ier Retail October November 2014

IRISH ELECTRICAL REVIEW

ier ·Retail for independent retailers, multiples and buyer groups

October/november 2014

Shaws Opens New Euronics Department in Dungarvan

interview: Brema Drohan, Nespresso GfK Update for q3 what’s new in coffee makers Page 4

Page 10

Page 11

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news

“Tax Cuts Will Support Retail Recovery” Says Retail Ireland Retail Ireland, the group that represents the retail sector, said that the consumerfriendly elements of Budget 2015 will provide welcome support to the retail sector, which has felt the full brunt of the recession.

Frank Gleeson, Retail Ireland Chairman, said: “Cuts to income tax will boost consumer spending and support job creation. The budget will put more money back into the economy, this will ease the pressure on the embattled retail sector. After years of tax hikes, there is now some relief for Irish consumers.

“Tax reductions and changes to the USC are a clear signal that the tough years of austerity are finally behind us. Retailers also welcome the retention of existing VAT rates and the freeze in excise duties on alcohol and fuel. Combined, this will provide a major boost to consumer sentiment in the run up to the busy Christmas trading period.

“The value and volume of retail sales have increased every month for the past nine months. Consumer confidence is now at its highest level since 2007. The measures adopted in Budget 2015 will further strengthen this positive momentum. This will help safeguard retail’s future as Ireland’s largest industry and most geographically diverse employer.”

Electrical Sales Up in Value Retail Ireland had earlier welcomed publication of the CSO’s Retail Sales Index for August 2014, which showed the ninth consecutive monthly year-on-year rise in both the value and volume of retail sales.

While the value of all sales rose by 5.3% in August, when new cars and sales in bars are excluded, the total value of sales rose by a more modest, albeit healthy, 2%, compared with August 2013.

Frank Gleeson, said: “The latest figures show that the recovery in the domestic economy is gaining momentum. This growth in sales is led by furniture, lighting and products for the home with an impressive 14.5% increase in the value of such sales over the same month last year. Additionally, the value of sales in electrical outlets rose by 5.1%, those in supermarkets by 2.9%, and those in department stores by 2.2%.

“However, an analysis of August’s statistics also shows that we cannot afford to be complacent. The value of sales in specialist stores, including grocers, butchers and off licences, saw a combined fall of 3.5%, while sales in pharmacies fell by 2.2%, indicating that some operators continue to struggle and highlighting the fragility of retail’s recovery.”

ier·Retail

Bosch to Acquire Siemens’ Shareholding in BSH Bosch and Siemens have agreed that Robert Bosch GmbH will acquire Siemens’ 50% stake in the joint venture BSH Bosch und Siemens Hausgeräte GmbH (BSH).

The transaction has been approved by the Board of Management and Supervisory Board of Bosch and the Managing Board and Supervisory Board of Siemens. The purchase price will total €3 billion. In addition, Siemens and Bosch will each receive from BSH an additional distribution of €250 million before the transaction is completed.

The transaction, which requires regulatory approval, will probably be completed in the first half of calendar year 2015. BSH will then become a wholly owned subsidiary of the Bosch Group.

Under the terms of the agreement, BSH will also be allowed to produce and market household appliances under the Siemens brand over the long term.

Representatives of Bosch and Siemens in Ireland were unable to confirm to IERRetail what the implications of the deal, if any, would be for the brands in the Irish market.

“BSH has been a successful and profitable company for many years.

Strategically and technologically, it is a perfect match for the Bosch Group,” said Dr Volkmar Denner, Chairman of the Board of Management, Robert Bosch GmbH. Like the Bosch Group, BSH pursues a longterm, innovation-orientated strategy, is internationally positioned, and committed to good corporate citizenship.

“The sale of our BSH stake is part of our drive to continue focusing very intensively on our core business,” said Ralf Thomas, Siemens Chief Financial Officer. “In a constantly strong partnership over the last few decades, Bosch and Siemens have made BSH a successful leader in the area of household appliances. By uniting continuity with new perspectives, I am convinced that Bosch’s complete acquisition of BSH will offer BSH’s customers, distribution partners and employees a very solid and sustainable structure. The negotiations with Bosch were always constructive and based on a spirit of mutual trust.”

Saorview Connected and Enhanced Channels Line-Up Saorview is working on developing a connected solution for Saorview that will provide access to on-demand content delivered over the Internet, in addition to the television channels delivered over the DTT transmission network.

Jim Higgins told IER-Retail: “We are currently in procurement and will release details of our plans once we are in a position to do so.

“We are also hoping to enhance the line-up of channels on Saorview from the start of next year and we are working with broadcasters to deliver that. We are currently in commercial discussions and hope to be able to make an announcement in November.

“We are continuing to promote Saorview in Q4, and if there are any promotional opportunities in your area that you want to pursue, or any angles that you think we can cover via local media, please let us know.

We are not promising that we can cover every request, but we will do our best to facilitate you in your support of Saorview.

“We now have a video available on a Saorview-branded USB stick of key stills from the recent Saorview TV ad. This is intended to be plugged into the USB socket of a display TV and set on repeat play, and will help to strengthen your Saorview instore presence. We gave some of these out recently at the trade shows, but if you need some just email jim@saorview.ie and we will arrange to get them out to you.”

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news

Beko 6-Litre Dishwasher Highlights WaterSaving Consumer Campaign

Whirlpool Acquires Majority Stake in Indesit On 14th October Whirlpool Corporation and Indesit Company announced that Whirlpool has completed the acquisition of a majority stake in Indesit, acquiring 66.8% of the Indesit voting stock.

Whirlpool will soon be launching a mandatory tender offer (MTO) for all remaining shares of Indesit in accordance with Italian law.

Marco Milani, Chief Executive, Indesit Company, said: “The process of fully integrating Whirlpool and Indesit will, of course, take some time. During this initial phase of integration, while we are now part of the same group and no longer competitors, Whirlpool and Indesit will continue to operate as two separate companies.

Throughout September and October, Beko Ireland ran a consumer-focused campaign raising awareness of the water saving efficiencies of its DSFN6839W 6-litre dishwasher. Household guru Aggie Mackenzie put Ireland AM presenters Alan Hughes and Mark Cagney through their paces, explaining the dishwasher’s many helpful features such as its practical internal layout, whisper quiet volume levels, and Autosense programme that senses the dirt level and adjusts the washing parameters accordingly. She also gave viewers tips and demonstrated how to fill a dishwasher properly.

The week-long item and competition, which gave away three appliances, also ran on Facebook, which received hundreds of comments from consumers. Radio coverage included a national campaign and two popular local competitions on Q102 and LMFM, and the dishwasher also appeared in print in Woman’s Way. The dishwasher campaign is part of Beko’s product-centric marketing that highlights how the range meets consumers household needs.

Shane Kelly, Marketing Manager, Beko Ireland, said: “The average dishwasher cycle can use 26 litres (six gallons) of water and there is a high cost attached to that.

Household expenses are one of the biggest outgoings for Irish consumers so saving water and energy can have a real impact on their spend and savings. Now is the time to look at household appliances in terms of their efficiencies in light of the water charges coming in and at Beko we design products to help make families everyday lives easier – whether that’s by saving them time or money.

“In addition to being water efficient, Beko’s DSFN6839W is whisper quiet at 43dB, so it is ideal for open plan kitchens, which are increasingly popular within Irish households.

It also has a Quick & Clean programme that will complete an A-rated full load wash in 58 minutes – ideal for busy family life.”

As with all Beko appliances, the DSFN6839W dishwasher utilises leading technology, turbo fan drying for fast drying, and a mix wash cycle to protect delicate items such as baby clothes.

Full product details are available at: www. beko.ie/Item/DSFN6839#White

“Dealers should expect that: 1. We will honour our existing agreements, 2. We plan to use the same processes for setting agreements in 2015, and 3. You will keep your same contacts for Whirlpool and Indesit, respectively.

“While we cannot speculate about the future, we remain committed to keep our dealers informed as decisions are made throughout the integration process.”

Electrolux to Buy GE Appliances In its largest acquisition ever, Electrolux is to buy GE Appliances for $3.3 billion (€2.6bn), creating a strong platform for growth in the North American appliance market.

Keith McLoughlin, Electrolux President and Chief Executive, said: “This is an historic moment and important strategic move for the Electrolux Group, which takes our company to a new level in terms of global reach and market coverage.”

The acquisition will also include a 48% share in Mabe of Mexico, with which GE has operated a joint venture for the past 30 years.

IFA 2014: Global Trends are Driving the Market Never before in the 90-year history of the event have so many products made their world debut at IFA. Global trends such as networking, wearables and further improvements in the images and sound produced by digital TV and hi-fi systems have reached new heights.

The

2

reactions

from

retailers

and

consumers to the many products making their world debut were extremely positive.

Over a period of six days alone IFA 2014 generated orders totalling €4.25 billion, and follow-up business is expected to be good.

IFA’s unique blend of product innovations, stars and entertainment, presented by 1,538 exhibitors on a display area covering around 149,500 square metres, attracted

more than 240,000 visitors. The floor space occupied was larger than at any previous event in the history of IFA. IFA is the world’s leading trade fair for consumer electronics and home appliances and next year’s event will take place on the Berlin Exhibition Grounds (ExpoCenter City) from 4th _ 9th September 2015.

ier ·Retail

news

Whirlpool Water and Energy Savings Promotion Whirlpool is launching a Water, Time and Energy Savings promotion, starting from the end of October and running until 31st December, to highlight that consumers can save up to 70% on water, time and energy with Whirlpool’s 6th Sense technology. There is also up to €100 cashback on selected appliances.

Models included in the cash-back promotion are the WWDC 9440 (€100 cash-back, RRP €499.99); WWDC 8440 (€50, €449.99), WWDC 7440 (€50, €399.99), AZA 8781 (€50, €499.99), AZB 8570 (€50, €399.99); ADP 500 (€50, €399.99), and the ADG 5010 (€100, €499.99).

New Appointments New

appointments

at

Whirlpool

Ireland

include Robert Victory as Key Account Manager, who previously worked for Fossil and Pepsi, and Therese Doherty as Supply Chain Manager, previously with Hewlett Packard, who replaces Mark O’Connor, who is moving to Whirlpool Nordics.

Live Cooking Demos Whirlpool Ambassador Catherine Fulvio will be endorsing Whirlpool appliances and holding four live cooking demonstrations over the next few months at JJ Dwyer’s in Cork (on 24th October); Briscoes, Drogheda (21st November); Dominic Smith Dundrum (30th November); Briscoe’s Arnott’s (11th December).

Catherine will also be showcasing the best of Leinster in the first of a brand new series, The Taste Of Success, on RTÉ One on Tuesday 21st October. Eight contestants included wild forager Mary with her Beech Leaf Liquer, novice baker Eleanor with a great gluten-free bread, and Sharon who creates a honey alternative with her Dandelion Flower Preserve – but four were going to go home after the show.

This brand new series offers one of the biggest prizes in Irish television history – €100,000 and the opportunity to get your new food product on to the shelves of over 140 Lidl stores.

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news

Electrolux Announces Design Lab 2014 Finalists In the future, vegetables can be made to taste like hamburgers, bath towels can be purified and dried in seconds, you can ‘hunt’ food in your kitchen, create a dress from plastic bottles, and create your own microclimate, according to contestants at the Electrolux Design Lab competition.

In 2014 the global student design competition received over 1,700 submissions offering solutions to Culinary Enjoyment, Fabric Care and Air Purification in the future home environments. The winner of the competition will be chosen from the top six finalists after presenting their concepts to a jury in Paris on 12th November 2014.

Lars Erikson, Head of Electrolux Design and the Design Lab jury, said: “For this year’s global design competition we asked students to submit concepts based on our theme ‘Creating Healthy Homes’. In the end, we selected six finalists out of 1,700 entries.

The finalists’ concepts are truly innovative and offer new ideas on how we might be living our lives in the future, whether it’s eating healthier or being more sustainable.”

First prize will be awarded to the student that the judging panel highlight as creating a ground-breaking design solution of the future. This student will receive 5,000 Euros and a six-month paid internship at an Electrolux global design centre; second prize is 3,000 Euros; and third prize is 2,000 Euros. The student whose concept receives the most public votes online will be named the winner of the People’s Choice Award and will receive a prize of 1,000 Euros. This

vote has now ended and the winner will be announced at the final event in Electric, Paris, France.

Lotus, Fulden Dehneli, Turkey, is an air purifier with three portable and rechargeable air cleaning balls, named Pure Ball, Odor Ball and Humid Ball. Super Plasma Ion Technology generates active hydrogen and oxygen ions that eliminate biological contaminants and active oxygen where they locate ( http://bit.ly/lotus2014).

UrbanCone, by Michał Pośpiech, Poland, creates healthy microclimates outdoors is an automatic, radio-controlled smart device that clusters in population centres with greater need for filtration (http://bit.ly/ UrbanCONE2014).

Set to Mimic, by Sorina Răsteanu, Romania, is a set of smart kitchenware that recreates tastes and smells of your food to your preference. By placing a noninvasive transparent gel patch with a microchip on your head, the plate and glass communicates wirelessly with your brain, to make you experience a taste or smell from the past by tapping in to your memory (http://bit.ly/SETTOMIMIC2014).

Future Hunter-Gatherer, by Pan Wang, China, projects a hologram that lets the user play a game to gather food by fishing, hunting or gathering the food from nature.

The food collected is then transmitted to the local grocery store or market, which in turn gathers the goods and deliver them to the

Paul McGinley Named Philips Manager of the Month Philips Ireland has named Paul McGinley, Manager of the European Ryder Cup team, as winner of the Manager of the Month for September 2014.

On 28th September, after the conclusion of the singles matches, the European team defeated the USA by 16 1/2 to 11 1/2 points.

This was Europe’s eighth victory in the past 10 contests.

Paul McGinley has previously played in three victorious Ryder Cups and is the first Irish Manager/Captain ever to manage the Ryder Cup in its 40-year history.

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user’s door (https://www.youtube.com/wat ch?v=vSQWhjMGI7k&feature=youtu.be ).

PETE, by Kovács Apor, Hungary, merges plastic bottles and creates garments from them according to your taste. The consumer only has to choose the required clothing type, colour and cutting, while the machine gives the amount of PET bottles needed for the fabrication and turns the bottles into polyester and prints the garments (http:// bit.ly/PETE2014 ).

PureTowel, by Leobardo Armenta, Mexico, is a smart towel hanger that instantly cleans your towel after usage, creating a cleaner and healthier bathroom. Using an ultra violet ray and a high-speed dryer fan, it purifies and dries the towel in only a matter of seconds (https://www.youtube.com/watch ?v=ITbeWXNhHCM&feature=youtu.be).

Steam that Christmas Turkey!

With Christmas fast approaching, John Lawlor, Sales Manager Ireland at Electrolux Ireland, said: “Our Christmas message to our retailers would be to encourage and advise customers to invest in high quality premium products. As well as saving consumers money on the energy saving vacuum cleaners they receive real value from both a quality and longevity perspective.

“Electrolux products also offer efficiency from an energy saving point of view too. For example, the Electrolux CombiSteam oven is rated A-10% _ which is 10% more energy efficient than standard A-rated appliances, helping to save money. Plus steam is also great for creating delicious and healthier food _ succulent and moist on the inside and crispy on the outside.”

ier ·Retail

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• Hand Mixer - Compact, clean and designed for practical use, the kMix Hand Mixer will help with baking tasks… or simply be admired.

• Kettle - Attention to every detail is the signature of the range, Sure GripTM details make the kettle handle comfortable and secure

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Available Now Free Kenwood Kitchen recipes app also available to download

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news

Exertis Trade Event at Druids Glen Raises €675 for IEBA Exertis recently combined a business presentation involving its vendors and dealers with a golf tournament and dinner in the magnificent Druids Glen resort in Co Wicklow.

During the morning session, visitors were able to view and discuss the company’s complete range with expert staff and, following the golf tournament, all were treated to an excellent evening of entertainment.

Following the prize giving, the company raffled two tablets with the attendance raising a very welcome €675.00, which was donated to the Irish Electrical Benevolent Association.

James Hancock, Patrick Geraghty, golf professional, with Mark Forbes and Tony Pender who try to ‘Beat the Pro’.

Mark Briscoe, Chairman, Expert Ireland; Ciaran O’Reilly, Chief Executive, Expert Ireland; and Derek Joyce; Vice Chairman, Expert Ireland.

GfK Expands Product Coverage GfK has added three additional product categories to the reporting portfolio for the Republic of Ireland. Data is now being collated for headphones, soundbars and docking speakers. This will further increase the wealth of data available to manufacturers and retail partners.

Colm Mallon, Territory Manager Ireland, said: “Over the past 18 months, we have had huge improvements in our retail panel and we now work with the vast majority of electrical retailers operating in Ireland. This has allowed us to further improve the quality of our reporting and now we can expand the areas that we cover.

“Soundbars offer a great opportunity as they have a low ownership level and

a weak attachment ratio. With sales in larger, thinner TVs growing, bundle sales offer a real opportunity. Docking speakers also have low ownership levels and with smartphones being the main mobile music device, the amount of smartphones in the market offer a very large potential market for these products.

Early headphone data is very promising. Though we can’t yet offer a full-year picture, as we have only been tracking the figures since April, indications are that this market could be worth in the region of nearly €13 million a year. This would put it ahead of more traditional categories such as DVD players, MP3 players and sat navs in terms of annual value.”

Wayne Redmond, Exertis; Daniel Rafferty, Epson; Mark Walker, BTech; and Brian Marron, Carrickmacross.

Derek Joyce, Wexford; Damian Guirin, Exertis; Liam Donoghoe, Apple; John Coogan, Exertis; and Brian Mahon, Exertis.

Harvey Norman Targets to Break-even in Ireland in 2015-2016 Retailer Gerry Harvey has sharply

18 months to two years. He has also

refuted a report that questions Harvey

questioned the sustainability of Harvey

Norman’s business model (including

Norman’s franchise structure, pointing

forecasting a sharp drop in the value of

out that franchisees paid little upfront

its shares) and has forecast breaking

capital and received a salary and a car _ making them more akin to employees

even in Ireland in the next financial year.

He said it was “no secret” that stores in the Republic of Ireland and Northern Ireland had been losing money for years.

“We are very well aware of what we lose in Ireland _ it’s public knowledge.

But the Ireland economy is now on the mend and Ireland is improving. At our last meeting we were hoping we would achieve break-even in the year ended June 2016 _ that’s our current budget.”

than franchisees.

However, Gerry Harvey hit back, accusing Choraria of misunderstanding Harvey

Norman’s

business

model.

“People go out on limbs to get publicity and they dig things up that get them publicity,” he said. “This guy is on a mission _ we know where he’s coming from – and we are entitled to refute his allegations or ignore him. Harvey Norman’s franchise structure has been

Singapore-based fund manager Sid

in place for 30 years, has been key to

Choraria believes that Harvey Norman

the company’s growth and there is no

shares

perfection”

reason to change. Because he sees it

and will fall 35% to 40% over the next

nowhere else he says it must be wrong.”

6

are

“priced

for

Tim Hannon, Harvey Norman; Brendan Levercombe, IC Frith; and Joe Duignan, Flexirent.

Irish Electrical Benevolent Accosiation

Support the IEBA www.IEBA2001.ie

ier ·Retail

new products

New Products Rosso & Aura from Russell Hobbs

AEG UltraOne Quattro

technology delivers the effective level of power to penetrate deep into the hair follicle and therefore the light energy is absorbed into the hair root to break the cycle of growth.

The i-Light Reveal is cordless, compact and convenient, and is suitable for the female face (below the cheekbone) and small areas of the body (such as underarms and bikini line).

Philips BT2500B Wireless Portable Speaker

Russell Hobbs Rosso food processor and Aura juicer.

The new Rosso & Aura range of small kitchen appliances from Russell Hobbs comprises the Rosso food processor (SRP €69.99), hand mixer (€29.99), mini chopper (€29.99), and Slice&Go (€44.99), complemented by the Aura Chop&Blend (€49.99), hand and stand mixer (€59.99), and juicer (€79.99).

Philips ORT7500 Original Radio

This AEG is the first AAAA-rated vacuum cleaner on the market. In order to meet the new EU energy labelling and eco-design regulations, the UltraOne Quattro has A-grades for energy efficiency, dust-pickup on both carpet and hard floors, and on dust re-emission.

Available in stores from January and featuring: • Low wattage yet high efficiency motor • New AeroPro motorised carpet specialist nozzles with rotating power brush • Specially developed Ultra Long Performance s-bag and Allergy Plus filter

The new Philips Original Radio ORT7500 takes a 1950s Philips design icon and reimagines it as a range of advanced radios and docking stations that deliver a great sound experience for today’s listener.

The ORT7500 DAB+ digital radio and FM radio comes in Chili Red with integrated iPhone/iPod dock, Bluetooth connectivity, USB charging, and aluminum back.

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Remington i-Light Reveal The new Remington i-Light Reveal IPL hair remover (SRP €199.99) is ideal for tackling hairs below the cheekbone in the comfort and privacy of home.

The i-Light Reveal is clinically proven to permanently reduce hair growth in just three treatments and the unique ProPulse

The new Philips BT2500B wireless portable speaker has a built-in rechargeable 3W battery for music playback anywhere and a built-in microphone for hands-free phone calls.

Other features include an anti-clipping function for loud, distortion free music, audio-in for easy connection to almost any electronic device, and wireless music streaming via Bluetooth.

ier ·Retail

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interview Ireland Euronics

AGM Reports Double-Digit Growth Achieved by Members The Euronics Group held its ninth annual general meeting in the leafy surrounds of Carton House in Co Dublin recently.

Supported by a full complement of members, the formal end of day’s activities dealt with a busy agenda as well as electing two new directors, Kieran O’Sullivan, Phil O’Sullivans, Cork, and Gerry Cleary, Cleary Electrical, Mullingar, who replace the retiring David Lally, Dundalk, and Michael Redmond, Gorey.

Liam McEvoy of Telfords, Portlaoise, has filled the newly created position of Vice Chairman.

An indication of how the group has progressed through the past nine years is that, while the outlet numbers have increased to 54, only three of the original members remain involved. The newest member, Harry’s Electrical World in Cavan, was welcomed and it was unveiled that three new associate members _ Sheehan’s of Cahirciveen, Co Kerry, Foy’s of Cootehill, Co Cavan, and Bandon Co-Op, Co Cork _ were elected while a new application from Fitzgerald’s of Dingle, Co Kerry, has been processed as a new member.

The new team of Bill Hackett, Chairman; Aidan Candon, Chief Executive, and Liam Sheehy of Telfords, elected to the new position of Vice Chairman.

New members Harry and Catriona Lynch from Harry’s Electrical World, Cavan

David Maher and Donal Woods with Brian and Marie O’Shea.

Aidan Candon, Group Chief Executive, highlighted that “the impact of the definite directional change in the economy” has had a positive impact on the group’s activities and has contributed to the double-digit growth now being achieved by members. Other factors such as increased range availability, greater stock holding and increased rebates from suppliers are all contributors to the improved performance.

The use of mailers as a selling tool will increase from three in 2013 and four in 2014 to six in 2015. He urged members to embrace this important selling tool, as well as the services of Philip Martin as a retail support person, where possible.

Philip has been instrumental in assisting the refurbishment of members’ outlets in Dungarvan and Trim (see pages 11-12), Claremorris and Dundalk.

Orla Candon with Annette and Gerry Cleary

The group’s website, www.euronics.ie, has been revamped and will be unveiled in mid November.

Alan Kelly, Roscommon, and Michael Redmond, Gorey, Co Wexford.

The evening’s entertainment.

Aidan Candon, Chief Executive, Euronics Ireland, addresses the attendance.

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ier ·Retail

shopcall

Shaws Euronics, Dungarvan, Co Waterford On 18th September, Shaws Department Store in Mary’s Street, Dungarvan, opened its new Euronics electrical section. ier-Retail visited the revamped store for its opening sale.

RTÉ 2fm mobile unit waits to broadcast

As we arrived a long queue stretched down the main street and an RTÉ 2fm mobile unit was parked outside waiting to broadcast at 2.00pm _ and, knocking for entry at precisely 10.00am, we were swept in with the crowds as the doors officially opened!

Inside the impressive store, David Maher, Shaw’s Electrical Buyer, and his team were waiting _ but were immediately too busy to talk as the crowd surrounded the sales counter with queries and purchases.

In the TV section David Byrne of LG and Declan O’Callaghan of Sony were in friendly competition, while over in kitchen appliances Robbie Breen of Kenwood _ who had come down the day before to ensure everything was ready _ was busy promoting the features of food mixers.

David Maher, Electrical Buyer, Shaws, with Aidan Candon, Chief Executive, Euronics Ireland

Looking on with great pleasure at the busy scene were Aidan Candon and Philip Martin of Euronics.

Robbie Breen, Kenwood

Declan O’Callaghan, Sony; Aidan Candon, Euronics; David Byrne, LG; and Philip Martin, National Retail Sales Manager, Euronics Ireland

ier·Retail

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shopcall

Ace Domestic Appliances, Enfield, Co Meath On 1st October Euronics member Ace Domestic Appliances of Trim expanded its operations in Co Meath and opened a second store in Enfield.

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ier 路Retail

NOT EVERY WASHING MACHINE DESERVES 9 OUT OF 10.

Beko washing machines have received an average 9 out of 10 score, based on thousands of impartial owner reviews.

Search online to see what they’re saying for yourself.

beko.ie

GfK update

Growth Products Offer a Point of Difference In his summary of this year’s third quarter, Colm Mallon, Territory Manager Ireland, GfK, said: “The best way to describe the latest period? Improvement. Quarter 3 was a positive one overall, with the growth products from Q2 repeating their performance. White goods, small kitchen appliances and large screen TV all showed growth over the last three months. Likewise, more traditional products such as DVD players, portable media players and compact digital cameras all continued to decline.

“Domestic products are benefitting from increased activity in the housing market, be that first-time buyers, people trading up or down, and renovations to existing homes. Appliances purchased at the height of the boom are also now coming to the end of their life cycle and will need to be replaced.

“Consumer confidence has improved, and people are more willing to spend again on non-essential items. Large screen TVs, connected audio and enthusiast cameras are the best performers in their respective categories.

“One common feature across all the growth products is that they offer a point of difference and generally provide customers with something that they do not already have. Connected audio has low ownership levels, as does 50”+ TV, while larger capacity washing machines and low water consumption products offer efficiency and a return on their premium.”

Consumer Electronics The value of the consumer electronics market grew +5% in September 2014 compared to September 2013. This muchimproved situation contributed to an overall value growth in Q3 of +4%. The annual figure of -12% illustrates just how much the overall situation has recovered.

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Colm Mallon, Territory Manager Ireland, GfK

The main driver of this is large screen TV and especially the 50”+ screen sizes. This segment of the TV market now represents 22% of the total TV market value and with growth in September of 44% compared to September 2013, this will soon surpass onequarter of the TV market.

audio systems, which are in rapid decline.

Also in rapid growth, comparing September 2014 to one year ago, are network music systems (+54%) and connected audio systems (+109%).

The larger of these is the network music system market, with its multiroom capability clearly proving to be an attractive feature for some. For the first time in September 2014 this market was larger than traditional

We have recently started tracking docking speakers and sound bars in Ireland, so we cannot judge year-on-year growth, but wireless docking and sound bars are in fast growth across Europe and we have no reason to believe Ireland is any different.

The situation in Ireland mirrors that in the rest of Western Europe where low ownership and innovative devices are in growth. More traditional devices such as home theatre systems, DVD players, and set-top boxes are in serious decline.

We expect the consumer electronics market to continue in growth as few own these supersized TVs that are now increasingly affordable. Other traditional markets are unlikely to recover, but they will be superseded by other devices, especially in audio.

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Major Domestic Appliances If two consecutive quarters of growth signals a recovery, then major domestic appliances are enjoying one. In the three months to September, value rose by 22% in volume and 14% in value, compared to the negative performance a year ago.

Big capacity, premium-feature appliances have enjoyed some of the best success.

Washing machine value sales increased 15% in Q3 and built-in dishwashers saw a 35% leap. Built-in appliances overall have boosted the major appliances markets with ovens, hobs and cooker hoods all making doubledigit gains over the quarter.

The assortment and range of built-in appliances on offer has gone up by nearly a third since last year and, while it may be too early to attribute the built-in growth to the recent upswing in the housing market, this could suggest a renewed importance in home improvement projects by Irish households.

volume helped by heavy price promotions and persistent media attention. Staying in the kitchen, food preparation gadgets were also stand-out performers, seeing a 37% rise in value buoyed by a sharp increase in average price as more premium kitchen machines and liquidisers drew in consumers.

Another area rapidly growing in popularity among the general public has been handstick vacuum cleaners. These more premium products, averaging at €269, have achieved a value increase of almost €350k against the previous period and contributed to the strong 20% value growth seen by the overall vacuum cleaners category.

As consumer confidence continues to improve and the influence of digital devices increases product awareness, the key gifting period surrounding Christmas is likely to further the already impressive performance seen within SDA so far this year.

The small domestic appliances market continues to go from strength to strength as we enter the final months of 2014. Q3 value sales maintained double-digit growth, increasing by 17% to surpass €22 million.

Volumes also rose at a healthy 8% against the previous year (Jul13-Sep13 v Jul14-Sep14).

Central to this success has been coffee machines registering an 80% increase in

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We expect this trend to continue as long as action cameras keep enjoying such high value growth rates. Low ownership is a factor here, as most will be buying an action camera for the first time. Growth will, of course, slow down when everyone that wants an action camera has bought one, then the market will settle into more of a replacement pattern.

IT Q3 saw challenging conditions for the IT market, with the value declining by 6% compared to Q3 of 2013. This decline does not tell the whole story for two reasons. Firstly, this decline is less severe than that of Q2 (which showed a 10% year-on-year fall) and secondly several of the key product groups grew in sales volume with price declines causing the overall value contraction.

Digital Cameras The value of the digital camera market declined by 33% in Q3 compared to the same period in 2013. This is the highest decline rate witnessed since the beginning of the year (-28% in Q1 and -30% in Q2).

In cooking, induction heating and selfcleaning technologies helped average prices develop at the higher end of the scale and this could hail a strong period for category value in the months ahead.

Small Domestic Appliances

by 6% in Q3 compared to the same period in 2013.

The photo market has suffered more in volume than in value as cameras for enthusiast photographers have tended to perform better. This is reflected by the fact that total changeable lens cameras suffered a 19% value decline in Q3 whereas fixed lens cameras declined by 40%, when compared to Q3 2013.

The segment suffering the most this quarter is fixed lens cameras with less than 10x zoom, which decreased by 52% in value compared to Q3 2013. The segment with the best performance is SLR with ‘only’ a 15% value decline on last year. We expect this trend to continue and that cameras for enthusiast photographers will keep outperforming the rest of the market.

In contrast, the camcorder market seems to have recovered, driven by action cameras’ performance. Despite high value declines year-on-year (over 50%) for both traditional camcorder and multimedia camcorders, the value of the total camcorder market grew

Computing products were the reason for the IT market’s overall decline, with the value of the mobile computing and media tablet markets declining by 13% and 6% respectively.

Even in computing there are areas of growth, however, with 30% more deskbound computers sold in Q3 compared to Q3 2013 by volume. This growth is due to a combination of the growth of PC gaming and the all-in-one form factor.

IT storage products saw the best performance, with the value growing yearon-year in Q3 by 28%. The product driving most of this growth was solid state drives, flash-based storage that offers rapid readand-write speeds in addition to lower power consumption. However, it wasn’t just these newer technologies driving growth. The more traditional mainstay of IT storage, external hard drives, experienced value growth of 9%.

Despite on-going challenges in the IT market, there are areas of growth in both the computing and peripherals sectors. These areas represent opportunities for retailers and manufacturers if products are matched to the changing ways in which consumers use information technologies.

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interview

Brema Drohan, Managing Director, Nespresso UK & Ireland

Nespresso has opened a two-storey boutique at 22 Duke Street, Dublin 2, that is open seven days a week and employs 22 staff.

IER-Retail called in to meet Co Waterford-born Brema Drohan, Managing Director, Nespresso UK & Ireland.

Anyone who has not previously seen one of the more than 300 Nespresso boutiques around the world, or, indeed, even anyone with little or no interest in coffee, will almost certainly be impressed by Dublin’s new ‘temple to premium coffee’ at 22 Duke Street.

The neatly designed, well-lit, high-ceilinged two-storey premises greets the visitor with a tasting bar at which staff take pride in presenting various coffees and assisting the consumer to determine their favourites.

Brema Drohan explained: “For the past six years we have had a successful presence in Brown Thomas in Dublin and Cork, where we have 38 full-time and part-time staff, and we felt the time was right to also introduce our own boutique. The Irish coffee market is growing, as the appetite and desire for quality coffee increases. Our core business is coffee and Duke Street is the first boutique in the UK or Ireland to have the tasting bar at the front, which will deepen customers’ knowledge of coffee sourcing and flavour profiles.

“We aim to bring customers into the Nespresso brand experience, which in turn will create an uplift in sales of machines for electrical retailers _ as has been the experience of retailers in Edinburgh, where we opened a boutique last Christmas. We also, of course, do a lot of in-store demonstrations with our key partners, as well as providing point-ofsale material, etc.

“Nespresso does not manufacture coffee makers _ we design, build and develop machines with various manufacturers and license them. Krups was the first, which at the time was the biggest brand in coffee makers and they understood the manufacturing and distribution requirements.

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Duke Street “The Duke Street premises is 280 square metres, above average for our boutiques, and was originally the arcade that connected with Hibernian Way and Grafton Street.

“All our premium coffee boutiques are located in top retail spaces and streets, so we wanted to be in the Grafton Street area.

However, most buildings here are Victorian or Georgian and have development limitations and not-so-high upper floors. Developing the arcade has enabled our design team to provide an attractive premises that is consistent in design with others around the world and which has a good ceiling height to the upper floor.

“The retail space and our staff of 22 demonstrated Nespresso’s significant commitment to the Irish market. Additional features in the boutique include: • Club Members with an N-Pass can enjoy exclusive access to the boutique’s selfserve area, the first of its kind in the UK and Ireland • A Club Room offers existing and potential Nespresso Club Members a tranquil oasis, where they can explore the wide range of privileges and services available • A Recycling Zone, where Club Members can drop their used capsules and learn more about Nespresso’s recycling scheme • Nespresso PickUp where customers can collect an order they have placed through the Customer Relationship Centre just two hours earlier • A 5-metre high library display wall showcasing Nespresso’s full range of machines and accessories

Coffee “Nespresso is the originator of the coffee capsule concept, in 1986, and we have since seen a lot of imitators. The capsules have a 12-month shelf life from the date of production and it is the way that the coffee machine interacts with the capsule that is important _ ‘pierce the capsule and smell the coffee’!

“Our green coffee team in Switzerland go to the countries of origin and over 84% of our coffee is bought through our Sustainable Quality Programme. We only buy from the top 2% of growers, we work with the farmers to continue to provide to our own standards, and we pay 40% more than the average price.

“We are looking to increase SQP purchases to 100% _ and we also have a comprehensive programme for the social and environmental aspects too.

Brema Drohan “Yes, many people are surprised to discover that I am Irish! I was born in Kilmacthomas, Co Waterford, where Drohan is not an uncommon name and my grandmother, Brigid Mary, was ‘adament’ that I should be named after her, so my parents combined them and named me Brema.

“After studying international marketing and German, I moved to Germany and joined the start-up Nespresso SA in 1986. I then moved to London in 1999 to work with Nespresso’s fledgling agency there and was appointed Managing Director of Nespresso UK, with Ireland coming under my ‘wing’ in 2001.

“In January 2015 I will be on the move again, to take over responsibility for Belgium and Luxembourg, which are more mature markets but which _ I have been assured! _ offer plenty of growth opportunities.”

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Nespresso Facts and Figures Corporate • Nespresso SA, a Nestlé Group company, is founded in 1986. Inspired by Luiggi Bezzera’s original espresso coffee concept, it develops a revolutionary system of portioned, encapsulated coffee and dedicated machines that interact to deliver perfect coffee.

• Autonomous globally managed business of the Nestlé Group

Coffee • Only an estimated 1-2% of the world’s green coffee crop meets the Nespresso specific taste, aroma profiles and quality standards • 22 Grands Crus for in-home enjoyment • 9 Grands Crus for out-of-home enjoyment

• Present in almost 60 countries

• Several limited editions Grand Cru coffees per year

• More than 9,500 employees worldwide, compared to 331 in 2000

• 2 production centres based in Switzerland (Avenches and Orbe)

• Over 70% of employees in the markets in direct contact with consumers

• More than 14,000 dedicated used capsules collection points around the world

Brand • 50% of new Club Members experience Nespresso for the first time through friends and family • Over three million Facebook fans • 180,000 unique customers visit the online boutique every day • George Clooney, brand ambassador since 2005, was chosen by Nespresso Club Members

by seven machine partners • Recognised with successive design awards, including nine prestigious Red Dot Design Awards and two iF Product Design Awards

Services • Over 320 boutiques worldwide at the end of 2013, compared with one boutique in 2000 • More than 1,300 coffee specialists in Customer Relationship Centres maintain regular dialogue with Nespresso Club Members.

Quality check: B2B capsules production line in Nespresso Production Centre in Avenches, Switzerland

• In 2013, over 84% of coffee was sourced through the Nespresso AAA Sustainable Quality Programme

Machines • In-house R&D • A range of smart and stylish machines with 40 models • Machines developed with and produced

The Nespresso Cube

Nespresso Cube at Barcelona Airport

In 2013 an innovative automated retail concept, the Nespresso Cube, was launched, the first three being introduced in Barcelona, Spain, and Lisbon, Portugal. The Cube complements the 320+ boutiques worldwide.

The automated boutique, which offers 22 Nespresso Grand Cru and Limited Edition coffees, prepares any multi-product order at unseen speed thanks to an advanced, robotised order-picking system.

At 9 square metres, the Nespresso Cube can fit into a variety of settings, holds up to 25,000 capsules, or 2,500 sleeves of Nespresso Grand Cru coffee, and can process a personalised order of 10 different capsule sleeves in just 20 seconds.

After placing their orders on a touchscreen panel, consumers can watch as robotic arms quickly prepare their orders in a stunning show. Purchases can be made using a credit card, while Nespresso Club Members can use their Nespresso Club card.

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coffee makers

Premium Machines and Premium Coffee are Increasing Market Share The introduction of some 3,000 new products each year is proof of the innovativeness to be found in the small domestic appliance sector. This diversity was particularly evident in appliances for preparing hot beverages at this year’s IFA in Berlin, with a range of fully automated coffee makers and of capsule and espresso machines designed to meet customers’ every requirement for stand-alone or built-in machines.

As well as coffee, an increasing number of them can also make other hot beverages such as chocolate or tea. Sensors are used to identify the selected cup size and to automatically set the nozzle to the right height. If the milk frothing function is missing, a growing range of milk frothers is available to augment these appliances.

While overall sales of coffee and coffee makers in Ireland have remained constant or decreased slightly over our past five or six years of ‘austerity’, the premium sector has actually increased market share, as consumers still with disposable income have dined out less and entertained more at home.

Now that those long awaited ‘grass shoots’ have begun to appear, electrical retailers can expect this trend to continue with greater speed.

Lattissima+ Premium, Dedica and Eletta Coffee Machines from De’Longhi The latest addition to De’Longhi and Nespresso’s Lattissima range of ‘one-touch’ coffee machines, the EN750 Lattissima+ Premium, features two innovations: •

Intuitive illuminated touch-screen controls and digital display to help tailor and memorise personalised drinks by varying the quantity of coffee, milk and froth

•

A new and improved, patented De’Longhi milk carafe that includes ‘Latte Crema’ technology to create a milk crema at the perfect temperature, thickness and density for tempting cappuccinos, lattes or macchiatos

The choice of coffee makers available on the Irish market is certainly wide, encompassing all main types: •

Drip coffee makers heat water to over 200°F and spray the hot water over a filter filled with ground coffee, which then drips into the carafe below the filter holder. They usually have a 4-12 cup capacity and most models are automatic and programmable.

•

Grind and brew coffee makers work similarly to drip coffee makers but have built-in grinders that automatically grind fresh whole coffee beans immediately before brewing directly into the filter – and can be programmed 24 hours in advance.

•

Single use coffee makers that require a coffee capsule, K-cup or tea pod offer a quick and clean way to serve speciality coffees and lattes, as well as, in some cases, herbal beverages, tea and chocolate.

•

Percolator coffee makers are making a comeback, particularly electric percolators with an automatic setting.

•

The French coffee press also continues to be a popular type of coffee maker.

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Other benefits include: •

Brushed aluminium finish

•

Convenience of Nespresso’s capsule system: 22 Grand Crus

•

Convenient milk carafe can be kept in the fridge for ease, and with auto-clean function

•

Removable cup tray that suits any cup size

•

Auto power-off feature

Dedica The traditional pump coffee machine has been given a new slimline with the launch of the EC680 Dedica, at just 15cm wide. The metal body and chrome finish comes in three colours: bright red, black and stainless steel.

The aluminium-cast filter holder allows users to make drinks with ground coffee or espresso pods, while the intuitive control panel can programme ‘short’ or ‘long’ shots to the second. The machine has three interchangeable crema filters that ensure extraction is carried out at the right pressure to deliver a thick and velvety crema. The frothing wand is designed to guarantee a rich and creamy froth for cappuccinos, lattes, macchiatos and more.

A cup warmer shelf keeps cups at the ideal temperature and the self-priming system ensures that the machine is always ready to make an espresso.

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Eletta

you can make long, latte style drinks too.

The Eletta bean-to-cup coffee machines use new ‘Latte Crema’ micro-foam technology to create the creamiest milk froth, at the perfect temperature, thickness and density. Like all De’Longhi bean-to-cup coffee machines, the Eletta grinds fresh beans internally to deliver aromatic espressos, creamy cappuccinos and silky smooth lattes, at the touch of a button.

The range has a slanted front _ to fit even the widest of cups _ and ergonomically positioned controls for ease of use.

Features inclue: • 10 minutes auto shut off • Thermoblock technology for optimum coffee temperature • 15 bar pump pressure

to-cup coffee machine include: • M Touch Controls _ the innovative M touch display is fast, easy to use and selfexplanatory. Appliances can be operated quickly and intuitively by pressing and swiping the touchscreen •

Automatic CupSensor detects the rim of the cup and automatically adjusts the spout height into the correct position for the perfect cup of coffee

•

One Touch for Two function prepares two cups of coffee, expresso, and cappuccino or latte macchiato automatically at the same time

•

After preparation of coffee specialities with milk, the appliance is automatically rinsed

• 0.9-litre water container • Used capsule holder • Quick-fill water tank • Removable stainless steel drip tray • Automatic descaling function

CM6100 Freestanding Bean-to-Cup

AEG 7 Series This new 12-cup drip coffee maker has a 24hour Auto-Start function. The AromaStrength Selector and PureAdvantage Water filter give optimum taste every time and the intuitive Programmable HighContrast LCD display makes it quick and easy to use.

The top-of-the-range Eletta Cappuccino Top has a new, patented milk carafe and offers the widest selection of one-touch coffee solutions, including a new Flat White button. The Milk Menu function delivers latte macchiatos, espresso macchiatos and more.

All Eletta machines have an auto-rinse and a de-scaling feature, as well as an automatic cleaning system integrated in the frothregulating dial, allowing the user to return the milk carafe to the fridge after use.

AEG A Modo Mio Espria and 7 Series Coffee Makers

Miele Generation 6000 Coffee Makers with CupSensor Miele’s Generation 6000 coffee makers complement the proven Miele technology with an exclusive feature. Whether a tall latte macchiato glass or a dainty espresso cup is under the central spout, the spout automatically moves to the optimal position thanks to ‘CupSensor’ cup edge detection.

in 10 different blends.

The Espria is easy to use with a manual stop and start button. A removable drip tray means

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•

Simple and fully automatic

•

Convenient cleaning programmes

•

1.8-litre water capacity

•

One Touch For Two function prepares two cups of coffee, espresso, cappuccino or latte macchiato automatically at the same time

•

After preparation of coffee specialities with milk, the appliance is automatically rinsed.

Nespresso Inissia in New Limited Edition Colours

For those who like their espresso strong in the morning, the new AEG A Modo Mio Espria will give instant, Italian barista-style coffee in the comfort of their own home.

Available in Ebony Black and Love Red, this slim espresso machine lets you customise your coffee hit, whether it is black, a dash of milk or a touch of sugar, and enjoy the aroma of freshly brewed coffee any time of day with Lavazza’s coffee capsules available

Features of the Miele CM6100 freestanding bean-to-cup coffee machine include:

This fascinating feature highlight always ensures the optimum distance between the spout and the cup or glass. This virtually eliminates the problem of spluttering and milk and coffee splashes, ensuring the perfect coffee temperature and the best crema.

As the icing on the cake, the spout even reacts precisely to all beverages made with milk by raising the spout by 1cm, making room for the incoming espresso. The central spout stays out of the milk froth and thus stays clean.

CVA6805 Built-in Bean-to-Cup Features of the Miele CVA6805 built-in bean-

The Inissia offers all the Nespresso expertise in a smart little machine _ and now this compact machine is available in two new limited edition colours of Lime Yellow and Nespresso Inissia in Ruby Red Blueberry Blue in addition to White, Black, Ruby Red, Blue Sky and Summer Sun. The Inissia is lightweight, weighing approximately 2.4kg, has a small footprint, and is equipped with an ergonomic handle.

There are two programmable cup size settings, an automatic shut-off after nine minutes (programmable for 30 minutes), and an Aeroccino milk frother.

In just one touch and 25 seconds, the water reaches the ideal temperature to make up to nine Grands Crus without having to refill the 0.7-litre tank.

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times past

30 Years Ago -from IEIR, October 1984

Interim Agreement on ESB Shops

Familiarisation Trip for Miele Dealers

The threat of closure that has hung over ESB retail outlets has been lifted, for the time being at least, following talks between the Board’s management and unions.

The Miele Ireland dealers on a familiarisation trip to the parent factory in Germany were: Back Row: John Murphy, Bailieboro Co-op, Swords; David Ferrie, McKenna’s, Deansgrange; Nicholas Forde, Hickey’s, Cork; Middle Row: Donal Ryan, Sales Manager, Miele Ireland; Seamus Murphy, Bailieboro Multistore, Navan; Michael Giles, Chief Executive, Miele Ireland; Michael Sheridan, Sheridan Electric, Castlebar; Front Row: Jochen Menke, Miele Germany; Ken Worell, Worell’s Electric, Malahide; Wally Knowles, Knowles Electric, Dun Laoghaire; and Noel and David McCabe, McCabes Distributors.

The Board’s ‘major rationalisation’ of ESB appliance selling is taking place in agreement with the trade unions on the basis that the company will continue to operate retail shops for electrical goods.

An interim agreement has been reached that provides for a voluntary reduction in staff of 25, through transfers within the Board.

The deal with the company also provides for the stores arrangement, servicing the shops to be reorganised from one central depot into four regional depots.

Bluebell Bonanza Noel McCabe, in conjunction with Philips, is offering a Fiat Uno as first prize in a draw scheduled to take place on 6th December next.

The annual accounts of the Board to March 1983 show they lost £1.6 million on appliance sales, £377,884 on appliance repairs, and made a small profit of £118,465 on installation contracts.

40 Years Ago -from IEIR, October 1974

Visitors to Trade Shows

Members of the National Executive Council of the Radio and Television Retailers Association (Ireland) took advantage of their presence at a Council meeting in the Burlington Hotel to drop in and see the trade shows mounted by Brownlee Brothers – Ferguson and Carlile & Co Ltd in the hotel.

In the Brownlee Brothers suite were John Bracken, Brownlee Brothers; Kevin Keenan, Ardee; Herbie Shortall, Dublin; Tom O’Connor, Galway; Robert Marsh, Ballina; John Kilkelly, Castlebar; Roger Brownlee, Brownlee Brothers; and (in front) Oliver Murphy, Drogheda.

Industry Puts On Bravest Face With a threatened lay-off of production staff by certain manufacturers a major talking point within the industry, the run-up to the peak Christmas selling season was clouded with some degree of uncertainty and doubt, but already it seems as if the industry is in for quite a busy period, perhaps not as good as previous years but certainly a major advance on mid-autumn purchasing, which fell to quite a low level.

Putting on the bravest possible face, the various sectors of the industry are progressively promoting all ranges of products and appliances in an effort to capture as much consumer spending as possible and, though it is an early stage yet, this positive attitude seems likely to reap its rewards.

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Pat Codyre, appointed Advertisement Manager, Irish Electrical Industries Review.

Joins IEIR Staff Pat Codyre has recently been appointed Advertisement Manager of the Irish Electrical Industries Review by Irish Trade & Technical Publications Ltd. Pat has had wide experience in the advertising and promotional field, having previously held positions in the national newspaper, advertising agency and specialist magazine publishing sectors.

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