings.
Talk to us ‘Our structures facilitate changing circumstances and can be extended or upgraded at any stage,’ is the message. ‘If you have an existing canopy, talk to us now about an upgrade or extension. ‘Our advice is free and we can arrange for a free consultation and visit to discuss the various options to suit your budget.’ Contact: Colm Warren Polyhouses Ltd (CWP Ltd), Kilmurray, Trim, Co. Meath. Tel: +353 (0)46 9546007. Email: info@cwp.ie / Website: www.cwp.ie
Distributor They are delighted to announce that they are now main distributor for Vicaima doors which are leading European Suppliers of fire doors. Declan Gorman has told us that they will be carrying large stocks of fire doors in the future and that these will also be FSC certified. www.seadec.ie
Brabantia’s award -winning organizers
Seadec announce launch of new 2014 brochure History Colm Warren Polyhouses Ltd (CWP Ltd) have a long history providing canopies and buildings to a large and diverse client base. Over the years as a family-owned business they have proven themselves in many areas – from their origins in horticulture and agriculture through to their school and retail clients of the present. It is this respected expertise that ensures that they are able to continue expanding the range of markets that they serve. Choosing a canopy from Colm Warren Polyhouses Ltd (CWP Ltd) can help you to: • Prolong your customers’ length of stay and spend whilst at your shop/attraction. • Create feature entrances and unique visual impact retail attractions to attract visitors. • Maximise visitor numbers and shelter social, dining, communal and play areas from the weather. • Our cost-effective structures do not require huge financial outlay and generally the return in investment quickly repays the cost of them. • Exploit under-utilised outdoor space and convert into profit-making ‘demo’ areas or workshops. • Attract customers into areas they wouldn’t normally visit using covered walkways etc. • Protect exposed stock areas, trolley bays, pickup or loading bays etc from the weather. If you have an idea or an under-used space, the team at Colm Warren Polyhouses Ltd would be delighted to work with you in providing solutions that will enhance your existing environment. Create new covered spaces according
As we see elsewhere in our publication this month, Wogan Distributors has grown through the recession to become Ireland’s leading supplier of interior and exterior finished timber products.
Seadec In 2012 they acquired Seadec doors and the door business is headed up by Declan Gorman and continues to operate from its own premises in Ferbane, Co. Offaly. The new Seadec 2014 brochure has been launched which includes new door designs, white primed mouldings and full selection of fire doors. Seadec are delighted to announce the launch of their new 2014 brochure. The new brochure is laid out in a manner that is user friendly for end consumers. New products in the brochure include new door designs, white primed skirting and architrave and a large selection of fire doors.
Every serious home cook knows one of the biggest secrets to impressing your guests while staying sane in the kitchen lies not in the menu or the ingredients – it’s all about the preparation and organisation, we reported.
Easy ‘And, it couldn’t be easier to keep on top of things with Brabantia’s award-winning Kitchen Organisers.’ These neat drawer caddies, it was noted, are perfect for storing ‘collections’ of ingredients; everything you need perhaps for your popular pasta dish or all the sauces and condiments for your favourite curry. ‘Winner of the International Forum (iF) Product Design Award, Brabantia’s modular Kitchen Organisers give you a clear overview of each drawer’s content, saving both space and time.
Stylish ‘Featuring a soft touch handle, the caddy is light and portable so you can easily transport items to your work surface, and its stylish design makes it suitable too for the dining table. ‘The Kitchen Organisers in four sizes (XS, S, M, L) are particularly compatible with the Brabantia Clear Top Canisters and Bread Baskets (sizes S, M and L). And as you would expect from Brabantia, they are ‘solid, durable and easy to clean’. They are also covered by a 10-year guarantee.’ www.brabantia.com
February 2014
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Room outside
Hardware & Homestyle
If there has been one noticeable fashion and cultural trend that has raised its pork-pie-hatted-head over the last few years it’s hipsterism, says our style-watcher and gardening columnist Liam Kelly.
Focus for 2014 – make gardening hip once again I’m sure you’ve seen hipsters around. They’re that gang of trendy 20-to 30-year olds who wear too-skinny jeans, ironic headwear (whatever that is) and drink craft beer from jam jars in bars with unisex toilets and no atmosphere.
Unique
I’m not knocking them by the way, after all I’m practically a recycled one myself, but you have to wonder how people who are supposedly trying to be unique individuals seem to all look the same, end up in the same social circles and hang around in the same places. Being hipster is not a new fad of course, they seem to come in waves every second generation or so. Neither is the word hip in the sense I mean. It’s a word that has come to mean the ‘in’ thing, the latest trend or the latest style. Although I think the word – but not the people – has fallen out of favour in recent years … a bit like gardening really.
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Well yes, of course people still garden but it has lost most of the trendiness and coolness it had in the nineties and early millennium.
Factors
This is down to a number of factors from poor weather to poor PR. And a lack of young, charismatic TV gardeners to match, for example, its cooking counterparts certainly hasn’t helped. Gardening has almost become associated with drudgery – which makes it harder to sell, to say the least. And it hasn’t helped that many garden centres have lost, or perhaps have just mislaid, their passion for plants and growing. A fact that many would probably dispute but it seems self-evident when you visit their stores.
Focus
You can’t blame the plant retailers really, as they either became so big and diverse
that they lost focus on their core product, or they spent so much time focused on the bottom line and the financial side of things – for obvious reasons over the last few years – that they kind of fell out of love with plants, which was the reason why many started the business in the first place. And when the consumer doesn’t see the focus on plants in stores anymore it drops down a tier in their minds. And so it also drops down the rankings in trend drivers such as Twitter, Facebook, Pinterest, Flipboard and the rest of the virtual worlds that indicate – rightly or wrongly – what’s hip and what’s not in our society. Also, over the last few years we have all succumbed to the ‘value’ bug. Everything has to appear to be a value deal for the customer or it doesn’t work. Right? I’m not so sure anymore… Have we ‘cheapened’ gardening in a way? If we keep going down this road then we’ll end up devaluing plants and other
Room outside
Hardware & Homestyle gardening products even more than we already have. And then it will never be hip, trendy or cool. It will only be, well, cheap. Value and cheapness aren’t necessarily connected, and shouldn’t be in retail, but it’s all about how it’s perceived in the consumer’s mind. You still need to give the customers value but you also need to give them something more such as choice, inspiration and enthusiasm. More importantly you need to instil in them, and in your store ethos, a passion for plants and gardening! It’s not too late to start making gardening ‘hip’ again of course. All you need is enough people buying in to it to create the momentum to get it rolling again.
That spark of passion was ignited with the good weather of the latter half of last summer and perhaps that will rekindle a love of gardening once more. Perhaps we just need to fan the flames… with all that in mind, here are five Changes you can make in your store to help effect this change.
Use Colour
Right through from your branding to the stock you sell, nothing says more about you than the colours within – and without – your store. Surely, with the amount of flower colours available, marketing people have a wealth of colours to pick from when suggesting a colour brand scheme for garden retailers. But for some reason they tend to all end up using predominantly shades of blue or green. What’s wrong with purple, pink or orange? How about teal, taupe or wine? Colours shouldn’t clash but they can contrast!
Have a look at your corporate colours and see if they need some brightening up. The products you sell should and can reflect the season and the mood you are trying to convey. Take ceramic pots for example.
releases as they appear? Do you always showcase the new garden care product or latest colour in planting containers in your store? It’s important that customers see you are up to date with the latest releases. Use social networking apps such as Facebook and Twitter to let your customers know when new stock hits your store. Be fresh, new and exciting!
Sell the Benefits
Tell your customers why they need the items you are trying to sell them. There is very little point in just putting a sign on a plant that tells the customer what it is and how much it costs. You have to give them a reason to buy. Consider camellias for example. Is there any point in putting a sign saying ‘Camellias - €24.99’ on those plants? But what if you put statements such as: ‘Flower for Months’, ‘Evergreen’, ‘Great for Pots’ and ‘Loads of Colour’? I would argue that these reasons to buy are more important than the name, and certainly the price, which will be on the plant labels anyway. There is a bigger picture too, with regard to giving people a reason to garden in general. There are many benefits to gardening
With the exception of black, which sells all year round, you should find that pastel, spring-themed colours sell early in the year, bright colours and terracotta sell better in summer, and reds and autumnal colours sell towards the end of the year. Does your purchasing reflect this? The same is true of all the products you sell. Think colourfulness Think bright – but not gaudy Think mood and season
New Lines
Every year, many new plant varieties, garden care products and other gardening-related products are released. And although not all stand the test of time, it’s important to stock these new items. Have you an ‘I’m New!’ section in your plant area that highlights all the new plant
itself and they should be highlighted and pushed to the public – both in store and externally.
Make things Interesting
Is your store a bit boring? Many stores are. They lack the drama and wow-factor that could make them stand out from the February 2014
43
Room outside
Hardware & Homestyle sector the added boost it requires. The worst thing you can do is do nothing, because then you’re on that slippery slope to anonymity and obscurity. And nobody wants that to happen to gardening or their business. Maybe we should keep a close eye on the hipsters, when they see gardening as trendy again then we’ll know we’re getting somewhere!
It’s all about spring colour at the moment
Needful Things...
plethora of other retailers that are all vying for the public’s attention. Drama can be used in many ways, from clever theatrical merchandising to the use of signage and also in the products that you stock. That’s where the above-mentioned colour and new product can also help to add that ‘wow’ factor to your store. As I mentioned in a previous article, think of each display as a set that needs backdrops, props and performers, all of which combine to wow the audience!
By now all of your store should have had its spring clean. All the benches should be fixed, old category signage replaced, paving scrubbed, etc. Stock should be rolling in and be hopefully starting to roll out as well!
Interactions
The customer’s interactions within your store – and also with your website and other external marketing tools – can be one of the biggest factors in driving customers to your store and keeping them there. Does your website look dated? Have you posted anything gardenrelated on your Facebook page this year? Are all of your staff great communicators and ‘people’ people? These are all very relevant questions when it comes to how the public perceive you as a seller. It’s important that all of the interactions that take place, either with a real or virtual staff member, are pleasing, easy and encouraging. Make sure that your team meet and greet customers, that your plantspeople don’t scare them with Latin names or discussions on molybdenum deficiency,
and that they know how to sell without aggression. If enough stores do all of these things then we can get that gardening momentum going again by driving it from the retail side instead of waiting for some guy on the TV or in other media – social or otherwise – to tell us gardening is cool and hip. That will follow on after and give the
• It’s all about spring colour at the moment. Make sure you have plenty of stock to cheer up your customers’ pots and beds. • Keep a close eye on summer bulbs, seeds, potatoes and onion sets and don’t lose out by running out of stock. • Continue building up plant stock keeping in mind what’s going to flower next in the garden. Don’t be caught out when Forsythia start to bloom. • Plan your bank holiday weekend promotions and marketing if you haven’t already done so. • Finally, start pushing the garden side of your business, from plants and pots to furniture and barbecues….it’s all connected!
About Liam Before establishing Retail Services & Solutions in 2007, Liam was general manager of one of the largest garden centres in the country and has since worked with many garden centres, nurseries and hardware stores. Problem-solving ability, honesty and hands-on work ethic make him unique in his field, plus he can appreciate the day-to-day running of garden centres better than most, as he knows the products, mindset and ethos of the Irish garden retail sector. Contact him at lksolutions@eircom.net or visit www.lksolutions.blogspot.com
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February 2014
HR News
Hardware & Homestyle
When I speak to small business owners one of their biggest concerns is getting statutory paperwork like employment contracts wrong in case there is a problem later on. Many of them employ the services of employment lawyers to draft them, which can be very expensive and often not necessary. Colin Madden continues his HR Guidebook…
Contracts of employment (Part One)
Drawing up an employer/ employee contract for a small business can be a straightforward affair as long as you get the basics right. There are even off-the-shelf pre-written contracts available where all you need to do is fill in the blanks, i.e. the name and address of the business, the employee details, the job offer and outline role agreement known as the ‘written statement of particulars’ which I will cover in more detail in the next part of this article. In this issue I want to look at employment contracts particularly focusing on what constitutes a contract of employment and the legal position.
What constitutes a contract of employment?
A contract of employment is in many respects no different from any other form of contract that two parties might enter into. As such, it is governed by contract law, which means that there needs to be: • an offer of employment by the employer, which should be clear and unambiguous and may be conditional • acceptance of that offer by the employee • consideration between the parties, for example the work done by the employee in return for the wages paid by the employer • an intention to create a legally binding arrangement.
Types of contract
That said a contract of employment only applies where there is an employer/ employee relationship and there is a distinction between a contract of service, which is an employment contract and a contract for services, which might apply to a subcontractor
or freelance worker. To decide whether a person is an employee, working under a contract of service, there are a number of tests that are used. These include: Mutuality of obligation – does the employer have to provide work, and does the worker have to take work that is offered? Control – does the employer control how the worker does the work, and do the employer’s disciplinary procedures apply to the worker? Integration – how far is the employee integrated into the employer’s organisation? Multiple – looks at a number of factors including ‘substitution’ (that is, can the worker send another person to do work for the employer on their behalf?). It is important that employers make the relationship clear at the outset, not least because employees have many more rights in law than non-employees. Certain workers who are not employees may nonetheless have some protection by legislation such as the ‘Working Time Regulations’ and the ‘National Minimum Wage’, which give rights to all workers who perform work personally, even though these people might not qualify for other protection given to employees.
The legal position
A contract of employment is an agreement between an employer and employee, which constitutes a legally binding document. The term is defined by the European Employment Rights Act 1996 as a contract of service or apprenticeship. Employment contracts consist of a mixture of express and implied terms.
Express Terms
Express terms are those that are actually stated in writing or given verbally. It should be noted that if a job offer is given verbally and not followed up with a written contract it could still be legally binding. Only where there is a valid proportionate reason can that offer be withdrawn such as a deliberate false declaration not if they’ve simply got some dates wrong on their CV. Written express terms are also not restricted to the written employment contracts but can include a number of other documents, such as a staff handbook or letter of offer and, even in today’s digital world, an email, a tweet or quite possibly a text message. In most cases, the terms must meet minimum legal standards in areas such as the right to paid holidays and the right to daily and weekly rest breaks.
Implied terms
Other terms are implied into contracts. This may happen because the term is: • Incorporated by statute. • Incorporated into individual contracts by custom over a period of time (a half day for staff every Christmas Eve). • Needed to give ’business efficacy’ to the contract (that is, to make the contract work properly). •Possibly for medium-sized businesses incorporated by workforce agreements (for example, agreements with the whole workforce covering breaks). •Collective agreements (agreements with trade unions recognised by the employer) but this is usually applicable to large multi-layered organisations. •So obvious that the term is assumed to have been impliedly agreed into a contract of employment.
Examples of these terms include: ■ a duty of mutual trust and confidence between the employer and employee ■ the employer’s duty to pay wages ■ the employer’s duty to provide a safe system of work and safe workplace ■ the right to receive at least the national minimum wage (implied by statute) ■ the right to a minimum period of notice (implied by statute) ■ equality relating to men and women’s pay (implied by statute). To avoid uncertainty or dispute between the employer and the employee about the terms of the contract of employment, the best advice I can offer is not to be tempted by a one-size-fits-all document. It is advisable that as many terms as possible are set out in writing, and are issued to the employee prior to, or upon, commencement of employment. In the next issue I will be looking at ‘The written statement of particulars’ that set out the essential elements of the Employment Contract and how an employer can vary the contract of employment without risking a breach of contract. We will feature part 2 of this article in our April Issue. Colin Madden is a senior HR and Organisational Change Consultant and Chartered Fellow of the Chartered Institute of Personnel and Development (FCIPD) with over 25 years’ experience in recruitment, employee relations and workforce development including working at the London Development Agency (LDA), the Mayor’s office for economic improvement and skills as a Senior Advisor on ‘People’. He can be contacted on cmadden@fsmail.net
January 2014
45
The Final Say
Hardware & Homestyle
Traditionally, the word ‘success’ has been associated with the trappings of financial wealth, expensive cars, designer clothes, corner offices and lavish holidays. It’s a definition of success epitomised by the phrase accredited to Malcolm Forbes ‘he who has the most toys wins.’ Taken to an extreme, this old ego-based definition of success is a central theme in the recent Martin Scorsese movie The Wolf of Wall Street, writes James Sweetman.
Success – A New Definition Over the years, I’ve worked with many clients who have plenty of ‘toys,’ who live a ‘successful lifestyle,’ but are often far from happy.
Phrases
Their ‘success is hollow,’ they ‘don’t feel fulfilled’, there ‘should be more to life,’ are phrases they utter. There is nothing wrong with seeking the good things in life. Financial success is pleasurable, it can bring security and it increases the choices available to us, but it is not a panacea. The motivational factors that drive you will determine whether your career success and financial wealth will enhance your sense of joy and well-being, or merely give you a temporary high. When we are motivated by fear, more will never be enough. More qualifications, more salary, more toys, more holidays, more power will never make you feel fulfilled. More money and more stuff will never quash feelings of lack of worthiness.
Stress
If you believe that you will only feel successful when you know for sure that other people think you are successful, you are setting yourself up for a lifetime of frustration and stress. You will search in vain externally for something that can only be found within. An external, wealth-focused, fear-driven definition of success could be summarised in that phrase often used to describe the worst aspects of the Celtic Tiger years – buying stuff you don’t need, with money you don’t have, to impress people you don’t like. You will resent other people’s success, because in your mind, success is a zerosum game, there is only so much to go around. You won’t fully appreciate your achievements or lifestyle because your mindset is consumed by the fear of losing everything, or not being able to keep up with the Joneses. It’s the same fear that drives people to cross ethical and even
legal boundaries to satisfy their flawed definition of success and to maintain the illusion of their ‘successful’ lifestyle.
Trapped
‘When we are motivated by fear, more will never be enough.’
Stress, exhaustion, striving but never arriving, feeling trapped in a vicious unfulfilling cycle, even feeling like a highly paid slave, are all down payments this definition of success demands. Does that feel like real success? Not to me. So what’s an alternative definition of success? As humans we are emotional beings, we feel emotions all the time. It makes sense that our definition of success should focus on the emotions we want to experience on a daily basis. Let’s call it – Emotional Success. What would the new definition of success feel like? •You are able to sleep soundly at night, free of worry and stress. •Ripe with curiosity, you devote time to discovering your passions and purpose in life. •You harness your passions and unique skills and forge a career that lights you up and that never feels like work. •You wake in the morning, refreshed and eager to start the day, full of possibility. • Yo u r
James Sweetman is a Business & Personal Coach specialising in assisting businesses and individuals realise their potential. He works both on a one-2-one basis with clients as well as delivering workshops on a range of topics including Communication Skills and Motivation. For more information on all his services visit www.jamessweetman.com. Or e-mail him at james@jamessweetman.com You can subscribe for free to James’s monthly ezine at www. jamessweetman.com and follow him on Twitter @JamesSweetman
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February 2014
schedule reflects what is truly important to you. •You fully appreciate everything that is wonderful in your life on a daily basis. •You keep your family and friends close because you know that when all is said and done, relationships are where the true joy in life is found. •You appreciate yourself. You acknowledge that you are always doing your best (even when you mess up!) and because you value yourself, you treat your body with respect. •You know for sure that your self-worth has nothing to do with anyone or anything else, especially your net worth. •And you let your financial success be the by-product of your emotional success. Now that’s a definition of success that sits better with me! The people I know who live this definition of success all differ from one another, but they are all uniquely themselves. Ironically, the one thing they do have in common is that they are not overly concerned with definitions or labels of success; they are too busy enjoying life.
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The new EVO-STIK Campaign is guaranteed to increase your sales. Drive your sales with added nationwide radio, press and in-store displays. For more information contact Peter Morrissey on tel: 086 647 6123 email: peter.morrissey@bostik.com
Bostik Industries Limited, Newtown, Swords, County Dublin www.bostik.ie
2.100 exhibitors from over 40 countries 60.000 professional attendees from over 120 countries Source from leading housewares manufacturers and suppliers worldwide – innovative new products not yet available at European or Asian shows. Profit from inspiring ideas and qualified partnerships – first-class learning and networking opportunities for both independent specialty retailers and corporate buyers.
15 - 18 march chicago • usa
Show information and free online pre-registration: for visitors: for exhibitors:
www.housewares.org/attend www.housewares.org/exhibit
For more information, contact IHA UK Office, Pam Plant Tel: +44 777 4 132199, Email: pamplant@btinternet.com