BMM May 2017

THE MEMBERSHIP MAGAZINE OF THE BRITISH INDEPENDENT RETAILERS ASSOCIATION ISSUE 07 | MAY 2017

Success is in store

After almost 250 years of trading, Jarrolds of Norwich is still investing in bricks-and-mortar alongside its transactional website, as Michelle Jarrold explains

Boost your business with greetings cards Supplementing your core product range represents a great opportunity with the UK market worth over ÂŁ1.7bn.

Join bira direct at Progressive Greetings 2017 - 6-7 June Business Design Centre (London) on the Mezzanine floor, stand number 435.

www.biradirect.co.uk

Just some of our leading card suppliers

Comment

Now’s the time to learn from others Let’s welcome more members at the annual conference, says CEO Alan Hawkins A LOT OF effort is going into our annual conference in Bristol on 8 May and this considerable preparation always makes me reflect on the relatively small numbers of you who attend.

That’s why the coverage in this magazine and elsewhere is so important to perhaps make you think, plan for next year’s event, or better still, book in at the last minute for this year.

It’s easy to look at our keynote speaker, Laura Tenison of Jojo Maman Bébé, and think “I don’t sell baby clothes, so why would I want to hear about a baby clothes business?”. Well, that is not the point. Laura is a business founder and a multi-award winner, who now has 60 stores and an answer to omnichannel retailing.

Then there are the passionate Mackay brothers, Duncan and Neil, and their next generation, who run a merchant’s and hardware business in Cambridge. Their family was a mainstay of the old BHF for years in East

Anglia. They are now firmly in the bira fold and sit on our parliamentary committee to shape the independent debate going forward. And they are not just a hardware store. Neil’s passion about shop theft – NB: not shoplifting! – will inspire and amuse all attendees.

With nine break-out sessions at the conference, you’ll have a difficult choice to pick just three, but we have made it easier to attend the Google Digital Garage to help you learn how to reach customers online.

There’s not space to list all speakers, but I must mention Professor Jonathan Reynolds, who is not your typical Oxford don. He is a good friend of bira through our Retail Masters Programme at Oxford. Jointly written with Alan

Threadgold, his book, Navigating the New Retail Landscape, will inspire and frighten you in equal measure. It shows the pace of technological change and the challenges to the new physical landscape, but also points to new business models with loads of supporting evidence.

It’s free for delegates at the conference and available from Oxford University Press, but please source it through an independent bookseller.

Finally, if you really could not find time to be with us at the conference (and at just £95, it surely cannot be the cost), please read the enclosed annual report. It shows you what bira has been up to over the last year. If we haven’t been doing the right things, then please tell us.

With nine sessions at the conference, you’ll have a difficult choice to pick just three to attend on 8 May

LDC/bira report

Cover photograph: Mike Harrington

Still a nation of shopkeepers Independent retailers are still opening. That’s the good news.

But the latest national survey reveals significant changes in the mix of high street traders

TR ADITIONAL INDEPENDENT RETAILERS opened more shops than they closed in 2016 in Britain’s top 500 town centres, while national chains continued to reduce their branch numbers, new research from bira and Local Data Company (LDC) reveals.

According to the LDC/bira Retail and Leisure Report 2016, across the nation independent shops saw an increase of +159 units (+0.15%) last year. To accentuate the positive, this low net number equates to a +36% increase from 2015, when +117 shops were added across Great Britain.

Conversely, national multiples have continued to cut back on their estates, with a net loss of -896 shops in 2016 across the top 500 town centres, which compares to -498 shops in 2015.

The closure of Bhs and the Austin Reed Group stores (Austin Reed, Viyella and CC) contributed to the majors’ slump.

Encouragingly, independents still account for 65% of all retail and leisure units in Great Britain, the same as in 2015. In all, some 29,083 independents either opened (14,621) or closed (14,462) in 2016, a figure that was margin-

Independents last year still accounted for 65% of all retail and leisure units in Great Britain, the same level as in 2015

Net openings & closures for independents by region 2016

189 Scotland

ally down on 2015, when 29,936 shops opened (15,026) or closed (14,910).

Less happily for bira members, the category into which most of them fall – LDC’s curiouslytitled “comparison goods (non-perishable goods) shops” – continued to suffer a marked decline.

The net change was -2.01% (-1.52% in 2015), representing a net decrease of -635 units in 2016, notably more than the -487 figure in 2015.

The high street’s most numerous arrivals fall into the “service retail (health & beauty, financial services, tattoo parlours and estate agents) category. The survey confirms these shops increased by +587, the greatest number of units, up from +385 in 2015 (+1.92% in 2016 versus +1.28% in 2015).

70

North East

Also on the rise were: ● Leisure (restaurants, cafes, bookmakers, entertainment), which grew by +0.34% in 2016 compared to a +0.39% increase in 2015.

There was a net increase of +116 units versus +130 in 2015. ● Convenience retail (bakers, butchers, food shops, supermarkets) saw a net increase of +91 units (+1.01%) in 2016 versus +88 units. ● Tobacconists/e-cigarette retailers (+42%) and Middle Eastern restaurants (+33%) have increased the most as a percentage of their total units.

63

124

Yorkshire & Humberside

North West

145

65

304

East Midlands

West Midlands

Overall, key growth sectors have been barbers, hair & beauty salons, tobacconists/e-cigarette shops, restaurants & bars, and mobile phone shops, while sectors in decline include newsagents, women’s

-6

East of England

Wales

-82

South West

123

South East

8

IN THIS EDITION

news for 2 Trade bira members

Indie openings just outweigh closures, HMRC loses £1.5bn on ecommerce VAT

-164

Greater London

MAY 2017

& 8 Openings Closures

Our research shows vape shops are on the up as women’s fashion shops decline

ISSUE 07 MAY 2017

This is your bira magazine, so share your news, views and ideas with like-minded retailers by contacting us at editorial@bira.co.uk All contributions will be gratefully received by us MAY 2017

policy and 11 bira parking survey We continue our campaign to reform business rates & list parking problems

charities 14 bira need your help Locating people to help, not fund-raising, is the big challenge to our trade charities

24 Counterpoint: Frank Leigh Our moody columnist has lots to complain about, but he’s selling lots of compost

into stores 20 Get greetings 16 Jarrolds up success Michelle Jarrold takes us around the new departments in the Norwich store

The British love to send cards. Are you ready to share in the possible profits?

Last 32 The Word

Rory McCann from Gardner & Scardifield is an inspiration, says manager Nathan Gale

1

Trade news

High-street sales stay flat

Retail price pressure continues NON-FOOD PRICES DECLINED by 2% in March, following a 1.8% fall in February, reflecting continued intense competition between major retailers, according to the BRC-Nielsen Shop Price Index (SPI).

Helen Dickinson, CEO of BRC, said: “Customers have had the benefit of four years of non-food price deflation. Across both food and non-food, shop prices in total have been falling for 47 consecutive months. Other factors outside of retail shop prices continue to be the main drivers of Consumer Price Index rising faster than expected, for the moment at least.

The squeeze on household disposable incomes will tighten as the year progresses. Looking ahead, ensuring the continuation of value for consumers through tariff-free trade must be at the heart of plans for a smart Brexit.”

Mike Watkins, head of retail and business insight at Nielsen, added: “Inflation is gaining momentum across the economy but in the non-food channel there is still deflation. We anticipate this trend to continue over the next few months.”

A CONTINUING LACKLUSTRE performance ters, bricks-and-mortar fashion is feeling the pinch, on the high street has been revealed in sales figures while homewares sales, if still growing, are startfor March, the fourth month of no growth. ing to show something of a slowdown in the rate of Total like-for-like sales were flat in March at that growth. However, the performance of lifestyle 0% off of an already negative base of over the last few months, combined with -1.0% seen for the same month last year, strong overall non-store sales, points according to the BDO High Street Sales Increase in LFL sales to continued access to credit, a weaker in March for non-store Tracker report. pound attracting international shoppers, retailers Total LFLs started well down in the and the strength of the UK economy. first week of March (-4.38%) as the same Lifestyle LFLs were up by +1.4% in week in 2016 had benefited from the Increase in LFL sales March off of an already positive base in March for lifestyle bonus of Mother’s Day. Sales in weeks retailers of +2.4% for the same month last year. two and three rebounded to +3.85% and Fashion LFLs were down by -0.8% in +1.88%, off of negative weeks last year.

March off of a negative base of -2.5% in Week four ended on Mother’s Day, and Decrease in LFL sales the equivalent month last year, marking in March for fashion despite strong footfall and sunshine, the retailers its fourth negative monthly result in a week ended down by -1.77%, as retailers row. Homeware was the star performer struggled to translate footfall into in-store sales of in March, with LFLs up by +1.8% off of a positive fashion and homewares. base of +1.1% for March last year.

Overall footfall performed well in March as Non-store LFLs were the success story of the warmer spring weather moved in, and Mother’s Day month, up by +28.1% off of a fairly mediocre base of brought consumers out in the last week of the month. +17.2% in the same month last year.

The only negative week was week one, where overall footfall fell by -1.8. The month high for the three BDO HIGH ST SALES TRACKER retail centres BDO surveys came in week four, when outlines weekly like-for-like sales changes of c85 footfall on the high street was up by +3.7%, at retail mid-tier retailers with c10,000 individual stores parks by +7.8%, and at shopping centres by +5.9%. across Fashion: accessories, clothing, footwear; The buoyant footfall combined with a lack of in- Lifestyle: general household goods, gifts, health store spend on fashion and homewares is, says BDO, and beauty, leisure goods; Homewares: cookperhaps indicative of a continuing trend for con- ware, furniture and floorcoverings, lighting, linen sumer spend targeting “experiences” over “things”. and textiles; Non-store: mail order, online and As inflation continues to bite and wage growth fal- other non-store channels.

+28.1% +1.77% -1.8%

Online trade grew 6.6% in March ONLINE SALES OF non-food products in the UK grew 6.6% in March versus a year earlier, when they had increased by 9.5%. The lowest growth since August, it is below the 3-month and 12-month averages of 7.4% and 9% respectively but it was negatively distorted by the timing of Easter.

The latest BRC-KPMG Online Retail Sales Monitor shows that in January to March, online sales of non-food products grew 7.4% year-on-year, the lowest since May 2013. In this first quarter, total UK non-food sales fell by 0.8%, the second consecutive month of 3-month average decline.

In March, online sales represented 22% of total non-food sales

2

in the UK, against 20.9% in March 2016. During the three months to March, online sales contributed 1.7 percentage points to the yearon-year growth of total non-food sales, while in-store sales made a negative 3-month contribution of 2.5 percentage points.

In January to March, in-store sales fell by 3% on a total basis and 3.4% on LFLs. Helen Dickinson, CEO of the BRC, said: “Online non-food sales growth in March was dampened by the later timing of Easter this year. Those products historically popular with shoppers over the long weekend, notably larger homeware items, took a hit but will feel the benefit during April

instead. Health and beauty products achieved the strongest sales growth of all categories, thanks to gift purchases for Mother’s Day, while gaming and electricals continue to be online bestsellers as customers are enticed with new product launches.

“Retailers continue to innovate and invest in their digital offers to attract customers amidst the intense competition. Mobile optimisation has been the focus for many and some are already reaping the benefits of higher conversion rates as customers enjoy speedier browsing activity. Meanwhile, for fashion retailers, new free delivery initiatives have successfully driven increased loyalty from those customers who sign up.”

Paul Martin, UK head of retail for KPMG, added: “We haven’t seen growth this low since August 2016. UK retail is showing signs of slowing down more broadly. It remains to be seen if the slowdown in online sales is temporary.”

MAY 2017

London

is the only region to have lost in numbers of independents in the past five years LDC/Bira Retail & Leisure Report 2016

Indies are still on the rise - just THERE WERE – ever so slightly – more independent openings than closures in 2016. The continuing attraction of opening a shop for entrepreneurs is revealed in the latest national survey by Local Data Company and bira*.

Across 500 town centres, LDC estimates that 14,621 independents opened last year, while 14,462 closed, leaving a credit of 159 new shops to applaud and celebrate. In 2015, only 117 shops were added to the indie sector.

As can be witnessed in high streets across the nation, the most

numerous new arrivals are tobacconists / e-cigarette retailers, more usually called “vape shops” (+42%) and Middle Eastern restaurants (+33%), while mobile phone retailers (+12.2%), beauty salons (+10.1%), barbers (+8.8%), general restaurants and bars (+7.2%) are on the up.

In steepest decline are nightclubs (-8.2%), computer shops (-7%), shoe shops (-6.7%), newsagents (-5.5%) and women’s clothes shops (-5.4%).

While independents are still in a slight ascendant, multiples continue to decline, showing a net loss

of -896 shops in 2016.

Independents, often overlooked and forgotten about, especially by successive governments, still account for 65% of all UK shops.

The number of independent businesses covered in this research across the top 500 town centres in Great Britain was 104,963.

Bira CEO Alan Hawkins said: “These results are incredibly good news for our high streets and show that progress is being made. It’s encouraging to see a growing vigour in independent retailers across the UK. It’s becoming increasingly

clear that the customer both needs and wants to be present when shopping for some items, as well as having online options, and that this will hopefully have a positive impact on independent shops.

“We may well see a very different set of results in the next report, once the revaluation of business rates takes effect, but bira’s doing everything it can to push for reform.”

FIND OUT MORE

For more on the LDC/bira Retail & Leisure Report 2016, see our feature on pages 8-9

£1.5bn VAT is missing online

PARKING PAIN GOES ON MORE THAN 40% of bira members say that parking in their area is poor and only 18% believe it is good enough to support their business needs, according to the findings of bira’s parking survey (see p13 for full details).

Board of management member Surinder Josan, owner of All Seasons DIY in Smethwick, has been plagued by parking problems outside his premises for months, as shown above.

“At the beginning of February, work began outside the shop to replace a gas pipe. With two diggers parked outside, along with a Portakabin, valuable customer parking spaces have been taken up and my frontage has been obscured from view. The workers never seem to be doing anything.

“I’ve tried many times to discover why this pipe is taking so long to fit and I don’t get anywhere.

MAY 2017

There seems to be little or no logistical planning with these things and no consideration for the impact ongoing works could have to retailers on our high street. I asked if they could be completed

by Mother’s Day so our sales wouldn’t be affected, but they don’t seem willing to help. All this is against a backdrop of parking designed to favour parking attendants, rather than shoppers. We might need to get Channel 4’s current affairs show Dispatches involved, as this surely isn’t just a problem for us?”

HAVE YOUR SAY

Have you had any joy resolving parking problems in your area? Or have you suffered the same frustrations as Surinder? Share your experiences with other bira members by contacting the magazine via editorial@bira.co.uk

HMRC HAS CALCULATED that it loses £1bn-£1.5 billion of VAT from overseas businesses selling goods to UK consumers via online marketplaces. It is considering ways to close this loophole to ensure that foreign retailers do not have an unfair advantage over domestic traders.

To satisfy consumer demand for rapid delivery, overseas sellers routinely store their goods in the UK. As bira members know only too well, a business that is VAT-registered (or is required to be registered) must charge VAT on relevant sales, collect it and remit it to HMRC at regular intervals, usually quarterly. The business is also required to submit a VAT return detailing the net VAT owed to HMRC. When goods are in the UK at the point of sale, the overseas sellers are required to register for VAT in the UK regardless of the level of sales. The seller must charge and collect VAT. Many overseas sellers are not VAT-registered – or if they are VAT-registered, they are not always collecting the appropriate amount of VAT. HMRC is exploring alternative solutions for collecting VAT in real time through payment technology. One idea is that when a customer pays a retailer, the VAT element will go straight through to the tax collections authority.

3

Trade news Change at the top for ABUS UK PETER ROMA NOV IS the new managing director of security specialist ABUS UK. He succeeds Nick Vanderhoest, who has stepped down as his retirement approaches. Peter joins ABUS with more than 20 years’ experience in mechanical and electronic security products for both residential and commercial markets.

Peter said: “ABUS is not just excep-

tional in the products and services it provides, but also how it applies its core values in its relationships with customers, suppliers and staff. Nick has passed on an excellent UK team that I know are as instilled as I am with the spirit of ABUS, and I look forward to helping all our existing and new customers exploit that spirit to the full”.

Yale has new south-east manager VERONICA ADAMS HAS joined security specialist Yale as territory manager for the south-east region, reinforcing its focus on strengthening its support network for trade customers. Veronica previously worked as south-east area sales manager for Mia Hardware,

which has a strong involvement in the security sector. Her new role, which will see her working on trade contracts for both housing and local authorities, will cover all Yale’s products.

Many of bira’s board of management will be at the annual conference in Bristol on May 8, ready to discuss issues and future strategy with members. A recent board meeting was attended by Matthew Hansford (Hansfords Menswear), John Morris (Tudor Williams), Surinder Josan (All Season’s DIY), John Collins (bira bank), Jeff Moody (bira direct), Vin Vara (Toolshop and bira president), Bruce McLaren (Dalziel Kingsize Menswear), Cliff Elliott (Crossys Home & Garden Centre), Bob Jarrett, Jill Austin, Sarah Golden, Alan Hawkins, (all bira), Richard Rowlatt (J Rowlatt & Sons) and Brian Sangster (BAGMA president).

Learn alongside leading retailers A unique management development opportunity to learn alongside top independents and leading retailers including Nike, B&Q, Boots, M&S, New Look.

Invest in management development with OSS. Foundation: 26 - 30 June 2017 Academy: 19 - 25 August 2017

Exclusive 25% discount for bira members.

To find out more and book call 01295 713391 Scholarships - Fully funded and part funded scholarships in partnership with retailTRUST visit www.retailTRUST.org.uk to apply

www.oxfordsummerschool.co.uk

4

MAY 2017

They

want to grab a sizeable slice of your dependants’ inheritance Neil Mackay rails against new charges for probate

Inheritance tax risk from Govt pension fund THE PROVIDER OF bira pensions is warning that members using NEST, a government-backed pension scheme, may be hit by new inheritance tax charges. Pension pots of all registered pension schemes (including bira’s) are not usually classed as part of an individual’s estate and therefore are not subject to IHT. NEST is an entry-level defined contribution workplace pension scheme. NEST’s maximum contribution cap was lifted in April, allowing members to contribute the full allowance of £40,000pa. In addition, NEST allowed for the first time transfers in with a 0.3% annual charge. bira pensions are not affected by the IHT threat, but Salvus, the company behind the Wren Sterling bira pensions scheme, is concerned these new policies on contributions and transfers give rise to an unintended consequence of exposing NEST pension pots to inheritance tax.

The proposed IHT charges range from £300 for an estate valued at £50,001-£300,000 to £20,000 for an estate worth more than £2m.

Nest was created to support the government’s f lagship “automatic enrolment” savings programme. Graham Peacock of Salvus, said: “It

is completely inappropriate that members should face IHT while using a DWP-backed workplace pension. It completely flies in the face of industrywide efforts to create a pensions landscape that is simple, transparent and trustworthy.”

Wren Sterling will provide ongoing updates on the situation. In the meantime, if you have not yet arranged your workplace pension, bira pensions can be set up for £359+VAT with an annual governance charge of £115+VAT. Acceptance is guaranteed for all bira members. l Meanwhile, Neil Mackay, co-owner of DIY store Mackays of Cambridge, is urging bira members to sign a petition against a proposed increase in probate charges. He said: “The government, bless its little cotton socks, thinks it can slip in this new Death Tax under the radar and expect the British people to take it lying down. As if they don’t squeeze enough out of you while you are alive, they want to grab a sizable slice of your dependants’ inheritance after you have departed. My new name for the tax is Maxit (the Maximum Exit Fee).”

The link is https://petition.parliament.uk/petitions/188175

Paper £5 notes, featuring Elizabeth Fry on the reverse, will be withdrawn from circulation on 5 May. Retailers, banks and building societies may choose to accept them after this date but this is at the discretion of the individual concern. The Bank of England will always exchange its old-series notes. The oldstyle fiver, which was introduced in 2002, has been replaced with the polymer £5 note, featuring Sir Winston Churchill.

For more information visit bankofengland. co.uk/banknotes

Pulse beats for gifts buyers BUSY BUYERS SEARCHING for fresh products from new design talent will be welcome at Pulse on 14-16 May at Olympia, London. The three-day boutique trade event will bring together inspiring new gifts, modern living and fashion accessories.

Pulse already has a strong emphasis on emerging designer-makers, unfamilar international brands and new launches. This edition will see the launch of Makers, an area dedicated to emerging creative talent, and Brands, a selection of launches from 30 of the industry’s leading brands.

Makers brings together 150 up-andcoming designer-makers including Bhavin Taylor Design, Promises Promises, Jacqueline Colley and Bird Brain.

Brands will feature launches from Bombay Duck, Bronte by Moon, Canova Gifts, Cubic, Gentleman’s Hardware, Helen Moore, Ian Snow, Men’s Society, Newgate, Nkuku, Notable Designs, Present Time, Sass & Belle, S-C Brands, Tatty Devine, U Studio and more.

In the Found sector 50 neverseen-before international brands in fashion, homeware or giftware, will exhibit, including French stationery brand All The Ways To Say, Spanish jewellery producer Nathnit and Swedish home décor company Lykalia K.

Enhance your sales with these bira training dates FOLLOWING THE SUCCESS of the recent Buy Better Sell More programme, bira has organised two more courses to enhance and maximise sales.

To be held in Oxfordshire on 23 May, Visual Merchandising will revisit the principles, as well as teaching practical tips and tricks on how to dress displays. This one-day course will prompt thinking about window and in-store display.

MAY 2017

Aimed at owners, managers and visual merchandisers, it costs £185 + VAT and includes all course materials, lunch and refreshments.

Buyer & Merchandising, scheduled for Birmingham on 13 June, will improve the return on your investment in stock by minimising markdowns and improving sales and stock turn. The day-long course will allow delegates to identify which products to buy in which quantities to

enhancing profit and margins, while reducing markdowns. Aimed at owners, managers, buyers and merchandisers, the cost is £165 + VAT, and includes all course materials, lunch and refreshments.

FIND OUT MORE

For full details and to book, go to bira.co.uk/ services/retail-training/

5

Trade news Click & collect “to grow rapidly”

York indies are open for business

EXPANSION OF CLICK & collect in retailing will be driven by clothing and footwear purchases. The practice is forecast to grow by 85% in those categories over the next five years, according to a report from Verdict Retail. Overall, click & collect will increase by 64% between 2016 and 2012, the firm predicts.

Online sales in general are forecast to grow by 38% over the same period.

While increasingly time-poor consumers seek to minimise time spent shopping, the development of click & collect will come primarily from the frequency of consumers using the service rather than more retailers adopting it.

Clothing and footwear accounted for 54% of all click & collect expenditure in 2016, according to Verdict. Almost 40% of consumers make an additional purchase when collecting an online order from a store, but average spend on such purchases is down 38% on 2013.

The future growth of click & collect will be heavily affected by retailers’ improvements to fulfillment, with the greatest threat likely to come from home delivery subscription services like Amazon Prime (launched 2005), ASOS (2009) and Boohoo (2016), in which customers pay upfront for deliveries .

The calamitous floods that closed York for three days after Christmas 2015 have prompted independent retailers in the city to join forces to market themselves.

The York Independent Business Association (YIBA), which became active in midNovember, aims to market the many private shops in the cathedral city via a map and later an interactive website. It will stress that the indie shops are an integral element in York’s unique character.

“As York is a medieval city, many of the units in the centre are small, so independents have survived here. There are at least 200, maybe 300, independent businesses in York,” says YIBA chairman Johnny Hayes.

“While some shops were flooded late in 2015, the water receded after three days but we all suffered because footfall

A voicemail void?

BR I TA I N ’ S I N DE PE N DE N T RETAILERS are missing out on business because they are letting telephone calls go through to voicemail rather than answering them. Yet the majority of callers fail to leave voicemail messages, according to new research.

In a survey of 300 micro-businesses (with fewer than 10 employees), including retailers and shopkeepers, and an examination of its own call data from 10,000 businesses, telephone answering service Moneypenny found that 33% of businesses surveyed did not answer incoming calls.

In its Small Business Call Report 2016, Moneypenny also revealed that 69% of callers who were answered by voicemail declined to leave a message and just hung up.

Moneypenny looks after telephone calls for businesses of all shapes and sizes.

2

YIBA members gather at the city’s Clifford’s Tower

dropped dramatically for weeks as people thought York was still closed to visitors.

“For our pilot in November, we produced a map featuring about 30 indie shops as well as the places of historic interest.

We will follow up that with an interactive website early in 2017.

The idea is that a visitor can tap on a red dot on their phone and shop details will pop up.”

The £7,000 cost of the site is being met by the York BID. Hayes was chairman of the highly-effective Bishopthorpe Road traders’ association in York for seven years.

“I am trying to use the experience from Bishy Road across the city,” he says.

“Independent retailers make a huge difference to a district’s attraction.”

Be an independent innovator…

PROVIDING PRACTICAL RETAIL solutions and best practice advice in a more interactive and engaging environment will be the focus of bira’s annual conference on 8 May 2017. Whether you are a long-established business owner or new to the ever-changing challenges of retailing, the event will provide new insights and tangible tips on how to lead, innovate and achieve success.

Hear from visionary speakers from leading retail businesses. Learn, discuss, interact, get new ideas on how to drive performance and transform for the future on three interactive and stimulating stages: Challenge, Grow and Innovate.

Already confirmed is Google Digital Garage, which will be providing short practical sessions on how to maximise customer outreach online to improve your business.

Also taking part is brand communication agency Certain, which will be on the Innovate stage to provide workshops and tips on when and how to refresh your brand, both digitally and offline. Phil Dean, managing director of Certain, says: “Retail branding isn’t just for the big boys. Businesses of all shapes and sizes can benefit from taking time to review their brand activity.”

Learn, discuss, interact and get new ideas for the future at the 2017 bira conference Discover how tending to your brand can deliver an engaged and loyal customer base and how branded content can help take your business to the next level. Hear from a brand specialist and get the inside track on how to create a compelling and competitive brand fit for the future.”

The 2017 Conference and Awards will be staged at Bristol Marriott Royal Hotel, College Green, Bristol BS1 5TA on Monday, 8 May. Book your place at www.bira.co.uk/events/ or request a booking form via events@bira.co.uk

FOR MORE ON THE BIRA AWARDS

turn to page 13. It’s simple to enter the bira awards or nominate a business or individual. Head to www.bira.co.uk/conference17 or request an entry pack by emailing events@bira.co.uk or contacting Paulina Swiech on 0121 446 6688.

JANUARY 2017

We are everyone’s best-kept secret and we want more people to know about us

Trade news

John Deane-Bowers, who is taking his Trotter & Deane brand to Cambridge

bira: “There is not enough in Autumn Statement for us” THE AUTUMN STATEMENT in November was the government’s second big economic overview delivered in the last quarter of 2016. bira takes an indepth look at what the real implications are for independent retailers.

On business taxes A permanent increase in business rate relief will provide essential support for some. But bira has campaigned on this subject for many years and tinkering at the edges is simply not enough. bira urges Government to completely remodel the antiquated system to create a new fair system for modern retailing, whether run from warehouse or shop.

The cost of doing retail business in 2017 is already significantly higher with trade price increases flooding in after the Brexit referendum. So, the increase in insurance premium tax is simply another cost the Government is asking independent retailers to absorb at a difficult trading time.

On a positive note, the freeze on fuel duty and investment in upgrading and maintaining local road networks is essential for access to local retailers for receipt of goods, for customers’ access and for deliveries.

Lower corporation tax will be welcomed by those affected. However, the pressures of implementing mandatory quarterly tax reporting remain, and the UK infrastructure is woefully inadequate to live up to the aspirations of Government’s Making Tax Digital drive.

On digital To announce £1bn funding to improve the UK’s digital infrastructure is critical to the advancement of local retailers. bira has campaigned Government on the challenge of broadband connectivity in many areas and is pleased to see action on this.

On people National living wage was established JANUARY 2017

only this April at £7.20 an hour, for workers aged 25 and above, with a target of £9 by 2020. A jump to £7.50 is another cost to retailers in one year, but is within expectation. The Office for Budget Responsibility predicted it would give a pay rise to 1.3m workers this year, but in the independent retail community the reality for some has meant reduced hours or fewer workers to manage the increased cost. bira has asked Government to think about the speed at which it introduces new legislation and to coordinate across departments. In 2017, independent retailers will be attempting to absorb the costs of workplace pensions, business rates, national living wage, insurance premium tax, and digitising their systems, to name but a few. At the same time, they face manufacturers’ price increases in excess of 10% and the challenge of not passing on these costs to cautious consumers.

A la n Hawk ins, bira CEO, commented: “We weren’t expecting much from the Autumn Statement and that’s exactly what transpired. It’s not surprising given the state of public finances. Helping the economy through Brexit, I suppose, has to be a welcome sign that the government is realising that support is needed. But some of the specific detail will undoubtedly add cost.

“For example, the increase in the national living wage to £7.50 in April, while at the lower end of expectation, is still a significant increase. National insurance thresholds have been standardised upwards, which could lead to up to £7.18 a year per employee for the employer. Insurance premium tax is increasing from 10% to 12%, another cost that employers will have to fund.

“Overall, there’s not enough money around to create any expectation that 2017 will be easier than 2016 was. With significant trade price increases already coming in across the board, attracting decreased consumer spending will continue to be the art of retail.”

Men’s store graduates to Cambridge branch HAVING CELEBRATED 25 years in business in 2016, premium menswear specialist Trotter & Deane is opening its second shop in mid-April, in Cambridge. Founder John DeaneBowers, who sells all his merchandise under his own label, says it is time to give a higher profile to the Trotter & Deane brand.

Located in Abbeygate Street, Bury St Edmunds, Suffolk, his original store has been doubled in size over the years and now covers 2,200sq ft and employs 10 staff.

The new premises will be at 15-16 Sussex Street in Cambridge, a unit currently occupied by The Cambridge Toy Shop. Part of an impressive pedestrianised colonnade, the setting is well matched to the Trotter & Deane style.

“We have 1,800sq ft of trading space across two levels,” says Deane-Bowers. “We will be taking on four new staff, who will be managed by one of the experienced guys from Bury St Edmunds. On the lower ground floor we are going to create a club atmosphere for our personal tailoring area. We have got our own brand to a very high level now. We are everyone’s bestkept secret and we want more people to know about us.”

Typical prices in the store include a two-piece suit in Super 120’s worsted cloth at £575 and a fine-cotton shirt at £115.

Style on show at Top Drawer Fine new products for home, gift, fashion and craft shops will be on show this month at Top Drawer (15-17 January, London Olympia). This edition sees more exclusive brands and new products being launched across all sectors, plus a host of exhibitors joining the roster for the first time, making Top Drawer the perfect hunting ground for innovative retailers.

Brands exhibiting this season include KMI, Wild and Wolf, Alessi, Rice, Nkuku, Maxwell & Williams, Teapigs, Black + Blum, Bliss Home, Stelton, Celia Gould, Tatty Divine, White Leaf, Kikkerland, Portico Designs, Jellycat and Caroline Gardner.

Trade buyers can register online for show tickets at www.topdrawer.co.uk A special lunch will be hosted by bira at the show. See bira.co.uk for more information.

3

Trade news Can you make sure the members are heeded?

THE BOARD OF management of bira signs off the big decisions, keeps the association accountable to its members, and ensures it is doing everything it can to support independent retailers. Do you want to help this vital work?

Retailers are now able to nominate themselves for a position on bira’s board of management (BOM) for 2017-2019. The board comprises independent retailers from all over Britain who are involved in a range of sectors. Board members not only have a platform on which to air their views on bira’s activities, but also can learn from other retailers, while sharing their own knowledge of independent retailing.

Board member Richard Rowlatt, of cookshop retailer Rowlatts in Wellingborough, says: “I stand for the board of management because I want to ensure that the members’ voice continues to be heard and listened to at all levels within bira.

I also want to support our hardworking staff and directors. Our bira is a fantastic members’ organisation with a great range of services and I fervently wish for that to continue.”

Alan Hawkins, bira’s CEO, adds: “With plenty of healthy debate and discussion, our board of management is the driving force behind the association, pushing us forward, making the difficult decisions and ensuring we are always working to make lives easier for retailers. It is our members’ chance to get their voices heard and to influence their association at the highest level.”

HAVE YOUR SAY

If you would like to support other independents by having a say in the future activities of bira, then please contact Jill Austin on 0121 446 3722 or email jill.austin@bira.co.uk to find out the process for nominating yourself for the board.

Continuing bira’s campaign to develop better links with the government, the legal and parliamentary affairs committee (LPAC) welcomed to its meeting in November Laura Robinson, who is deputy director for the retail sector hub at the Department for Business, Energy and Industrial Strategy. She is seen here with LPAC members Guy Lachlan

(Jones & Cocks, Aylesbury), Gary Culver (Frederick L Mabb, Yeovil) and Ian Firth (LPAC chairman). The LPAC group highlighted the major concerns of the independent sector in a wide-ranging conversation with Robinson.

The meeting happened a day after CEO Alan Hawkins was part of a retailers’ group that met with small business minister Margot James.

Confidence rises MEMBERS OF BIRA are feeling more positive about trading, according to responses to our Quarterly Sales Monitor for Q3. Some 56.8% reported a higher performance in store, 12.7% up on the previous quarter.

A healthy 60.7% of independents are confident about the year ahead, which is the most upbeat bira has seen them this year. Only three of the 11 product sectors measured reported a decline, compared to seven in the previous quarter. Cards, stationery, crafts and hobbies were hardest hit with an average decline of 7% in sales in Q3, while books, toys and music saw sales grow 18%, having been down previously.

Furniture and flooring plus pet products continue to grow. South West and Scotland saw the best growth with 7.8% and 4.6% respectively, whereas Northern Ireland was the hardest hit with a 3.5% decline in sales.

Quarterly Sales Monitor Quarter to 30th September 2016

Price deflation dominates retailing – for now NOVEMBER WAS THE 43rd month to see shop price deflation. The British Retail Consortium-Nielsen Shop Price Index showed overall shop prices at 1.7% lower in November, unchanged from the previous month. Non-food deflation accelerated to 2.3% after falling by 2.1% in the previous two months. Food deflation decelerated sharply to 0.8% in November from the 1.2% fall in October.

Speaking in early December, Mike Watkins, head of retailer and business insight at Nielsen, observed: “Shop prices are still falling and deflation will continue to at least the end of 2016 as the result of the battle for the wallet of Christmas

4

shoppers. Looking ahead, we can expect a slow return to shop price inflation during 2017 with fresh foods, some of which are also seasonal and weather-dependent, likely to be impacted sooner when increased supply chain costs finally begin to filter through to retail prices. Retailers will keep running promotions and campaigns, however, to encourage retail spend and this will continue to help shoppers to save money next year.”

Helen Dickinson OBE, the BRC chief executive, said, “November took the run of shop price deflation into its 43rd month, with prices falling by 1.7 per cent year-on-year, an unchanged rate of deflation from October. While food deflation

slowed to 0.8 per cent year-on-year compared with 1.2 per cent in October, non-food deflation increased to 2.3 per cent from 2.1 per cent, which could be attributed to extended promotions in the run-up to Black Friday.

“These figures once again point to retailers’ effectiveness in controlling the inflationary pressure that continues to build through the devaluation of the pound. We have still yet to see any visible impact from the weaker pound on shop prices, but we do expect to see a gradual slowing of the rate of deflation. Increasingly value-driven and informed customers mean retailers will have to remain highly competitive.”

JANUARY 2017

This

is great news and the town will undoubtedly benefit. I’m incredibly proud to be a part of this amazing town.” John Major of menswear retailer Parker Taylor, Bridgnorth

Trade news

Park & Ride drives Bridgnorth to victory “THE WHOLE TOWN is buzzing.” That was the reaction of Kevin Bellwood and his fellow independent retailers on hearing that Bridgnorth, Shropshire, had been named Best Large Market Town in the Great British High Street Awards 2016.

A Park & Ride scheme developed by the town’s chamber of commerce and funded by local retailers at the cost of £10 a month each was cited by judges as one of the reasons Bridgnorth came out on top. Operating on Saturdays from April to October, plus Saturdays in December, the transport initiative runs from the car park of a farmers’ auction house. It costs the chamber around £250 per day and chamber members marshal the car park. The service, which has been running for two years, is designed to increase footfall to the town and is free for the public.

“It brings in between 200 and 500 people on a Saturday,” says Bellwood, the owner of the Roobarb gift shop and chairman of the chamber’s shops and events committee since the start of 2015. “This year we are going to make even more from it by distributing promotional vouchers on the bus. We have been missing a trick there.”

Other new initiatives include the revival of late-night opening on Thursday. “By everyone pulling together, we are really making a difference. My Thursday takings are sometimes tripled thanks to the late opening,” he says.

The seven-strong executive committee of the chamber, which includes bira member Bellwood, is credited with invigorating the town centre. The campaign to see the town recognised was driven by two local bloggers, Sarah Stevens of Buy Big in Bridgnorth and Sally Themans of Love Bridgnorth. John Major of menswear retailer

Parker Taylor, which has a shop on the high street, said: “This is great news and the town will undoubtedly benefit. I’m incredibly proud to be a part of this amazing town. I am especially pleased for Sarah and her helpers who worked really hard to bring local businesses together.”

As part of the award, the chamber gets a share of a prize pot worth £100,000, plus expert training from Google’s digital taskforce for shops and bars, and a trip to Twitter UK’s London office to boost social media skills of members.

The Great British High Street competition, which celebrates work being done to revive, adapt and diversify the nation’s high streets, is run by the Department for Communities and Local Government and sponsored by British Land, the Post Office, Holland and Barratt, Boots UK, Google UK, Marks & Spencer, Wilko, Revo and Ellandi. This year’s competition, the third to be held, saw a record 900 entries in 14 categories.

The public votes for the winners, which were announced in December.

Other winners for 2016 include: Blackburn (Great British High Street of the Year and Town Centre); Derby (City Location); Hebden Bridge (Small Market Town & People’s Choice Award); Falmouth (Coastal Community); Hoole, Chester (Local Centre / Parade of Shops); Pateley Bridge (Village); Stockton-on-Tees (Rising Star); Myddleton Road, Haringey (London).

DO YOU TRADE IN ONE OF THE 2016 WINNERS?

Or in one of the winners from the two previous years? Let us know how the accolade has benefitted your business and community via editorial@bira.co.uk

A timely win Completing and returning the bira membership questionnaire for 2016 earned Neil O’Rourke of Mendip Carpets of Nailsea, Bristol, the prize of a handsome Apple Watch, worth nearly £300. His name was the one pulled from the hat (or was it from under the rug?).

This year’s questionnaire will be sent out in the early autumn and we encourage all members to take part in this important annual survey.

Will a switch reduce your water bill?

FROM APRIL 2017 businesses, as well as charities and public sector organisations, in England will be able to switch their supplier of water and sewerage retail services, which include meter reading, billing, as well as handling customer queries and complaints.

The Consumer Council for Water (CCWater), the independent consumer body for the water industry in England and Wales, believes there will be potential financial benefits and savings for bira members thanks to the upcoming changes in the JANUARY 2017

non-household (NHH) retail water and sewerage market.

From April, some 1.2 million customers in England will be eligible to switch. Currently, only very heavy users of water (those using 5m litres a year in England or 50m litres a year in Wales) can switch water supplier. It would take 5m litres to fill two Olympic-sized swimming pools. From April 2017, however, this usage threshold will drop to zero in England, effectively opening up competition to all NHH customers.

The Welsh Government has decided to keep a 50m litre threshold in Wales. In Scotland, NHH customers have been able to choose their retailer since 2008. Around 30% of customers have switched and around 50% have negotiated with their current retailer.

FURTHER INFORMATION

is available via marketreform@ccwater.org.uk or on 0121 345 1028. The CCWater’s website is www.ccwater.org.uk/business-customers

5

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bira conference

Many

businesses appear to be oblivious of technology’s impact Paul Clarke, chief technology officer, Ocado

Confused about how technology is affecting retailing? At the bira conference on 8 May, all will be revealed by the experts from leading POS software provider Vend

Get tuned in to retail tech WE ALL KNOW technology is having an indisputable effect on retail. But it’s still amazing, as Ocado chief technology officer Paul Clarke told Harvard Business Review, “how many businesses appear oblivious to the impact these forces will have on them”.

Retail and technology have become so interdependent that one is essentially indistinguishable from the other these days. But while the lines between the two will only continue to blur, one thing is clear: retailers who fail to recognise the importance of technology will fall behind.

Let’s take a look at three of the biggest retail trends, which underscore why tech is so critical to the success of all retail businesses.

1

Omnichannel Omnichannel retail unifies all available shopping channels (in-store, online, mobile, social, etc.) in a way that provides customers with smooth, integrated experiences.

While efficient omnichannel strategies used to be an end-ofroad goal for retailers, times have changed — and both shoppers and retail itself have evolved.

Omnichannel is the standard now. Without a robust omnichannel strategy that makes the entire shopping journey as seamless as possible, retailers risk losing valuable customers and revenue.

Hear more from Vend at the bira conference Marc Cooper, vice-president EMEA at Vend, will be speaking at bira’s conference in Bristol on 8 May. Complementing the lineup of traditional keynote speakers, which includes Laura Tenison, founder of maternity and babywear specialist Jojo Maman Bébé, this year’s interactive programme allows delegates to pick and choose the sessions they want to attend. They will hear from the likes of Google Digital Garage, branding agency Certain

MAY 2017

and paint expert Dulux, as well as many others in the Grow, Innovate and Challenge workshop streams. Tickets are still available for as little as £95 plus VAT. Contact Paulina on 0121 446 6688 or email events@bira.co.uk as soon as possible to avoid disappointment. bira.co.uk/conference17

2

Retail management solutions A typical retail management solution once consisted of a clunky cash register and lots of time-consuming manual reconciliation. But technological innovations have led to the advent of modern solutions that cover and connect point-of-sale, inventory management, reporting, and customer management.

The right retail management solution takes care of these backoffice tasks, alleviating the stress of administration and allowing retailers to focus their time and energy on growing their customer bases and, ultimately, their businesses.

3

Fulfilment tech Fulfilment tech such as click-and-collect was born from the ever-increasing consumer demand for personalisation and convenience.

To effectively own this area, you need to take a closer look at your systems and operations, and then map out the entire journey of a product to determine how best to accommodate customers’ fulfilment desires.

A streamlined fulfilment tech strategy lets customers know that you truly value their time and care about their needs. It can also endear your business to shoppers and help create a positive impression of your brand.

7

LDC/bira report

Still a nation of Independent retailers are still opening. That’s the good news.

But the latest national survey reveals significant changes in the mix of high street traders

TR ADITIONAL INDEPENDENT RETAILERS opened more shops than they closed in 2016 in Britain’s top 500 town centres, while national chains continued to reduce their branch numbers, new research from bira and Local Data Company (LDC) reveals.

According to the LDC/bira Retail and Leisure Report 2016, across the nation independent shops saw an increase of +159 units (+0.15%) last year. To accentuate the positive, this low net number equates to a +36% increase from 2015, when +117 shops were added across Great Britain.

Conversely, national multiples have continued to cut back on their estates, with a net loss of -896 shops in 2016 across the top 500 town centres, which compares to -498 shops in 2015.

The closure of Bhs and the Austin Reed Group stores (Austin Reed, Viyella and CC) contributed to the majors’ slump.

Encouragingly, independents still account for 65% of all retail and leisure units in Great Britain, the same as in 2015. In all, some 29,083 independents either opened (14,621) or closed (14,462) in 2016, a figure that was margin-

Independents last year still accounted for 65% of all retail and leisure units in Great Britain, the same level as in 2015 8

Net openings & closures for independents by region 2016

189 Scotland

ally down on 2015, when 29,936 shops opened (15,026) or closed (14,910).

Less happily for bira members, the category into which most of them fall – LDC’s curiouslytitled “comparison goods (non-perishable goods) shops” – continued to suffer a marked decline.

The net change was -2.01% (-1.52% in 2015), representing a net decrease of -635 units in 2016, notably more than the -487 figure in 2015.

The high street’s most numerous arrivals fall into the “service retail (health & beauty, financial services, tattoo parlours and estate agents) category. The survey confirms these shops increased by +587, the greatest number of units, up from +385 in 2015 (+1.92% in 2016 versus +1.28% in 2015).

70

North East

Also on the rise were: l Leisure (restaurants, cafes, bookmakers, entertainment), which grew by +0.34% in 2016 compared to a +0.39% increase in 2015.

There was a net increase of +116 units versus +130 in 2015. l Convenience retail (bakers, butchers, food shops, supermarkets) saw a net increase of +91 units (+1.01%) in 2016 versus +88 units. l Tobacconists/e-cigarette retailers (+42%) and Middle Eastern restaurants (+33%) have increased the most as a percentage of their total units.

63

124

Yorkshire & Humberside

North West

145

65

304

East Midlands

West Midlands

Overall, key growth sectors have been barbers, hair & beauty salons, tobacconists/e-cigarette shops, restaurants & bars, and mobile phone shops, while sectors in decline include newsagents, women’s

-6

East of England

Wales

-82

South West

123

South East

-164

Greater London

MAY 2017

It’s

clear that the real winners are those categories where the customer has to be present, such as hair and beauty. bira CEO Alan Hawkins identifies the growth categories for independents

shopkeepers Top 10 independent business openings by classification

3.1%

3.5%

3.9%

Fast Food Takeaways

Convenience Stores

7.2%

Hair & Beauty Salons

7.1%

Bars

Restaurants & Bars

12.2%

Nail Salons

10.1%

Mobile Phones

Tobacconists & e-cigarette shops

8.8%

Beauty Salons

Barbers

42.4%

2.5%

-7%

-1.5%

-5.1%

Shoe Shops

Florists

-2.5%

Estate Agents

-2.2% -8.2%

Computers

Jewellers

-4.1%

Fast Food Takeaway

-5.4%

Night Clubs

-5.5%

Restaurant – Indian

Clothes – Women

Top 10 independent business closures by classification Newsagents

clothing retailers and Indian restaurants.

The East Midlands showed the greatest increase of independents at +87 units (+1.19%), versus +17 units (+0.23%) in 2015. Greater London continued to see the greatest decline of independents at -154 units (-0.48%), but at a slower rate than in 2015 (-212 units, -0.65% in 2015).

Scotland has seen a boost in the number of independents with an increase of +130 shops compared to an increase of +75 the previous year.

Among the top 500 town centres analysed, Glastonbury in Somerset has the highest percentage of independents at 85.6%, while Salford in Greater Manchester has is the lowest percentage at 18.1%, against a GB average of 65%.

Alan Hawkins, bira CEO, commented: “It’s good to have some positive news at last, especially in Scotland. It’s clear that the real winners are those categories where the customer has to be present, such as hair and beauty. Service, leisure and convenience stores all showed good positive net openings with only comparison shops doing worse. The fact that most bira members are in this oddly-named category is an issue we and our members are working hard to redress.

“Given that there are over 100,000 independents in the top 500 towns is news to celebrate, as is that 65% of all retail and leisure outlets are independents. The fact that net growth is still only in the low hundreds means no letup in our effort to convince government that support is needed.

“Without independent retailers, there would be a much emptier exchequer. The next few LDC surveys will make interesting reading as the government has failed to deliver the fundamental rates reform we were looking for and we expect some economic realities to hit home.”

-6.7%

Net openings/closures by multiples/independents 2012-16 2000

n Independents n Multiples

1000 0 -1000 -2000 -3000 -4000 -5000

2012

2013

2014

2015

2016

The top (and bottom) towns: towns with the greatest and lowest percentage of independent retailers

TOP 10

BOTTOM 10

1: Glastonbury

85.6%

6: Wolverton

81%

1: Stevenage

30.5%

2: Plaistow

84.3%

7: Finsbury Park 80.9%

2: Cwmbran

28.8%

8: Stony Stratford

3: Redhill

28.7%

3: Deptford 4: Chingford

83% 82.4%

5: St Margarets East, Richmond 81% MAY 2017

80%

9: Forest Gate

79.8%

4: Staines

28.6%

10: Swanage

79.7%

5: Crewe

28.4%

6: Welwyn Garden City 26.1% 7: Milton Keynes 25.6% 8: Basildon

23.8%

9: Bracknell

21.8%

10: Salford

18.1% 9

Emma Woodward, co-owner (left) Samantha Yair, co-owner (right) Aspire Style Founded in 2004 Located in Birmingham, Coventry, Oxford, Solihull & Stratford Upon Avon

Whatever your business needs, bira has it covered.

“We started looking into a workplace pension scheme several years ago and were quoted eye-watering sums. The cost for bira workplace pensions was much lower, it was easy to set up and we now find it simple to use with help at the end of the phone if needed.

“We’ve also used bira legal for HR and employment law advice and we’re looking to get set up on the great card processing and utilities rates too.

“For whatever a small-to-medium retail business needs, bira seems to have it covered.”

Samantha Yair, Aspire Style

See the full range of services at bira.co.uk/services

bira policy

bira fights on for business rate relief Chancellor Philip Hammond has offered £300m in a fund for discretionary business rate relief in England. bira has responded to a consultation document about how this modest sum should be allotted IN HIS FIRST budget on March 8, Philip Hammond said he would not abolish business rates but had “listened to the concerns” of businesses. He also spoke about being committed to “smoother and more frequent” business rates revaluations. Fine words, perhaps, but of no practical help to pressured independent retailers facing severe increases in their rates bills.

The government has promised to spend £300m across three years in England in an effort to relieve some of the pain of business rates. While bira believes this is of little benefit, it has responded to a consultation document from the Department for Business, Energy and Industrial Strategy (BEIS). We publish it here.

Do you agree that individual local authorities should be responsible for designing and implementing their own discretionary relief schemes, having regard to local circumstances and reflecting local economies?

The idea of a discretionary relief scheme that helps businesses struggling with the impact of rises in business rates is good. The advantage of allowing individual local authorities to design and implement their own discretionary relief schemes is that each can react to the needs of their local business community, which can be very different from borough to borough.

The general nature of the scheme, however, allowing bigger businesses to pitch for money against smaller businesses, would load the advantage towards the bigger players from the MAY 2017

start. The government should therefore consider giving local authorities guidelines with respect to how smaller and bigger businesses might be treated under this scheme in order to ensure that the smaller ones (that have less manpower to put towards writing and chasing up such applications) are not immediately at a disadvantage. bira believes that allowing a local authority individual control regarding how they set up their scheme, with no guidance from central government, would mean there would be a “postcode lottery” regarding criteria, and how businesses would be able to benefit. It would be easy to find a situation where two identical retailers, with the same issues, could find themselves with different judgements on what relief they should get underneath the scheme.

While “the government expects billing authorities to discuss options with their major precepting authorities (ie: county councils) at an early stage and to consult them before adopting any scheme and where applicable consult their combined authority”, again there is no guidance regarding how these consultations should be rolled out, or even how extensive they need to be. This means that there will be no best practice or standardisation to ensure that each local authority does take this seriously.

Finally, with respect to the “notice period”, this scheme will not be bound by The NonDomestic Rating (Discretionary Relief) Regulations 1989, which means that the individual local authority will be able to decide what cri-

teria will be able to amend the relief available within the year. This will allow a local authority a “get out clause” to change the criteria without comparison to other local authorities.

In conclusion, while bira understands that the government is trying to give local authorities the autonomy to help their businesses as they feel is best, the government cannot assume that they have no responsibility to set some parameters that will ensure that a local authority has a comparable scheme to other similar authorities that can be measured by the provision of help it gives in line with other local authority schemes.

Are the Government’s assumptions about the design of local discretionary relief schemes reasonable?

Some local authorities do, of course, know their local business profile well. There are local authorities, however, where smaller businesses do not feel that their issues have been prioritised. Therefore, placing the entire responsibility for the development of these relief schemes with the local authority could mean that an implemented scheme could be rushed into place, without consultation with the businesses it is supposed to help, and so miss the government’s objectives.

In addition, there do not seem to be any way in which a business can appeal a decision if they have made an application for support, but failed. An appeals process must be put in place or the entire scheme has a lack of transparency.

11

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bira policy

Is the allocation methodology reasonable?

Looking at the profile of the discretionary support fund over time, the pot starts off at £175m in the 2017-18 financial year, before decreasing to £85m in the second year, £35m in the third year and tapering to nothing by 2020-21. The most severe increases in business rates, however, do not kick in until 2020 at which point no more relief will be available. This is a timed mismatch, in the sense that the discretionary support fund is front-loaded, but the business rate increases are back-loaded in time. This is a fundamental problem that needs to be addressed.

Do you think that authorities should have some flexibility to switch resources between years to ensure relief provided meets local need and provides maximum value for money?

Yes. However, considering that the support fund is front-loaded, this may not be able to happen as it may be further down the line that a business has a problem and needs extra relief, when there is no – or certainly less – money available.

Do you agree with the proposal that S31 grant should be paid to compensate authorities for their loss of income under the rates retention scheme up to the maximum of that year’s “total pot”?

Yes, but the government needs to remember that it is not only local authorities that will suffer a loss of income due to changes in business rates. It would be interesting to know what the full value of the S31 grant will be in comparison to the £300m discretionary pot available for businesses.

Do you agree with the proposals for administering payments, including in-year payments based on estimates, end-year reconciliations and payments quarterly in arrears?

Yes, as long as a local authority has to ringfence the money from the discretionary fund.

Otherwise a local authority could delay payments to local businesses on the promise that they would be allocated their relief from the end-of-year reconciliations. If this happened, this would mean that the business would suffer twice – once with the increase in business rates, and secondly with a delay in getting the relief to which they are entitled.

Do you agree the grant conditions are appropriate?

Yes, but again there should be more guidance regarding the consultation a local authority needs to have before setting out the criteria of their discretionary relief support scheme.

MAY 2017

HIGH STREET RETAILING SUFFERS DUE TO BAD PARKING

40%

Some 262 members responsed to bira’s survey on local parking and the effect it has on their independent businesses. The three simple questions were:

Over of respondents said that the amount of parking, the cost of parking and the quality of the parking in their area was poor.

l I s the amount of public parking in your area adequate to support your business? l H ow is the cost of parking in your area, from the car owners’ viewpoint? l H ow do you rate the quality of public parking in your area?

Only of respondents said that the parking quality was good.

15% 18%

With saying it was good enough to support their business needs.

n Poor n Fair n Good

50% 40% 30% 20% 10% 0

Is the public parking in your area adequate to support your business?

How is the cost of parking in your area, from the car owners’ viewpoint?

The main issues highlighted by members in terms of parking facilities are: l Outside indie shops there are mostly Loading Only spaces. This makes it very difficult for retailers who sell larger items that people need to collect. l H igh street retailers are not seeing as much footfall as customers prefer to go to bigger retail parks that have large free parking areas l T raffic wardens in high street areas are very strict, ticketing cars that are just two minutes over time l P eople are not shopping for very long because free parking for up to two hours is not enough so they rush around to get back to their vehicles l F ree car parks are often used by commuters, not shoppers l A general lack of parking spaces; if there are car parks, they are usually expensive

How do you rate the quality of public parking in your area?

All chargeable public parking should be “Pay on Exit” with the first hour free All parking is pay and display; customers constantly have to leave before purchasing to get back to the car before their ticket runs out Although the cost of parking is reasonable, there are very few places to park.

Traffic wardens do not help if someone has just parked outside to collect something from the shop.

And they work on Sundays too My biggest issue is with the local authority-owned and regulated off-street pay and display car parks. People pay for what they hope will be enough time and then disappear when they realise their time has expired! We have pushed for pay-on-exit parking, but to no avail

13

bira charities

The charities bira supports offer short-

term and long-term assistance for those less fortunate in life

Looking after our own Three long-established trade charities benefit from bira’s support. While raising money for them is essential, finding retailing folk and their families they can assist is just as important – and often harder REMARKABLY, THERE ARE around 160,000 charities in the UK, which may explain why many of them are not as well known as they ought to be. Very few have the marketing clout of Red Nose Day, Children in Need or Macmillan Cancer Support. There are significant similarities between the trio of charities that bira supports, all of which have long histories in their respective trade sectors. And all three wonder why more people do not come to them for help.

Rainy Day Trust, Retail Trust and Fashion & Textile Children’s Trust are the current incarnations of charitable institutions that were founded in the 19th century. It is an interesting social phenomenon to note how early pioneers of our modern retailing system were eager to look after those in the trades who were less well off.

Today the three charities, very broadly speaking, do similar work, but all offer far more than just giving cash handouts – although that is a vital role. In many ways, the biggest challenge they face is to spread the word about their excellent work to those who could benefit most from it. All would appreciate bira members publicising what they do to employees, work colleagues and other contacts in the industry.

RDT is “the only charity which exists solely to help people who have worked in the UK’s home improvement and enhancement industry”. It traces its roots back to 1843, when a

14

group of concerned individuals in the ironmongery and hardware trade set up a fund to provide pensions for distressed members of the trade and their widows; it was called the Iron, Hardware and Metal Trades Pension Society.

Various slight name changes followed, until 2004 when, to reflect the charity’s changing responsibilities in providing for “that rainy day”, the charity dropped its Victorian title and adopted its current name. In 2012 it merged with the Pottery and Glass Trades Benevolent Fund to substantially enlarge its range of activity, which ranges from one-off grants to lifetime support, a range of helplines and even assistance with retraining to assist someone find a job. bira president Vin Vara is among a board of trustees drawn from retailers and suppliers.

CEO Bryan Clover, who entered the charity sector after a career as a Royal Air Force pilot, stresses the importance of bira members raising money and raising awareness of RDT’s work “Through bira, we can reach across the DIY, housewares and cookshops sector, right down to the classic mom-and-pop store, not to mention their suppliers too,” he says. “It’s incredibly important to get the message across that it is easy to contact us via our helpline (see box) or through the application form on our website.”

To be helped by RDT, a person – or their partner – should have had just one year’s expe-

FTCT provides financial grants for the children of parents and carers

working across the fashion and textile sectors

MAY 2017

I

hope our marvellous retailers continue to dig deep as well as spreading the word about our charities Alan Hawkins, bira CEO, ambassador to Retail Trust & treasurer for Rainy Day Trust

Rainy Day Trust CEO Bryan Clover is walking 186 miles on the Pembrokeshire Coastal Path to raise funds for the charity

bira independent retailer members are regular recipients of Oxford Summer School scholarships from Retail Trust

rience working in the industry., but this does not have to be through continuous service. Thousands of people are eligible, but Bryan is surprised how relatively few applications are made.

About 30% of applications come from people who are still working in the sector and he is sure the charity could help many more who are struggling with the problems of “a rainy day”.

The story is very similar at FTCT, which was founded in 1853 by a group of philanthropic textile merchants who wanted to help the children of colleagues who had died or fallen on hard times. These were clearly a well-connected group as within a couple of years their chairman of appeal was none other than Charles Dickens, who was well-known for his interest in social welfare.

FTCT’s role is to assist with financial grants the children (aged up to 18 years) of parents or carers who work or have worked in the UK

clothing and textile sector. The potential pool estates of homes for former retail staff across the is huge, ranging from, say, the design staff in a country, but these days it stresses more what it Scottish textile mill through to shopfloor salesdoes for those still working in retailing. people in a fashion independent or warehouse Its wide range of services include debt workers for a major household textiles retailer. advice, counselling, hardship grants and career The charity welcomes applications for help from development, the last of which includes the anyone who has worked in this huge sector durscholarships the charity provides for delegates ing the past nine years. to the prestigious Oxford Summer School. Over FTCT director Anna Pangbourne leads a the past eight years, many bira members, espeteam of just seven people who have been kept cially from smaller concerns, have benefited busy recently in the aftermath of the collapse from these grants to improve their management of Bhs. Several hundred grants have been and retailing skills. approved to help the children of former employRichard Boland, who took over as CEO ees of the chain who suddenly found themselves at the charity after 40-plus years in retailing, redundant with all the financial would welcome bira members pubconsequences that brings. licising its work to their current staff, “We are delighted bira has been former employees and colleagues in donating to us over several years,” the business: “Whether it’s assisting says Anna. “Many of its members with emotional and physical welland their current or former staff being, financial hardship or voca– whether they are involved in the tional career development, there is selling of carpets or tea towels, fash- FTCT director so much Retail Trust can provide. ion or cushions – meet our criteria. Anna Pangbourne We’d be thrilled if bira members can We are delighted bira members help spread the word.” become involved in fundraising, but Summing up bira’s involvement it is just as useful for them to spread with the three charities, CEO Alan the word about our work to anyone Hawkins remarks: “The memberthey know we could help.” ship of bira is so diverse that choosThe FTCT website carries plening one designated charity is imposty of stories to illustrate the type sible. At bira events, Retail Trust is of assistance it provides; for many Bryan Clover, preferred as it is so far-reaching, people a little help goes a very long CEO of Rainy Day Trust covering all our divisions and interway. The first step is to ask, but ests. I am proud to be an ambasresearch by the charity discovered sador for the charity. Without its that pride or embarrassment often support for the Oxford Summer gets in the way or a feeling that they School, for example, many retailers really aren’t in a bad enough posijust wouldn’t get this life-changing tion to merit help. Some possible educational experience. beneficiaries do not believe the “Rainy Day Trust is the longgrants are free, worrying that they Retail Trust CEO established charity for our hardware may be payday loans in disguise. All Richard Boland and housewares members. A branch bira’s charities face such attitudes. meeting just wouldn’t be the same By far the largest of the trio, Retail Trust without a RDT raffle or similar. As its honorary proudly claims it is “the only charity that looks treasurer, I offer practical and effective support. after all 4.5 million people working in retail, “FTCT was chosen to represent our fashion, plus those retired from the sector and its assohousehold textiles and carpet retailers. The ciated businesses”. Founded in 1832 by drapery practical support its grants provide is so imporwarehousemen, it was for many years known as tant for the children and young people they supCottage Homes. It was one of the earliest proport. This small and well-run charity centres on viders of retirement housing and still runs five giving as much as fund-raising.”

FOR MORE INFORMATION

Victoria Charity Centre, 11 Belgrave Road, London SW1V 1RB 020 3667 7882 / www.ftct.org.uk Helpline: 0300 123 9002 MAY 2017

Federation House, 10 Vyse Street, Birmingham B18 6LT 0121 237 1132 / www.rainydaytrust.org.uk Helpline: 020 3192 0486

Marshall Hall, Marshall Estate Hammers Lane, London NW7 4DQ 020 8201 0110 / www.retailtrust.org.uk Helpline: 0808 801 0808

15

The big interview

Michelle Jarrold in the

ground-floor beauty area that

has been remodelled and expanded as part of a five-year refurbishment programme

Success is in 16

MAY 2017

The big interview

store MAY 2017

WHEN YOU ARE nearing your 250th year of trading, a 5-year refurbishment programme represents only a page or so in your history book.

Yet the work being done at Jarrolds of Norwich at present is part of a strategy to ensure that there will be many more anniversaries to come.

With John Lewis, Debenhams, House of Fraser and the largest Marks & Spencer outside London as near-neighbours in Norfolk’s cathedral city, the family-owned Jarrolds has plenty of local store competition, not to mention the many multiples and a plethora of independent retailers. And then there is the internet…

“One of our challenges is to find our path through all this competition,” explains Michelle Jarrold, who is a Jarrold board director, store development director and trading director for fashion, accessories, beauty and books. “We have about 200,000 residents in Norwich and its suburbs, and 750,000 potential customers within 40-minute driving time. How do we stand out?”

Attending to the key retailing Ps – place, product, price and people – is proving a worthwhile formula for Jarrolds, which continues to offer a full classic department store offer across its five floors and 90,000 sq ft of trading space.

Haberdashery, hobbies, stationery and luggage still have their space alongside larger areas for furniture, fashion, accessories and beauty.

There are four eateries in the store too.

The origins of the company stretch back to 1770 when John Jarrold opened as a grocer and draper in Market Place, Woodbridge, Suffolk.

Some 247 years on, the Jarrolds group is still controlled by his descendants – about 100 people from three related families are shareholders.

The fine building that dominates London Street in Norwich’s shopping district is on a site that has housed Jarrolds’ main store since 1840. The present building’s elegant facade was completed in 1923, but inside the latest improvements bring the store up to a 21st-century standard.

The total refurbishment budget for the fiveyear programme will be about £3m; the design work is being handled by Simon May of Furniss and May, and Mark Brown from Now-London.

The programme began five years ago with a comprehensive overhaul of the menswear department at the rear of the ground floor.

“Despite how it might appear from the outside, our five-story building is generally a useable rectangle, but in the menswear area we had to remove a goods-in mezzanine, which made it quite an expensive exercise,” says Michelle.

The result, however, was “a game-changer for the store”. Without increasing the trading space, sales went up by 25%, new desirable brands such as Gant were attracted to the store and the age profile of the male shopper in the department dropped from 60+ to 40+. “Previously our brand mix was good – with stalwarts like Jaeger, Ted Baker, Hackett and Barbour – but the environment didn’t do them justice.

The menswear experience proved to us that refurbishment had to be part of our strategy to keep us relevant.”

Another strand of the strategy is to have brands exclusively in the Norwich area. Camel, Fynch-Hatton and Hackett are examples of menswear brands that consumers must visit Jarrolds to find locally. There is no self-service mentality at the store: “The menswear department is very comfortable and service-led, like the rest of the store. I detect a real yearning for good old-fashioned service from consumers and that is what we excel at.”

Following the menswear revamp, four years ago the beauty and accessories areas at the front of the ground floor were redesigned. More space was given over to these two vital footfall-generators and profit centres. Such was the success of the beauty refurb that a further upgrade was carried out in 2016.

“Back in 2013 we had many good beauty brands and it was a comfortable area, but we wanted to give even more space so that consumers would not feel harassed or pressured,” says Michelle.

Part of Michelle’s responsibilities is to secure new brands in fashion, accessories and beauty and the store environment is a key factor in winning over the decision makers. Jarrolds secured MAC, the popular entry-level brand as long ago as 2004, when it was the only independent department store to have the collection. Major name Bobbi Brown was added in 2016, along with the new line from Charlotte Tilbury, which is the hot property in the sector at present. It says much about Jarrolds’ reputation in the beauty area that it is the only independent department store to have Charlotte Tilbury in its beauty line-up. It also stocks Tom Ford, La Mer and Jo Malone exclusively in Norwich.

“Even after the expansion of the beauty area, the sales densities have held up,” Michelle explains. “Another plus-point for cosmetics is that they spread the age profile of the store.”

Interestingly, the good-looking accessories area has not enjoyed the same level of 

17

Photograph: Mike Harrington

Reports of the death of the department store are ignored in Norwich, where Jarrolds continues to invest in its impressive bricks-and-mortar offer, as Michelle Jarrold explains

The big interview

success so far as menswear and beauty, which Michelle puts down to Jarrolds not having every in-demand bag brand it would like.

Her campaign to win over suppliers continues.

Unlike some stores that have become almost exclusively landlords to concession brands, Jarrolds still directly buys 50% of its fashion. The 18,000sq ft fashion floor on the first level was redesigned in 2015 to open it up and give it a lighter, airier feel, with adjacencies carefully considered and better sight lines introduced.

The floor, says Michelle, has become “a calmer fashion environment, with plenty of experienced staff on hand to make the shopping experience more enjoyable than just buying it online. It’s a space in which brands can define themselves within carefully-set parameters such as standard panels and fixture heights.”

With a personal shopping service and attractive fitting rooms, which are deliberately sited near concessions as well as the own-bought ranges, the approach reflects Jarrolds’ belief in the experiential aspect of modern retailing.

Even before the extensive make-over of the floor, Michelle was happy with the line-up of brands, which includes a broad selection of wardrobe options such as Hobbs, Esprit, Ted Baker, Benetton, Luisa Cerano, L K Bennett, Superdry, Basler and First Avenue (from the AIS buying group). Again, the upgrading of the space attracted important new names, notably the fast-growing Mint Velvet.

While some long-established brands with an older customer profile like Eastex have been dropped, Michelle explains that Jarrolds likes to stick with its suppliers through bad times as well as good: “We know what the sell-throughs are from our Futura POS system. I suppose we could be more ruthless, but fashion brands fluctuate.

Hobbs was struggling a few years ago, but now is enjoying phenomenal sales, while Weekend Max Mara, which was always a solid performer, is even stronger in the new environment.”



Jarrolds of Norwich, 1-11 London Street, Norwich NR2 1JF & branches in Cromer & Wymondham Founded: 1770. Current store built 1840.

Facade completed 1923 Size: 90,000sq ft Opening hours: Mon- Fri 9-5.30 Thurs 9-7 Sat 9-6 outside December Sun 10.30-4.30 Staff: 136 full-time 176 part-time + 145 concession staff Turnover: £34m bira member since 1979 jarrold.co.uk

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Demanding exclusivity in womenswear concessions can be more difficult than in menswear, but for every concession it has on a non-exclusive basis, Jarrolds will be the flagship stockist in Norwich. The redesign last year has made a positive impression on sales: “Our own-bought womenswear is building sales very well now.

It’s up 16% this season, which I feel reflects the investment in the floor and the mix of brands.”

There is a striking new footwear area and a specialist lingerie department (including a fitting service) on the first floor to complete the total wardrobe approach.

Next on the refurbishment to-do list, for the end of this year or the beginning of 2018, is the overhaul of The Deli, a highly succesful gift food area and a restaurant operating off 2,500sqft of the 14,000sq ft lower ground floor. The floor also has an impressive housewares department a book department. (In years long past, the store included a lending library, a link with Jarrolds’ publishing and printing arm, which was sold off some time ago).

“To be precise, The Deli is a gift food area, which includes alcohol, and it produces some of the highest sales densities in the store. It is another example of our experiential retailing,” says Michelle.

Also due for a revamp in 2018 and beyond are the furniture department on the second floor and then the third floor, which Michelle jokingly describes as housing “everything that doesn’t appear anywhere else in the store”, as well the store’s main 180-seater restaurant. The Christmas shop is a seasonal regular on the third floor and the very impressive, permanent large toy area is a reminder that this department store serves the entire family.

For furniture, Jarrolds relies heavily on the buying power of AIS. “It is a very strong buying group and a very powerful force with good foundations,” says Michelle. “The useful thing about furniture is that its busiest times are in March and September, so it’s counter-cyclical to the boom we have at Christmas. Department store trading is very back-end-loaded, with all the sales we have in toys, books, stationery and beauty at Christmas.”

Like most progressive independent businesses, Jarrolds is adapting to the new realities of omnichannel retailing. Its own transactional website has been operating since 2011 and the learning process continues. “About 10 years ago, as a department store operator, we would have said to ourselves, ‘let’s invest in buying and merchandising and we will be OK’. In the past five years we have had to add to that ‘and we have got to invest in online as well’. But we know that our local customers may research online but not necessarily buy online and we still believe that MAY 2017

The big interview

visiting the store gives more of an experience.”

The online revolution has caused changes in the store’s marketing strategy, with much less budget going on local press (“although it’s still very efficient for certain tactical promotions”) and radio advertising. As part of the change, Jarrolds has created the new role of digital communications manager to handle its social media and customer relationship management (CRM) online. There are 80,000 names on the mailing list (“the opening rate for our emails is very high”) and loyalty schemes include Jarrolds Friends and Jarrolds VIPs. Despite the digital activity, Jarrolds still passionately believes in face-to-face interaction with its customers and the store organises one or two events every week, ranging from in-store beauty events to charity fashion shows to book signings. Some 250 people recently attended a literary lunch with author Joanna Trollope at Delia Smith’s Top of the Terrace restaurant at the Norwich City football stadium.

Given its longevity, it is no surprise that the Jarrolds store is part of a diverse group, whose interests include property development, property services and a management training company.

The long-term investment aspect of the property side contrasts to the more immediate cash-generative side of the retailing business. As well as the main store, Jarrolds runs a specialist sports shop called Pilch, a contemporary furniture store called The Granary and a traditional stationery and artists’ materials shop, all on blocks adjacent to the main building. The retailing estate also includes outlying branches in Cromer (selling primarily gifts, stationery and books) and Wymondham (furniture).

Some 25 years ago the network was more numerous, but since then branches in Kings Lynn, Lowestoft, Cambridge and Great Yarmouth have been closed as the focus on Norwich sharpened. As part of this constant process of reviewing activities, the roles of Jarrolds’ 450 staff are being reappraised. “Like all retailers, we have been prompted to do this by the increases of the national living wage. We are not looking to reduce sales staff numbers because of our commitment to high service levels in-store, but the phasing of staff rotas and the effectiveness of our back-office function, for instance, are being looked at,” says Michelle.

Her own career in the family business started early. When her father Richard was managing director, Michelle spent her school and university MAY 2017

holidays on the shop floor. She joined the company formally in 1990 and became an assistant merchandising manager, and later merchandise director, as well as finding time to have two children, Elliott (now 18) and Alice (15). (bira CEO’s note: Michelle’s career progression was no doubt accelerated by her attending a merchandising course at bssa [a precursor to bira] in 1990, where she earned a Distinction, and an Oxford Summer School course in 1991).

Since 2011 the Jarrolds management team has been led by Peter Mitchell, who joined the firm in 2003 after working for Comet, Storehouse, Waterstone’s and BskyB. Michelle’s opposite number as trading director on housewares is John Adams, while Tim Shattock oversees the Pilch sports shop and the branches beyond Norwich. The store has 11 buyers, with only books and furniture having buyer-managers.

Relationships with brands are becoming even more important to the success of the store.

Closer collaboration and better dialogue is the order of the day as both suppliers and retailers are under pressure. “We do try to be a full partner with brands,” insists Michelle “After all, they are often investing in us by putting in a shopfit or contributing to staffing costs. In fashion, at least, support and collaboration is a relatively new thing. A decade ago we’d never have had any support, but now suppliers are providing us with good margins, back-up stock holding, help with mark-downs, stock swaps, and even full SOR (sale-or-return) deals. Now it’s a genuine collaboration, which maybe is the result of there being far fewer retailers to deal with.”

With price rises of up to 10% coming down the pipeline, Jarrolds will be watching consumer reaction carefully and adjusting its response accordingly.

So far, 2017 is trading on par with 2016, but the store has noticed that since the Brexit vote the air of uncertainty has caused consumers to buy less often. “One challenge across all departments is that we have to maintain our quality while not letting our prices escalate too much,” says Michelle.

“Anything that might be thought of as just a basic product where prices are increasing significantly is being scrutinised. We want Jarrolds only to have merchandise that our customers fall in love with. We sell very few necessities. We are dependent more on our customers’ discretionary spend. At our heart, we are a very large gift solution store.”

19

Photography: Mike Harrington

Our local customers may research online but not necessarily buy online. We believe visiting the store gives more of an experience

Trade report

Get into greetings Good for your health and good for your bottom line, it might be time for you to start selling greetings cards

20

FORGET ABOUT A nation of dog lovers. We are a nation of card lovers and if the cards have dogs on them, well, you’re on to a winner. The British buy more greetings cards per person than any other nation. It is a part of our culture.

We simply love to send, receive and display them.

Reportedly, the volume is equivalent to each Brit sending 33 cards each year. We despatch them for all sorts of occasions and when we buy, we buy in bulk, resulting in a UK greetings card market worth a whopping £1.7bn.

Our love of cards stems from 1843 when the first commercial Christmas card was created by civil servant and inventor Sir Henry Cole. Cards really took off in the 1870s, when the development of the four-colour lithographic printing process made mass production possible and made cards cheap to buy. That coupled with a

cheap and reliable postal service - the Uniform Penny Post was introduced in 1840 - made card sending popular and we have been buying cards for every possible occasion ever since.

It has even been scientifically proven that cards are good for our health. Receiving cards creates a positive boost and lifts our mood far more than receiving a text message or email.

Concentrating on writing a card increases cognitive activity.

Most cards are sold in physical bricks-andmortar shops. Cards have the power to set the right tone in a retail outlet. Customers enjoy reading cards in store – they create an emotional reaction, raising a smile, making the customers laugh, or even cry, and making them more likely to spend money. There is a lot of money to be made from selling cards.

MAY 2017

Some

95% of all households in the UK have bought a greetings card in the past 12 months Research from card publisher UK Greetings

A revenue builder Kim Foster from Copperfields of Whitstable, Kent, will not sell cards that are available anywhere else in town.

“When I acquired Copperfields in 2014 my intention was to remove the card section from the business. We were a cookshop, not a card shop. Within four weeks, having seen our card sales, I had to change my mind. We now have six spinners and are stocking and selling more cards than ever before.

“I sell cards for two reasons – firstly the revenue stream is greater than I ever anticipated and secondly it provides customers with a reason to come into the shop. We generally achieve multiple sales at the same time. Yesterday a customer bought two cards, then returned this morning to buy two more because he had no idea where he’d put them!

“Our main point of difference is that we only stock cards on an exclusive basis, so they cannot be found anywhere else in Whitstable. There is a lot of competition in the town from a Card Factory, two

Above: Promotional models skirt the

issue at Greetings Live in London.

Right: A design

from the Garden

Pantry collection by Anna Victoria

MAY 2017

other card shops and the supermarkets.

“We can no longer continue with our core business. Yes, we are a cookshop but we sell a variety of things including gifts. If we relied on selling just cookware, we would have been out of business. You must keep experimenting and trying new products. The positive element with cards is that the investment isn’t huge, so you can vary the range easily if certain cards are slow sellers.

Cards are now an integral part of our business and we’re now expanding into gift wrap and gift bags to give even more reasons for customers to return to us.”

If we relied on selling just cookware, we would have been out of business. You must keep experimenting and trying new products Sharon Little, CEO of the Greeting Card Association, the trade body for the industry, says: “Greetings cards are a lower-ticket item, fast-moving and with great margins which makes them a perfect addition to an independent retailer. You can typically have a 2.4 mark up on greetings cards.”

For non-specialist card retailers, cards might be viewed as an add-on purchase, but bira members told us they have developed a name for selling cards in their areas, having carefully selected the ranges they display. And so, what might have been a small part of their business has increasingly become more important, with customers coming back to them just for cards.

David Bowley of hardware and homeware retailer W Hurst & Son in Newport, Isle of Wight, has been selling cards for 20 years. David says: “Cards complement our offering of china and glassware. The trend for collectables died for us so it opened up space for cards and we do very well with

21

Trade report

Focus On Cards At PG Live 2017 Progressive Greetings Live 2017 (Business Design Centre, London TuesWed, 6-7 June) is the UK’s only exhibition dedicated to the greeting card industry, providing a magnificent opportunity to source thousands of original designs, exciting ranges and exclusive show offers from the top 280+ publishers, artists and designers from around the globe. bira will be exhibiting for the first time on Stand 435 at the show and looks forward to seeing lots of members on the stand.

The event, organised by Progressive Greetings, prides itself on its friendly, welcoming atmosphere and easy-toshop format. Buyers are treated to complimentary refreshments including a two-course lunch, a goody bag and have full access to the buyers’ lounge. There is also the opportunity for networking and mingling at the free after-show drinks party on Tuesday.

PG Live visitor, Chris Lynn-Thomas of cookware shop Kooks Unlimited in Richmond (which

As they don’t require a lot of space, cards are excellent options for independents looking to diversify Sharon Lee, CEO, Greeting Card Association

22

has expanded its greeting card offering substantially in recent years, recognising the vital contribution to turnover and footfall), says: “It is good to see cards all in one go, rather than trying to fit them in while at other trade shows.”

Register for PG Live 2017 on 01635 297070 or progressivegreetingslive.com

them. We have three different card suppliers at any one time, including The Great British Card Company, which we get through bira direct. We sell jokey ones, birthdays and special occasions.

We have two racks and several spinners.

“I definitely see the benefit in selling them. We do really well at Christmas and customers tend to come back to us on a regular basis for more.

They are an add-on sale, for when customers are buying presents, but we do have customers who come to us just for cards.”

So how do you get into greetings? With over 1,000 publishers of cards in the UK, it is hard to know where to start.

Sharon says: “As they don’t require a lot of space, cards are an excellent option for independents looking to diversify. Cards are sold in units of six. You might go for a spinner, which can hold 36 different designs. A supplier might provide the spinner if you go for a full range from them, but it is worth discussing the space and options you have available to you.

“You might choose to go for racks on the wall. I’d always recommend a full-facing acetate rack as cards look much better presented

full face on. You can of course always go for a counter top display, so speak to your publishers about this as it might be a good toe in the water to see if they work.

“In terms of choosing your cards, go to trade shows – a specialist show like Progressive Greetings Live (Business Design Centre, London, 6-7 June), is ideal to get inspiration and you’ll see a full range of designs, from everyday cards, occasions and seasonal ones. The Springboard section at the show supports emerging talent and new designers, which is ideal for the indie market.”

Having a point of difference to other retailers on your high street is important. By picking local publishers or more niche designs you can set yourself apart. The GCA website is a good source of information for helping you find publishers that are local to you, as your customers will like

MAY 2017

85%

of cards are bought by women; men buying for men is the Holy Grail in card sales Sharon Little, CEO of the Greeting Card Association

knowing your cards were made by someone in their local area, something High Street chains rarely provide.

“As a pet shop, you might consider cards with animals on – it sounds obvious but animals are huge in the greetings card business. For a hardware shop you might think about a funny range but a word of warning- 85% of cards are bought by women, men buying for men is the holy grail in card sales!”

Sharon recommends starting with some birthday and blank cards and then moving on to occasions if you find they are working well: “You could also think about stocking pens too. Offering a space to write the cards is also lovely, even if it is just a shelf.”

Hendry Brown from DIY store JRD Equipment in Ellon, Aberdeenshire devotes 8m of wall space to its card section. “We sell everything, so it fits that we would also sell cards.

We have a gift and stationery section which cards are a big part of. Even if you can just spare a few metres to cards, it is well worth giving them a go.

“Eighteen months ago we changed to a new card supplier as we thought the ones we were selling were looking a little tired; our sales of cards increased by 30%. This has helped us get a name for selling cards in the town. And you can’t ignore that the mark up for them is great.”

There is no denying the power of the greeting card. If you are interested in getting into greetings, bira direct has a range of suppliers including Cardooo, Ling Design, Peartree Heybridge and The Great British Card Company. Visit biradirect. co.uk for more information.

Opposite:

Card by Scribbley Neons. Above top: From

Twizler. Above: Design

by Woodmansterne Publications. Right:

Message card from Coulson Macleod

Thinking of You Week 2017 Why not launch your new card range

by celebrating and promoting Thinking of You Week? The GCA started the

campaign four years ago. It encourages consumers to send a card every day

during 25 September-1 October this year, to spread a bit of happiness and show

people around you that you are thinking about them. Resources for the week are available to retailers at

thinkingofyouweek.cards

MAY 2017

23

Product news May

BE A MAX STEAM PRO WITH BELDRAY To make ironing a breeze and to guarantee crease-free clothes, this Beldray 3000W Max Steam Pro Iron features an easy-to-fill 380ml water tank, a carry handle with soft grip for easy mobility, a ceramic soleplate for smooth ironing, and powerful vertical steaming capabilities. It delivers powerful cleaning and outstanding results for clothing, furniture, curtains or bed linen.

0161 934 2283 sales@upgs.com beldray.com

ABUS ADDS TO THE 158 COMBINATIONS

CLIMATE CONTROL WORKWEAR BY SNICKERS To create working clothes that excel at ventilation and moisture transport to keep the wearer working comfortably, Snickers has incorporated 37.5® Technology fabric into its garments. This very quick-drying material captures and releases moisture vapour – like human sweat - for superior coolness and dry working comfort. For spring and summer, Snickers has shirts, jackets, shorts and trousers including Mechanical Air Flow features, which are breathable openings in the garments and stretch mesh fabric for inside leg ventilation. snickersworkwear.co.uk 01484 854788

24

The popular ABUS 158 range of combination padlocks will be enhanced this spring by the addition of a long shackle and two close shackle options.

Tested at ABUS’ laboratory in Rehe, Germany, the 158 range consistently performs “above the bar” in torsion and cutting attacks, as well as weather and corrosion resistance. Promotional

POS deals available through ABUS wholesale partners will introduce the additions: 50mm x 50mm Long Shackle: RRP £22.71 (ex VAT) 50mm Close Shackle: RRP £25.24 (ex VAT) 65mm Close Shackle: RRP £50.51 (ex VAT) 0117 204 7000 sales@abus-uk.com abus.com

MIXING IT UP WITH MIXONOMI The new iD Mixonomi collection from flooring specialist Tarkett offers architects and designers unparalleled opportunities to push the boundaries with its new Luxury Vinyl Tile (LVT) collection.

As well as creating expressive designs across the floor, designers can achieve unique, personalised flooring. A palette of 33 colours developed by international colour agency Peclers combines with the innovative patterns and shapes in the iD Mixonomi collection, which will be available in September 2017. It is part of Tarkett’s Floor is the new Playground concept.

01622 854040 ukretail@tarkett.com www.tarkett.co.uk

MAY 2017

Want to sell to bira members?

To discuss appearing on these pages, contact mutimedia sales executive Simone Adams on 0121 446 6688 or email her on simone.adams@bira.co.uk

A TITAN AMONG PADLOCKS

WRITTEN ON THE FLOOR

Burg-Wächter has been manufacturing padlocks for over 100 years and its name is synonymous with high-quality and innovative product development. The Alutitan 770 range helps retailers capitalise on the growing trend for aluminium padlocks. Exploiting the inherent strength and lightness of a special aluminium alloy, the Alutitan 770 is a strong padlock that is light on weight yet still delivers good all round performance.

Featuring a double-locking mechanism and hardened steel shackle, the Alutitan 770 range is available in a variety of sizes from 20mm to 60mm. The solid aluminium body and rustproof interior offers a superior level of corrosion resistance making the Alutitan 770 range ideal for use both indoors and out.

Luminous messages, animations and advertisements can be displayed on vinyl floors using connected LED technology developed by Philips Lighting and Tarkett, a global leader in innovative and sustainable solutions for flooring and sport surfaces. In Tarkett’s new Luminous vinyl flooring, which is principally aimed at retail and hospitality environments, the connected LED lights allow pre-programmed or personalised displays by the tap of the smartphone screen or the click of a mouse.

01622 854040 ukretail@tarkett.com www.tarkett.co.uk

Typical selling price is between £5 and £18, depending on size.

T: 01274 395333 W: burg.biz/uk

DRAPER ADDS A TOUCH MORE VENOM New to the Draper Venom range is a double ground floorboard saw (16829), which has high-quality carbon steel saw blades that have been correctly hardened, tempered, straightened and stress-relieved to ensure strength and straightness. This handy tool features a toothed curved blade end to allow the cutting of laid floorboards when there is no edge from which to start. The finely-ground blade is coated with ultra-tough

lacquer to protect the blade from corrosion and reduce friction when sawing.

Another addition to the Draper Venom range (below) is a 3-pack of double ground handsaws (17693), that are ideal for a range of trades and tasks. The trio of 500mm saws includes two 8PPI first fix saws and a 12PPI second fix saw, making it handy throughout the whole construction process. drapertools.com

BELDRAY LADDERS REACH UP TO NEW HEIGHTS Ideal for DIY and general domestic use, the Beldray Telescopic Extension Ladders are available in 3.2m and 3.8m options. Features include a stabiliser bar, safe-close design and an automatic locking system.

The 3.8m ladder has a maximum load of 150kg. These fine telescopic ladders conform to BS EN131-6 and are light to carry, compact to store, easy to transport and will easily fit into the boot of a car as well as into a van.

BRIGHTENING UP SUMMER SALES WITH STERLING Great curves, superb shape and eye-catching too. And all from a 70mm closed shackle steel padlock. With all the features you would expect from Sterling, including a 11mm hardened alloy steel (removable) shackle and double ball-bearing locking mechanism, every detail is covered. Its colourful protective nylon cover makes this lock weather-resistant and makes it look great.

For, linking, binding and straightforward locking, Sterling’s self-coiling locking cables are a popular security item. Security standards are high with multi-strand steel cables for strength and flexibility while the integrated lock has a protective keyhole cover. The vivid weather-resistant vinyl coating protects from scratches.

Typical selling prices are £21 for a 70mm closed shackle padlock, and £8 for the locking cables T: 01274 395333 W: sterling locks.com

0161 934 2283 sales@upgs.com beldray.com

MAY 2017

25

FOUR WAYS TO PREP A SALAD Per fe c t for c r e ating healthy meals from scratch, this Salter 4 in 1 Food Prep Set allows dishes packed with fresh ingredients and flavour to be made easily. The compact set includes a selection of attachments, which fit simply to the collection bowl. Delicious dressings and marinades can be made in the bowl, or carrot and beetroot can be grated for a colourful salad. The set is dishwasher-safe.

Product news May

Fresh fruit and vegetable batons can be produced in seconds with this Salter Vegetable Slicer, which includes stainless steel fourpiece and six-piece blades that offer options in serving snacks. To perfectly and safely slice carrot, celery, cucumber and more, simply place inside the chute and then push the blade downwards; it’s easier than chopping. The batons, ideal for dipping and sharing, are created with minimal effort and preparation.

0161 934 2283 sales@upgs.com saltercookshop.com

A COLLAPSIBLE CHOPPING BOARD FROM SALTER The Sa lter 2 in 1 chop ping board and colander is designed to make food prep an effortless task. Perfect for making food with fresh ingredients, the sides of the board can be extended to use as a bowl, so that vegetables can be washed inside. The integrated push stopper seals water while the washing is done; by simply pressing it, the water is released. Made of durable plastic, the chopping board has non-slip feet for safety.

0161 934 2283 sales@upgs.com saltercookshop.com

THE EASY WAY TO VEGETABLE BATONS

0161 934 2283 sales@upgs.com saltercookshop.com

SALTER GOES BIG FOR TASTIER SNACKS PREP FOR MEALS ON THE GO OR IN ADVANCE

Ideal for making lunch on the go or preparing delicious meals in advance, the Salter Prep and Go Set features small, medium and large food compartments. As these three fit inside one another, the spacesaving design is highly portable. Its large capacity allows different ingredients to be carried, while the built-in spiralizer means that healthy vegetables can be added straight to the meal with minimal effort.

A variety of delicious snacks, complete with extra tasty fillings, can be made with this Salter XL 3 in 1 Snack Maker. For larger, deeper, wellfilled snacks, it has extra-large interchangeable top-and-bottom waffle, doughnut and sandwich grill plates. The non-stick plates release the snacks without tearing or crumbling, making cleaning easy. With 900W power and automatic temperature control, it can produce super snacks in minutes.

0161 934 2283 sales@upgs.com saltercookshop.com

0161 934 2283 sales@upgs.com saltercookshop.com

26

MAY 2017

Want to sell to bira members?

To discuss appearing on these pages, contact mutimedia sales executive Simone Adams on 0121 446 6688 or email her on simone.adams@bira.co.uk

MAKING PROGRESS CUTTING HERBS, VEG AND MEAT The Progress Herb Cutter Scissors are designed to efficiently cut through herbs, vegetables and even chunks of meat. Simply load the cutting platform and use the spring-loaded handle to easily cut precise strips of food for quick cooking straight away. With ergonomic soft-touch handles that fit comfortably in the hand, the scissors include a smart-locking feature for secure use.

0161 934 2283 sales@upgs.com progresscookshop.com

PREPPING SAFELY AND SECURELY WITH PROGRESS Cutting, chopping ingredients, peeling vegetables and even opening bottles – all is possible with the Progress 4 in 1 Scissors. For efficient use of the features, the blades detach and securely reattach through a simple locking mechanism. With soft-touch handles, this handy kitchen tool comes with a smart protective blade cover for safe and secure everyday use.

0161 934 2283 sales@upgs.com progresscookshop.com

IDEAL MULTIPURPOSE TOOL The scissors of the Progress 3 in 1 Cutters are designed with smooth, sharp stainless steel blades and an integrated chopping board for precise and efficient cutting through whole fruits and vegetables. The spring-loaded mechanism gives the scissors extra chopping power, while the smart-locking handle ensures safe use. With a peeler and a bottle-opening feature included, these scissors are the ideal multipurpose kitchen tool.

0161 934 2283 sales@upgs.com / progresscookshop.com

HOW TO GARNISH LIKE A RESTAURANT PROFESSIONAL This pair of Progress Herb Cutting Scissors avoids the crushing, tearing, or bruising of herbs when meals are being prepared. Five professional-quality stainless steel blades permit precision cutting, so herbs can be snipped directly onto meals for restaurant-style garnishing. The soft-touch TPR handles ensure safe and secure use, while the cleaning comb is ideal for taking care of the blades.

0161 934 2283 sales@upgs.com saltercookshop.com

THE PROGRESSIVE WAY TO CUT, SLICE, SCALE AND PEEL

SPIRALIZE WITH EASE Quick and easy to use with its rotating food fork and one-touch operation, the new Salter Electric Spiralizer is perfect for experimenting with salads and stir fries, as well as providing a healthier alternative to pasta and noodle dishes. Its three stainless steel blades can create spirals

MAY 2017

and noodles with different thicknesses and textures, while a unique spiral blade makes beautiful ribbons. Recipes are included for a quick start.

0161 934 2283 sales@upgs.com saltercookshop.

Able to be used as a pair of scissors, knife, vegetable peeler, fish scaler, nut cracker and bottle opener, the Progress 6 in 1 Prep Tool is very versatile. Made from high-quality 2CR14 stainless steel, the blades are smooth and sharp for precise cutting, slicing, scaling and peeling. The softtouch TPR handles and protective blade covers ensure safe and secure use.

0161 934 2283 sales@upgs.com progresscookshop.com

27

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For more information, please contact your local Toolbank branch or representative, phone 01322 321460 or email b2binfo@toolbank.com

Counterpoint / Frank Leigh

Bad suppliers, good compost Never happier than when he has something to complain about, Frank Leigh takes offence at the paint supplier who has given up with independents to concentrate on the discounters HI! FRANK’S BACK for the first time since October. I have so much to talk about and my first subject is quite a moan. It’s about Johnstone’s Paint and Mangers Paint & Varnish Remover. Hardware retailers in bira know these are now hard to buy due to their management’s decision not to supply the independents in favour of supporting the discounters.

I’m not too concerned from a retail point of view as Crown/Berger, still available from Stax, are quite happy to fill the void, but I am insulted. I have sold Johnstone’s for nearly 30 years. I, like many hardware indies, have helped to build its valuable reputation, and because of that reputation the discounters want the brand all to themselves. Well, when the discount sheds demand longer credit terms, more for their money, deducting advertising from invoices and the like, and it all goes pear-shaped, the question will be, are we still there for them to crawl back to? I for one will never sell their products again.

As I write in early April, my compost and gardening sales, and I hope yours, have seen a boost with the fine weather. My best-seller so far is Levington Original Multi Purpose Compost. A 75L bag – that is, 50L plus 50% extra – is just over £2 each in 12-pallet quantities. I sell it at £5.99 or three for £15, delivered free locally. Last season I sold only six pallets of Levington’s all season; I’ve sold that already and have ordered 12 pallets more. Meanwhile, Growmore 60L bags at three for £11 keep the budget price side moving along.

Still in the garden, benches are hard work to get at the right price but the Kingfisher hardwood 2-seater at £59.99 and the 3-seater at £79.99 are both creating an impact. So I’m enjoying the start of the gardening season and I’m looking forward to the rest of it.

March saw me celebrating a big birthday (it had a nought on the end of it) and as I bought

the shop around my birthday in 1989, we had a double party, with plenty of promotions and a few chocolate bars to give out to the kids. It’s 28 years now for the shop and despite Tesco and Home Bargains coming to town, we have gone from strength to strength. A new arrival due in October is Aldi. I always say new money is good money and any addition makes the town stronger, but the amount of machinery working on that site shows the wealth of the German newcomer. It will definitely open on time.

Speaking of the discounters, I realised at Christmas that trying to sell cheaper decorations is a waste of time and effort. So, we went a little more upmarket and sold better quality and it worked a treat. We half-priced all the old stock to clear it and put in the nice stuff. Trading up gives you and your staff more satisfaction.

Readers of my column in Hardware Today may remember that I’d started to sell silk flowers. I had to bring in something that Tesco don’t sell and it’s grown. Grave pots with a display in them are best sellers at £5.99. During Christmas, we went with the Yuletide theme. The silk flowers replace - and more - the housewares sales we lost to Tesco.

But then, we are independent. We can be as diverse as it suits us. Our window display is now so colourful we get people walking into the shop just to congratulate us on it.

One of our current problems concerns banking. I understand why bank branches are closing but now we have only one left in our town. For the past two years, I’ve used HSBC through bira and I’ve had to take cash to the next town eight miles away. But that closes in June, which means I’ll have to go to the nearest large town where I must pay to park. And that is not even near the bank, so it will take time out of my very busy day. I’ve been advised to use the Post Office but my takings exceed

Our window display is so colourful we get people walking in the shop to congratulate us

MAY 2017

its limits. Never mind, I’ll just grin and bear it.

On a more positive note, if you deal with Decco or Stax, you will have just got your rebate. What a great incentive it is. That nice little cheque or credit makes working all those hours seem just a little more pleasurable. Don’t forget to sign up for next year.

Have you sorted out your workplace pension? We did it ourselves without any advisors.

Despite a few hiccups, it is going nicely, but why it has to be so complicated, I do not know.

It seemed complicated at the outset and now we understand it, it’s still complicated. But at least we didn’t have to pay any fees to put it in place.

Talking of employees, just over a year ago I employed a 25-year-old male who I thought could help take pressure off me and maybe show some initiative in the running of the shop. I don’t like to tar all youngsters with the same brush, but I wasn’t like him at 25.

I was keen and wanted to get on, impress my employer, do right for my wage. All he wanted was for payday to come around. He moaned about the work I’m now doing as he left to work in a call centre. In his 15 months with me, he was never on time more than two days a week. He complained of an old stomach problem quite a few sick days. Now I’m going to find a 16- or 17-year-old and see if we can mould him into the job.

Have your say Would you like to share your views and experiences with the bira community? We welcome contributions like Frank Leigh’s. You can write under your own name or under a pseudonym. You can contribute regularly or occasionally. If you are interested, please email editorial@bira.co.uk

29

Brand New

Cooling Range Celebrating its 15 year anniversary in 2017, Igenix has fast become known in the industry as a market leader in air treatment and cooling appliances.

Make sure you stay cool this summer with the brand new cooling range from Igenix, with products including digital mini tower fans, air coolers and air conditioners.

To view the full Igenix product range including SDA, air treatment and heating, go to www.igenix.co.uk

Exclusive to

www.pikapak.co.uk

bira notices

The membership magazine of the British Independent Retailers Association Published 10 times a year by bira publishing Editor Eric Musgrave 07702 628848 eric@ericmusgrave.co.uk Design Alan Bingle 07949 024737 alan@forty6design.com Multimedia sales executive Simone Adams 01295 713329 simone.adams@bira.co.uk Publishing director Sarah Golden 0121 446 6888

Bienvenue à Paris Join bira to tour the grand boulevards and best boutiques in France

sarah.golden@bira.co.uk All advertising and editorial enquiries editorial@bira.co.uk Printed by Buxton Press

bira, 225 Bristol Road, Edgbaston, Birmingham B5 7UB Tel 0121 446 6688 Fax 0121 446 5215 www.bira.co.uk bira national president 2016-17 Vin Vara, Tool Shop, London CEO Alan Hawkins Finance director John Collins Marketing, membership & publishing director Sarah Golden Commercial director Jeff Moody

BIRA IS HEADING to Paris for its 2017 Retail Study Tour. The visit will include behind-thescenes access to stand-out department stores and chains, as well as some of the best independent boutiques in the world, not to mention, of course, the fabulous food!

The trip is scheduled for September. We’ll take in some product inspiration at the Maison et Objet trade show (8-12 September, Paris Nord Villepinte), which covers home décor, design and lifestyle brands.

The in-depth tour will immerse delegates in Parisian culture, style and retailing genius and without doubt they will come away feeling inspired with plenty of ideas to bring back to their own businesses.

FIND OUT MORE

bira study tours tend to fill up quickly once announced, so register your interest now to be the first to receive further details by emailing kate.godber@bira.co.uk

What our members said about the New York tour in 2014: “We thoroughly enjoyed the Retail Study Tour; we made some new friends, picked up some valuable business tips and saw a good chunk of the city.”

David & Valerie Fletcher, Oadby DIY, Leicester “We had the opportunity to engage and question the owners and management of the stores and also to network with the other retailers on the tour, which is of particular importance.”

Charles, Melanie, Ian and Guy Barker, Barkers of Northallerton

Professional services & special projects director Bob Jarrett bira membership magazine incorporates bira alert, Hardware

We welcome our latest new members

Today, Cookshop, Housewares & Tabletop and Pet Product

Abnoba Pet Store, Stourbridge, West Midlands; Abrafix, Wakefield, Yorkshire; Adams Carpets, Leicester;

Focus. If you would like to reproduce anything from bira mem-

Andrew’s Garden Machinery, Leeds; A-Venue, Nottingham; Bone Idol, Brighton; Church’s, Newton Abbot,

ber magazine, please contact the editorial team for permission.

While every effort is made to ensure the accuracy of the mate-

Devon; Cotswold Bespoke Flooring, Cheltenham; Disco Furnishings, Burgess Hill, West Sussex; Ernest Doe

rial we publish, bira publishing cannot accept legal liability for

& Sons, Ongar, Essex; Ernest Doe & Son, Albourne, West Sussex; Falcon Motor Accessories, East Barnet,

any errors or omissions, nor can they accept responsibility for

Middlesex; Gadget Doctors, Bristol; Jodie’s Flat, Bolton, Lancashire; Jollies, Witney, Oxfordshire; Kemps

claims made by advertisers or contributors. Unless specifi-

General Store, Malton, North Yorkshire; Natural Foods, Colchester, Essex; Next Door, Frodsham, Cheshire;

cally stated, goods or services mentioned are not formally endorsed by bira. Views of the contributors are not necessarily those of bira. All rights reserved. © 2017

Nisa Local, London; Now and Then, Selby, Yorkshire; Oliver Bonas, with branches in Belfast, Glasgow, Leeds, London, Manchester, St. Albans & West Bridgford, Notts; Oodles, Middlesbrough; Peacock & Binnington, Selby, Yorkshire; Phoenix Pets n Plants, Bradford, West Yorkshire; Pollock Farm Equipment, Cumnock, Ayrshire; Ryalls, Malmesbury, Wiltshire; T I Trading, with branches in Louth, Mablethorpe, Scunthorpe & Skegness; T J News & Off Licence, Manchester; The Craft Box, Frodsham, Cheshire; Two Ducks, Woking.

MAY 2017

31

The last word

Rory McCann

in Woodford Green, north-east London, which was owned by a family friend. By the age of 21 he was running the business. The chance to buy the business never came about, but the father of Sheena, the woman he married, introduced him to a man called Peter Neale. Peter bought Gardner & Scardifield in 1978 and made Rory a formal partner. It has been founded in 1922 but it was on its knees, just a lock-up and a builders’ yard. All the bricks and blocks were loaded by hand back then.

GARDNER & SCARDIFIELD, LANCING, SUSSEX & BRANCHES

Q

It wasn’t exactly an easy life…

Rory worked Monday to Saturday in Lancing, then went back to Sheena in London at the weekend before driving back to Sussex on Monday morning. Before they bought a house, he lived in a B&B and then a caravan.

Q INDEPENDENT RETAILING SUCCESS stories are all about team work and inspirational leaders.

Here Nathan Gale (right), retail manager at the 20-branch Gardner and Scardifield business in Sussex, salutes his gaffer, Rory McCann (top right), who built the business up from a single builder’s yard.

Q

Having worked with Rory McCann for more than 20 years, how do you rate his strengths as the boss?

Everything with Rory is centred on the business. He wants to make a sale, to make money, of course, but he wants the customer to go away happy – and to come back again. He is very supportive of the staff, even those he might not see eye-to-eye with. He will always find time for you. He has the very useful knack of knowing what will sell. He will come back from a trade show with something no one else will have thought about. With his sales techniques and his charisma, it will sell.

Rory will come back from a trade fair with something no one else had thought about. With his sales techniques and charisma, it will sell 32

Q

Has there been a growth strategy?

Yes and no. Rory always wanted to grow, but premises just came up, like the grocer’s next door to the original yard. Rory says that all the businesses he bought came to him. He is very determined too. Just after he’d bought what is now our head office, the chance to buy the original builders’ yard came up and despite being already heavily mortgaged, he found the money somehow.

How has he guided your career?

I joined the business nearly 22 years ago.

My mum worked in the garden centre and I was given a chance even though I had no qualifications or experience. He notices and appreciates how you work. I have got my work ethic from Rory. He has inspired me to try my best every day. He just wants you to do your best. He How did Rory and Peter Neale doesn’t dwell on any failures – he divide up the responsibilities of just tells you to learn from them. running the business?

Gardner & People tend to stay a long time Rory was always the face of the busiScardifield, with Rory. Gerard Stakim in our ness, the man in the shop behind 2-16 Penhill builders’ yard and Debbie Dyson the counter and dealing with the Road, Lancing, West Sussex in our accounts, joined about the suppliers. Peter was more behind BN15 8HJ same time as me. the scenes, in the office. In 1986 gardnerandscarPeter’s son Nick joined the busidifield.co.uk Gardner & Scardifield has ness and now is in day-to-day seen huge growth over the charge of it. After all these years, past two decades...

Rory is still as energetic as ever, When I joined, there were three or four brancheven though he is not seen so much on the counes and we had around 50 staff. This year we will ter. The new branches take up a lot of his time. open our 20th branch and we have about 150 He is very preoccupied at present in overseeing employees. We cover about a 30-mile radius the construction of a new electrical wholesaler from our head office in Lancing, to Bognor, in Bognor. Then he’ll be on to our new builders’ Horsham and Burgess Hill. We are builders’ merchants near Horsham. merchants, DIY suppliers and electrical wholesalers, as well as having a garden centre, a door Rory has dedicated his life and showroom and a joinery department. Our shop career to ironmongery and the in Lancing, stocks more than 30,000 lines. building trades. But why didn’t he change the name of the company to his name?

How did Rory get his start?

That’s a good question. It was before my time He came over from Ireland with his but the rumour is that Gardner & Scardifield parents in 1956 and was soon working all the had so much stationery and paperwork already school holidays. He was asked to leave school printed, Rory decided it would be too wastewhen he was caught cooking and selling hamful to change the name and have all that go to burgers to his fellow pupils. By the age of 16 he waste. That sums up his pragmatic approach was working in a hardware shop, Gray Brothers to business.

Q

Q

Q

Q

MAY 2017

Theft cover for stock left out in the open.

With standard retail cover that includes theft cover for stock in the open and theft cover without the requirement for there to be forcible entry, you can rest assured that you’ve got the right cover for your business.

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new seasons ahead.

be first.

24 – 27. 6. 2017

From 2017, the latest international product ideas from the home and gift sectors for the autumn / winter and spring / summer seasons will celebrate their premiere in June.

Further details at: tendence.messefrankfurt.com

info@uk.messefrankfurt.com Tel. +44 (0) 14 83 48 39 83

new date