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30/10/08
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Editor’s comment
Finished in a rich, high gloss walnut, Alstons’ latest range, Bellagio, is a first for the bedroom market. Tel 01473 725 571.
Andrew Kidd November 2008
Editor
Multiyork
Choice, choice , choice
Best of Briti sh
Why being loc al matters
Alston’s Bella gio
Seductively chic C ARPET S
FURNITU RE
RUGS
BEDS
L AMINA TE
UPHOLS TER Y
VINYL
REPUTATIONS RULE It seems that large retailers have decided that now is the time to start concentrating on preserving cashflows to free up funds. Tesco has told general-merchandise/nonfood suppliers that from 1 December it will operate on 60 terms, rather than 30 – a move that Argos recently introduced. And the purchase of cabinet supplier Willis & Gambier by Chinese group Samsom (see p10) has revealed that W&G was owed almost £4.5m at the time of its collapse. Tesco’s move has been calculated as freeing up £500m of working capital. And who is bearing the cost of this? Its suppliers, who by the same calculation would need to lift sales by 11.7% just to stand still. If this policy was widely adopted across the retail sector, many suppliers are likely to follow in the footsteps of W&G. For those that don’t, the importance of the independent sector can only grow – especially if they can become involved with a buying group that has a quick payment policy. This should give independent retailers more influence in the sort of products the supplier is willing to offer them, such as exclusive ranges or options.
Interiors Monthly Editor: Andrew Kidd T: 01732 766 333 E: akidd@interiorsmonthly.co.uk Furniture advertising (South): Tim Boden T: 01732 367 757 E: tboden@interiorsmonthly.co.uk Furniture advertising (North): Jarrod Bird T: 01565 659 414 E: jbird@interiorsmonthly.co.uk Carpet and flooring advertising: Joanne Miller T: 01732 766 344 E: jmiller@interiorsmonthly.co.uk Subscriptions: T: 01732 766 344 E: subscriptions@interiorsmonthly.co.uk Published by Interiors Media Limited 124 Pembury Road Tonbridge Kent TN9 2JJ T: 01732 367757 F: 01732 352063 E: enquiries@interiorsmonthly.co.uk Registered in England no. 6397722 Printed by St Ives Westerham Press Design by Icon Colour Ltd © Interiors Media Ltd
Ultimately if retailers take too long to pay, they will be faced with a far smaller pool of suppliers from which to choose from – and risk leaving customers disappointed if they cannot fulfil orders because the supplier has gone under. As we have seen with the Radio2 Brand and Ross saga, reputations can be damaged very quickly and take far longer to repair. I’m sure that the uncertainty over the future of almost half of MFI’s stores (see p11) and local newspapers highlighting consumers unsure if they’ll get their orders isn’t doing its name any good. The importance of reputation and service is explored in this month’s furniture profile of Multiyork (see p16) and the marketing feature (see p63). And it also a major factor among UK manufacturers, many of which we look at in this month’s Best of British supplement (see p45). www.interiorsmonthly.co.uk
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