6 minute read
Column: BHETA
Bouncing back
Online and bricks and mortar is seeing a resurgence says Will Jones, chief operating o cer at BHETA
Latest advice is that thanks to the rapid roll out of the vaccination programme, ‘herd immunity’ from Covid 19 is possible by August (in the UK) which, if all goes according to plan will coincide with Exclusively, the most important UK housewares show. A really positive sign for home, tableware and kitchenware sectors!
This prompts me to say, what a di erence a year makes! All those months ago, in March 2020, when no one knew what to expect, we certainly did not predict the signi cant boost in demand from May 2020 onwards for home enhancement products generated by lockdowns and the stay at home lifestyle.
As a result of that lifestyle, there have been some spectacular performances from BHETA members who have been able to plot the right routes to stock and to the end-consumer through all the di culties. Many had a good year in 2020 and as a team, we are optimistic about 2021. There are, of course, big challenges around stock availability, raw material prices, freight costs, unemployment and tari s. Some serious issues which BHETA is addressing with advisory webinars and where appropriate, lobbying – as with the plastic packaging tax and the responsible retail of bladed items. But there is also much to be positive about such as consumers’ renewed enthusiasm for home enhancement, which shows every sign of staying strong well past the return to ‘normality’. Success is now all dependent on suppliers’ and retailers’ ability to respond to the market as it is now – online and let’s not forget, the renewed potential of specialist bricks and mortar.
The most recent lockdown has of course impacted YOY sales performance in Q1 with household goods, which had both made a strong recovery since summer, slipping back into a YOY decline in January. But this was mitigated by mail order and ecommerce as it continued its upward surge. With electricals up 2.4 per cent overall, this leaves the SDA sector and homewares combined in overall growth despite the early year wobbles.
There is no denying the impact of online in these gures - and the need to adapt to the implications. Consumer con dence grew about online mainly because it had to during lockdown, but the largely positive experiences in terms of service and delivery, have seen it become accepted as the norm even for products until recently only ever purchased via traditional routes. It is no longer just about price. Convenience and choice have now become key as even previously reluctant users have tested the formula and found it more satisfactory than expected. The concept of buying direct from the supplier and skipping the retailer altogether has also become much more familiar, allowing as it does a democratisation of choice. There is no longer the limitation of a range that has been curated by a retailer, something which is an inevitable aspect of a purchase in store.
So where does that leave bricks and mortar retail? It is interesting to read the latest forecasts from Deloitte. Deloitte’s ndings suggest
About BHETA
The British Home Enhancement Trade Association (BHETA) is the voice of authority on everything home improvement and home enhancement, including DIY, housewares, garden, small domestic appliances and home decor. It represents £5 billion at retail and 9,000 employees and brings together manufacturers, suppliers, retailers and opinion formers to drive growth at home and abroad. For more information about retailer and supplier co-operation, contact BHETA on 0121 237 1130, or email wj@bheta.co.uk, or
Will Jones, chief operating officer, British Home Enhancement Trade Association (BHETA)
that Britain will see ‘a sharp snap back’ in consumer spending as lockdown eases and that this will be driven by a desire to return to the experience of shops. In its Consumer Tracker ‘going to a shop’ topped the list of leisure activities consumers are most likely to do after lockdown, with 63 per cent saying they plan to return within a month of lockdown restrictions easing.
This perception of shops as a leisure destination coincides with the biggest jump in consumer con dence that Deloitte’s tracker has registered since it was launched 10 years ago, with consumer con dence levels up six per cent overall in the rst quarter of 2021. Within that statistic is an eight per cent uplift in sentiment around health and wellbeing and a 12 per cent uplift in shopper sentiment around the state of the UK economy. Deloitte’s chief economist Ian Stewart is quoted as saying, “High levels of saving, the successful vaccination rollout and the easing of the lockdown set the stage for a surge in spending over the coming months.”
Just as the potential of all this is predicted to come good, the new live again Exclusively seems like the perfect opportunity to explore it. Exclusively returns on August 24 and 25 at The Business Design Centre and it will be a great opportunity for suppliers and retailers to make the most of the changes in lifestyle that we have seen in the last 12 months. Over 130 companies and over 300 brands will be exhibiting, and the event will include expanded versions of its most popular features such as the Brand Showcase, the Trend Tours and Displays and the Scarlet Opus seminar programme. So, all being well, the housewares sector is in a hugely positive position for bounce back if we ensure we are ready for it. For more information about BHETA networking, business support services and the Exclusively Show, contact BHETA member services manager, Nicola Adams on 07946 078566 or na@bheta.co.uk. To register as an Exclusively visitor, go to www.exclusivelyshows.co.uk.
