26-27-28 Retailer Focus 3 Pager USE_muk_Grid 08/12/2016 12:56 Page 28
Retailer focus Left and below: View of Barnitts’ cookshop frontage.
Forward thinking Having traded for 120 years in the heart of York city centre, the Excellence in Housewares Awards’ Best Department Store (Independent) winner, Barnitts is well aware of the need to adapt with the times and tackle ever-growing competition. “We can’t sit back!” states managing director, Paul Thompson emphatically. As a result of expansion into neighbouring property over the years, Barnitts dedicates over 45,000 sq ft of retail space to products for the home and garden. Not surprisingly, the retailer has a massive following of loyal customers, but Paul does not take this for granted. “We have just introduced a loyalty card where customers will receive added value rewards and can take part in competitions.” Cardholders with emails will
receive carefully targeted incentives: “We won’t bombard them with rubbish – it has got to benefit our customers,” confirms Paul. He adds: “Hopefully word of mouth will help, when people tell each other about the rewards they have got.” Barnitts’ focus on marketing embraces traditional print and social media, “reaching a mixed age group.” The retailer has created its first internally produced leaflets, going out to 90,000 homes in York for Spring/Summer, Autumn and Christmas. The recent installation of EPOS from CSY means that: “We can see where marketing is resulting in sales,’” notes Paul. The CSY EPOS system – which “has been fully bedded in since March” – is “changing the way the business is run,” Paul explains. “We are reducing stock holding, understanding the business better, with more efficient buying.” It is also facilitating a focus on internet trading for the year ahead. With a view to growth in online ordering, Barnitts is planning to expand its warehouse in James Street on the outskirts of the city to create a 2,500 sq ft retail showroom and ‘click and collect’ location. Paul reports: “A lot of people want to shop with us but it can be hard to get into the city centre, whereas you don’t pay for parking at James Street and a lot of people go to the supermarkets there.” In addition to moving “bulkier products such as garden furniture to the showroom,” the site also presents opportunities to increase sales of heavier or larger housewares such as small electricals. “A customer might see a mixer here and pick it up at James Street,” Paul acknowledges. He anticipates the possibility of installing iPads in the showroom so that customers can browse Barnitts’ full offering online and place their own orders.
The retailer is soon launching its new “clearer to navigate” ecommerce site. Paul’s optimism for the year ahead is mixed with acknowledgement that there will be “pain” for retailers with rising costs and economic uncertainty following the Brexit vote. With price rises of up to 15% resulting from the pound’s devaluation (see News comment), Paul highlights the importance of reducing stock holding to balance the rising costs (ie buying smaller amounts more frequently). Hence: “smaller pack sizes, smaller carriage paid orders or low small delivery costs, and quicker turnaround of orders,” as well as more opportunities for direct shipment to consumers. Paul also stresses the importance of clear information from
suppliers for time-strapped buyers for example, “pdfs of promotions showing net prices rather than ‘20% off’, stock availability and who to contact if I want to know more.” Paul adds: “Whoever is progressive with the supply chain will win!” Of course, not everything changes in retail. When asked what makes him most proud of his award winning business, md Paul Thompson cites the “quality and loyalty” of his staff – many have been with the business for over a quarter of a century. Being a family business means “being closer to staff,” with open doors to listen and help, as well as being hands on in all areas of the business when needed. Paul acknowledges: “A business is nothing without a good team – you can’t do it on your own!”
Cleaning up
Above: Paul pictured with The Excellence in Housewares’ Best Department Store trophy. Paul joined Barnitts full-time aged 17 and has been md since 2009, and chairman since his father Ian’s death in 2011. Ian had built up the modern business since taking charge in 1967. Paul’s sister, Sally is also a director and their cousin, Murray Ogle is also part of the management team.
28
Progressive Housewares
Acknowledging the rise of Lidl-style bargain-hunting, Paul reports: “We’ve gone back to using dump baskets and it is amazing how sales have gone up.” Changing offers include tea towels, scourers, scrubbing brushes and dustpan and brushes, while domestic cleaning is a growth area for Barnitts, “bringing customers through the door.” “Replacement purchases” including teapots, cafetieres, flasks, loose cutlery and mugs are strong for Barnitts, although overall Cookshop sales have slowed down, following “a very good few years.” Paul reflects: “We had five years of massive growth, even with a recession as more people were staying in and cooking.” “Everyday electricals such as kettles, slow cookers, irons and stick blenders,” are bestsellers in the small electrical department, created two years ago, with the acquisition of a neighbouring unit.