September 2013
Hardware & Homestyle
News
Star Quality! Top-flight support for
our official launch
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Whilst every effort has been made to ensure that the information is correct The publisher cannot accept responsibility for errors, omissions or discrepancies. The views expressed are not necessarily those of the publisher
Letter from the editor
Welcome to this month’s issue of Hardware & Homestyle News. The feedback, encouragement and support that we have received since launching our first issue has been truly amazing. Consequently, we’ve some people to thank. In the first instance, thanks must go to the wonderfully inspirational Senator Feargal Quinn who officially launched our magazine on the floor of award-winning hardware store, Decwells Expert Hardware. Thanks also goes to Expert for hosting the event. As a team we pride ourselves on our unrivalled knowledge of the sector and this setting, on a busy shop floor, we feel reflected our connections and relationships with the trade and our emphasis on life at the coalface of the business. Thanks also goes to our readers and advertisers who have supported us over the past couple of months. With your feedback we look forward to continuing to strengthen our product in the Hardware & Homestyle News months to come, adding new features and new areas of coverage as we continue to reflect this exciting and ever-changing market. Finally, thanks goes to our valued contributors. Their insights make this publication what it is and have resulted in much of that positive feedback referred to above. This month all have been hard at work once again to bring you our regular mix of Gardening, News, Products, Market Reports and more – and they are joined here by special guest Star Quality! columnist Paul McNeive who we know you Top flight support for will find truly inspirational. our official launch Talk to you soon, September 2013
Martin Foran, Editor
Cover Image: (L-R) Patrick Aylward, Publisher, Hardware & Homestyle News with Feargal Quinn at our official launch.
News On The Record
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Stephen Lynam, Retail Ireland
McKeown’s World Retail Ireland News The Homefront HR Guidebook Special Feature – Fuels & Energy Special Feature – Torches & Batteries Tech Talk Guest Columnist
18 19 22 25 27 30 34 35
Paul McNeive
Special Feature – Woodcare Counter Intelligence
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A Brand New Series!
Product News The Room Outside Books/Me and My Job The Final Say
42 44 49 50
Hardware & Homestyle News 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
News
Hardware & Homestyle News
Feargal Quinn launches Hardware News in Expert Hardware Store! ‘Location on busy shop floor – sends out right message’ Hardware & Homestyle News was this month officially launched by someone who needs no introduction in this business – or any other. A household name, Feargal Quinn appeared in our first issue when we ran an exclusive interview with the renowned retailing guru.
Guest of honour
This month Feargal Quinn was kind enough to be guest of honour at a special event – launching our publication for us in an award-winning independent Hardware store in Dublin’s city centre. We believe that this location – on the busy shop floor of Decwells Expert Hardware – sends out the right message. As a media organisation we maintain close links with those at the coalface of this business. We have an unrivalled knowledge of the sector among media personnel and we strive to keep abreast of the challenges.
Communication
As Feargal Quinn told Hardware & Homestyle News: ‘Business isn’t solely about buying and selling; it’s also about communication.’ We believe that this involves meeting people faceto-face on a constant basis – be they retailers or suppliers – and listening to what they have to say. Whatever that may be, it all eventually comes back to the shop floor!
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3 1 Patrick Aylward, Publisher, Hardware & Homestyle News; Feargal Quinn and Editor, Martin Foran 2 Martin Foran, editor; Marion Earner, Ocean Publishing; Patrick Aylward, Publisher, Hardware & Homestyle News; Feargal Quinn and Dermot Casey, national sales manager, Hardware & Homestyle News 3 Brian Clark, Ocean Publishing; Feargal Quinn; Patrick Aylward, Publisher and Alan Walker, I.S. Varian 4 Luke Kearns, Decwells DIY; Feargal Quinn and David Baker, chairman, Expert Hardware 5 Gerry Fallon, Expert Hardware; Patrick Aylward, publisher; Feargal Quinn and David Baker, Expert Hardware 6 Feargal Quinn, Marion Earner, Ocean Publishing and Susan Grant, Expert Hardware
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September 2013
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Hardware & Homestyle News
& Homestyle
‘Who cares about the independents?’
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Staff of Decwells Expert Hardware, Dublin with Feargal Quinn and David Baker (centre, white shirt) David Baker poses a simple strength of forty-five indepenquestion to independent hard- dent hardware retailers behind ware traders. In typical fashion you and that number is rising it cuts straight to the point. rapidly.’ ‘Who cares,’ he asks, ‘about the independents?’ Inside Expert Hardware The latest innovation is what they call ‘Inside Expert HardSimple answer ‘The simple answer,’ insists ware’. David Baker says: ‘never bethe chairman of Expert Hardware, ‘is that nobody really fore has a body or group of any cared until Expert Hardware kind developed a bespoke set of guidelines, that, when taicame on the scene.’ Well, not only are they on lored to an independent hardthe scene, not only do they ware retailer’s requirements, quite clearly care, but they are brings that store right up to very, very successful on behalf date with hardware retailing best industry standards. of their members. ‘Quite apart from the fact Because Expert Hardware is run by five independent hard- that the external signage that ware retailers everything they every Expert Hardware store do is in the retailer members’ enjoys is widely recognized interest and – get this – none as the best in the country, the new internal package is of them get paid. Yes, you did read that cor- showcasing Expert Hardware rectly. THEY DONT TAKE A stores like never before. SALARY. All income to the Ex‘There is no doubt about it pert Hardware group is spent but unless all in independent hardware retailing adopt these on the members. modern retailing techniques, it will be very difficult to survive Muscle Gone are the days when an if not impossible. ‘Expert Hardware is made independent can rely on their own steam. ‘To be a success- up of a whole bundle of hardful hardware retailer,’ says ware retailers who care about Baker, ‘you need muscle and each other. The cooperation and dedication to each other lots of it.’ Why? Because on your own, within the group has to be exyou are, well, totally on your perienced to be believed.’ Michael Maguire, a memown. And that’s it. Simple. ‘No matter how big your ber for four years says: ‘I’ve business is, it’s only one busi- made thousands of business decisions over the years, and ness,’ is the message. ‘If you are a member of Ex- joining Expert Hardware was pert Hardware and you are undoubtedly the best decision negotiating with a supplier I ever made.’ you are negotiating with the
On-line
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r debated is the ject we don’t often hea David Baker says: ‘A sub of our businesses. h eac on sing will have effect that on-line purcha is eating away at your g are – on line purchasin Hardware retailers bew a position where they are puts its members in business. Expert Hardw threatened by it.’ be n tha er rath elopment can benefit from this dev
September 2013
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News
Hardware & Homestyle News
€135,000 – the average cost of a cybercrime incident to Irish organisations – Annual Deloitte Information Security and Cybercrime Survey
Violent crimes in local shops almost trebled since 2011 say RGDATA According to a new study by RGDATA, the representative body for the owners of 4,000 local family owned shops and supermarkets, the use of violence in retail crime has almost trebled since 2011.
Victims
The average cost of a cybercrime incident for Irish organisations over the past year was €135,000.
Costs
The Deloitte 2013 Irish Information Security and Cybercrime survey, in association with EMC, also shows that cybercrime costs Irish organisations, on average, 2.7% of annual turnover. In terms of the remediation and clean-up costs associated with security incidents and cybercrime, the average cost of a large security incident stood at €29,954. In addition to the costs associated with cybercrime, the number of security breaches experienced by organisations is also significant. A total of 40% of respondents stated that their organisation has experienced at least one security breach, which they know of, in the past 12 months.
Breaches
A total of 21% have experienced between one and five breaches, while 7% of respondents stated that their organisation had experienced more than 20 breaches. Over a quarter (28%) are unsure of how many security breaches their organisation experienced in the past 12 months. A total of 45% of those surveyed indicated that their organisation identified over 40% of serious incidents, down from last year’s figure of 58%. In line with last year’s findings, the most common method of breaching security in organisations is hacking – 19% of respondents
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cited this as the main cause. Other common methods of attack include Denial of Service/Distributed Denial of Service (14%) and malware (12%).
Challenge
Evolving technical/technological threats were identified by 30% of respondents as the biggest information security challenge within their organisation. While employees were identified as the biggest challenge last year, this year they were second on the list, as identified by 24% of respondents. Colm McDonnell, Partner, Enterprise Risk Services, Deloitte, noted: ‘A third of respondents indicated that their organisation has identified preventing cybercrime as a priority, yet just the same number of respondents believe that information security efforts are well aligned with the organisation’s overall risk strategy. ‘This suggests that there may be a disconnect between cybercrime prevention efforts and its wider impact on the business. ‘The results show that cybercrime attacks are becoming more common and indeed more costly. ‘While written employee acceptance has risen, it is still below best practice levels. ‘A proactive approach that is both planned and sustained is of critical importance for Irish organisations in protecting themselves against this omnipresent threat.’
Additional
The survey also investigated areas which can pose additional security risks. With
The survey of independent retailers reveals that over 90% of retailers were victims of crime in the past 12months. Violence was used in 28% of these crimes compared to 10% in 2011. Shop owners said that the violent crimes included the use of guns, knives, hammers and syringes. A total of 60% of retailers said that retail crime was a severe threat to their business in 2012. This has increased significantly since 2011 when just 10% of retailers deemed retail crime to be a ‘severe threat’ to their business. ‘Crime is an issue at the forefront of retailers’ minds in 2013. The key issue for shop owners remains the prosecution and conviction of these criminals,’ said Tara Buckley, director general, RGDATA. ‘The vast majority of the retailers we surveyed were satisfied with Gardai response times and reactions. Frustrated ‘However they are deeply frustrated with the legal system and believe that higher penalties and zero tolerance needs to be adopted as a matter of urgency. ‘At a time when retailers are fighting to survive they are forced to pay double what they paid in 2011 on security. ‘This crisis of retail crime without serious repercussion needs to end,’ says Tara Buckley. Some of the other findings include: only 25% of perpetrators were prosecuted and convicted this year, 97% of retailers feel more vulnerable in recent years than in the past, 80% of retailers are now concerned about tiger kidnappings compared to just 10% in 2011.
regards to mobile devices, 79% of respondents said their organisation supports corporate mobile devices only, with 31% also permitting the use of employee purchased mobile devices. Half of respondents said that their organisation has implemented specialist technologies to increase mobile security. However 31% indicated that no additional technologies are used to support mobile devices. In terms of cloud-based services which are being used by 60% of respondents, two-fifths believe that privacy and data protection are the biggest risks associated with the cloud.
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Hardware & Homestyle News
‘A showcase for the trade’ Excitement is already building at Business Exhibitions Ltd as staff prepare to stage their ‘Hardware Garden & Homestyle Trade show’ at Citywest on 2223 February, 2015. Headed up by the popular duo of Maureen Ledwith and Edmund Hourican, Business Exhibitions Ltd has been organising Irish trade shows for well over 30 years. And that the dynamic couple at the helm are something of an institution in the industry goes without saying. Their track record is impressive by any standards. The last ‘Hardware/DIY Home Garden Show’, organised by Business Exhibitions Limited in Citywest was the most successful for exhibitors and visitors since the Show started back in 1996,’ says Maureen. But don’t take her word for it. Independent research was carried out by Business Informa-
tion Group. Exhibitor feedback recorded these results: 97% found the Show was worthwhile/very worthwhile. 81% said visitor quality was good/excellent The 2015 event, organised by Business Exhibitions Ltd is set to build on the work of the popular couple over the decades, leveraging their unique insight into the trade and their close relationships built up over that period to provide something truly unique. Behind it all of course will be the same personal touch and dedication to customer satisfaction that Edmund and Maureen have made their trademark over the years. Exhibitors from the Hardware, Garden and Home sectors will form the core of the Show, says Maureen, but new sectors will be added to make it a much bigger and exciting all-industry event.
Maureen Ledwith
The show will take place in Citywest Exhibition Centre on Sunday/Monday, February 22-23, 2015. The many events that Business Exhibitions organise include the Holiday World Shows in Dublin & Belfast, The Energy Show, Futura Fair, The Irish Travel Industry
Awards, Home Interiors Show, The Irish Marine Federation Boat Show and the 55+ Show in Belfast. Keen to know more? Contact: Maureen Ledwith, sales director, Business Exhibitions Ltd, 6 Sandyford Office Park, Dubin 18. Telephone, +353 1 2913700 and email Maureen@bizex.ie
Significant quarterly increase in new mortgage lending
Good news for the trade – home purchasers account for over 90% of all new mortgage credit.
The latest figures from the IBF/PwC Mortgage Market Profile show that the number of new mortgages issued in Q2 2013 has increased by 56.1% on the previous quarter. In total, 3,229 new mortgages to the value of €518 million were issued during the second quarter of 2013. With the first quarter traditionally the weakest in any year, followed by recovery in the second quarter, the latest figures reflect a very modest 0.1% growth in Q2 2013 compared to the same quarter in 2012.
Recorded
However, this is the first time year-on-year growth of any kind has been recorded in the second quarter since 2006. The home formation segments of the market – first-time buyers and mover purchasers – continued to dominate the market accounting for over 85% (85.2%) of new mortgages issued. This compares with only 35% of new mortgages five years earlier. In effect, over 90% (91.1%) of all mortgage credit now goes to the home purchasing segments of the market. This will undoubtedly be seen as good news for the trade. The average loan size now stands at just over €160,000, up marginally (0.2%) on Q1 2013 and down 1.4% year-on-year.
Healthy
As lenders continue to report a healthy pipeline of borrower interest, IBF has welcomed the significant quarterly uplift recorded in both the volume and value of new mortgages issued in Q2 2013.
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Hardware & Homestyle News
Baby household products almost double over past five years globally While some of the major economies worldwide are experiencing low birth rates, new research from Mintel shows that household baby products are booming.
Increased
These are indeed interesting times for retailers who have expanded into this area. Mintel’s research reveals that the number of household products with ‘Baby’ in their product description increased a stunning 80% between
2008 and 2012 from around 180 launches in 2008 to around 330 in 2012. Regionally, in 2012, Asia Pacific saw half (50%) of global new product launches of baby-specific lines, with Europe in second place (19%). Latin America followed with 15% of new introductions and North America with 10%. And in terms of single countries, it is China leading the way, accounting for 24% of total new global launches of household products for babies in 2012, followed by Thai-
land (10%), USA (7%), Brazil (6%) and South Africa (5%). The UK accounted for 1.5% of the global market.
Director
Michelle Strutton, director of Global Insight, Household, Health and Personal Care at Mintel, said: ‘Emerging markets are driving product innovation in the category as household companies have been expanding their presence and market shares in emerging countries. ‘Rising numbers of middle class consumers in countries such as China and India offer much more potential for growth compared to the West where consumers have become ever-more cash strapped, leading to stagnant sales in most household sectors.’
Interest
When it comes to product safety, there is a high interest from parents in all-natural ingredients and formulas that don’t contain harsh chemicals for their children. Indeed, three in 10 (30%) UK parents look for products
In the clouds More than two thirds of small businesses in Ireland are using cloud software products, according to new research published by O2. The survey of 350 Irish business owners and managers was conducted by Behaviour & Attitudes in August and follows a similar survey commissioned by O2 18 months ago. Risen O2’s survey found that the number of companies using any form of cloud computing including well-known cloud apps like Microsoft’s Office 365, Dropbox and SurveyMonkey, has risen to 69% up from 48% 18 months ago. The research also found that while Irish SMEs are upping their use of cloud services, over a third (36%) are still unclear about the benefits. that are free from unnecessary chemicals when purchasing for their baby, whereas half (51%) of US consumers often worry about the ingredient safety of the baby products they buy.
SME Business Trends Survey Q2, 2013 Positive trends but retail continues to struggle The second Quarterly SME Business Trends Survey for 2013, launched by ISME, the Irish Small & Medium Enterprises Association, shows positive trends in 10 of 12 key business indicators.
Decrease
The two indicators showing a decrease were current and future investments, which have seasonal factors. The Association warned of any more kite flying by various ministers, which ‘will affect the fragile economy, slowly showing signs of recovery’. The survey reported positive developments in relation to jobs as current employment figures were up for the third consecutive quarter. All sectors saw an increase in employment during the quarter.
Drop
This correlates with the drop in live register figures recorded in June. Future employment predictions were also optimistic with further increases expected in the exports, services and manufacturing industries. The survey found that, while SMEs are still struggling with a difficult business envi-
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ronment, they do believe it has slightly improved. However, investment levels decreased in this quarter as did future investment expectations. The figures remain above those reported for the same period in 2012 and the decline is possibly due to seasonal factors. However, economic uncertainty and reduced consumer spending are also contributors to this investment decline. The survey was conducted in the final week of June, with over 786 respondents giving a response rate of 12%.
The situation for exporters continues to be more positive than those operating solely in the domestic market. The decline noted in the previous quarter was not repeated and both actual and expected exports were up. Their business confidence levels are more than three times the general figure at 33%, while profitability expectations, which had dropped in Q1, have been reversed in Q2 and they are confident that employment in the sector will continue to rise.
Struggle
According to ISME CEO, Mark Fielding, ‘once more the survey points to a dual economy of domestic sector struggle beside an international trading sector emerging slowly from the recession. ‘Given our reliance on exports as a primary driver of growth and our exposure to global market developments, the demand from trading partners, especially the UK and EU, is of paramount importance. ‘Both these economies failed to achieve forecast growth levels recently and therefore created a significant drag on our export performance; despite this fact, SME exports are showing a positive trend.’
The Association warned that, though the overall findings were positive, the retail sector continues to struggle and sales are showing a decline. There has been a decrease in 7 of the 10 specific retail indicators. Employment in the sector is anticipated to decrease in the second half of 2013 as sales expectations have dropped by 7%. Retailers reported a substantial decline in their business environment and their investment plans are 16% below the national average for SMEs.
Dual economy
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Hardware & Homestyle News
‘New orders rise for first time in 19 months’ Decline in Irish construction activity slowed markedly in July – housing increased ‘There were signs of emerging stabilisation in the Irish construction sector in July, according to the latest reading of the Ulster Bank Construction PMI. ‘Notably, the survey picked up an increase in New Orders last month – the first such increase since late 2011. ‘We noted the less negative trends in new business in June. But this has given way to an outright increase in order levels in July as the index broke through the key 50 level – indicating expansion – as 35% of firms reported higher orders levels compared with 24% reporting declines.
Caution The Ulster Bank Construction Purchasing Managers’ Index® (PMI®) – a seasonally adjusted index designed to track changes in total construction activity – remained below the 50.0 no-change mark in July, but rose sharply to 47.5 from 43.4 in the previous month.
Easing
This signalled a marked easing in the rate of decline in activity with the latest fall the slowest since December 2011. Commenting on the survey, Simon Barry, chief economist Republic of Ireland at Ulster Bank, noted:
‘Some caution is still warranted on the sector’s performance, however. The overall Construction PMI continues to signal ongoing declines in activity, with the PMI remaining sub-50, at 47.5 last month. ‘However, this was the highest reading since December 2011 consistent with an easing in the pace of decline. ‘Moreover, the return to expansion in New Orders, if sustained, should promote greater stability in overall activity trends in the period ahead. ‘The Housing sector was the best performing of the main sub-sectors last month, with a PMI reading of over 50 pointing to an increase in activity
levels for the first time since late 2011. ‘Commercial and Civil Engineering recorded further falls, albeit at a slower pace compared with recent quarters.’
Housing activity rises in July
Activity on housing projects increased during July, ending an 18-month period of contraction. Activity continued to fall with regards to commercial and civil engineering projects, but in each case the rate of decline eased.
New orders return to growth Anecdotal evidence suggested that the slowdown of the contraction in activity mainly reflected an increase in new orders. New business grew for the first time in 19 months during July, and at a solid pace. Respondents mentioned signs of improving demand among clients.
Slower fall in staffing levels
Rising new orders also contributed to a slowdown in the rate of job cuts during the month. Although employment continued to fall at a solid pace, the rate of decline slowed to the weakest since February. Staff-
Payment fraud down by 21% as retail banks work together with Gardai to help stamp out payment card crime. Having seen an increase of 24% year on year from 2009 to 2011, recent card fraud figures issued by the Irish Payment Services Organisation Ltd. (IPSO) which show a decrease of 21% in the value of fraud losses in 2012, are welcome.
Lost
A total of €20.4 million was lost to fraud on Irish issued payment cards (including credit, debit and ATM cards) in 2012. The considerable drop compares well with the €25.7 million worth of losses recorded in 2011.
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Card Not Present fraud (CNP fraud) where cards are used fraudulently on the internet, by mail order or over the phone remains the biggest issue for the industry at 79% of the total fraud. Counterfeit and skimming fraud is next at 14% where cards are skimmed in Ireland and used to withdraw cash at ATMs abroad in countries where Chip & PIN has not yet been implemented. A total of 4% of the card fraud related to unauthorised sales on stolen cards where criminals shoulder-surfed while consumers keyed in their PINs at ATMs
or in shops, before stealing the card, wallet or handbag. A total of €24.4 billion worth of sales took place on credit and debit cards in 2012.
Welcome
Úna Dillon Head of IPSO Card Services and chairman of the IPSO Card fraud Forum said: ‘The new trend is welcome but the value lost is still a considerable amount and all stakeholders including banks, consumers, shops and police need to continue to work together to help fight this organised crime.’
ing levels have fallen in each month since May 2007.
Cost inflation eases further
The rate of input cost inflation eased for the fifth successive month, and was the slowest in the current year-long sequence of rising input prices. Respondents highlighted ongoing price competition. Purchasing activity continued to decline. Although the pace of reduction remained marked, it slowed for the third consecutive month to the weakest since January. Despite reduced demand for inputs, suppliers’ delivery times lengthened in July. Furthermore, the rate of deterioration was substantial and the strongest since December 2005. Panellists mainly linked the lengthening of lead times to a lack of stocks held at suppliers.
Optimism remains solid
Although dipping slightly from the previous month, solid optimism was recorded at Irish construction firms in July. Close to 43% of panellists forecast growth of activity over the coming year, linked to improved confidence in the sector and the prospect of further rises in new business.
Retail Crime Conference
The National Retail Crime Conference (NRCC) announces its inaugural event –launching on Wednesday 16 October 2013 in the Citywest Conference Centre, Dublin. Opportunity This conference will offer retail/loss prevention and security professionals the opportunity to come together for networking, information sharing and to gain intelligence on crime within the retail industry. The aim of the conference say organisers is, ‘to bring you education, first-hand experiences, awareness and strategies to prevent, deter and detect crime in your business’. The speakers on the day will consist of professionals with first-hand experience in retail, supply chains and e-crime. The conference will give access to top loss prevention and security professionals.
The Heart of the Bathroom
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Hardware & Homestyle News
Best of the Web: Bricks and Mortar isn’t dead
This article is by Jonathan Spooner, Control Group (New York). We think it will resonate with Irish readers.
Brick and mortar retail is making a comeback with new strategies and technology innovations. Retail stores serve as the emotional centre point in the consumer’s relationship to products and brands. Nobody ever fell in love with a product by way of a webpage. The photos and videos on an ecommerce store might pique interest but until you experience the product with your own two hands, it is hard to fall truly in love. The physical store is the only channel through which a shopper can touch, feel and get to know a product and/or brand intimately. With online giants like Google poised to jump into the retail arena it is obvious that bricks and mortar is serving as a powerful piece of the new sales strategy. There is a good deal of change ahead for retail stores
to adjust to the new retail climate. The role of store employees will move away from the roles of stock clerks, checkout and inventory to becoming brand evangelists and product experts who will work with consumers to introduce them to the full options of the product line and help them in making the right decision. Stores such as Best Buy are investing in automated checkout systems while training and educating sales staff to be product experts first and foremost. Additionally, retail stores will adjust to the new shopper environment with interactive kiosks serving as collaborative sales tools to help the customer make their purchasing decisions. Gone are the days of sales people roaming the floor, hovering over potential customers. Instead, sales people will
be on hand to help facilitate discovery of products by way of interactive touch points. Another major adjustment will be the downsizing of retail stores from the single destination super-store to multiple smaller stores. Walmart has recently revealed their plans to open 500 smaller ‘neighborhood’ Walmart stores by 2016. Other big-box stores like BestBuy are looking to downsize as a cost saving move and a way to be closer to consumers. With the findings of a recent
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On The Record
A brave new world
Hardware & Homestyle News
This month, Retail Ireland director, Stephen Lynam, speaks to Martin Foran about post-boom retailing trends and honing the message with a new communications strategy.
‘We took it by the scruff of the neck and are starting to see the fruits of our labour now,’ says Stephen Lynam. Lynam is of course speaking of the group Retail Ireland of which he is director and where he and chairman Frank Gleeson took over 18 months ago. ‘We felt that the brand needed to be refreshed and perhaps get a new lease of life,’ he adds. ‘The industry as a whole was going through a difficult time and there was a need therefore to revitalise things.’
New world Retail Ireland had been fit for purpose during the boom years, says Lynam. More recently however, he says, there may have been an impression that the organisation was ‘a bit sedate’. ‘If you look at Retail Ireland now it is unrecognisable compared to a couple of years ago,’ he adds. ‘I’m glad to have been able to play a part. ‘We have honed the message. We have a new communications strategy and greater engagement with our members. ‘There’s been internal and external reformation. ‘There was a new world out there,’ stresses Lynam. ‘We had to change.’
Micro level From our initial meeting it is abundantly clear that Lynam was an ideal person to spearhead such change. His no-nonsense approach combines with a passion for retailing and a genuine likeability. Clearly a people person, he is also a logically-minded strategic thinker with a knack for cutting to the chase when discussing often complex issues. He is, not surprisingly, extremely articulate when it comes to outlining the
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On The Record money at all – and in the process destroy jobs and damage the community in which the property is located.” ‘The rents issue is occupying the minds of many out there and something will have to give.’
In terms of the black market there has been a noticeable increase in prosecution and detection.
challenges facing retailers. ‘Most of the problems that retail is now facing tend to be on a micro level,’ he explains. From rents to town centre issues such as parking, the overarching problem is the lack of understanding of the strategic importance of this sector, he believes. ‘It is our biggest employer and the most geographically diverse. Yet I would describe it as a Cinderella industry,’ he says. ‘We need to get people to value the retail sector like other sectors of our economy. ‘ Do retailers feel underappreciated in the greater scheme of things? ‘That makes them sound like they are sitting around moping!’ says Lynam. ‘They are far too busy getting on and running their businesses.’ He pauses, then adds: ‘I am paid to feel that for them.’ So then, what issues does he see as pressing?
Not surprisingly Lynam has a lot to say on the consumer confidence issue ‘Consumers have less money but they don’t have NO money,’ he says. ‘The problem is they have become afraid to spend. ‘During the boom people saved almost no money and it should never go back to that.
‘But we have gone the other way and household saving is at a high. If you unlock spending, retail will improve. ‘The government on our suggestion has set up an Interdepartmental Group. ‘We and other groups meet with that group about what needs to be done to protect the 270,000 jobs in the sector. ‘We are hopeful that things will flow this year. ‘One thing we’ve suggested is that when a government department makes a policy announcement it should be retail-checked or consumer-checked.’
The rents issue is pertinent of course and the spotlight has fallen here a few times in the past year ‘If in the next six months we saw a surge in consumer spending then it would not be as important,’ says Stephen. ‘It is a symptom of a problem as opposed to a problem. ‘There is the issue of contract law you cannot just rip up or retrospectively change contracts. But clearly you need to have a situation where landlords take a view that: ‘“I’d rather have a tenant in my property paying some rent than a tenant go bust and I not get any
An issue here which might resonate with Hardware & Homestyle News readers would probably be public markets selling counterfeit or stolen tools or other goods, says Lynam. ‘There is still no proper regulation and policing of public markets. There are a number of groups and individuals who said they’d be making recommendations this year. ‘The Oireahtas Committee on Enterprise had hearings on the subject and is due to lay a report before the government. ‘Minister for Small Business John Perry has been very interested in this subject and has said he’d present a report to the government as well. ‘Between Cabinet coming up with proposals and with the budget in October we’d be hopeful that something would happen in this area. ‘The black market will always be there but you can decide how big a black market you are willing to tolerate. ‘At the moment it is intolerable to have a market of between half a billion and one and a half billion euros of lost money.’
Staff training, staff retention, morale An interesting point concerns staff retention and morale, and here, Lynam refers to the training arm, Skillnet. On this note he refers to the difference between having ‘a job in a shop’ and having ‘a career in retail’. The whole area of career-related training is of course something the Hardware trade has long been conscious of and much good work has taken place over the years in our
September 2013
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On The Record
Hardware & Homestyle News
sector. ‘There will always be a cohort of people who want to work part-time in retail but there is also a huge group of people who love retail and want to move up the ranks,’ says Stephen. ‘They are passionate and enthusiastic. It is a no-brainer: If you can inspire staff and make them correctly believe that they can progress, then they will perform better. ‘When I tell people that 270,000 people work in retail I know they think that’s 270,000 people on shop floors,’ Stephen adds. ‘It’s not of course. It also includes Drivers, Logistics Experts, Marketeers, Warehouse Staff, Advertising Professionals, Accounts Personnel and Senior Management, for example.’ ‘Our skillnets train thousands. There is a new bachelors programme in retail partly funded by the state.’
ability to deliver a top class communications strategy due to his training and experience as a journalist. ‘I am not one for hundreds of committees and lots and lots of talking,’ he says, however, once again demonstrating that common sense approach. ‘Retailers tend to be time poor,’ says Lynam. ‘Meetings have to be important.’ Of course the lines of communication are always open for members’ enquiries. Dealing with these takes up a lot of the organisation’s time. ‘The kind of questions I get asked tend to be about legislation. Normally – ‘am I doing this right?’. We are not lawyers but can steer them in the right direction. ‘We have legal advice units and economics and policy experts in the building so we can pretty much address any issues. ‘Meanwhile, we have 10 or 11 working groups on everything from town centres to alcohol policy. ‘By becoming a member you also become a member of IBEC so you get all the IR and HR support and market intelligence. ‘We also facilitate members to talk with each other.’
Crime, meanwhile, is a serious problem ‘We co-operate with the Guards here and they have a Theft From Shops Prevention Strategy that we sit on and they commit to respond quickly but retailers have a role too. ‘One simple thing is to ensure that small, valuable items are not kept near the doors for example. Again, when an incident happens it must be reported. ‘That is really the least we can do.’ Lynam believes that if someone is convicted for shoplifting it should be made clear what it was that they took and there should be a principle in place to return the item or its value. Even if it’s just in instalments. Pilferage meanwhile can be heartbreaking says Lynam. ‘It is a very hard one,’ he says. ‘Often these are people they trust or have high hopes for.’
People don’t make choices lightly over big ticket purchases these days ‘They tour and tour and tour to see they are getting the best value,’ says Lynam. ‘Everyone’s a bargain hunter.’
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September 2013
‘There is also a new concept of keeping “down with the Joneses”. Having the best is considered bad taste now. ‘Five years ago it was so different. ‘Now it’s like you are rubbing it in people’s faces if you have the best or have new items. ‘That is resulting in difficulties for retailers. ‘Meanwhile, customers are not looking for the cheapest but the best value. Some retailers say that people haggle a lot more too. ‘That is happening all the time, where until recently, it was reserved for street markets.’ Another trend that Lynam mentions is ‘showrooming’ on smartphones. However, it does go the other way too, he observes. ‘You do get people researching on line and buying in stores.‘
Effective Clearly Stephen Lynam has his finger on the pulse. Allied to this is his
Conference On this note, the organisation’s recent national conference at the Aviva stadium comes to mind. Here, we heard how, despite everything, retailers are optimistic for the future. ‘The retail community has adapted to the new reality,’ says Lynam, summing up the feeling at the conference. ‘There will not be another Celtic Tiger any time soon – but that doesn’t mean there won’t be growth and a vibrant retail sector. ‘If the right environment is put in place.
The right environment? ‘The kind of things needed here are consumer confidence – things like making sure the consumer knows they are not going to face higher and higher taxes over the next few years. ‘If things are done to make the consumer happy to spend, then the retailer is ready.’
dave@dfallon.com
McKeown’s World
Hardware & Homestyle News
The extraordinary recordings of conversations at Anglo Irish bank which came to light at the start of the summer have shocked us all, writes David McKeown.
Culture and Leadership As individuals and households many of us bear a measure of responsibili-
ment must surely be competent and running the financial system in a sustainable and competent manner. The tapes revealed by a crime correspondent at the Irish Independent (an investigative journalist more accustomed to chasing down master criminals and murderers) make everything clear. The critical factor which led to our national demise was the underlying culture at the banks and in government.
Culture
ty for playing along with the property bubble and an unsustainable credit-driven spending spree. But at the time we all assumed the experts at the banks and in govern-
treats every stakeholder – customers, suppliers and staff.
Grow
How does a culture grow in an organisation? The single, overwhelming most important factor is leadership. So to come back to the banks. Management teams and the chief executives have a huge responsibility to bear. Contrast this with the vast majority of individuals in our industry, and in fact most people in small or medium enterprises in this country. Over the last few years we have, of course, lost a number of businesses to the recession, but many of those that have survived have done so due to their culture.
‘People at the head of organisations have a huge responsibility to bear in creating a culture.’
It is now recognised that an organisation’s corporate culture has an enormous effect on activity, direction and success. ‘Culture eats strategy for breakfast’ was the mantra of every management consultant some time ago, and this is one example where the consultants have got it right. Most organisations have some form of strategy or view of how they want the future to look. Very often these strategies fall down in the implementation (think every IT project in history), but unless the culture supports the vision, the organisation will not succeed. We all know what culture means, but it is hard to define. It’s the intangible things in a business – ‘just the way we do things round here’, but it affects how people behave, particularly behind closed doors. It affects how an organisation
Factors
There are several common factors with regard to the culture of the survivors, and the most important is leadership. The leader sets the tone, and up and down the country we see entrepreneurial business leaders who treat their customers, staff and suppliers fairly. This culture of fairness and decency in small to medium-sized business in Ireland could not be further from the appalling greed and selfishness caught on tape.
‘An organisation’s corporate culture has an enormous effect on activity, direction and success.’ About David
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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September 2013
Hardware & Homestyle News
Retail ireland News In its budget submission, Retail Ireland will be calling for a consumer-friendly budget that will protect jobs in the retail sector.
‘A real concern for retailers’ Stephen Lynam, director, Retail Ireland
The continued fragile state of our sector remains a real concern for retailers, and especially the hardware sector. This is despite relatively positive news for the hardware sector which saw an annual increase in sales in both May (up 4.4% in value according to the Central Statistics Office) and in June (up 8%). These increases were primarily driven by the good weather and a long delayed increase in sales of garden equipment. Such increases were not seen in other parts of the retail industry, such as clothing and department stores, so for once hardware was the good news retail story of the summer. But the heat wave, it seems, has ended and no business can depend solely on unusual weather for its survival. There must be a return to increased consumer spending in the long term if retailers are to feel confident enough to grow and expand.
Budget
It is with this in mind that Retail Ireland, in its Budget submission, will be calling for
Email: retail@ibec.ie Tel: 01-6051558
a consumer-friendly budget that will protect jobs in the retail sector. Central to our approach is the vital need to ensure that no new taxes are introduced in Minister Noonan’s October statement. To freeze all taxes and duties would not only protect the income of consumers, thus encouraging consumer spending, it would also be a signal to consumers that the toughest part of the fiscal adjustment is over and give hope that a return to sustainable growth is possible. Such a freeze would also help further to discourage cross-border shopping, which an increase in indirect taxes would make more attractive. We have also called on Minister Noonan to impose no new costs on the retail sector. In the 2008 to 2012 period, goods inflation stood at -4.1%. In the face of a collapse in consumer spending, retailers were forced to reduce prices even at a time of high and increasing costs.
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It is imperative that those costs are not exacerbated by any measures in Budget 2014. To do so would lead to the closure of many retailers which are struggling to survive, and the loss of jobs in those businesses. We have also called for the continuation of existing stimuli, like the lower rate of PRSI for new employees, and action on the black market which is costing retailers and the Exchequer millions of euro per year. These proposals, we believe, will greatly help in protecting retail jobs and encouraging employment growth in the sector. We will be strongly advocating them in the weeks and months to come.
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Hardware & Homestyle News
News Extra
Horkans on the up and up!
Upcoming feature reveals all Major work has taken place in Horkans Lifestyle and Garden Centre to transform Paul Sexton’s former outlet at the Glen O’ The Downs in County Wicklow and Hardware & Homestyle News has had a special tour with Paraic Horkan. Paraic is of course also known for his work on TV3’s Ireland AM programme.
Expanded
‘We have tidied up the site and expanded the garden offer,’ says Paraic. ‘We are looking to bring in more concessions and we will also bring in food. ‘We are looking for other sites too,’ continues the affable proprietor of this leading organisation. ‘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,’ he continues. ‘They are looking to develop
here. We have the expertise and are looking to expand still. We can bring the garden centre department and a pet offer.’ They can also bring a fantastic brand of course. ‘With six stores we are well-known and accessible,’ says Paraic in a special interview with Hardware & Homestyle News.
Trust
‘People trust us and trust is extremely important,’ says Paraic. ‘In fact, it’s one of the pillars of our brand.’ In the interview Paraic reveals how he sees a future trend in covered structures which will enable people to make the most of their gardens. ‘The next generation will be looking for far more functional garden space,’ Paraic believes. You can read more in that exclusive interview with Paraic Horkan coming soon to Hardware & Homestyle News.
September 2013
21
The Home Front
Hardware & Homestyle News
‘Housewares is a sector which works well, not only as a practical, but also as a lifestyle category, for retailers.’
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September 2013
The home Front
Hardware & Homestyle News
Irish to the fore The 2013 event attracted its biggest audience to date, with visitor numbers up on 2012 by just over 6%.
Ireland
Ireland was one of the countries most heavily represented in terms of visitors at this year’s Exclusively Housewares show.
Key events
The show at the Business Design Centre in London is widely acknowledged to be one of the key events within the housewares industry. It is attended by key buyers from across all types of retail channels, including the leading independent cook shops, high street, grocery, out of town and department stores, along with garden centres, e-commerce sites and TV and catalogue retailers. In recent years it has also attracted a growing licensing audience keen to team up with housewares suppliers.
Visitors came from around the world, with the highest number of representatives coming from Ireland, the Netherlands, France, the Czech Republic, Estonia, the US, China and India. ‘A great year!’ commented Brooke House Exhibitions show director Simon Boyd about the 12th outing for the show. ‘As always, we end one show full of ideas for the next, but overall the reaction from exhibitors and visitors has been overwhelmingly positive for this year’s show. ‘We were particularly pleased with this year’s exhibitor line-up.’
Important
David Barbour, national sales manager for Premier Housewares, commented, ‘Exclusively Housewares really has become a very important UK show for Premier Housewares in terms of meeting the most important buyers and showcasing our new products to the trade. ‘This year proved just as good if
not better with increased traffic to the stand created by the SORTED launch.’ Another comment came from regular consumer press visitor, Sarah Sysum, assistant editor of BBC Easy Cook magazine, who said: ‘It was great to see so many brands represented at this year’s show. ‘The breadth of innovation confirmed to me that “Exclusively Housewares” remains the “go to” show for exploring new trends and products for our readers.’ The wide range of visitors to this year’s show was also noticeable, with retailers of all types and sizes visiting, plus licensors, wholesalers, distributors and a last minute surge from Dutch retailers adding to the mix! The 2014 Exclusively Housewares show will run at the Business Design Centre in London on Tuesday, 10 and Wednesday, 11 June. For more details contact the team via info@exclusivelyhousewares.co.uk or +44 (0)121 237 1130.
Exclusively Housewares board reveals two-year SDA project Brooke House Exhibitions (BHE), which organises the Exclusively Housewares exhibition on behalf of the British Home Enhancement Trade Association (BHETA), has announced that it is undertaking a two-year project that will culminate in the creation of a dedicated hall for its small domestic appliance (SDA) exhibitors in 2015.
Respond
Through its close links with BHETA housewares members the show’s board has been able to respond to the growth in certain product areas and retail channels and adapt its marketing strategy and product mix.
The increasing levels of interest in the small electrical product sector from both suppliers and buyers has led the BHE Board to commit to increasing the number of SDA suppliers at the show in 2014, with a view to featuring a dedicated hall for this product area in 2015. ‘Our interest in this sector will include all the small electrical product categories as reported on by GfK: linencare, electrical cooking, including microwaves, beverage making, food preparation and floorcare,’ explained show director Simon Boyd. ‘The show will implement a proactive marketing campaign to ensure that the relevant suppliers in these sectors, and
the appropriate buyers from our current visiting companies, and from the electrical retail sector, are aware of the show’s increased SDA offer.’
Opportunity
William Jones, chairman of BHE and housewares sector director of BHETA, commented, ‘As consumers look for more colour and material co-ordination in the kitchen this is a great opportunity for the industry to adopt a more collective and co-ordinated approach to the market.’ Says Simon Boyd, ‘Housewares is a sector which works well, not only as a practical, but also as a lifestyle category, for retailers.’
September 2013
23
The Home Front
Decorating differences!
R
esearch released by Homebase has revealed that a quarter of UK men wouldn’t trust their partners to redecorate unaccompanied, with 30% concerned that ‘hanging a picture’ would be an issue for their other half.
Concerned
It’s not just men that are concerned about their loved ones, with 28% of British women citing their main concern is their spouse’s lack of concentration as they are ‘good at starting projects but not so great at finishing them’ – a sentiment that will ring true for all un-wallpapered bedrooms and half-tiled bathrooms! Men have confidence in their own decorating ability, with almost 40% believing they can turn their inspiration into reality, unlike a fifth of women who claim that they struggle to recreate looks, they’ve admired elsewhere, in their own home. Two-thirds of women admitted they wouldn’t trust their husbands to decorate the entire house themselves, as they ‘often have very different ideas on what looks good’. The surveyed women do rate the abilities of the opposite sex, with 27% admitting they are impressed with their decorating capabilities. Men don’t have the same confidence though, with 60% confessing they are nervous when they hear their partner is going to attempt a home improvement project.
Sessions
As part of ‘Decorating Month’, Homebase launched Inspiration and Knowledge Sessions, a series of online workshops aimed at helping people overcome their decoration woes. Workshop host Naomi Cleaver comments: ‘Redecorating can be daunting and it’s easy to fall back on what’s safest or rely on others for even the simplest of jobs. ‘It only takes a little confidence and the right advice to achieve something really unique which reflects your personality and makes you look forward to coming home!’ Joanna Bolt, Head of Trends for Homebase, added: ‘With wide choices in paint colours, wallpapers and decoration options it can sometimes be daunting or difficult to know where to start.’
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September 2013
Hardware & Homestyle News
Joseph Joseph wins 2013 design award This year Joseph Joseph was invited to take part in ‘Discover Design’, the premier design destination at the International Home + Housewares Show in Chicago.
Innovation
The invitation-only category features over 100 exhibitors from around the world highlighting high-end products and collections from Tabletop, Gift, Textiles and Home Décor that are driven by innovation and inspired by design. Companies are selected to participate by a panel of industry experts comprising retailers, design journalists and peers. Discover Design exhibitors with products on display are automatically entered in the Global Innovation Awards and we congratulate the Joseph Joseph team for achieving such great international recognition and a ‘Best Product Design’ win for their C-Pump product which dispenses all types of liquid hand soap. (See product news for more).
Homebase serves up inspirational cookshop range
Homebase has introduced over 400 new cookshop accessories this summer, offering customers a stunning selection to help bring more life to their kitchens and dining rooms.
Collections
Five on-trend collections - Baking Days, Revival, Colourama, Metro and Farmhouse - offer stylishly functional cooking accessories as well as practical items for different dining occasions throughout the year. And for those looking to make a quick change to the look of their kitchen, there are a variety of worktop items available in colours ranging from creams, reds, greens and chrome. New dinner sets have also been introduced. Speaking about the extensive new range, cookshop buyer Pamela Collard tells us: ‘We want our cookshop range to not only be practical but to bring style and personality to people’s homes.
‘Customers are now able to express their décor tastes with kitchen and dining accessories just like they would with wallpaper and textiles, as for the first time, cookshop collections are influenced by other trends in the home such as animal prints and architecture.
Showcased
‘The collections are also being showcased on inspirational in-store displays to help people visualise how they can accessorise their kitchen or dining room, and give them the confidence to introduce a theme that will refresh their own home. ‘We have statement pieces in each theme, such as blue dinnerware which we are selling for the first time, mugs with patterns ranging from animals to spots, and glassware in all different colours and sizes. The hardest part for many will be deciding just which theme to go for first!’
HR News
Hardware & Homestyle News
‘In my second article on HR and the SME I thought I would look at something nice and straightforward like recruiting new staff,’ writes Colin Madden. ‘After all, a good quality business that is customer-led and fit for purpose starts with how people are recruited and trained, does it not?’
Recruitment and the SME Employing someone can be a vital step in taking your business to the next level. But how straightforward is it, with all that red tape, contract and employment law (yes even at this stage it does apply) and then all these new advanced recruitment techniques such as psychometrics, algorithms, value-based recruitment, situational judgement tests, scenario-based assessment etc. Now these may not be too applicable to the average small business but what it does show is how recruitment has changed dramatically in the past 5 years and how seriously large companies take it when it comes to attracting the best talent. But attracting the most talented does not have to be the exclusive domain of large organisations and if approached correctly SMEs can equally expect to attract the best candidates. In this article, I want to look at the recruitment process for the SME and explain how to make it as painless as possible by outlining the key issues to consider so that you get the most out of becoming an employer. Not every business employs people, it is estimated that 75% of Irish businesses don’t have any employees.
hand-written cover letter. Today, any employer of any size can let the whole world know they are hiring and invite direct applications without the middle-men. With so many job seekers in the market, employers are finding themselves overwhelmed by the amount of candidates they need to screen and review when looking to fill positions, so it’s important for businesses to know how to find and select the right job candidates. There may be a plentiful supply of candidates but all companies whether you are a large blue chip organization or a small niche business are competing vigorously to find the best talent.
‘The very process of recruitment has been rethought.’
Key to success
Just because you’re an SME should not prevent you from attracting the best people but how you do this is key to success. However the fact that you are an SME presents its own set of challenges. The primary one is TIME. Recruiting can become a time-consuming and arduous process and, unlike large organizations, SMEs don’t have an internal resource dedicated solely to managing people and recruitment campaigns
‘Short step-by-step recruitment guide for SMEs’ 1.Log, number and make summary notes of all applications received. 2.Review/grade in bulk against pre-set criteria (however you don’t need to wait until closing date to start this process). 3.Immediately after closing date, review the final list and reject altogether any definite ‘no’s’ immediately - that way you won’t be tempted to revisit them. 4.Then, paper sift the remaining candidates against your pre-set criteria - selecting a ‘long list’ of no more than 5-7 per position use a scoring matrix.
5.Review your ‘long list’ and invite those selected to a first stage interview - look at areas where the candidate could add value from the information available. 6.Reduce your ‘long list’ to a ‘shortlist’ of 2-3 appointable candidates (only include people here who you genuinely believe could do the job and who would suit your business). 7.One-to-one interview your shortlist. 8.If you shortlist to two candidates consider a work-based trial to help you decide. 9.Appoint, subject to references and probationary period.
However, there may come a time when you need to take on more staff and you need to understand the practical requirements that go with this, from arranging payroll to keeping the right records and keeping on top of legal requirements e.g. Pay as You Earn (PAYE) submissions. The very process of recruitment has been rethought. The days when an employer called the job centre, recruitment agency or a newspaper to place an ad, sat back and did nothing more, seem as distant now as a quaint
dealing with advertising, agencies, interrogating jobs boards, screening applicants, using social media, filtering the very best candidates, arranging and conducting interviews. Add in the various challenges of coordinating the process, appointing, checking references, setting salaries, drawing up contracts – the problems quickly become self-evident. Cost is also a consideration. Advertising for recruitment whether on line or in print is not cheap. Large organizations enjoy econ-
omies of scale and can negotiate the best deals, whereas small businesses cannot and that can have a significant impact on hard-earned profits. Also, there are indirect costs to think about such as taking time away from the day job of running the business to source, review CVs and interview candidates. However, there are ways that SMEs can keep costs down by advertising their vacancies in public libraries, town councils, local chambers of commerce, notice boards in shopping centres, free web-based job libraries and job boards, job centres and networking sites like Linkedin. Another way forward is to outsource the whole process to a reputable employment agency. As mentioned in my article in the last issue there are some excellent outsourced services available to SMEs that are very reasonably priced not just covering recruitment but who can also deal with all your HR and workforce issues including drawing up employment contracts, preparing PAYE tax returns, pay roll etc.
Put time aside
If however you choose to go it alone then put time aside and think about the role you are seeking to fill and the skills and competences required for it. Don’t just keep it in your head, put it down on paper and write up a job description. This will help you to think about the role and you’ll remember things that are important to it. To aid the process I have included (across) a ‘short step-by-step recruitment guide for SMEs’. Finally, recruiting new staff is not just about getting someone in the door; the process doesn’t end there. Now the hard work begins. It takes time to turn a raw recruit into a productive and valued member of the business and this will only be achieved with the right support, training and mentoring. In my next piece I will be looking at how to get the best out of new employees. See James Sweetman’s article, this month for more on the subject of staff recruitment. 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
September 2013
25
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Fuel and Energy
Hardware & Homestyle News
Fuel, energy and heating: The emphasis on these areas naturally increases at this time of year. In our special report we speak with operators in this sector – we see what they have to offer and what the future might hold.
Fuels paradise
Flogas Superser Catalytic
T
here is a tradition of solid fuel in this country and it still holds a strong attraction for many people. Coal and peat briquettes for example, are synonymous with the winter months here. We also witness for example, the popularity of solid fuel burning stoves in many stores. Meanwhile, levels of gas appliance sales ensure demand here also. However, we also see the continued growth of ‘green’ fuels and technologies, and there is a marked emphasis on sustainability. Flogas: ‘Rising central heating costs will fuel demand for Superser heaters.’ After a relatively mild winter, this year’s unexpectedly cold spring brought a welcome boost in sales of bottled gas and Flogas Superser heater sales for retailers. As central heating costs continue to rise, retail customers will be urgently seeking cost-effective solutions to control their home heating bills. Superser heaters offer your customers the opportunity to spot-heat a room quickly and cost-effectively and demand for Superser heaters, we hear, is likely to be strong this Winter. ‘We are urging retailers not to be caught out and stock up on Superser heaters to meet the potential demand,’ so says Eoin O’Flynn of Flogas Ireland, the exclusive distributor for Superser in Ireland and the UK. Retailers who want to stock up on Superser mobile heaters for the winter months should contact Flogas, on 041-9831041 or www.flogas.ie ‘Flogas Superser heaters are the perfect solution for cost-conscious customers looking to control their heating bills,’ said Eoin. ‘They are extremely useful as an instant, economic and portable way to “spot-heat” a room quickly, as many customers find it far cheaper than turning on the central heating for an hour or two.’ Superser heaters – choice of two models. For homeowners who want instant heat that’s both stylish and useful, Flogas supplies two very contemporary looking and stylish mobile heaters, the Superser Radiant and Superser Catalytic. In particular, the Superser Catalytic burns without a flame and has lower touch temperatures making it safer and it’s fitted with easy-glide castors, which allows for trouble-free moving from room to room. Bottled Gas. Flogas is of course very much a fuel for today. Flogas cylinders are a familiar sight at retail outlets throughout the country. The butane cylinder is a clean and economical choice for consumers and is hard to beat as a low-cost, versatile energy package.
➡ September 2013
27
Hardware & Homestyle News
Fuel and Energy
Nationwide distribution
years ago, there is no peat substitute that gives off the same level of heat and burn time that you get from briquettes,’ is the message. Bord Na Móna’s peat briquettes are clean and suitable for stoves as well as Flogas has an excellent distrithe cold, icy roads, when demand open fires, and for bottled gas is high. bution system, with maximum are a smokeless coverage. A nationwide network of Flogas fuel. The company has three marine aftersales personnel are on 24Bord Na Móna gas terminals, at Drogheda, Cork hour call for appliance repairs and also offers a and Belfast and a land terminal at maintenance. broad range of Flogas supports all its products Ballyhaunis. coals which are Flogas operates a nationwide and services and plans through designed to meet network of distributors who fill innovative dealer promotions, a wide range of cylinders and deliver bottled gas excellent point of sale material, fire performance Propane direct dealers have been reporting to dealers in their areas. targeted advertising and public needs. strong annual sales growth and many of Distributors are strategically relations. For further information These coals, our customers want the benefits of gas located all over the country to enon Flogas products and services, under the brands in the home for fires and cooking but are just contact 041-9831041 or visit sure constant and speedy delivery of Bord Na Móna, either not on the natural gas grid or don’t of bottled gas – even in winter on www.flogas.ie Black Diamond want to go through the hassle of changand Suttons, are ing, so find propane cylinders in a discreet widely available corner of their back garden a very practical and deliver on alternative. the high quality associated Flogas was the first company in Ireland with the brand. to introduce the Securiseal (gas cylinder October 2013 will see seal) for Propane cylinders, once again the introduction of Bord Na proving total commitment to their bottled Móna’s exciting new pack gas brands. designs. Similar to the Butane seal, the Securiseal ‘The new design is a solid, tamper-proof cylinder seal made combined with a diverse from a resilient polyethylene material of quality range will further the highest quality – ‘far superior to other copper-fasten Bord Na shrink-wrapped bottled gas seals currently Móna’s position as the maron the market’. ket leader in solid fuels in Natural Gas. For retailers looking to save Ireland,’ we are promised. money on their own overheads either at ‘When choosing Bord Na work or at home, Flogas also supply natural Móna products, consumers gas to the commercial and residential natucan be assured that they ral gas market. Flogas has made some changes to its corporate logo, are purchasing the best Flogas Natural Gas offers a very comwhich is being rolled out across the business and its quality and most econompetitive rate to small and medium-sized entire product range throughout 2013. ical fuel solutions to suit business customers. their lifestyles and budgets. Bord na Móna Fuels. For over 80 years, ‘Bord Na Móna continuBord na Móna, the largest supplier of solid you can browse the selection of appliances ously strives to bring the best in innovation fuel in Ireland, has led the way in designing online, but they are only available for purto their consumers, a fact which is illustratan innovative and convenient range of qualchase through the retailer network. ed by their on-going commitment to providity fuel solutions to Irish consumers. You can find your nearest retailer at www. ing Irish shoppers with a variety of choice The Bord Na Móna range mostly includes calorgas.ie/ find-a-retailer/. In the republic and value when it comes to home heating.’ coal, smokeless coal, peat briquettes, and of Ireland, the full appliance range is availCalor. One of the big developments in convenience products. able for sale online, with FREE next work recent times has been the launch of Calor’s At the heart of the Bord Na Móna range day delivery. appliance offering. range is their authentic Irish peat briIncluded in the selection of mobile heatThis can be accessed through their webquettes. ‘As relevant now as they were 80 ers are the Calor Kozy and the Mini Kingasite at www.calorgas. von which have been passed through Calor ie or by going through safety inspections, ensuring they meet the the following address: highest standards when it comes to safety. shop.calorgas.ie ‘We have a wide range of LPG cookers Here customers can available including a selection of hobs, find a range of LPG free-standing cookers and range cookers appliances – including by Leisure,’ we are told. a selection of mobile ‘In addition we have a selection of Gas heaters, cookers, tumbarbecues for you to choose from and ble dryers, barbecues energy efficient tumble dryers.’ and a whole choice ‘Our Toolbox range of accessories of gas accessories in includes a selection of regulators, hoses, their Toolbox range. From Bord Na Móna For Northern Ireland, blow torches, burning rings and much more.
Updated Logo
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September 2013
Fuel and Energy
High Court Action against ‘Pirate Fillers’ Following the company’s recent successful Commercial High Court case which highlighted the issue of ‘pirate fillers’, Richard Martin, managing director of Flogas Ireland, commented as follows: ‘Flogas is very pleased that its property rights have been upheld by the Court and that the activities of the defendants in this case have been heavily punRichard Martin ished by the Court. It sends Flogas Ireland a powerful signal to the market about the damaging aspects of illegal cylinder filling activity.’ As Flogas explains: ‘Pirate fillers are companies that unlawfully obtain gas cylinders to fill and sell onto retailers. ‘They frequently do not receive the same level of safety checks as those supplied by an authorised distributor and there is also no guarantee that the cylinders have been filled to their proper capacity.’
HIGH QUALITY RANGE, GREAT NEW LOOK.
Hardware & Homestyle News
‘Power NI now offering Climote heating controls’
Home energy management company, Climote, has joined up with leading Northern Ireland energy supplier, Power NI, to offer homes and businesses in Northern Ireland the chance to control their heating remotely. The Climote heating control hub can be controlled by text, online or via a free mobile App for smartphones and can be installed without any disruption in around 30 minutes. It has the potential to completely revolutionise the way customers in Northern Ireland control their heating and it will appeal to a wide audience who are keen to manage their energy bills and who like to take advantage of the latest technology. Explaining the benefits of Climote, CEO and climote founder Derek Roddy said: ‘Based on over 10 years of research and development by our team, Climote gives customers the convenience of managing their heating systems remotely while controlling their energy costs. ‘Climote provides the luxury of using a mobile phone or computer to control a home heating system in a simple and easy to use manner.’ Eamon Conway, Climote managing director, said: ‘Climote is an innovative remote control device for home heating and has been recognised by Power NI as a great opportunity for them to offer energy-saving and cost-saving reduction options to their consumers.‘ As part of this partnership, Power NI has been trialling Climote installations ‘with very positive feedback’ so they will soon be launching Climote to their customers through various marketing channels. Gwyneth Compston, Power NI Energy Services project manager, said: ‘As the leading energy provider in Northern Ireland, we recognise that, with Climote, we can help our customers to save energy and money using the very latest technology. ‘At Power NI we are committed to helping our customers to manage their home heating costs and we know that with Climote we have a good opportunity to help our customers do just that.’
Calor is the leading supplier of LPG with cylinders to suit all of your customer’s needs. Calor is innovating the market with new lightweight cylinders that are not currently available, most recently with the new 6kg lightweight cylinder for leisure customers. It also has a unique contents gauge, so customers never have to worry about running out. Calor also have a new range of domestic appliances available to you and your customers, visit www.shop.calorgas.ie - you can avail of FREE gas vouchers for your customers when they purchase any Calor appliance.
To find out more, contact Calor on 1850 812 450 or visit www.calorgas.ie
September 2013
29
Torches & Batteries
Hardware & Homestyle News
The long dark nights are almost upon us and torch manufacturers are gearing up for a busy Winter.
Whether a torch is a necessary tool for one’s profession, hobby or just to have in the house, customers can be sure to find a vast range of torches (and batteries too) at their Hardware Store. We have seen over the years how technology in torches has improved immensely – resulting in high power LED lights that can fit in your pocket. One company spearheading the development of such technology is LED LENSER. ‘LED LENSER has become the world’s leading manufacturer of technologically advanced LED torches,’ we are told. ‘Not bad for a company formed in the humble surroundings of a garage in 1994!’ They use only the most powerful LEDs, patented Reflector Systems and the highest quality components ‘to make the brightest, most energy-efficient LED torches available’. They have applied their expertise to handheld and head torches for use at home, work, outdoors and in any other situation where a light source is required. So what sets LED LENSER apart from other manufacturers? Innovation, we are told. ‘Innovation is at the centre of LED LENSER’s technology,’ is
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the message. Their patent pending Advance Focus System has been a revelation in flashlights. This system provides a stageless transition from a broad flood beam to a focused spot beam, and in some models this can be accomplished by a one-handed slide focusing mechanism called Speed Focus. LED LENSER has also incorporated Smart Light Technology into some of their torches. These lights contain computer optimized micro controllers which allow for many different light functions (low power, blink, SOS signal) to be controlled by one single push button. Trusted and used by the
Irish Coast Guard, LED LENSER is also the torch of choice of many police forces throughout Europe, including our own Gardai. The company has won many product design and innovation awards and Peterson of Dublin have been extremely proud to represent LED LENSER in Ireland for the past eight years. LED LENSER’s vast product and price range caters for all type of user. So this Winter, with a LED LENSER, we can all create ‘New Worlds of Light’. ‘Fantastic response for new COAST LED range.’ Already established as a leading LED Torch brand in USA and Canada, the COAST range has enjoyed a fantastic response to
its first year in UK and Ireland since its Introduction by UKbased BBB Investments Ltd. Over 400 Trade and Retail outlets already sell COAST ‘across the water’, with a more modest 18 outlets in Ireland to-date, something which BBB are naturally keen to increase! We were therefore keen to discover what it is that has attracted so many businesses to stock and sell this new range. Range & Price-Points. BBB were quick to volunteer that price-points are important even for a premium-quality range, starting with products from 9.95 RRP & moving up in small steps to ensure options within the reach of a wide range of customers. The COAST range also spans 4 key areas of LED Torches, LED Head-Torches, LED Lanterns and LED MultiTools, catering for wider sales potential. Beam Quality. Probably the one thing which every torch user most notices and appreciates. BBB claim that, ‘COAST beams are the best out there’, based on impressive high-lumens light outputs combined with incredible ‘Pure Beam patterns with literally no visible rings, shadows, dark-spots or blemishes, usually associated
L7 Torch
H3 HeadTorch
www.peterson.ie
Distributed by: Peterson of Dublin Peterson House, Sallynoggin, Co. Dublin T: 01 285 1011 F: 01 285 6593 E: sales@peterson.ie
Torches & Batteries
Hardware & Homestyle News
pictures from BBB
with focusing LED torches.’ In-Store appeal. The whole COAST range is available in attractive ‘Try-Me’ packaging enabling the customer to try-out the product in-store before buying whilst keeping the product in pristine condition. These packs also feature easy to understand icons and explanations on key features of each product. Attractive
POS displays are also available in 11 different options with full stock/display packages typically only £200 to £300. Flexibility & Margin. No minimum pack sizes, no minimum order levels, sensible carriage-paid levels and fast deliveries all assist in making COAST an easy addition to stock and sell. ‘Equally important is that a fair margin is offered and all steps taken to ensure against massive deep-discounting online.’ Sell-Through. In reality the most important thing of all to anyone considering their range – ‘with 100% success-rate from all existing COAST outlets in re-ordering after the initial decision to stock, many of them on a very regular basis!’ Reasons for successful sell-through include all the points above, plus many customers coming back to buy other items from the COAST range along with a very high frequency of personal recommendation from friends, family and workmates once they experience how good the products really are. BBB are told of this by many satisfied customers (large and small), across a wide range of market sectors.
Am Tech ‘light the way’. Am Tech, one of the largest suppliers of tools and lighting in the UK and Ireland have enjoyed another year of growing sales within lighting and torches. Am Tech are currently undergoing a brand refresh with new dynamic product and display packaging and new red and black product corporate colouring. Am Tech have added to their already growing range of lighting products in the past year to offer a compressive range of lighting to include Krypton, LED, High Performance LEDs and Halogen bulbs. These various lighting options are available in Torches, Lanterns, Security lights, PIRs and Headlights. Am Tech provide their lighting products in eye-catching packaging and most in counter displays and so are ideal beside impulse purchase areas next to tills. These CDUs are also designed to be displayed in the Am Tech four-shelf retail impulse floor stand to really focus on key selling periods. Although Am Tech experience good sales throughout the year they also see a huge demand in these products at the end of October when the clocks go back and the dark evenings arrive literally ‘overnight’, so promotions and till-side displays usually start from this time till March. Am Tech is not only committed to offering a wide range of lighting options but also committed to bringing the latest in lighting technology and at an affordable price, reports Chris Mahon, national accounts and brand development manager at Am Tech. ‘We now have new generation CREE 1 Watt, 3 Watt, 5 Watt and 12 Watt Torches that are LED bulbs but as in the case with the 12 Watt can shine a beam of light a mile away (slightly more advanced than the LED in your standard torch) but more importantly at an affordable price to the average consumer.’ If you would like further information on how Am Tech can light up your way to greater sales e-mail Chris Mahon at Am Tech on chris@dktools.com
pictures from Am Tech
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Torches & Batteries
Hardware & Homestyle News
Ireland on top of EU e-cycling targets – ‘but 10% of Irish people still hoard WEEE at home’ WEEE Ireland sets a goal to recover 20kg of e-waste per Irish person by 2019. Results released recently for their annual report by WEEE Ireland, the Irish compliance scheme for electrical and battery recycling, have shown that 2012 was an extremely successful year for Ireland when it came to diverting e-waste and batteries from landfill. This year alone over 25,000 tonnes of WEEE and 472 tonnes of batteries were collected and recycled in Ireland. In 2012, WEEE Ireland was the leading player when it came to electronic recycling in Ireland, with almost 8kg recycled per person compared to the EU target of 4kg. WEEE Ireland is leading the way in working towards a ‘circular recycling economy’ in Ireland. Currently, electronic waste items recycled with WEEE Ireland are sent through dedicated separation centres that ensure proper management of hazards and efficient resource recovery so materials can be sent back into manufacturing where they re-enter the e-cycling life cycle and end up in the home once more. WEEE Ireland is working towards a 2019 target of helping Ireland to achieve 65%
(approximately 12kg p.p.) take back of e-waste from the Irish market on behalf of its members – the importers and manufacturers of electrical appliances and batteries. Batteries can be recycled at any retailer who sells similar type batteries or local recycling centres. Many schools are also collecting batteries participating in WEEE Ireland’s ‘Spread a Little Sunshine campaign’, where WEEE Ireland have teamed up with LauraLynn for a whole year to try and recycle as many waste batteries as possible whilst also creating a fund for the children’s charity. Over 472 tonnes of batteries have been recycled. A network of electrical retailer collection points, Local Authority recycling centres and over 300 special events organized by the scheme helped WEEE Ireland collect over 25,000 tonnes of electronic waste last year. Leo Donovan, CEO of WEEE Ireland, said: ‘We are delighted to be in a position where we are almost doubling the EU target of 4kg of WEEE recycled per person. ‘Currently we are taking back between 38%-40% of e-waste in Ireland and are
working towards the 2019 target of helping Ireland achieve 65% take back of electrical waste in the Irish market. ‘Here at WEEE Ireland we would like to remind people that while we are doing well we also need to be mindful of the WEEE and batteries that get placed in general bins each year which can result in hazardous leakage. ‘With 10% of people hoarding e-waste at home, and an average of 110 batteries in every house, there is plenty of scope to improve Ireland’s recycling rates. ‘It is important that WEEE is handed over to an authorised collection point to ensure that your appliances are recycled correctly. ‘For those with any queries on how to recycle your e-waste and batteries, please log onto www.recyclefree.ie to find out how easy it is to recycle.’ Since 2005, WEEE Ireland, has diverted over 170,000 tonnes from landfill. WEEE Ireland would like to praise the people of Ireland for their recycling efforts and ensure that they understand the lifecycle of electrical goods and the positive impact they are having on their environment.
new weather strip brown and white in 2.1 and 2.5 metre lenghts and a new bottom of door brush sweep which is self-adhesive and can be cut to size without a hacksaw or pliers manufacturers of plastic angles, tile trims, bath seals & floor strips 11a greencastle parade, coolock, dublin 17
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September 2013
33
Tech Talk
Hardware & Homestyle News This month, TV3’s ‘Gadget Guy’ Colin Baker fills us in on how the new raft of iPads and Internet Tablets aren’t just for playing ‘Angry Birds’ – they can be a God-send for small businesses too!
‘There’s a tablet for that...’ A mere 5 years ago, an iPad was something you got from the doctor to cover a sore eye. Nothing more.
Everywhere
Today, these slivers of universally desirable gadgetry are EVERYWHERE, from the Apple iPads themselves through to the Samsung Android versions down to the cheaper and smaller varieties forming a not so orderly queue out of Asia. If I had a euro for every time I was asked the question ‘what exactly IS an iPad....’ I would have at least e72 to my name. It’s not a laptop computer. Nor does it replace a laptop. Neither is it a smartphone. Most consider a tablet device like the iPad to be all about the FUN: Netflix, Facebook, games. That is certainly true in part. Internet tablets collectively are an entirely new section of computing, but, if you let them – they CAN become a very handy tool in your business too.
Real example
Let me give you a real life example in our own business, a technology store and repair lab in Dublin’s Aungier street. Not having an office as such (or someone to sit in it if we did!) we had terrible difficulty invoicing other businesses or properly and conveniently recording, dare I say it, credit sales. We started to deal with schools and colleges both in terms of sales of hardware AND calling out to repair or service their equipment. Managing these transactions, recording them on site, tracking what was paid and what wasn’t is traditionally the role of an ‘office person’. Hmmm. A similar problem faced by so many self-employed people and small businesses the world over. Furthermore, traditional office accounting software can be pretty pricey and the support equally cost-laden.
Simple interface
Enter the AppStore and an App called Invoice2Go. Available on all smartphones and tablet devices AND simply through a web browser on your computer – it is an almost Google-like simple interface for creating invoices, adding and managing customers, products and services and recording and tracking same.
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Creating and emailing an invoice takes 30 seconds straight from your smartphone OR back at base on your PC. Neatly, the invoice has a clever link at the end to allow your customer to pay it online by PayPal if they wish. Great thing is - because all activity is hosted and stored in the cloud - all your devices are always in synch and you never have to back up. So if you email an invoice from your iPhone or add a new client - the updates are live back on your PC. Best bit is - Invoice2Go is only €7.99 per device and €70 a year – INCLUDING support. Traditional accounts software can cost thousands – well let’s just say I wouldn’t like to be in that business. Believe it or not, Tablets are now being used as till systems. EPOS apps and systems are pretty common on the App store and Google’s PLAY Store for the tablet, and hardware companies are responding with very decent wireless cash drawers, bar code scanners and receipt printers to hold hands with them, along with ‘bash proof’ desk mounts for your device.
Straightforward
One company, Vend HQ, produce an app, similar in concept to Invoice2Go, that turns your iPad into a beautifully straightforward and lightning fast till system. Coupled with hardware and setup from their agent, POSPayAsYouGo in Northern Ireland, it provides a Point of Sale till system that is both more advanced and significantly easier to use than most of the more expensive systems out there and for a pile less money. Furthermore, these systems can be monitored in real time – straight from your smartphone. Again, the fairly annoying and largely avoided but vitally important backup routine is unnecessary here – it’s all backed up in real time in the cloud. Already, smartphones and mobile devices have made doing business ‘on the road’ many times easier.
Processing
Again, merely 10 years ago, faxes and actually getting back to the office were the order of the day when it came to making sales and processing orders and invoices. Catalogues and price-lists were never entirely up to date and doing so was time-con-
Colin Baker gets far too excited for his own good every fortnight on TV3’s Ireland AM when he shows us the latest in tech from the fun and frivolous to the vital and life changing! Colin also heads up Back From The Future and Laptoplab, servicing and repairing the country’s computers and technology.
suming and an ongoing saga. I met a sales rep recently from one of our suppliers who produced his iPad and not only churned through our usual order in less than 10 minutes – he was able to instantly call up his top sellers and some interesting NEW products in the same time and let me see exactly how they looked. He was also able to instantly tell ME what I had sold most of and what really wasn’t moving at all. Time, as with every retailer in the country, is never on my side and I was more than appreciative of the nicely quick visit and as he left my store with my order – I had a pro-forma invoice in my email so I could check whether or not I could afford dinner that evening! He was using an Australian app/service called JobSync which costs around €25 per user per month. The app itself and a trial period are free and again backing up the data is unnecessary. Yes. The cloud again.
Easier
Sometimes I have my chest so firmly to the wheel I forget to look out for ways of making my job easier and my business more efficient and cheaper to run – and technology is my JOB!!! I know that there are businesses out there just like mine that can benefit, in some cases hugely, by taking that time to investigate what these devices and applications can do for them!
Guest Columnist
Hardware & Homestyle News
‘Retailers are growing tired of cutting costs, cutting prices, special deals and discounts, and yet business doesn’t change much,’ writes Paul McNeive. ‘Just like most business sectors I believe retailers are “too close to the wood to see the trees”, can’t see the big opportunity in retailing and can’t see what’s going on in their own stores.’
Small Steps and Small Things I was honoured to be the after-dinner speaker at the Retail Excellence Ireland Annual Dinner. Would I risk spoiling the Baked Alaska by telling them that customer service is the big opportunity in retailing and that the standard of service in Ireland is pretty poor?
Researching
In researching my book Small Steps I asked shoppers why they shopped in a particular store. Not one respondent mentioned price. I did a survey on LinkedIn and most respondents said they would pay 5-10% MORE for better service. The reason people give for giving their repeat business to one retailer is usually: ‘they’re really friendly there – I like them,’ or, ‘we always have a bit of a laugh there’. Frequently the retailer was helpful when some problem arose, e.g. let them leave without paying when they had forgotten their credit card, carried bags to the car or saved some occasion by delivering outside normal hours. Shoppers were often giving all their business to a particular shop 2030 years after some such small event had created this loyalty. As I put it, to the diners at Carton House: ‘Why would any motorist stop at any particular service station?’ They all offer the same fuels at the same prices. They all have the same shops with the same cornflakes, chocolate and newspapers at the same price. They all have the same car-wash.
Genuinely empower your staff to sort out complaints at source – never let a shopper leave feeling unhappy. A complaint well handled at source will save you money and can win you a loyal customer for life.
Vital
The welcome and the customer’s experience on leaving are vital – yet how often do we get a cheery welcome, smile and chat in any shop? Very rarely. These are simple things and we must get all our staff to understand that their actions, words and body language are winning and losing customers – all day, every day. The real joy of getting this strategy right and becoming the outstanding retailer in your sector is that it costs little or nothing. The relentless enthusiasm of the store owner and manager for engaging with customers will inspire staff who will copy what they see. Your time is much better spent on the shopfloor than buried in an office.
‘Your time is much better spent on the shopfloor than buried in an office.’
It’s just the same in the Homestore and Homestyle business You have similar types of products at similar prices, sold from similar stores. The way to grow your business is to give your store PERSONALITY. You must inspire your staff to engage their personalities at work and develop friendly, helpful connections with customers – always looking for a way to stand out.
Paul McNeive
Agree
Of course most retail business owners and managers know all this stuff and everyone I spoke to at Carton House over the digestives seemed to agree. Yet, why do so many retailers settle for the same standard of service? By definition, most retailers in any sector provide the average standard of service. The opportunity is to ‘renew your vows’ on customer service and how your shoppers feel about dealing with you. If everyone else’s standard is 7/10, you only have to get to 8 or 8.5/10 to be outstanding –and keep it there.
Best service
You usually get most personality and best service from an owner-manager in their own store. The hard part about all this is inspiring all your staff to operate at a new, higher level and the more staff you have the harder it gets.
But even with large numbers it can be done. For example, call centres with thousands of staff can vary drastically. These are tough times in retailing yet I believe that retailers have lost sight of what customers want. Shoppers don’t really care whether you have five or 10 shades of blue linen. Nor do they care about the price of toilet roll holders or lamps. Shoppers will return again and again to where the staff are most friendly – even fun. There’s lots more on all this in my book Small Steps. See Buy the Book this month for a review of Paul’s book, Small Steps. This remarkable story of how Paul McNeive lost his legs but went on to lead a €50m business is available in most bookshops, in e-book form or signed from paulmcneive. com
September 2013
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Woodcare
Hardware & Homestyle News
The woodcare sector is an extremely competitive one with a constant stream of new products and new initiatives to tempt the customer and offer margin to the retailer.
Fleetwood. The future looks bright for the Fleetwood range of Garden Woodcare products. ‘Sales of the range which includes Fleetwood Timberguard, Decking oil and Teak Oils have been very strong to date,’ says Steven McQuillan, marketing manager with Fleetwood. ‘We launched the Fleetwood range of Woodcare in the belief that the Irish DIY consumer would support an Irish manufactured brand that offered both quality and improved value for money. ‘To date the sales generated have been excellent and fully support our decision to launch into this very established market. ‘We have supported the new range with very striking display material
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which is available to every stockist and these are really helping drive the sales around the country.’ Fleetwood also support the new range with a National Radio campaign. ‘We believe our efforts in Woodcare during 2013 are very good for the retailer and the consumer alike and we are looking forward to seeing the Fleetwood brand develop further in 2014.’ By the way. Fleetwood Weatherclad ‘the longer-lasting Masonry Paint’ has added three new colours to its colour palette for 2013 – Fields of Gold, Sandbank and Pebble Bay. Using Permacryl Technology, the paint film resists degradation brought on by the demanding impact of Ireland’s extreme weather conditions. From Rustins. Danish Oil. Rustin’s Danish Oil is a unique formulation developed by Rustins that is suitable for all types of wood. It contains special ingredients to give it a low lustre finish. It is an easy-to-use wipe-on finish which brings out the beauty of the timber and gives a natural, opengrained, soft-lustre finish. Rustins Danish Oil is ideal for all woods and is excellent on turned woodwork. Available sizes: 250ml, 500ml, 1ltr, 2.5ltr, 5ltr. Coverage: 1ltr will cover approximately 14sq.m. with one coat depending on the absorbency of the wood. Quick Dry Floor Varnish. Rustin’s Quick Dry Floor Varnish is a hard-wearing
water-based, non-flammable varnish with low odour. It is resistant to water, alcohol, white spirit and similar solvents. Floor varnish can be applied to wood, cork, mdf, concrete and unsealed terracotta and quarry tiles. Rustin’s Quick Dry Floor Varnish is available in a range of colours: Clear, Light Oak, Medium Oak and Dark Oak. Available sizes: 1ltr, 2.5ltr, 5ltr. Rustins Ring Remover. Help bring furniture back to its original beauty with Rustins Ring Remover. Rustins have added Ring Remover to their
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Shannon 201 A wide range of garden and A wide range of garden and farm timber products Shannon Street, Street, Mountrath, Mountrath, Co. Co. Laois Laois Tel: Tel: 1850 1850 201 765 765 including gates, fencing pa including gates, fencing panels, post and rail fencing, Comfybed garden furniture, garden sh garden furniture, garden sheds, log cabins, gazebos, pergolas, children’s play eq pergolas, children’s play equipment, BBQ’sequine and a range of equestrian products supp of equestrian products supported by effective bedding merchandising and comple merchandising and complete B2B marketing support. Shannon Street, Mountrath, Co. Laois Tel: 1850 201 765 Shannon Street, Mountrath, Co.Garden Laois Tel: 1850 201 765 The GaTe
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A wide range of garden and farm timber products including gates, fencing panels, post and rail fencing, garden furniture, garden sheds, log cabins, gazebos, pergolas, children’s play equipment, BBQ’s and a range of equestrian productsGaTe supported by effective The Garden The Garden GaTe merchandising and complete B2Btimber marketing support. A wide range of garden and farm products A wide range of gardenincluding and farmgates, timber products fencing panels, post and rail fencing, Mark-John Ltd., panels, post andgarden rail fencing, 50C Robinhoodincluding gates, fencing garden furniture, sheds, log cabins, gazebos, garden furniture, garden sheds, log cabins, gazebos, Industrial Estate pergolas, children’s play equipment, BBQ’s and a range Longmile Roadpergolas, children’s play equipment, BBQ’s and a range of equestrian products supported by effective Dublin 22 Sheerans.indd 1 29/07/2008 11:34:24 of equestrian productsmerchandising supported by effective and complete B2B marketing support. T: 01 456 5023 F: 01 456 5025merchandising and complete B2B marketing support.
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Hardware & Homestyle News
Woodcare ‘How to determine correct method and product to clean decking’, by Brendan Igoe. Cleaning and reviving decks and wooden garden furniture involves work and expense and it is by no means a simple, straightforward matter, says Brendan Igoe. ‘We know from countless phone calls received from browned-off homeowners who went into the shop, bought the wrong product or were not given proper advice or perhaps even a combination of both – wrong advice and wrong product! ‘When they use an inappropriate method and or inappropriate product to do the job, who gets the blame? YOU. Maybe they don’t even come back ever again! ‘Offer your customers this simple FREE test to determine best course of action before they waste money and time on the wrong solution.’
popular range of furniture renovators which already includes Surface Cleaner, Finish Reviver, Scratch Cover and Liquid Wax. The product is a mixture of fine abrasives which can be used to remove old and new water and heat mark damage from a range of polished surfaces. Plus, while it removes marks and minor defects it also polishes and revives. Available in 125ml bottles. Blackfriar. Founded in 1894, the Blackfriar name is synonymous with the highest quality paints and varnishes. Their range has everything you need from specialist preparation products through to quality decorative paints and woodcare for the home and garden. ‘The woodcare range includes every conceivable wood stain, varnish or treatment that you may need, for objects both inside and outside the home,’ we are told. For interior wood, the range of Blackfriar varnishes offers a tough, durable finish that brings out the natural grain and beauty of wooden surfaces. A selection of polishes and oils, including French Polish, Button Polish, Linseed and Danish Oil, provides protection and a classic finish to treasured wooden surfaces. Blackfriar’s exterior woodcare range offers both enriching colour and protection for your home and garden wood. In addition many of these products now contain UV absorbers that will help protect your wood from the harsh effects of sunlight. ‘Wood preservatives, wood stains and exterior varnishes will enhance any exterior wood whilst Blackfriar Teak Oil is perfect for reviving weathered furniture.’ The popular Blackfriar Anti Slip Deck Coating provides a clear, slip-resistant finish to wooden, exterior decking. Exterior decking can be particularly hazardous in wet conditions. Blackfriar Anti Slip Deck Coating increases the grip in such conditions, ‘making the deck safer as well as revealing the natural beauty in the wood’.
Do the Drop Test Gently place some drops of water in different areas of the (dry) wood surface. The purpose of this test is to establish if any decking or teak oil, etc. is still present in the wood (beneath the surface out of sight) which can have a major impact on the cleaning method chosen. Leave the water drops on the wood for 15 minutes or so and then check to see (a) if the water has soaked into the wood or (b) water is still there in a little ‘ball’ more or less the way you applied it earlier. If the water drops soak into the wood you can clean the wood with an Eco friendly cleaner such as Net-Trol. If the drops do not soak in within a reasonable time, it means that there is still some previously applied oil or coating present in the wood. Remove This may be not visible because it is just below the wood surface. If they want a properly cleaned and restored deck they must remove the previous coating first, otherwise any fresh application of oil, etc. will probably peel off later as it cannot penetrate the wood properly. To remove traces of previously applied decking oil or teak oil you need a powerful stripper cleaner specially designed for removing decking oil. Prepdeck, an Owatrol product (can be diluted depending on job) is quite useful for this purpose. It is applied on to dry wood doing a section at a time. Leave for 10 minutes to work on the coating. Give it a slight scrub. Allow cleaner to work for a further 20 minutes or so and rinse off. Active Like Net-Trol above, if Prepdeck dries out during the 30 minute ‘cleaning action window’ sprinkle or mist some water on it to keep it active. As Prepdeck is a very powerful cleaner, you need to neutralise the wood surface with Net-Trol prior to any oiling. Net-Trol should be diluted by 4 parts water to ‘take the taste’ of the stripper cleaner out of the wood to avoid reaction with oils being applied later. Brendan C. Igoe is managing director of Igoe International Ltd, distributors for the Owatrol range of specialist property maintenance products. www.Igoe.ie
September 2013
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Woodcare
Hardware & Homestyle News
picture courtesy of Blackfriar
The product contains sand suspended in the clear finish and is easily applied with a brush or a roller. For more information on the Blackfriar woodcare range, visit www.decorireland.com or telephone +353 (0)1 840 3969. Albany Home Décor is ‘the leading independent chain of stores in Ireland specialising in home decorating materials and accessories,’ says the organisation.
‘As such we have an unequalled range of woodcare products for all types of timber treatments and finishes.’ The Woodcare category is an important part of the interior and exterior coatings business and one of the more specialised and complex areas of coatings when it comes to project preparation and specification. ‘Projects involving timber will generally need to be treated with primers or seal-
‘Albany is abreast of all the new product developments.’
ers prior to top-coating and will often involve multiple coats with sanding between coats to get that perfect finish,’ says Albany. ‘Luckily Albany stores have the long standing experience and training in woodcare products and treatments to give their customers the right advice for each job. ‘Innovation at the manufacturer level is driving developments in wood protection through advanced coating formulations, even with lower VOC standards and waterborne products, and more colour choice and finishes becoming available all the time. ‘Again Albany is abreast of all the new product developments and is in a position to offer the customer the best in the world of woodcare.’ Some of the brands stocked in your local Albany store will include Ronseal, Sadolin, Sikkens, Woodoc, Rustins, Bondex, Colortrend, Cuprinol, Becker Acroma and Owatrol. For more information or advice on woodcare: www. albany.ie
Professional fixings Leading Supplier for Nails and Fixings Call Today for Specials on Free Display Stands
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September 2013
Counter Intelligence
Hardware & Homestyle News
You don’t have to be a big multiple to improve your sales from better space productivity, says John Hogan, director, Real World Retail (rwr), in the first instalment of this new occasional series.
Growing your sales and profits on your retail floor With so many external factors affecting our retail business, it is easy to forget that there is huge scope for growing or protecting our profits in areas that are entirely under our own control. Many retail shop floors comprise product ranges that are performing well and other ranges that are expensive shelf fillers. Identifying these poor performing areas and replacing them with better ranges is an essential part of growing your sales and margins. Department Measuring your retail space Department 1 Many hardware retailDepartment 2 ers do not approach Department 3 store productivity in an analytical way beDepartment 4 cause it sounds too Department 5 complicated. In this article we Department 6 show you how anyone Department 7 can do it. If you put a bit of time into this the Department 8 payback will be signifDepartment 9 icant. Department 10 You should see an increase in sales and margins, and you will reduce your inventory. Over time stock turn will improve and this will put cash in your bank. Exercise This exercise should take no longer than a few hours for an average store. You can use our stencil at http:// www.retail-pedia.com/course/view. php?id=24 or scan the QR code. First, list all of your departments on a sheet down the left. Next, get a measuring tape (one metre will do) and measure how many linear metres that you are giving to each department. A linear metre is a one-metre length of a standard floor fixture. Start with your standard floor fixtures and write in how many metres are being given to each department. If a department is taking up 2 shelves out of 4 shelves and a shelf is 0.8 of a metre, then it has 2/4 x 0.8 = 0.4 metres. This is not that hard to do, get someone to help you if needs be. Wall fixtures Next, start on your wall fixtures, these
generally will be higher so they are worth more. If your wall typically has 6 shelves whereas your floor fixtures have 4, then multiply your wall fixtures by 1.5 as they will carry 50% more stock. Finally, you will have miscellaneous fixtures on the floor that will need measuring. Use what is called the displacement method on these, if you emptied that stand on to a standard floor gondola, Existing Linear
%
Annual Sales
%
15.0
13%
90,000
12%
24.0
21%
135,000
19%
9.3
8%
90,000
12%
6.0
5%
7,500
1%
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3%
22,500
3%
27.0
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9%
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728,250
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what proportion of a metre would it take up? Extend the calculations for each department and you will have a total number of linear metres for each department. I would be very surprised if all of this took you more than an hour or two, so make sure you get it done. The most important thing is that you have calculated fairly how much space is being used by each department. Sales per Metre Now the hard work is done, put your yearly sales next to each department.
Divide the number of linear metres into the sales to give you sales per metre. Divide this by 52 to get the sales per metre per week. It will look something like the table below. What to do next On this sheet here, we can see that our average sales per week per metre is €120 per week. That’s now our new yardstick. Look at department 4, is that a waste of time? As a minimum it needs to be Sales/metre/week cut back and more space given to those 115 departments that are 108 performing better. 186 Department 10 needs more space – 24 are there more ranges 144 that we can buy to expand this space? 104 For each depart172 ment, what do we need to do to increase 144 customer satisfaction 87 and sales? 385 The overall aim here is to weed out the poor 120 performing ranges – which of those poor performers do you need to carry? Ranges Once you have worked this out, this will tell you how much extra space you have available for new ranges and more facings for existing ranges. Don’t be afraid to trial new products, these are an essential part of growing sales. Over a period of time, replacing poor ranges with better ones and constantly measuring your sales per metre will grow both your sales and your profits. This can be done as a stand-alone exercise or, better still, once you have done your homework on new product ranges, consider a makeover to give the store a fresh look to entice the customers in and sell more.
John Hogan is a director at Real World Retail, a software business that sits on top of Epos or ERP systems to ‘give the Retail Owners the real relevant information to make profitable decisions’. This is in the form of a Decision Support System that ‘grows sales and margins and reduces working capital and costs’. John can be contacted at 01 427 0349 or at john.hogan@realworldretail.com
September 2013
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Products
Hardware & Homestyle News
MASCOT goes green ‘One-Handed!’
New Catalogues Out
The MASCOT® UNIQUE range, which was newly launched in the Spring, now comes in green to allow for even more combination possibilities. MASCOT® UNIQUE also includes a range of products using Tencel®, which is made from eucalyptus trees. Tencel® is a natural fibre and extremely soft; it also has moisture-wicking and temperature controlling properties. Tencel® is actually 50% more absorbent than cotton and results in excellent wearer comfort. All the products have the additional advantages of polyester – wear resistance, dimensional stability and durability, wash after wash. The blend of Tencel® and polyester, developed especially by MASCOT, combines the best features of the two materials, we are told.
Dave Fallon tells us there are new catalogues for the three clothing and footware brands he represents in Ireland.
?
New Award for MASCOT in Vietnam
MASCOT’s Vietnamese factory has once again received an award. This time MASCOT was honoured as one of nine companies for having made a significant contribution to Hai Duong province’s socio-economic development with the creation of jobs of an international standard. MASCOT’s CEO Michael Grosbøl was thrilled: ‘The prize acknowledges that MASCOT is still in the elite competition with some of Asia’s largest international companies. I am proud and happy for this,’ said Grosbøl. MASCOT built its own factory in the industrial zone, Hai Duong, approx. 60 km from Hanoi in North Vietnam. It opened in March 2008 and today has more than 1,200 employees. From the beginning there has been a decisive focus on building safety and good and safe working conditions, and a consequence of this was that, in January 2011, MASCOT, became SA 8000 certified.
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September 2013
Innovative contemporary kitchenware from Joseph Joseph C-Pump ™ Single-handed soap dispenser. This unique and striking design blends distinctive styling with improved func-
Red Wing has you covered. For more than a century, workers have headed to demanding job sites feeling comfortable and confident with the knowledge that their feet were protected by Red Wing shoes. ‘Today, our full line of personal protective equipment provides this same peace of mind on life-threatening job sites across the globe. So whether it is footwear, garments or accessories, rest assured that the Red Wing logo stands for safety like no other.’
tionality ensuring hygienic benefits over conventional soap dispensers. The C-Pump can be easily operated with the back of one hand so you don’t have to touch the top of the dispenser with dirty fingers from handling raw meat, etc. Simply place the back of the hand into the C-shaped opening and press down to dispense onto the fingers or palm. The unit has a non-slip base, a soap level indicator window and is easy to fill and clean. www.josephjoseph.com
New product from Hycraft
Hycraft are this season offering two new draught excluders: Hycraft 2.1m and 2.5m lengths in Brown and White UV stabilised PVC selling out of the shop at e5 a length and coming with screws and a self-adhesive bottom-of-door brush strip, which can be cut easily. Hycraft is actively looking for an agent in the West and Northern Ireland. Ph: 01 847 0134 F: 01 848 4896 E: hycraft@eircom.net
Comfort inspired Base Protection Comfort is what has inspired Base Protection from its first day of activity. The company produces safety footwear, combining technology and functional requirements, to respond to professional and more demanding clients. The company’s ideas come from a team of young and creative designers. ‘Eco-sustainability, comfort, technology and efficiency are the company’s cornerstone, so that working is a pleasure in total safety.’ Carhartt, Fall Winter 2013. (See opposite for some of the latest products from Carhartt). Contact David Fallon on dave@ dfallon.com and 00353 83 4255212
Hardware & Homestyle News
‘Carhartt Launches Force® And Quick Duck @AplusA 2013 Dusseldorf to take on winter 2013’
Carhartt clothing is designed not only to help workers survive the elements, but to thrive in them. A premium workwear brand since 1889, Carhartt introduces many new styles for winter that are geared up for hard-working men, lead by the Force® line and four new rainwear jackets including the Bad Axe Jacket, which features Carhartt’s most advanced Storm Defender waterproof breathable technology. ‘We know that Mother Nature is going to test us daily with conditions that are hot, cold, sunny, rainy or muddy – and sometimes all of the above. ‘To get through it all, hard-working men need hard-working clothing and Carhartt’s line is up for the challenge,’ said Sue Fuller, general merchandising manager, Carhartt. Key styles for the winter 2013 apparel line for men include Force®, Storm Defender waterproof breathable rainwear featuring the Bad Axe, and the new Quick Duck products. New Products. Carhartt Force Shirts® Carhartt’s new Force® shirts deliver ‘unbeatable performance attributes and val-
sleeve T-shirt, short-sleeve Henley and the long-sleeve T-shirt. The men’s Force® Cotton knits are available in a variety of colors. ‘For the tradespeople and craftspeople whose work beckons, heat and grime is no match for this hard-working, sweat-wicking, stain-fighting shirt,’ said Fuller. Men’s Rainwear. With rain in the forecast, Carhartt’s outerwear assortment is built to withstand the severest weather. Carhartt introduces new rainwear options for men with varying levels of protection. The collection is designed for keeping you dry during the wet days at the worksite because ‘work days don’t have rain delays’. Bad Axe Jacket with Storm Defender Bad Axe Jacket. Waterproof breathable Bad Axe
Quick Duck
ue’, but more importantly, as a Carhartt shirt, ‘nobody comes close to its durability’. The new Force® line is built in rugged 65 per cent cotton/35 per cent polyester performance jersey knit blend and includes moisture-wicking and stain-release to make an ideal first-layer shirt for those who truly work with their hands. The shirts include Raglan sleeves to increase range of motion, offer smooth flat lock seams for added comfort, a front chest pocket making it more functional for the worker and are a cool 5.75-ounces. The line features three styles: short-
outerwear is not only impermeable to water, but also lets moisture vapour escape as you sweat so you remain dryer and at a more comfortable temperature. Featuring Carhartt’s Storm Defender waterproof breathable rainwear technology, the Bad Axe offers a three-layer waterproof breathable membrane, heavy-duty nylon reinforcements on the elbows, shoulders, cuffs and hem for added protection and fully taped waterproof seams throughout. The Bad Axe also features waterproof side zippers to allow for venting and easier tool belt access. The Bad Axe is offered in black. Quick Duck™ Woodward Traditional Jacket. Reach for our Quick Duck™ Woodward traditional jacket when you need to move with ease, and without fatigue. It’s constructed of Carhartt Quick Duck™ fabric. Made of 8.5-ounce, 60% cotton/40% polyester canvas with a durable water-repellent finish, it’s 30% lighter and ounce-for-ounce as durable as Carhartt sandstone duck. The jacket also features nylon lining quilted to midweight polyester insulation. Stow your items in six pockets: two
Products inside pockets, two chest pockets with flaps and snap closures, and two lower-front pockets. The left-chest pocket features a media port that lets you string a headphone wire to a cell phone or media player. For ease of movement, there are ergonomically designed angled cuffs, a pleated bi-swing back, and pleated elbows. The mock neck collar zips up to keep out the cold, a drop tail adds protection, and inner-sleeve rib knit storm cuffs seal in the warmth. Built Carhartt-strong, the jacket’s main seams are triple stitched. For more on Carhartt’s key styles for Fall/Winter 2013, check out www.carhartt-europe.com
CJSheeran Limited and Lonza Wood Protection
CJSheeran Limited and Lonza Wood Protection is offering a new TREAT-RIGHT performance warranty scheme on the Use Class 3 & 4 treated timbers the Laoisbased company produce. Paul Harvey, Lonza Ireland, explained the move. ‘In terms of achieving the very best performance treated timbers for both in and out of ground contact applications, we have always maintained that a quality preservative product has to be used correctly within a quality treatment application process.’ Mark Sheeran of CJSheeran said: ‘We are happy to offer a recognized warranty for our Timber Gates. ‘It is our flagship product and is noted for its quality and durability. ‘With the Warranty we can now really stand over our product. ‘Our timber products also comply with FSC (Forest Stewardship Council) which ensures that we use timber from sustainable forests.’ The Laois-based company has also got a manufacturing facility in Ballinrobe with depots in Limerick and Dublin. It is the largest provider of Timber Pallets in Ireland and also offers the widest range of Fencing, Timber Gates and Garden Products on the market. September 2013
43
Room outside
Hardware & Homestyle News
‘I don’t think it’s just a coincidence that words such as “Props”, “Staging” and “Theatre” are used when we talk about product displays and merchandising,’ writes Liam Kelly.
Merchandising – The Art of theatrical selling! to the store, while all of the time keeping the ‘show’ analogy in the back of our minds. There are many definitions and descriptions that try to explain what merchandising means but in anyone’s language it’s about creating a display that sells, and that’s not as simple as it sounds. Many factors come in to play, from choosing the right product for the right time of year, to where to place the display and what staging and props to use, not to mention what signage to use with the product. All of these factors when combined together effectively should have the end result of stimulating sales, which is of course the main – if not only – reason for creating the display in the first place. Although I will be coming from the plant and gardening side of retailing with my example, the same general rules should apply to anything you are trying to promote and sell. Basic merchandising can be broken down into a few simple headings, so let’s run through them in a logical order, starting with what you are trying to sell.
Product – The Star of the Show
‘You want customers to buy in to the “performance” you are putting on.’ 44
September 2013
If you think about it, are you not creating a show for your customers? You want customers to buy in to the ‘performance’ you are putting on, believe in the ‘dialogue’ you are communicating and ultimately – if reversely – pay the price of ‘admission’ by purchasing the product on show, not forgetting the addon goodies in the lobby that make the show more enjoyable. If it’s good they might come back again or at least tell their friends about it.
Store
Ok, let’s step off the stage now and return
This is of course the most important consideration. Are you trying to sell one product or a whole theme? For the purposes of this article we will settle on a product. Obviously it needs to be a timely and relevant product – there’s no point in promoting spring flowering Camellias in the middle of summer or Lavender in the depths of winter. This should be logical but I’ve seen both being attempted! Early autumn is the time when customers are looking for some colour to fill those tired looking planters at the front door. Their summer bedding is finished and with little Jimmy’s birthday party coming up they want some colour. Pansies, Primroses and mini-Cyclamen are the main items that fit the bill at this time of year. It’s always best to promote something that sells well anyway, as a 20-30% increase in sales of an already good selling product makes more sense than the same increase – or greater – on a slow seller. Also these items have a relatively good
Hardware & Homestyle News
profit margin – an important consideration. So, for the purposes of this article the star of our show will be mini-Cyclamen. (Many would argue their pros and cons as a bedding plant but they sell well and customers love them!)
be different but no matter what, think of what you are trying to achieve and what location can best achieve it.
Location – The Theatre
Every product lends itself to a different bench, stand or display unit. Our example – Cyclamen – works best on nested round, square or octagonal benches set at different levels. These should be 100cm approximately in width and varying from 20cm to 80cm in height. This combination lends itself to colour blocking on each bench, which looks better than a hodgepodge of mixed colours. Coordinating or contrasting colours also works well, such as all of the pink and purple shades together or contrasting red with white.
Where to place displays can be a little counter intuitive. Logic might make you think they should be in prime position outside your front door – a favourite location for hardware stores – or just outside the entrance/exit door to the covered plant area, but this may not be the case. Although I have nothing against plants being displayed at the entrance – especially in the case of hardware stores – in order to catch opportunistic sales –it does mean that you tend to miss out on the add-on and extra plant sales that can be generated by making the customer walk through the plant area. Every store is different of course, so go with what works for you but I would suggest that the main Cyclamen display should be at least half way in to the covered plant sales area in order to lead customers past other tempting stock arranged on end caps and there should be a clear line of sight to the display as soon as you enter the covered plant sales area. The rest of the bedding should be here also, again the purpose being to draw customers as far in to the sales area as possible in order to see more stock. As mentioned, every store tends to
Staging & Props – The Stage & Scenery
Vertical colour blocking
If you must use trolleys at your front door then vertical colour blocking is the way to go, as this will give more impact than mixed stock. (Also nicely dressed trolleys, wrapped neatly in POS material look better than rough looking, naked Danish CC trolleys!) Not all products look well on the above-mentioned round/square/octagonal benches. Bedding packs are best displayed on large rectangular tables while roses, for example, look better on deep 200cm by 100cm benches, and so on.
Room outside
Needful Things for September... September can be a strange messy month in the garden department, but it’s the month when people think about their autumn tasks. Sometimes they need a prod and a poke to remind them of what needs doing. Spring flowering bulbs should be selling well so keep a close eye on best sellers and stock that has sold out quickly – reorder if necessary. Autumn lawn fertiliser can be slow to sell so make sure you remind customers of its benefits. It’s back to school time so why not contact schools with offers on hyacinths or mini-daffs, pots and compost so that kids can learn to garden. Sow the seeds of the future! It’s a good time to start promoting apples and other fruit trees. Do an apple tasting day where customers can sample the fruit and buy the trees! Make sure you are well stocked with bedding and colour, and some nice pots too. Customers will be looking to brighten up their front doors and patios. Yes, even with those painted heathers! Tighten up stock levels, space and benches but make sure your plant area doesn’t look tired and empty. Neglect kills sales as well as plants!
September 2013
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Room outside So pick the bench that most suits the product. Props add a little theatre – we’re back there again – to displays. They should add to and not take anything from your display. With our Cyclamen example I would keep things simple by using a woodland theme of round logs and perhaps a mossy branch or two. These will soften the display without taking from the product. Think about what you are selling and what looks best with it and try to be original and quirky with your displays. The bigger the product the bigger the prop that can be used – a large hydrangea or rhododendron display can have old wheelbarrows, wooden barrels or even painted car tyres incorporated into the display. I have seen real beds adapted as bedding benches and have used baths and even toilets – cleaned of course! – to create displays that cause customers, to stop, smile and usually purchase. Never be afraid to try something different.
Link Sales – The Concessions
Add-on sales, link sales, cross sales – call them what you will but they are an important part of increasing the average spend of the customers in your store. Some of this can happen with the sales person or at the tills but it should start with the display. Consider what you are trying to sell and what items a customer might need with the product. Using our example, our cyclamen purchaser might need compost, pots, fertiliser or any number of other items. These should be included in the display without creating clutter or detracting from the core product. Our red and white cyclamen ‘layer’ could have some nice red or black pots displayed neatly with perhaps a few on the ground too. One of the aforementioned logs could act as a plinth for a couple of containers of slow release fertiliser, trowels and gloves. Be practical, though don’t put anything into the display that can’t be wiped clean, will fade quickly or get damp. These items are also an aid to staff who can highlight them to customers as they answer queries, which is an easier sale than trying to lead customers back
Hardware & Homestyle News into the shop to show them the fertiliser they need or, worse still, just pointing them in the vague direction of the garden care section. Never put overly negative products into a display. For example don’t put rose fungicide/insecticide products with roses, as it’s telling the customer that these roses are high maintenance.
Signage – The Posters
Point-of-Sale signage is such an important part of the display I’m constantly surprised at how often it is poor or non-existent. More often than not it’s an after thought, or a ‘no thought’! POS signage should tell the customer in as few words as possible why they need to buy this product, or in other words what are its benefits. With our cyclamen the benefits are pretty straightforward. ‘Instant Colour’, ‘Easy to Grow’ and ‘Ideal for Containers’ are all good, positive points. Where there is an offer on a product then that should take precedence over the benefits. Again using our example of the Cyclamen we could have a multi-buy of ‘5 for €10’ – don’t forget to show the saving too. These signs should be at eyelevel and A4 size. Take a trip around your local supermarket, look at how they use POS. It’s not perfect but they often lead the way with the use of colour, wording and message – especially with regard to special offer signage.
Monitor how customers react and shop from your display and change it if necessary to make sure you are achieving the most from it. Move it if need be, change your offer, or your supplier, or your link sales. MAKE it work! Measure your sales and see how your stars are performing on their stage – yes, we’re back to that analogy again – compared to last year’s figures and this year’s targets. Aim to sell more than your previous year and focus on the previous two ‘M’s to achieve this.
Finally – The Closing Curtain
It’s important to know when your run of a product is over, it could be because you’ve run out of stock, or the product is just starting to fade or it has gone out of season. No matter what, know when to clear stock; don’t let the show have a lingering death! Marking down stock – if need be – to achieve zero wastage is vital to maintaining your margin and keeping your plant area looking tiptop. So when the time comes, move your cyclamen to a clearance bench and start with something new. Now it might be time for those Camellias… Of course you will have more than one key display, and they will change with the seasons but the key points and principles are always the same. And they also apply to most stock, not just plants and garden care. Giftware, household products and all of the other departments should be treated in the same way. Keep thinking of the original analogy I made and the key word – ‘Performance’. Find the performers, scout the location, build the set, set up the concessions, put up the posters, check the review and finally know when to drop that curtain! Break a leg!
‘Where there is an offer on a product then that should take precedence over the benefits.’
Maintain, Monitor & Measure – The Reviews
These three ‘M’s are all crucial to the success of any merchandising display. Maintain the display by keeping it tidy and stocked. Don’t be afraid of having extra stock neatly on the ground under the bench to quickly top-up a fast selling display on a busy day. There’s nothing worse than a half empty key display at 3pm on a busy Sunday!
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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Hardware & Homestyle News
Room outside
Garden outlets continue to evolve As our gardening correspondent Liam Kelly points out, garden centres have become destination shopping experiences offering Food, Gifts, Christmas shops and events as well as the usual merchandise. One stark example comes to mind: compared to 2011, the Garden Centre Association in the UK reported that plant sales for 2012 were down 13.03% for the year. Seed and bulb sales fell by 8.21%. Catering meanwhile was up 8.84%.
to Cois na h’Abhann in Wexford good food is all part of the offering, attracting customers in and making them want to linger. We’ve even heard tell of a Michelin Starred restaurant in a garden centre in the UK. Meanwhile the industry continues to respond to such developments. For example, we see that the Catering Zone at Glee has moved to the front of Hall 5 for 2013, ‘in recognition of the lucrative value of catering areas within the garden world’.
Changes
Considered
Yes. Garden centres have experienced huge changes in recent years. One of the major developments of the last decade has certainly been the growth in significance when it comes to food. From Arboretum in Carlow
Pets is also an area that many in this sector have considered. Whether going all the way and keeping live animals or simply providing food and accessories for man’s best friend this has further widened the appeal and the offering of many
concessions. Turning to concession retailers can mean repeat visits throughout the year and, perhaps a little less worrying being done about the weather. Obviously, this is something that should be of interest to Irish Retailers where, it seems we are never far away from our next downpour. Extra income can be generated for the host operator in addition to increased footfall due to the variety of the offerings.
Relationships
outlets. The latest news to reach us seems so often to concern
Concessions can often include areas that have obvious relationships to the garden sector such as Pets and Leisure but there really are few limits. We have heard for example of space in Garden Centres being used for car sales promotions.
Kerbside Appeal: The Economic Benefits of a Well Kept Garden Activity levels and general interest in gardening are still high. It’s little wonder. There are, according to Bord Bia, some great economic benefits to a well kept garden. Kerbside appeal: The economic benefits of gardening are multiple. A house with a neat front garden usually rents or sells quicker than one without. A home with a garden usually rents or sells for more. Gardens offer kerbside appeal which boosts the value of your property. Make a financial return: Gardens are an expense but unlike other pastimes, the investment is returned not just in enjoyment but in actual financial benefit: yields of cut flowers, herbs and vegetables can be very valuable The value of trees: Scientists have estimated that a single garden tree with an average 50-year lifetime, generates €24,644 worth of oxygen, delivers €48,902 worth of air pollution control and will recycle €29,573 worth of water. Improved economic activity: Urban and street planted trees enhance economic stability of localities and community by attracting businesses and tourists. People are known to linger and shop longer along tree-lined streets. Increased productivity: Businesses leasing office spaces in developments with trees find that kerbside appeal works and will have higher occupancy rates. While employers in such developments find their workers are more productive and absenteeism is reduced. Similarly interior landscaping of workspaces increases productivity and staff health.
September 2013
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Hardware & Homestyle News
Buy The Book
Small Steps by Paul McNeive Ballpoint Press Ltd. Small Steps is available in bookshops and online in paperback and digital download formats. Price: e14.99 in shops or from addresses below / less than e10 on Kindle and iTunes. ‘You tend to remember where you were when you were asked for consent to amputate your legs.’ Paul McNeive captures the reader’s attention from the first sentence in his new book Small Steps. Small Steps is a fascinating personal story and a motivational business book rolled up into one inspiring read. In his book, Paul reveals how he turned the loss of his legs in a fire at age 20 into a life of positive achievement, which included becoming a leading player in Irish business life. The pages of Small Steps trace Paul’s tenacity in returning to work on the lowest rung and his determination in climbing the ladder to lead his company into numerous multimillion euro deals. Throughout this journey Paul shows how he applies the lessons he learned in rehabilitation and his newly discovered mental strength to his business career. The book combines entertaining stories with practical advice on how to get ahead in business. Small Steps also tells how the author defied precedent by becoming a helicopter pilot while his love of music blossomed into touring the world as a professional Bono impersonator. Small steps is an inspirational and
Name: Gary Graham Current position: Bloom manager and marketing exec for amenity horticulture in Bord Bia. Length of time in present role: 11 years. Professional background: Horticulture, marketing, business management, export development, and more latterly event management.
practical read with compelling positive messages - a perfect antidote for post-Celtic Tiger Ireland! Paul McNeive now works as a consultant with a number of high-profile companies and is also in demand as a professional speaker. This month Paul lends his own brand of inspiration to the pages of Hardware and Homestyle News in a specially written feature. For further information: Contact Paul McNeive on 0872577244 or 01 2867318, info@paulmcneive.com or ballpointpress1@gmail.com
– Powerful Questions that will transform your life by James Sweetman
Soar is a strikingly powerful yet practical handbook that will inspire and challenge you to turn your dreams and ambitions into reality. New answers and new solutions to old problems are only discovered by asking new questions. Soar contains those questions. Reading this book you will learn strategies that will help you: •Transform your relationships •Revolutionise your career
What attracted you to your current position? Opportunity to combine my training and experience in marketing and horticulture. What do you see as your main goals and challenges going forward? Building on success of 2013 and ensuring that the ‘hort’ sector benefits from my work. The combination of poor weather and poor economic conditions have knocked the stuffing out of a lot of ‘hort’ businesses. What have been the highpoints for you? 110,000 visitors at Bloom which is still in its infancy suggests that we are doing something right. What makes you feel most fulfilled in your job? Working with creative people and seeing them get as excited as I am about the opportunities.
Soar
Price: €14.99 plus postage and packaging. Soar is available from www.jamessweetman.com
Me And My Job
•Enhance your finances •Boost your health and fitness •Feel more fulfilled •Simply have more fun! People often say ‘just think positive,’ this book shows you how. Soar is in some bookstores, but can be bought online via www.jamessweetman.com
What do you see as the main challenges facing the industry? Lack of profitability. Is there anyone who has been inspirational to you or who you particularly admire in the industry? I still remember the great encouragement that I got from Dr David Robinson, no longer with us. The people I admire most now are not well-known faces. They are mostly running small businesses, paying their staff and their bills and remembering their families. What are your interests outside of work? Creative writing, dancing and the occasional hour of gardening.
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The Final Say
Hardware & Homestyle News
Picture the scenario, you were considering investing €25,000 in your business by installing a state-of-the-art IT system. Such an investment would require detailed research. You would have to feel confident it would meet your current and future business needs, that it would be compatible with your business processes and that you would see a return on your investment. Now contrast that with the time and effort you put into recruiting a new member of staff with an annual salary of €25,000.
Enhance your recruiting skills (Part One – Interviewing Skills) Many organisations, particularly small and medium-sized businesses do not have a HR or recruitment specialist to assist them when hiring staff. In the first of two articles on the topic, I share some practical strategies to enhance your recruitment, and in particular, your interviewing skills.
Know the competencies you are seeking
How will you recognise the right candidate for the role you are filling? You start by clearly identifying the skills and qualities you are seeking. The word ‘competency’ is frequently used today in the context of interviews. A competency is simply an important skill or attribute that is required to do a job effectively. For example, if the job is a customer service role, the competencies would include good communication skills, customer service focus and a friendly and helpful attitude. A useful place to start is to think of the ideal person for that role, what qualities, experience and skills would they have? Perhaps you have had someone who performed that role successfully in the past. If you were to clone them, what skills and qualities would you want to replicate?
Gather the evidence The purpose of an interview, indeed the entire recruitment process, is to gather evidence so you can make an informed decision. Questions are the main tool you will use to do this. For each competency you are seeking think of three or four questions in advance. (I will share some effective interview questions in part two of this article.) There are three categories of questions you can use to assess a competency. The first and by far the
most common is to ask the candidate to share examples of times in the past when they demonstrated the required competency. For example: ‘talk me though a time when you dealt successfully with a difficult customer.’ This approach is based on the thinking that the best indication of future behaviour is past behaviour. The second way a competency is measured is by giving the interviewee a hypothetical situation. For example, to assess organisational skills you could ask: ‘if two colleagues are seeking something from you urgently, how would you go about prioritising their requests?’
Scenarios
Hypothetical scenarios are often used when candidates may not have past experiences to draw upon. They can also be used to test candidates’ ability to think on their feet. If a candidate is able to answer the hypothetical questions satisfactorily, it gives you confidence that they would be able to manage themselves well in that scenario in the work environment. The third way a competency is assessed is by asking the candidate to share their understanding of what a particular competency means. For example, in your opinion what makes for great customer service? If a candidate cannot share some of the components of good customer service (remembering we are all customers) it doesn’t bode well. Some competencies are assessed directly during the recruitment process. For example, for a sales role, ask the candidate to sell you something during
‘Start by clearly identifying the skills and qualities you are seeking.’
the interview. If the role involves delivering presentations, then this should be part of the hiring process. Of course all candidates are assessed on their communication skills during the interview itself.
Will over Skill
As a general rule skills can be taught, it is far more difficult to adjust someone’s attitude. You could have the most experienced and qualified person in front of you, but if you cannot see them blending into your organisation then they are not the right person for the role. As Richard Branson once said, when thinking of hiring someone, ask yourself would you like to sit beside them on a flight to Australia? If the thought of spending time with them doesn’t appeal, then don’t hire them. At the same time, as an interviewer you have to be aware of bias. You might gel with a candidate because they went to the same school as you did, or they live in the same area, but are they the most qualified or suitable person for the role? The way to be sure is to make the case for hiring the person to a third party; this will get you to focus on the logical evidence for hiring them.
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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