The Hardware Journal July/August 2017

July/August 2017

The Official Magazine of Hardware Association Ireland

BUSINESS TO BUSINESS MAGAZINE OF THE YEAR

NEW ERA FOR DIY – Fifth Global DIY Summit highlights pace of change

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I had the pleasure of attending the Fifth Global DIY Summit in Berlin in June and again it was an experience and networking opportunity not to be missed. It’s getting bigger by the year. At this year’s event, over 1,000 delegates attended and the good news for Ireland is that those delegates voted for the event to be held in Dublin in 2019. HAI will be assisting the organisers as much as possible, so we can ensure their experience will be the finest possible. My first report on the presentations is on page 26 and further reports will be in the next couple of editions of the magazine.

At the end of May, I had the opportunity to present to the Retail Consultation Forum, chaired by the Minister for Jobs, Enterprise and Innovation, on the subject of illegal trading of solid fuel (survey results on page 33).

Thanks to all those that completed the survey sent out which supported the presentation and gave credibility to the fact that trading in the black economy is very much alive and costing our retailers and merchants thousands of euros in lost sales every winter. The Retail Consultation Forum was established under the Action Plan for Jobs in 2014 to provide a platform for engagement between the retail sector and relevant Government Departments and HAI participates as a full member in discussions that include the cost of doing business, actions to stimulate business and the potential impact of Brexit. These items and more get included in a combined Forum Pre-Budget Submission sent to the Department of Finance. Read about HAI’s 2018 PreBudget Submission on page 30 where this item takes poll position in our recommendations to Government this year.

Google hosted a Retail Event in June at their HQ in Barrow Street, Dublin and The Hardware Journal was there to hear the secrets and advice of the world’s biggest search engine. Read about it on page 28.

I recently had the opportunity to visit a new outlet, The Range store in Liffey Valley. Read what I thought in the News pages and also check out my visit to the B&Q city-store format on the Holloway Road in north London – very impressive and interesting. Watch this space to see whether this format is set for expansion…

HAI’s sector-specific training is back in September with the return of popular sales, customer service and credit management courses and a new course, Stock Control.

Check out all the course dates on page 37. Our courses are not only competitively priced with a discount for HAI members but trainers are carefully chosen for their familiarity with, and experience in, the industry. Keep an eye out for direct mails to members in the autumn updating on availability.

At the time of writing, we received news that the National Broadband Plan will be delayed for 12 months.

The State-subsidised National Broadband Plan was initially due to begin construction last year. However, a series of delays has pushed its roll-out back by over two years. Given so many of our members operate in out-of-town rural sites we have been beating this drum for the last couple of years but it appears that no one in Government understands how vital fast and reliable broadband is for the survival of rural businesses. As part of our actions to support and promote our Pre-Budget 2018 Submission to Government, we will continue to seek meetings with Ministers and Departments so that we can effectively represent your issues and views.

Annemarie Harte Chief Executive Officer – HAI

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contents

July/August 2017

The Official Magazine of Hardware Association Ireland

BUSINESS TO BUSINESS MAGAZINE OF THE YEAR

gnicaf

NEW ERA FOR DIY – Fifth Global Summit highlights pace of change

www.thehardwarejournal.ie facing

FRONT COVER: Fifth Global DIY Summit.

Blackchurch Business Park, Naas Road, Rathcoole, Co. Dublin t +353 1 298 0969 e info@hardwareassociation.ie w www.hardwareassociation.ie @hardwareassoc ISSN 2009-5481

Annemarie Harte Chief Executive, HAI p 01 298 0969 or e annemarie@hardwareassociation.ie

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28

news

6 Published by: IFP Media Editor: Bernard Potter Design and Production: Barry Sheehan Advertising Manager: Bryan Beasley Administration: Sue Nolan Chief Executive: Rebecca Markey

regulars 3

A MESSAGE FROM THE CEO Annemarie Harte on HAI’s Budget Submission, a recent Google retail event and more.

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NEW MEMBERS HAI welcomes its newest members.

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SMART SPACES Meeting facilities available for hire at HAI HQ.

Printers: Johnswood Press IFP Media, Castlecourt, Monkstown Farm, Glenageary, Co Dublin. A96 T924, Ireland t +353 1 709 6900 e BernardPotter@ifpmedia.com

ADVERTISING ENQUIRIES: To advertise in The Hardware Journal and reach the key decision makers in the industry please contact Bryan Beasley at 01-709 6916; email bryanbeasley@ifpmedia.com © 2017 All editorial contents and all advertisments prepared by the publishers and Hardware Association Ireland HAI can accept no responsibility for the accuracy of contributors’ articles or statements appearing in this publication and any view or opinions expressed are not necessarily those of HAI, save where indicated. No responsibility for loss or distress occasioned to any person acting or refraining from acting as a result of the material in this publication can be accepted by HAI, authors, contributors, editor or publishers. The publication of advertisements does not constitute any endorsement by HAI, authors, contributors, editor or publishers of the products advertised. Readers should take specific advice when dealing with specific situations.

NEWS & PRODUCTS McAdam’s Albany store in Monaghan is back in business after a fire devastated their premises.

features 26

COVER STORY: FIFTH GLOBAL DIY SUMMIT AI, robots and the internet of things will shape the future of home improvement.

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RETAIL@GOOGLE2017 How to target the empowered customer.

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HAI BUDGET SUBMISSION HAI is recommending a number of initiatives to Government including a call to crack down on the illicit trade in solid fuel.

market intelligence 33

SOLID FUEL SURVEY Almost 90% of HAI members are affected by illicit solid fuel sales.

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20 profiles 20 SUPPLIER PROFILE: JH DONNELLY Committed to quality.

22 STORE PROFILE: TOM DOYLE SUPPLIES AND HALO TILES & BATHROOMS Flagship showroom in Camolin.

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BUSINESS INDEX Poor June for revenue, despite good weather.

business support 35

ALTERNATIVE FINANCE Insights on non-bank sources of finance that you might consider.

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CYBER SECURITY The threat of cyber attack and how you can manage cyber risk.

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CARD SCAM Hardware stores have been targeted by fraudsters who place big orders and pay with stolen card details.

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REPAK The Prevent and Save programme.

training 37

AUTUMN CLASSROOM TRAINING HAI is pleased to launch its autumn classroom training schedule with one-day courses in a range of topics.

classified ads 49

22 COMMERCIAL FEATURES

42 BUSINESS SYSTEMS

Builders merchants are seeking ever-more sophisticated business management solutions.

46 INSULATION

Insulation helps spur energy efficiency.

A SELECTION OF CLASSIFIED ADS

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News & Products

The Albany Home Décor team in their temporary premises.

MCADAMS AND ALBANY BACK IN BUSINESS IN MONAGHAN Three months on from the devastating fire at the Albany Home Décor store in Market St, Monaghan, the owners report that business is flying again. As many of our readers and HAI members will know, the well-known family business run by Packie and Bridie McAdam, and in recent years by Lorcan McAdam, lost its longestablished premises in a fire on March 10th this year.

The McAdam family had traded at the 6,000 sq. ft premises for decades and the store was something of a landmark in the town with a strong reputation across the north east for interior design and specialist décor products. An extensive refurbishment to a soft furnishings display area had meant that the store was in better shape than it ever had been. However, that was undone within a matter of hours. The devastating fire which gutted the entire premises created havoc including a street closure that lasted two days.

Lorcan McAdam said: “The response from everyone was amazing and it went a long way towards pushing us on. From locals to our suppliers everyone was so considerate and supportive to us.”

Spurred on by the support and generosity demonstrated by all, they got to work on finding a way back. Amazingly, one month on from the fire, Albany was reopened at the temporary premises beside Drumbriston Furniture on Dublin Rd, Monaghan.

Interior of the temporary premises beside Drumbriston Furniture on Dublin Rd, Monaghan.

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While this new premises is a lifeline and a perfect trading location for the well-known store for now, the long-term goal is to get back trading in the town centre again in the future. That is going to require a total refurbishment and reconstruction in parts of the Market St premises which is going to take some time, possibly years.

In the meantime, and on behalf of all our members, both merchants and suppliers, we want to wish the McAdams and all their staff the very best of luck with the business for many years to come.

ANOTHER RISE IN NATIONAL MINIMUM WAGE IS UNACCEPTABLE For the third year in succession, the Government will increase the National Minimum Wage (NMW) on January 1st, 2018 by 30c to €9.55. The increase is one of the recommendations from the Low Pay Commission.

Hardware Association Ireland CEO Annemarie Harte commented: “Again, this will hit the backbone of our economy, SMEs, the hardest. A third consecutive, uncontrollable increase in costs, this measure also has the knock-on effect of other employees looking for wage increases and, of course, it threatens job creation.”

She added: “With the uncertainties of Brexit and consumer spending slowing in the second quarter of this year, this wage hike comes at a time when small businesses like our hardware stores, builders merchants and suppliers need to be preparing for the impacts of the unknown. Instead, they will have the absolute certainty of an increase in costs, amounting to a hike of 10.4% since 2015.”

Hardware Association Ireland has campaigned to resist any further increases in the NMW.

July/August 2017

01/08/2017 12:43 Tom Barbour.

om Barbour.

News & Products

EDGE’S HARDWARE MARKS 100 YEARS

Owned and run by Victor Edge, Edge’s Hardware in Fairview, Dublin recently celebrated 100 years in business.

Beverly, the daughter of owner, Victor Edge, researched the history of the business and set up a mini-exhibition in the front window of the premises to celebrate the milestone.

The exhibition is a celebration of what some see as a Fairview institution. It’s also a tribute to Elias Edge, who set up the business in 1917, and to those who continued the business through all the subsequent years.

“There’s not many stores with this kind of heritage, character and local customer around anymore,” says Beverly.

The exhibits range from old family photographs collected by Edge and dropped in by locals to an old black bike that was cycled around the area by the Edge family in the 1960s delivering oil to locals.

“More and more people have brought old items and memorabilia to the store to add to what we’ve put there. It’s really quite nice in that way,” she says.

Her father, Victor, took over the shop at just 18 years of age when his father, Elias Edge Jnr, died after a 10-year illness.

Victor enlisted the help of his children in running the hardware store down the decades. “I worked there since I was about 10,” says Beverly. “I used to go in on Saturday mornings. Really some of my happiest times at that age were when I was working with my dad.”

MACCANN & BYRNE MD RETIRES After more than 44 years with MacCann & Byrne, Tom Barbour has retired, resigning as Managing Director of the company at the end of June.

Tom is continuing with the company in a support capacity until the date of his retirement, August 31st, 2017.

Richard MacCann will take up the role of CEO, and Sean Brennan will be the new Managing Director.

Responsibility for the efficient operation and management of the company will be jointly shared by Richard and Sean.

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News & Products

THE GO-TO WEBSITE FOR INDUSTRY NEWS The Hardware Journal now has a fully interactive website to complement the printed edition of the magazine. All stories have been pulled out of the printed edition to create an organised repository of all the best features of the bi-monthly magazine. Launched in July, thehardwarejournal.ie is now the go-to website for news and information for the Irish hardware and building materials industry. Hardware Association Ireland, owners of The Hardware Journal, would be delighted to receive feedback from readers on the new website, contact info@hardwareassociation.ie with your comments.

SANDTEX INTRODUCES RAPID DRY PLUS Developed for use on exterior wood and metal, Sandtex’s brand new Rapid Dry Plus range offers all the product characteristics of a quality solvent-based product in an innovative water-based formulation.

This allows the range to boast a quick drying time and low odour, while promising quality high gloss or soft satin finishes.

Available in a 750ml pack size (and 2.5L Pure Brilliant White), the respective on-trend gloss and satin palettes are on hand to provide a personal touch for all styles and properties.

Gloss colour palettes include: Cotton Tree, Smokey Grey and Cranberry Swirl.

Satin colour palettes include: Clay White, Cotton Tree and Bay Tree.

Rapid Dry Plus from Sandtex.

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News & Products

THE RANGE IS OPEN IN DUBLIN The Range chain of stores opened its first Irish outlet at Childers Retail Park in Limerick in August last year and its second in Cork just before Christmas 2016. It has recently increased its presence by opening its first Dublin store in Liffey Valley in mid-May. The store offers around 65,000 products across 16 departments including furniture, décor, bedding, curtains, blinds, DIY, kitchen,utility, bathroom, lighting, rugs, arts & crafts, garden, leisure, clothing, pets and Christmas/seasonal.

The Range founder and owner Chris Dawson is a self-made billionaire who left school with no qualifications and began working life as a market trader selling watches. The Range’s products are a combination of ownbrand and well-known high street brands including Dulux and Johnstone’s paint, Draper Tools, Curver, Evo-stick and Flymo, to name but a few.

The style of the store in Liffey Valley is a fusion of home-grown Homestore + more and Woodies. The Range’s main aim is to present mid-price home, leisure and garden products, drawing together everything that could be needed for the home at affordable prices and they have serious plans for expansion. Time will tell whether it presents a serious market threat, especially if the expansion includes opening next to its competitors in retail parks.

The Range’s first Dublin store is located in Liffey Valley.

The lighting section in The Range.

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News & Products

B&Q CITY STORE IN LONDON – SHAPE OF THINGS TO COME? HAI CEO Annemarie Harte didn’t know what to expect as she walked down North London’s Holloway Road, in search of B&Q’s new city store. Here’s what she found.

“Given that my personal experience of B&Q was that it was usually quite faceless and sanitised, I was very pleasantly surprised.

This store has all you need in an emergency and more, whether you’re a DIYer or tradesman. It’s bright, well-laid out, well stocked and packed full of instant fixes from bath plugs to sealants and storage to basic homeware. Whether the customer is a DIYer who has just moved to a new home, needing a fast solution or is a plumber or decorator, it manages to cater for all those needs in less than 3,000 sq. feet.

B&Q’s mini store is also clearly convenient to landlords and local flat-dwellers who probably don’t have a car – they use public transport around these parts.

“In an approach similar to that deployed by the high street convenience stores, B&Q has opted to stock some higher-end products from its ranges in this store. The trade-off on price is that shoppers will not have to travel far to get what they need.

Well-informed, friendly staff and ease of selection, owing to the curated nature of the offer, makes this one an effective grab-andgo outpost. So, are we going to see more of these popping up? Not yet, but if it proves to meet a need, then we will, of course, see more of them. With the heat increasing on DIY and home improvement stores in the UK to think outside the box and new Bunnings stores being opened at a rate of over one a month, disruption is underway at full throttle and it’s only a matter of time before it hits our shores.”

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B&Q’s city store on the Holloway Road in London.

The paint section in the B&Q store.

A trade aisle in the B&Q store.

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News & Products

FOCUS IRELAND PARTNERS WITH HOME PROJECT CENTRE Home Project Centre, a 100% privately-owned Irish builders’ providers and DIY business, has announced a two-year partnership with Focus Ireland. The support offered by the management, staff, suppliers and customers of the company will assist the work of Focus Ireland in challenging the root causes of homelessness and changing the lives of those they work with.

Almost 7,500 people are currently homeless in Ireland, with more becoming homeless each month. Money raised through the partnership with Home Project Centre (HPC) will allow Focus Ireland to provide real solutions by preventing people from becoming homeless in the first place and ensuring that they have the help and support they need to stay in their home once they have found one.

Commenting on the partnership, Sinead Price, Director of Fundraising at Focus Ireland said: “Corporate support from companies like HPC is not only central to the delivery of our projects, it ensures that we can end homelessness and the inter-generational cycle of homelessness for many families and children each year. We are really excited about this partnership and looking forward to seeing the positive impact that the staff and customers of HPC can make on the lives of people who are homeless in Ireland today.”

Speaking about the partnership, Sean Moran, Group CEO of HPC, said: “The board and staff of HPC are delighted to have chosen Focus Ireland as our official charity partner and to support the life-changing work they undertake on behalf of those unfortunate enough to be homeless, or at risk of losing their homes throughout the country. We currently trade from 12 locations in Ireland and, through those, we are committed to working hard to raise much-needed funds for this very worthy charity.”

HPC customers wishing to support Focus Ireland can make a donation to the work of the organisation through their account or through the till in any one of the HPC branches.

More information on Focus Ireland and the services they provide to families can be found on www.focusireland.ie

HAI SUPPORTS GUARANTEED IRISH CAMPAIGN Guaranteed Irish has announced that September is Construction, Manufacturing, Hardware and DIY month. According to CEO, Brid O’Connell: “We will create a national digital, PR and marketing programme around our members within this industry. There is a good story to be told here in terms of employment, exports and community development.”

Paddy Kelly, Managing Director, Tegral, who represents this sector on the board of Guaranteed Irish, has campaigned tirelessly to ensure that it is represented in a positive light showcasing the contribution that it makes to Ireland in terms of job creation, community involvement and economic prosperity.

In the course of the month of September, Guaranteed Irish plans to showcase the sector through various PR/ marketing and media activities to include: 1. national radio interviews; 2. regional radio advertisement campaign; 3. national supplement produced showcasing this sector through Guaranteed Irish; 4. digital programme campaign showcasing each of the members to ensure positive PR; 5. culmination of month with political/ media presence to ensure this sector is portrayed in a positive light; 6. round table talks by invitation to Guaranteed Irish members only; and, 7. supply of all Guaranteed Irish design POS material for retail outlets for the month made available to be printed (at own costs) by all retail outlets members from downloadable link.

If you are interested in being profiled as part of this campaign, please contact info@guaranteedirish.ie or visit www.guaranteedirish.ie for further information.

ECONOMIC GROWTH SET TO REMAIN SOLID The Irish economy continues to grow, driven by strong domestic demand. Improving household balance sheets and falling unemployment are expected to support solid consumption growth over the forecast horizon. The expansion in underlying investment activity, particularly construction, looks set to continue into 2017 and 2018, according to a variety of indicators, the Economic and Social Research Institute reports.

The Irish labour market continues to exhibit strong growth into 2017.

The improvements in the labour market appear to be quite broad, both regionally and by sector, with almost all sectors registering employment growth. The unemployment rate is forecast to average 5.4% in 2018. This tightening of the labour market and positive projections for inflation should also support moderate rises on wages over the period.

Brexit continues to pose a substantial risk for the Irish economy. New calculations presented in the ESRI’s Quarterly Economic Commentary (QEC) suggest that a hard Brexit could have significant implications

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for the fiscal space available in the budgetary process. This comes at a time when taxation revenue growth in 2017 has slowed down considerably as income, corporation and excise duties all took in less revenue than expected. Consequently, the QEC authors increased the forecast for the likely Government deficit in 2017.

Author Kieran McQuinn commented: “2017 has seen certain countervailing trends emerge in relation to the overall positive performance of the Irish economy. On the positive side, labour market data illustrates that the pace of employment creation and subsequent reduction in unemployment increased in 2017.”

Co-author Dr Conor O’Toole said: “Less encouragingly, the state of the public finances and the performance of different taxation headings in particular have been significantly less robust in the present year. Apart from VAT receipts, most other tax headings either display weak growth or declines with respect to the same time last year.” (www.esri.ie) July/August 2017

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News & Products

LIVINGSTON LEAVES IMPRESSIVE LEGACY AT SCREWFIX Screwfix boss Andrew Livingston has exited the business, leaving it in a position of having comfortably outperformed its Kingfisher stablemate B&Q in recent years.

Screwfix has been the jewel in Kingfisher’s crown in recent years. While B&Q has reported relatively healthy like-for-like sales growth in more recent periods, this has been dwarfed by the impressive figures achieved by its smaller sister brand.

Over the past three years, like-for-likes at Screwfix have been in double digits, despite a very aggressive opening programme that has seen it open around one new store every week.

Sales have also more than doubled to £1.3bn since Livingston’s appointment as chief executive in 2013. This contrasts with the fortunes of B&Q in the UK and Ireland, although it is, of course, a mature business that has also had to contend with store closures as it ‘right-sized’ its network.

Screwfix’s profit performance has also been outstanding. Kingfisher no longer breaks down separate profit figures for Screwfix and B&Q in the UK in its annual report and some detractors have suggested that this has been done to hide the uncomfortable truth that B&Q is not a very profitable business.

Figures available through Companies House show that Screwfix’s margins ran at more than double the level of those at B&Q prior to 2015/16, when B&Q’s UK subsidiary was loss-making due to costs arising from store closures.

While this data has yet to become available for 2016/17, there is unlikely to have been a reversal of positions.

Livingston’s achievements go beyond core financial metrics though. Since early 2013, Screwfix’s store network has virtually doubled to more than 500 stores and he also led a move into Germany in 2014. (Retail Week)

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WOGAN’S OPEN NEW DROGHEDA PREMISES Wogan’s recently opened the doors of its 80,000 sq ft premises, the Wogan Build Centre on the North Road in Drogheda. Its former premises on the Ballymakenny Road is no longer in operation. All custom and supply orders and deliveries are now completed from the new site on the North Road, Drogheda.

According to Wogan’s, over 1,000 new product lines have been added to the new store, selected to provide customers with the widest range of building related products, to suit every project, from small renovations to large-scale commercial projects.

The new premises also features a dedicated paint department, managed by new team member, Gary Teelan, which stocks many well-known brands including: Dulux, Colourtrend and Fleetwood paints.

Finally, a unique expansive showroom has been constructed for bathrooms, tiles, doors and wooden flooring, making product selection a simple, comfortable and enjoyable experience, according to Wogan’s.

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News & Products

THE DENIS BURKE MEMORIAL CUP

1st Place: Robert Massey, Bostik, presenting Bob Boxwell with the Denis Burke Memorial Cup.

The Denis Burke Memorial Cup, sponsored

by Bostik, was held at Millicent Golf Club in Clane, Co. Kildare, on May 19th.

The results were: OVERALL 1st Bob Boxwell 2nd Martin Rowe 3rd Enda O`Donnell

Pts. 37 35 35

H/Cap (20) (7)BB9 (6)

CLASS 1 1st Tim Lodge nd 2 Peter Morrissey

32 31

(12) (13)

CLASS 2 1st David Bolger nd 2 Patrick Moore

31 30

(15) (15)

CLASS 3 1st Alex Taylor nd 2 William Dixon

30 30

(25) BB9 (25)

36 30

(13) (22)

LADIES 1st

2nd Place: Robert Massey presents Martin Rowe with his second place prize.

Kathleen Lynch

VISITORS 1st Paul Boyce 2nd David Farrell

New members are welcome. Please contact William Dixon for details at 086 0708761.

Ladies Winner: Kathleen Lynch being presented with her first prize by Robert Massey at the Denis Burke Memorial Cup Competition.

EASYCARE REPELS STAINS Dulux has developed the Easycare range to withstand the trials and tribulations of family life and keep walls looking fresh as the day they were painted.

Easycare washable matt with stain repellent technology is an exceptionally tough paint, according to Dulux, and repels common spillages while its 50-times tougher formula makes it easy to wash, wipe and remove the most common household stains without damaging the paint, keeping that freshly-painted look for longer.

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A Dulux spokesperson commented: “This range is perfect for areas that need an extra bit of toughness like hallways, kitchens, children’s rooms etc. Sticky finger marks and muddy stains can all be easily washed away without damaging or discoloring your walls.

“Our Easycare Washable matt is available in a range of beautiful colours including ranges specifically designed for kitchens, bathrooms and kid’s rooms. This year, Dulux have launched 11 new colours across the Easycare range.”

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News & Products

HAI IS DELIGHTED TO WELCOME ITS NEWEST MEMBERS ERA Products Ltd

Straight Road, Short Heath, Willenhall, West Midlands WV12 5RA, UK Ph: +44 1922 490 000 Contact: Chris Burrows Business: Manufacturer of locks, ironmongery and DIY products

Barryroe Co-op Lislevane, Bandon, Co. Cork Ph: 023 88 4000 Contact: Paul Madden Business: Agricultural suppliers

Macroom Hardware Ltd

Westland Horticulture Ltd

Core Tech

14 Granville Industrial Estate, Granville Road, Dungannon BT 70 1NJ Co. Tyrone Ph: 048 8772 7500 Contact: Assumpta Meally Business: Garden and horticultural product manufacturers

Oisin House, George Street, Mitchelstown, Co. Cork Ph: 025 41 400 Contact: Cathal McCarthy Business: Software provider to hardware/agri/wholesale and retailing merchants

Flanagan Timber Ltd 7 Duleek Business Park, Duleek, Co. Meath Ph: 041 981 4800 Contact: Alan Flanagan Business: Timber importer and distributor

The Bowl Road, Macroom, Co. Cork Ph: 026 43 111 Contact: Con O`Leary Business: Hardware and agri retailer

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Supplier Profile

Based for many years in Blackhall Place, Dublin 7, JH Donnelly Ltd is now located in Summerhill, Co. Meath.

Committed to quality JH Donnelly expands product range and premises HAI CEO, Annemarie Harte visited JH Donnelly at its Meath base in Summerhill, recently. Managing Director, Gary Hanan, spoke to her about the company’s expansion in the last few years and its commitment to quality products and customer service.

JH Donnelly Ltd is a long-established company originally based in Blackhall Place, Dublin 7 and now located in Summerhill, Co. Meath. When I visited, I was surprised by the range of products the company offers. In addition to the plumbing equipment and bathroom products that you would readily associate with JH Donnelly, the company’s extensive portfolio also includes electric fencing, animal health products and respiratory and hearing protection products, to name but a few.

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Expansion opportunities For many years, JH Donnelly has been supplying McAlpine Plumbing products to the trade. In 2013, JH Donnelly acquired Lakes Bathrooms, Deva taps, Flowflex components and Bristan showers to add to its plumbing range.

JH Donnelly has expanded its warehousing to facilitate a growing product range. As part of this expansion, it developed a new state-ofthe-art workshop to support its customer service department.

JH Donnelly prides itself on the efficiency, directness and reliability July/August 2017

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Supplier Profile

As a company that is consistently focused on growth, JH Donnelly’s priority is to provide customers with an excellent level of service. It strives to give customers what they want when they need it.

Agri-products have always been a significant part of JH Donnelly’s business. Products include Horizont electric fencing, Nightsearcher rechargeable lamps, Hawk PTO pressure washers.

They also distribute Portotecnica pressure washers.

Clearly innovative

John Quinn and Nevin Brown, two members of JH Donnelly’s highly experienced team.

of its customer service. Gary commented: “We deal directly with the trade. We have four sales reps on the road, covering the 32 counties.

We take orders from merchants, and dispatch them from our warehouse with a next-day delivery service where possible.”

Repeat business JH Donnelly takes great pride in the level of repeat business it has achieved down through the years, through positive word of mouth and client referral.

The company understands the importance of a flexible and reliable service and works closely with each customer on an individual basis to provide a personal service.

“Customer service is vitally important to us,” he explained. “At the end of the day, we sell the product, so we have a responsibility to stand over it. We provide a full aftersales back-up and stock an extensive range of spare parts”.

“Our niche in the market is defined by our commitment to sell quality products only,” Gary said. “We want to do business on a long-term, sustainable basis, so it is vital that our customers have confidence in us and the products we supply”.

Gary was delighted to explain the ultra-clear PureVue glass which is now available on the complete range of Lakes shower doors.

PureVue is, he says, a high-quality, optically-superior ‘low-iron’ glass. In standard glass, Gary explains, its iron-oxide content shows as a green tinge that’s most apparent when you view the edge of the glass, but which also affects and tints everything seen through it.

PureVue, by comparison, is dramatically clearer. The reduced iron content reduces the greenish hue to almost zero levels and is practically tint-free. According to Gary: “PureVue enables more light to pass through, making everything lighter, brighter and sleeker. You can see more of everything and the glass almost disappears.”

Gary’s parting words were that if there are any customers who have not already dealt with JH Donnelly, they should feel free to contact him and he would be glad to get one of the sales team to call and discuss the company’s full product range.

If you have a story to tell as a supplier or manufacturer in the Irish market, please contact Annemarie on 01 298 0969 or annemarie@hardwareassociation.ie for more information.

JH Donnelly prides itself on the efficiency, directness and reliability of its customer service.

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Store Profile

Halo shines brightly in Camolin Patrick Doyle of Tom Doyle Supplies talks to The Hardware Journal about the recent redesign of the Halo Tiles & Bathrooms flagship showroom in Camolin.

Owned by father and son team, Tom and Patrick Doyle, Tom Doyle Supplies is over 45 years in business. Sister company, Halo Tiles & Bathrooms with its distinctive retail concept (see Panel 1), was launched back in 2012.

The crucial role of the premises at Camolin as a spectacular showcase for the company’s premium quality products was underlined by substantial investment in a major redesign of the showroom in 2016. Wexford architect Paul O’Brien in collaboration with leading interior designer Roisin Lafferty consulted on the design of the retail space, and focused on creating installations in a domestic, rather than a commercial, setting. According to Patrick: “The aim was to create a relaxing and inspiring retail environment that helped our customers make the right choice without pressure.”

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Beginnings Patrick’s father, Tom Doyle, founded the company as a delivery business in 1972, working from a warehouse in Ballyduff, a hamlet three miles from the village of Camolin in Wexford. “He was always very entrepreneurial,” said Patrick. “If a lorry was empty coming back from a delivery, he would load it by buying liquidation stock to sell on.” Focusing on assorted building materials, including tiles, sales were good and the business grew.

Patrick recalls: “By the early 1980s, a showroom opened at the warehouse, trading as Thomas Doyle Supplies, and this remains the location for our central warehousing.”

Today, Pat says, the re-imagined flagship showroom acts as an information hub that reflects the latest tile, bathroom, and flooring

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Store Profile

trends, providing inspiration to interior designers, architects, and discerning home owners, with experienced staff on hand to guide them through their choices.

The showroom is located on the main street in Camolin, straight off the M11, only one hour from Dublin. Inside, visitors are surrounded by beautifully-tiled spaces that demonstrate to the customer how the tiles can be used to recreate a beautiful space within their own home. “With comfort in mind, we have also designed clearly defined waiting areas, a sales desk area, and private consultation areas.”

On entering the front door customers are welcomed with an arrangement of bathroom displays in three aisles, each with alternative tiling finishes. Patrick says the feedback from customers and staff has been hugely positive.

Customer base Tom Doyle Supplies has a very loyal local customer base, Patrick says. “Our customers tend to do a lot of repeat business with us. We see them returning for refits, and they tend to direct family, friends and colleagues to us, which is a real testament to our level of quality and customer service. We have always been a destination showroom, with clientele coming from much further afield than our immediate catchment area. Since we opened the showroom last September, we have seen a healthy increase in footfall and resulting sales.”

The catchment area for Tom Doyle Supplies is constantly widening. “The more we invest in PR and advertising on a wider national scale, the bigger it gets. Currently, the majority of customers call in to us from south Dublin, Wicklow, Wexford, Kilkenny, and Carlow. However, our commercial sales team would bring professionals/trade customers to us from all over Ireland.

“Our collections include wall, floor, indoor and outdoor tiling solutions in a variety of finishes including Italian porcelain, timber-effect tiles, earthy Spanish decorative ceramics and British porcelain, all in this season’s bespoke colour palette. There are beautiful ranges of heritage Victorian and Georgian designs and mosaic tile collections as well as contemporary brick- and woodeffect tiles from Europe’s leading tile manufacturers.”

The carefully selected tiles, which are also stocked across a network of 14 showrooms in Ireland, have been chosen for their unmatched quality, design and durability. “Tiles are sourced from trusted manufacturers in Italy, Spain and Turkey and Halo Tiles prides itself on only bringing products with the highest-quality certifications to Halo showrooms.

“Halo Tiles are the sole agents for VitrA in Ireland, the largest manufacturer of ceramic products globally and their vast range, when coupled with the range of Gala bathrooms from Spain, offers limitless possibilities.”

In an open plan home, Patrick says, being able to throw open the living room doors to a nicely designed outdoor living space is increasingly popular as people factor entertaining into their home design. As the desire for wooden decking fades, installing floor and wall tiles that are durable and suitable for both indoor and outdoor is a key element of the modern design process.

“Our cladding ranges are proving to be very popular, used both for indoor feature walls in bathrooms and around stoves/

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THE HALO TILES RETAIL CONCEPT There is an increasing demand for hardware and builders merchants to supply wider ranges of products under one roof but space is at a premium and managing stock levels can prove difficult. The Halo Tiles retail concept offers a potential solution to this problem.

In a concept that Patrick Doyle says is unique to the hardware industry here in Ireland, Halo Tiles & Bathrooms offers builders merchants, independent DIY stores, and specialist tile retailers the opportunity to sell tiles and bathroom sanitary ware through a concession agreement where Halo holds stock of an agreed number of product lines, offering nationwide next-day delivery from its warehouse located in Ballyduff, Wexford.

As exclusive agents for premium ranges such as VitrA Tiles, Roca Tiles and Gala Sanitary Ware, Halo Tiles & Bathrooms offer stores premium ranges that they otherwise would not have access to.

Patrick comments: “This concept has been hugely successful in that we already have branded showrooms in 14 stores nationwide, and that number is set to increase by another two this year. We also supply through another 50 reputable businesses nationwide.

“The Halo Tiles retail concept has allowed our customers to offer a very extensive range of products without the need to stock the products. This makes it possible for them to keep up to date with trends and fashions and they also get our forty-five years of experience in the tile business.”

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Store Profile

WHERE OFFLINE MEETS ONLINE Patrick Doyle and his team in Camolin are developing online engagement across a wide range of platforms. Here Patrick outlines five key elements of the company’s online strategy.

1. Sites for sore eyes: Dual website development

fireplaces or outside in garden feature walls and outdoor fireplaces or barbecue areas. Our ranges, London, Cubics and Wall Art, emulating brick, stone and wood, respectively, offer many advantages over their natural counterparts, being high performance and durable, low maintenance, waterproof, antiscratch and stain-resistant. Plus, they are easy to clean. For example, unlike natural brick, you won’t get the white staining called efflorescence with Halo’s porcelain brick-effect range.”

Vintage designs continue to be a feature in tiling trends and bring a sense of heritage to interior design. Moving away from ‘shabby chic’, the look is clean-cut, combining Victorian and Georgian tile patterns with classic tile shapes and colours for a contemporary aesthetic.

Bathroom design is moving away from the traditional formation and focusing on creating a rejuvenating space. For city spaces and those downsizing to a smaller property where space is at a premium, wet rooms are an increasingly popular installation.

Valuing staff Patrick believes the experience and customer service skills of the staff at Tom Doyle Supplies is a vital factor in the success of the business: “We currently have 28 full-time employees and 15 parttime employees. At least five members of staff have been with the company between 10 and 15 years, a true testament to the value we place on our staff and the experience they bring to the customer. The investment in the development of staff is ongoing and as the business grows so does our team.

“Since starting Halo Tiles & Bathrooms, we have added an extra eight staff with new positions in key areas including a dedicated Stock Controller, Marketing Manager, Sales Manager and Financial Controller.”

Patrick adds: “Staff in our flagship showroom use a 3D virtual world programme to allow the customer to see a bathroom design in ‘real life’ before it is built. This is all part of our design, supply and fit solution, where we use fitters to remove the old bathroom, re-plumb, and fit sanitary ware and tiles – a true turnkey service.”

Our new Halo Tiles & Bathrooms website went live on 8 April 2016, styled as a ‘go to’ catalogue website for potential retail and commercial customers. A rebranded website for the Tom Doyle Supplies flagship showroom launched in July. The sites contain product descriptions and imagery, newsfeed, a customer feedback form, testimonials and distributor log-in (to assist product training). Halo Tiles continues to invest in online marketing with SEO, Pay-Per-Click etc.

We use Google Analytics and Google Adwords to track activity on our website which in turn feeds in to the planning of media and advertising campaigns directing traffic to our website.

2. Keeping in touch: Ezines We use ‘Create Send’ for email campaigns and continue to successfully communicate news on design trends and launch new products through this medium.

3. Wise words: Texting We regularly use text campaigns to promote sales and in-store promotions to our client base. We actively grow our client database through engagement with customers in-store, trade exhibitions, training events, links with suppliers, and competitions.

4. Joining the conversation: Social media As a result of increased investment, we have grown our Facebook audience from 1,800 to over 6,500, with a targeted monthly budget to spend on boosting posts. We also engage existing customers and potential new customers on Twitter, Instagram, Houzz and Pinterest and feel they are an important part of the mix, especially in the home interiors segment where beautiful visuals are key. The posting of fresh and relevant content is key to our success.

5. Mobile-friendly: Adding interactivity As the majority of all Halo Tiles online sessions are on a mobile device, we are publishing all campaigns on mobile-friendly apps such as Twitter, Instagram, Houzz, and Facebook. We are currently working on increasing engagement/duration of session on our websites by improving the content and adding an interactive compare facility to our new showroom website.

New ideas Patrick is always looking for new ideas and innovations to improve the business and enhance customer service and this year Tom Doyle Supplies launched Protile: “We launched Protile, for the trade, this year. It offers the convenience of tiling essentials held in stock in a prominent point-of-sale position in-store through a network of hardware shops.

“A choice of three wall tiles and two floor tiles, plus our own brand of adhesive, with a range of accessories necessary to do the job, are all provided on the one shelf/pallet. Protile is a trade counter concept for builders merchants where the trades person can take away the stock there and then.”

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Cover Story

AI, robots and internet of things shape future of home improvement HAI Chief Executive Annemarie Harte reports from the Fifth Global DIY Summit held recently in Berlin. Delegates heard that Amazon will soon be market leader in the German home improvement sector and artificial intelligence (AI), robotics and the internet of things are part of a new industrial revolution that is shifting buying power more and more to the consumer.

The Fifth Global DIY Summit kicked off in Berlin on 8th June with a recognition of the changed world order since it convened 12 months earlier. We were there to see ‘A new era – a glimpse into the future of home improvement’ which translated into two days’ worth of trends and technology that will continue to transform the industry but the implications of Brexit and President Trump’s election reflected the reality that disruption was not just limited to retailing.

Leaving the past?

The economic times we are living in were acknowledged in the first presentation. It was followed by the morning keynote session given by Sergio Giroldi, CEO of OBI, the largest DIY retailer in Europe, and the third largest in the world, behind Home Depot and Lowes. The presentation, “Leaving the past, to live the future”, was refreshingly honest and open for a man in charge of over 42,000

OBI claims its innovation centre, OBI Next, has only one KPI – customer satisfaction.

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employees and revenues greater than €5.7 billion in 2015.

He acknowledged that Amazon will soon take over market leadership in DIY/home improvement in Europe and that the speed of change is dramatically different. It’s not about where your store is located but about whether you are on the first page of Google’s search results. He predicted that within one to two years Amazon will be the market leader in Germany and this is down to technology and its focus on customers’ wishes.

While many retailers and merchants are catching up with the ‘click generation’, that demographic is now already transforming into the ‘voice recognition’ generation and ensuring that the customer is put first. Sergio said that people in Europe don’t have needs but wishes and that Amazon epitomises a customer-centric company by understanding and fully realising customer wishes. He told the Summit that OBI’s Innovation Centre was called OBI Next.

Adopting the slogan,“the human digital companion for home improvement”, OBI Next’s only key performance indicator (KPI) was customer satisfaction.

The next presentation was titled “The fourth industrial revolution – the transformation of our industry” and was given by Steve Collinge, MD of Insight Retail Group. As part of Steve’s company’s services, he delivers the weekly Insight DIY email newsletters (www.insightdiy.co.uk), well worth signing up to if you’re interested in keeping an eye on the latest news and developments in the UK. Steve discussed the impact of industrial revolutions: steam and mechanisation; electricity and mass production; and digital and the internet. He summed up the current industrial revolution by quoting Professor Klaus Schwab, who said in 2016: “We are witnessing profound shifts across all industries, marked by July/August 2017

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Cover Story

the emergence of new business models, the disruption of incumbents and the reshaping of production, consumption, transportation and delivery systems. The changes are so profound that, from the perspective of human history, there has never been a time of greater promise or potential peril.”

Steve continued by defining the features of the revolution we are living in: • artificial intelligence – sharper forecasting tools, improved stock availability and a reduction in returns rate, chatbots replacing humans in online interactions (predicting and anticipating customer needs); • 3D printing; • driverless vehicles; • robotics is revolutionising retail, Tesco has already made its first UK delivery by robot; • cloud computing – evolution and adoption of technology; • internet of things – buying power has shifted.

The lines between offline and online buying and shopping experiences are blurring and the journey is becoming more complicated.

Customers want inspiration and ideas not aisles and aisles of product, queues at the till and helpless sales advisors. The customer is now at the centre of the experience, the customer is put first, Steve noted.

The Fifth Global DIY Summit kicked off in Berlin on 8th June.

BUYING POWER HAS SHIFTED BRAND POWER

RETAILER POWER

The brands decided which retailers stocked their products

The retailers decided which products and brands to range in their stores

CONSUMER POWER

The consumer decides where they want to purchase products

LINES BETWEEN OFFLINE AND ONLINE SHOPPING EXPERIENCES ARE BLURRING

44%

Research online and buy products online

17%

Visit store first, and then purchase online

32% 51%

Research online and visit store to purchase Shopping online and offline: where does one experience begin and the other end?

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Research online, visit store to view product, then return online to purchase

Source: Google retail team

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Retail@Google

Slow page load time kills mobile conversions.

Retail@Google 2017 Show up, wise up, speed up

The rules of retail have changed. With 64% of all in-store sales influenced by digital activity, today’s consumers are savvier shoppers. More consumers than ever are starting their shopping journey online, particularly on mobile. This is a growing challenge for hardware retailers as they try to get online browsers into their store. After an exciting two days at Google HQ, HAI heard from the experts on how to target the empowered consumer.

With advancing technologies such as augmented reality (AR) artificial intelligence (AI) and developments in online targeting and reporting, there are new opportunities every day for retailers to enhance their online presence and reap the benefits in their sales. The three key topics of the day were how a retailer can ‘show up’ to the realities of retail, ‘wise up’ to the latest trends in the shopping landscape and ‘speed up’ – act fast and get ahead.

Show up to retail’s new realities

Mobile Mobile Mobile “The smartphone is the driving force of retail.” said Simon Andrews from Addictive Mobile in his presentation during the two-day event. Digital commerce is becoming increasingly about mobile, while retailers are reaping the benefits of apps, he explained. With the likes of Target offering their full product catalogue through its smartphone app and Macy’s implementing barcode scanning, the opportunities for hardware, home and DIY are endless, according to Simon.

The first keynote speaker of the two days was Patrick Collister, Creative Lead at Zoo Digital, who pointed out that retailers need to be smarter with how they interact with customers.

Patrick advises retailers to move on from pushing out “advertisements” and focus on pulling customers in with “advertising”; building their brand and their brand story.

Out with the old, in with the new The new rules of retail can be summed up as the ‘Five I’s’: • Integrity – how the company treats both its staff and the public. Be transparent about your business’ values; • Insight – understand what it is about your business that is successful, use your data; • Integrate – make your business part of your customer’s lives; • Involve – turn customers into participants in ‘the phygital world’ through both social media and technological advancements in-store; • Innovate – use the latest technologies to change how you interact with customers, online and offline.

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Google is developing its range of online advertising options with the introduction of initiatives such as shoppable ads.

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Retail@Google

KEY STATS • • • •

75% of consumers begin their shopping journey using mobile Twice as many shoppers search on mobile as on desktop during holiday periods 50% of all searches are expected to be by voice by 2020 70% of consumers prefer a personalised experience

How to win at Mobile 1.

Resist ‘desktop thinking’ – start thinking mobile when it comes to targeting online.

2. Learn what big apps teach users – steal the best ideas and use what’s best for your business.

3. Simplify – make the experience as user-friendly as possible.

4. Location – target nearby customers with location bids and extensions in online advertising.

5. Stop treating people like strangers – use your data to personalise the experience.

Simon summed up his seminar with some sage advice: “It’s time to experiment!” Get your business online, tailor it to the mobile market, tailor it to what suits your sector and adapt as needed.

Wise up to shopping landscape We’re living in the age of assistance, meaning customers are constantly looking for ways to make their daily lives that bit easier. Customers want a shopping experience that is personalised, fast and seamless. With the smartphone, consumers are connected 24/7, and the amount of data available is mind-blowing.

This new age is seeing innovations like Lowe’s Visual Positioning Services – an in-store mapping system, built into phones or tablets, to help customers find where a product is in-store, with a map guiding them through the aisles to the product’s location.

Home is new shopping centre Day One closed with a glimpse into the future of retail with Meabh Quoirin from Foresight Factory. According to Meabh, “the home is the new shopping centre”. Today’s consumers’ priorities when it comes to shopping include being in control of their shopping experience. The experience must be convenient, they need to get good value and there must be some element of personality. All of this is part of adapting to the changing face of B2C engagement.

Immersive technology opens new possibilities for retail, with 29% of smartphone owners expected to be using AR apps by 2025. Apps such as Blippar (which uses a phone’s camera to identify a product and reveal more information about it, the company behind it and purchasing options) continue to add to the opportunities for retailers.

Speed up to get ahead Day Two kicked off with a quick beat-boxing ice-breaker and then dived straight into the third topic – the need for Speed.

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out just how sensitive consumers are to wait times, especially on mobile. In a simple but dramatic experiment, he had all 360 delegates stand up, projecting his phone on a big screen with a web page prepared to load. As the page loaded, he asked everyone to raise their left hand, to lower it when they started to feel frustrated with the load time, and to sit down when they had given up completely. It took just 3 seconds for the majority (approx. 70%) of the room to lower their left hand, and 10 seconds for most of the room to return to their seats.

Slow page load time kills mobile conversions. So, what is a good load time?

• 1-2 seconds: Good • 3-6 seconds: Average, try to improve • 7-10 seconds: Poor, get to work • 10+ seconds: Very bad!

Speed is more important than ever now as there is a 47% chance that a customer will engage with a brand by mobile first. Retailers need to think of their website as a front door to their store. Martin advised on the factors that are performance killers for a site, and how to combat them: • Non-optimised images – compress images to save more than 250Kb on a 3G network; • Non-minified resources – HTML, CSS, and particularly Javascript take up huge amounts of data on mobile sites.

Use tools like GZIP to compress file sizes and reduce code; and • Too many requests – 91% of mobile sites load more than 50 resources on mobile. One way to combat this is to prioritise above the fold CSS (where the eyes fall first) and load Javascript asynchronously.

As the Irish hardware industry continues to gain confidence, it’s time for business owners to look ahead and see how they can stand out and compete. To reach today’s empowered customers, retailers need to be seen online and on mobile (show up), adapt to today’s retail landscape (wise up) and keep up with today’s impatient consumers’ expectations (speed up). To do this successfully they need to plan, experiment and adapt. As Vanessa Hartley, Retail and Agency Lead at Google, said, when closing the event: “Brilliant strategy is nothing without brilliant execution.”

GOOGLE’S INNOVATIONS Delegates at the event were treated to a (confidential) snapshot of how Google are developing their portfolio of services. With online advertising options like Google Shopping ads, Local Inventory ads (where retailers can showcase their products and store information to nearby shoppers searching with Google), shoppable images (where a product ad will come up in image searches, linking to a landing page where the user can buy) and Smart Bidding, Google’s portfolio is offering more adaptable options for retailers of any shape and size.

Delegates also enjoyed fun demos of Google’s AR and Assistant innovations including Tiltbrush, Google Home and Google Assistant.

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Budget Submission

HAI has recommended the implementation of the registration of all solid fuel traders provided for in the Environment (Miscellaneous) Provisions Act 2015.

HAI launches Pre-Budget Submission HAI launched its Pre-Budget Submission recently, recommending a number of initiatives to Government including a call to crack down on a cross-border smuggling activity that hits retailers in the sector hard – the illicit trade in solid fuel.

“While it is good news that the Sale of Illicit Goods Bill has reached the first stage of its journey through the Oireachtas, without enforcement and the funding to support enforcement, our members will continue to suffer hard blows to their business each winter,” commented Annemarie Harte, CEO of HAI. “89% of over 200 of our retailer and merchant members are affected every year with losses translating to an annual figure of over €2 million. This not only has a sharp impact on revenue and their ability to stay afloat, but it also impacts on local employment. And there is the detrimental effect on the supply side with member fuel providers losing out to this drop-in business on the retail side.”

1. Combat illicit fuel trading The call to action on illicit fuel trading is the first of the key recommendations in the HAI’s Pre-Budget Submission. It has recommended the implementation of the registration of all solid fuel traders provided for in the Environment (Miscellaneous) Provisions Act 2015. This legislation requires a valid Tax Clearance Certificate to register. Implementation and enforcement of this legislation would be a major step in eliminating illegal solid fuel sales.

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HAI has also urged the Government to work to raise public awareness of the need to ensure fuels are tax compliant because end users are unaware of their responsibilties and the devastating impact of illicit trade. This should be implemented through a communications programme, aimed at educating end users of their responsibilities, and the impact of tax evasion.

The Submission also urges the strengthening of enforcement of the tax legislation using the Revenue Commissioner audits to raise awareness and dis-incentivise illicit traders. Revenue audits are a powerful weapon in the fight against illicit trading, and their impact on the wider illicit market should not be underestimated.

HAI has asked that the resources dedicated to Revenue audits are increased to provide for greater compliance.

Further recommendations in the HAI Budget Submission are outlined below.

2. Reduce cost of doing business Reducing business costs and regulatory barriers is necessary to ensure Irish SMEs remain competitive. For example, the cost of 1,000 litres of diesel in Ireland (€1,199) was 9.2% above the euro area average (€1,097) in January 2016. Ireland was the fourth most expensive country with taxes on diesel accounting for the majority of this differential, representing 65.8% of total

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Budget Submission

diesel costs in Ireland, the third highest proportion in the euro area. Transport, as a category, has recorded a rise of 7.2%, according to CSO inflation figures for April 2017. This, combined with increases in commercial vehicle motor insurance, making it one of the top three costs faced by SMEs, places a heavy burden on business at a time when foreign entrants into the hardware/DIY sector threaten the viability of indigenous businesses. HAI welcomes the report from the Cost of Insurance Working Group and urges Government to implement its recommendations without delay.

While USC is a blunt and unpopular mechanism for tax collection, it is efficient and broadly fair. The priority in Budget 2018 should be to lift the threshold at which the 5% USC rate kicks in. Currently, this is set at the extremely low level of €18,772.01. Lifting this threshold should be prioritised ahead of reducing USC rates.

A reduction in employer PRSI rates from the current 8.5% and 10.75% would remove an impediment to investment and employment creation, it also acts as a cashflow drag on the running costs of a business.

HAI calls for Government to clarify the tax rules and to address the discriminatory tax treatment of self-employed and proprietary directors by eliminating the 3% USC charge on incomes over €100,000. HAI believes there should be equity of treatment regardless of the source of income.

Another prohibitive cost factor is that of industrial land for new offices, start-ups and manufacturing plants, essential components for a successful, market-driven economy. It is vital to rezone agricultural land around major urban areas to cheap industrial.

At present, for example, one acre of serviced, zoned industrial land in Greenogue Industrial Estate (Co. Dublin) is retailing for €350,000. This is a massive start-out cost and barrier to entry.

This land should be more like €20,000 to €30,000 an acre to be remotely attainable to new business and to encourage entrepreneurialism and innovation. Land cost should not be an entry barrier to new business, but with lack of supply inflating this cost, innovation is stifled and new business is discouraged.

3. Stimulate housebuilding and property renovation HAI supports reducing the VAT rates charged on construction for a temporary period, ideally two years, from 13.5% to 9%. A precedent has already been set when VAT was reduced for the hospitality sector from 13.5% to 9% as a temporary measure to boost tourism in 2011. Arguably, it has done its job with the growth in visitor numbers and employment in the tourism area on the increase. A stimulus is urgently needed to encourage developers in the housing market.

Similar to the Home Renovation Incentive scheme, HAI supports the creation of a Commercial or Derelict Property Renovation Incentive scheme which offers similar stimulants to encourage property owners to use these premises cost effectively. This would act as a fast-track method of increasing supply and, with almost 200,000 vacant dwellings according to Census 2016, help relieve the housing situation. This would complement Pillar 5 of the Rebuilding Ireland plan to reclassify and incentivise the use of under-utilised vacant premises for both residential and commercial use.

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To stimulate housebuilding, HAI supports reducing the VAT rates charged on construction for a temporary period, ideally two years, from 13.5% to 9%.

4. Incentivise business in rural Ireland HAI is very concerned about the lack of economic recovery in our sector in rural Ireland and suggests the following incentives to help stimulate activity: a. Corporation tax allowance on profits less than €50,000.

HAI suggests an additional corporation tax allowance/ deduction for building materials stocks up to a qualifying limit of €50,000 in rural areas. There is no tax relief for stock which merchants have invested in; this is particularly onerous on businesses in struggling rural areas. b. Access to high-speed broadband HAI encourages the Government to improve the business environment for rural Ireland. In 2017, a business without an internet connection is like a business without a phone or a postal address. Billions of euros worth of trade is conducted via the internet each day, and to be without reliable, fast access to this international business network is to be denied opportunities for growth.

5. Introduce winter fuel allowance voucher HAI urges the introduction of a fuel voucher system under which those currently receiving a winter fuel allowance would be entitled to use a dedicated fuel voucher/smart card to

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Budget Submission

A winter fuel allowance voucher system would allow the Government to recoup some of this €213 million expenditure through legitimate outlets’ tax returns and ensure that the money is spent with legitimate suppliers.

purchase only fuel products from registered and tax-compliant retailers and merchant fuel outlets, including many HAI members.

Currently, the fuel allowance is a cash payment which can be spent on anything, not exclusively solid fuel, and at any source of supply, without any traceability or recovery for the State. HAI believes that this is an unintended and unnecessary loophole.

The Department of Social Protection has indicated that 410,000 people currently claim €20 in fuel allowance per week (€520 in total during the allowable period), including those in receipt of social welfare and HSE payments. The allowance costs the State €213 million per year. A fuel voucher system would allow the Government to recoup some of this €213 million expenditure through legitimate outlets’ tax returns, ensure that the money is spent with legitimate suppliers, not those operating in the shadow economy, and make certain that the payment is fully used, as intended, to help in reducing fuel poverty.

6. Support Brexit-threatened timber industry Acknowledging that the impact of the UK’s exit from the European single market and customs union will be widespread and varied, HAI endorses special consideration for the timber

industry in the Irish Government’s Brexit discussions and outlines the following threats to the industry: Immediate threats: • weakness of sterling – every one pence movement in sterling costs the industry €3m; • banks may not be willing to support investment in the industry due to volatility in our key export market; and, • reduction in demand could lead to job losses in rural areas.

Long-term threats: • tariffs – HAI expects sawn timber to carry no tariff and panel products to carry 7%; • post-Brexit – reduction in the ‘ease of movement’ adding cost and time; • one study estimates a 5% increase in costs – this is likely to be considerably higher for timber due to the relatively high volume/value ratio; • logistics – non-tariff barriers (customs, labelling, standards, administration); • increased administration; • customs controls and inspections; and, • technical barriers e.g. standards and labelling.

The HAI Budget Submission concludes by pointing out that HAI members, both hardware and builders merchants and suppliers, continue to face challenges and difficulties. Although HAI members have received encouragement through the positive impact to-date of the Home Renovation Incentive scheme, the Association are calling on Government to reduce activity in the shadow economy, reduce the cost of doing business and enforce more effective measures to stimulate the construction sector, and increase housing supply. The HAI also recognises that the impact of Brexit will have sector-specific consequences, and a greater impact on the timber trade than most, so the Association urges particular attention to that sector and the particular set of threats to it.

Post-Brexit, HAI anticipates that reduction in ‘ease of movement’ will add cost and time in the timber sector.

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Solid Fuel Survey

Almost 90% of HAI members affected by illicit fuel sales HAI recently conducted a survey amongst its members about the illicit trade in solid fuel coming across the border from Northern Ireland. Our thanks to all those who participated and provided an insight into the extent of the problem throughout the country as well as the border areas.

A significant number of HAI members are adversely affected by the illicit sale of solid fuels from Northern Ireland. The HAI says that urgent action is needed to bring this illicit trade to an end.

Key findings of the survey include: • •

•

•

89% of members said they were or may be affected by the illicit sale of solid fuel from Northern Ireland.

An average of at least €2 million is lost annually to the legitimate industry, and that’s only on the retailer/ merchant side of the business.

69% of members feel that the implementation of Carbon Tax in the Republic of Ireland in 2013 is to blame for the increase in this trade.

Reporting of the ‘white vans’ is low because of the belief that nothing will be done about it… and they’re right!

DO YOU THINK YOUR BUSINESS IS AFFECTED BY THE ILLICIT SALE OF SOLID FUEL FROM NORTHERN IRELAND? 8% Yes

14%

No

3%

Maybe

75%

Don’t Know

Lucrative activity So, the problem is alive and thriving and it’s a lucrative activity. A standard truck carrying 20 tonnes of coal from Northern Ireland to the Republic without the application of carbon tax can save the perpetrator almost €1,200. This situation arises because of the significant differences in the tax treatment of solid fuel in Northern Ireland and the Republic: • • • •

•

VAT in the Republic of Ireland on solid fuel is 13.5% In Northern Ireland, it is 5.0% Carbon Tax adds €2.11 (€2.40 incl. VAT) to a bag of coal in the ROI – £0 in Northern Ireland.

Carbon Tax adds €0.46 (€0.52 incl. VAT) to a bale of briquettes in the Republic of Ireland – £0 in Northern Ireland.

Carbon Tax adds €27.25 (€30.93 incl. VAT) per tonne of sod peat in the Republic of Ireland – £0 in Northern Ireland.

There’s an active online forum which explains how consumers can ring a courier company based in Dublin and arrange collection of coal from a coal warehouse in Co. Tyrone or you can ring the local one that the warehouse suggests. Customers are also encouraged to ‘like’ the Facebook page, and it now has over 10,000 likes.

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HOW MUCH DO YOU THINK THIS AFFECTS YOUR TRADE BUSINESS ANNUALLY? Less than €10k

36%

32%

Between €10k and €15k Between €15k and €20k

3%

29%

More than €20k

The problem is that many consumers are genuinely unaware that, if they do not personally accompany solid fuel for their own domestic use across the border, they cannot import it without paying carbon tax.

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Solid Fuel Survey

SALE OF ILLICIT GOODS BILL 2017 The Bill is intended to: • Make it an offence to purchase illicit solid fuel.

• Make it an offence to purchase such goods from an unregistered or unlicensed retailer.

• Provide for the imposition of a penalty in respect of such offences.

• Provide for an on-the-spot fine in respect of such offences.

Worsening problem And even though The Sales of Illicit Goods Bill gained first stage at the Oireachtas in April this year, it isn’t giving confidence to our members that this will help end the practice – only 11% think it will.

The solid fuel market in the Republic of Ireland is estimated in volume terms by the Sustainable Energy Authority of Ireland to be 410,000t, coal products; 203,000t, peat briquettes; and 700,000t, sod peat.

When Carbon Tax was introduced in the Finance Act 2010, its application to solid fuel was deferred until ‘a robust mechanism’ could be put in place to protect the market in the Republic from illegal imports. At the time, this deferral recognised the potential for illegal imports if a large excise-driven difference existed between Northern Ireland and the South. This ‘robust mechanism’ clearly hasn’t been put in place as our members believe the problem has gotten worse since the full introduction of carbon tax in 2014.

ARE YOU AWARE THAT THERE IS A SALE OF ILLICIT GOODS BILL GOING THROUGH THE OIREACHTAS? IF PASSED, IT WILL MAKE IT AN OFFENCE TO PURCHASE ILLICIT GOODS

HOW LONG HAS THIS BEEN A PROBLEM FOR YOUR BUSINESS?

Since solid fuel carbon tax was introduced in 2014

16%

15%

It has always been a problem

69%

It has gotten worse in the last year

DO YOU THINK THIS WILL REDUCE OR PREVENT ILLICIT TRADE?

11% 30% YES NO

70%

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YES

49%

NO

40%

MAYBE

July/August 2017

01/08/2017 12:45

Business Support

Alternative sources of finance

IN PARTNERSHIP WITH

Ger Blake, Director, DSB, offers some insights on non-bank sources of finance that you might consider.

Recent statistics from the Central Bank confirm that the pillar banks are slowly improving the level of credit being made available to SMEs. The issue is that the SME lending market continues to be very concentrated, with Bank of Ireland and AIB the two key players, although Ulster Bank and KBC are starting to re-emerge as genuine competition. Access to credit remains a key concern for most SMEs. Aside from the banks, there are many other ways to seek to access credit and a plethora of options have emerged in recent times to fill the void left by the pillar banks, along with some other well-established sources of finance that have become more widely used due to the inactive banking market in Ireland since 2009.

Why credit may be required A typical SME may need credit for a variety of reasons (be it business growth or expansion, asset leasing or simply working capital). The purpose of the capital required will determine your options and who you can approach for support. Funding support can be in the form of debt or equity and a thorough analysis of your needs should be undertaken to decide on the most appropriate for you.

The following is a sample of some alternative non-bank sources that you could consider: ✓ State supports or grants can be accessed through your Local Enterprise Office as there are now a wide range of Government supports in place to aid the growth of SMEs. ✓ EIIS tax-based equity funds are now widely available to a broad range of companies, including hardware retail. A company can raise up to €5 million in any 12-month period. ✓ Invoice Discounting, Supplier Finance and Asset Finance are increasingly available from firms such as Bibby, Close Brothers or Grenke. ✓ Micro Finance Ireland was established to deliver the Government’s Microenterprise Loan Fund, and can provide loans of up to €25,000.

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✓

✓ ✓

Various newly-established non-bank lenders are seeking to provide commercial real estate debt to SMEs for varying purposes. These include companies like Finance Ireland, Origin Capital and ProFunder, where funding of up to €5 million can be accessed.

Crowdfunding platforms are also increasingly used by SMEs. The most popular would be Grid or Linked Finance.

Private Equity investment is also again widely available via Business Angel networks, specialist finance houses or venture capital funds.

Each of the above options has active funders in the market right now, and each has different lending criteria and terms and conditions. Some important considerations to bear in mind, regardless of who you approach, are: • All funders will require information on your business and have a standard application process in this regard. Be prepared.

• A key differentiator for some non-bank lenders is the faster pace of decisions and draw-down of funds. Because of less burdensome operational structures, you will get a faster decision.

• Some non-bank debt providers can charge interest rates that are considerably higher than the pillar banks. Ensure you fully assess costs and affordability before signing up.

Ger Blake, FCCA, is a Director at DSB with over 23 years’ experience specialising in business advisory and corporate turnaround. He has worked with many SME clients in the retail and hardware sectors.

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01/08/2017 12:45

Market Intelligence

Poor June for revenue, despite good weather Following a buoyant first quarter with growth of 10% on 2016, Q2 has stagnated with a particularly poor June in spite of bursts of good weather.

Total member revenue for Q2 2017 is practically on a par (99%) with the same period for 2016. The year-on-year consistency is largely evident throughout the key members’ groups.

The month-on-month comparisons for Q2 2017 shows a stable moving average (99%). A slight decline in sector revenue was evident from May to June. The monthly moving average for Q2 peaks in Munster.

The burst of very hot weather in June had a positive impact on garden/outdoor sales for 47% of members.

19% of all members offer agricultural supplies, rising to 37% of rural members. For those who offer these supplies, 34% of Q2 turnover was accounted for by sales of agricultural supplies.

The summary review of 2016 indicates: • both Q1 and Q2 2016 showed 13% growth on 2015; • the sector as a whole recorded a 10% increase year-onyear in 2016; • the month-on-month increase in sector revenue was especially consistent in Q1 and Q2 2016.

How to get involved The more retailers and merchants involved in contributing to the index, the more robust the data. All raw data is kept confidential and never revealed to HAI. If you agree to participate in the monthly business index, you will receive an email from Behaviours and Attitudes, our research partner, once a quarter (usually at the start of the second week), asking for several pieces of information that will form the benchmark survey: • number of employees; • location of business; • what type of area your business operates in, i.e. to get an urban/rural split; • annual sales turnover (less VAT) for your business for 2015 broken down by month; • sales turnover per month for 2016.

Once this benchmark is complete you will only be asked for one piece of information each quarter thereafter, sales turnover per month for the quarter.

Please call 01 298 0968 for more information and to participate.

What our members say Padraic Rogers, Owner, Topline Rogers, Ballymote, Co. Sligo “We at Topline Rogers, are finding Hardware Association Ireland’s business index a great help to our business. It helps us plan and project where our business is going. It’s very timely for our industry, pity it didn’t happen years ago!”

Stephen Blewitt, General Manager, Agribusiness, Aurivo “The monthly benchmarks help us decipher the areas where we are over or underperforming versus the industry. The fact it is completely anonymous gives us the confidence to be totally open with the figures we provide.”

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July/August 2017

01/08/2017 12:45

Training

HAI announces autumn classroom training After a successful spring training schedule in their offices in Blackchurch Business Park, Rathcoole, Dublin, conveniently located off the N7 at junction 5, HAI is pleased to launch its autumn classroom training schedule with oneday courses in a range of topics, tailored for hardware retailers, merchants and suppliers.

If you need further information about any of the courses or wish to enrol, please visit: www.hardwareassociation.ie/education or contact Aoife Kinsella at aoife@hardwareassociation.ie.

26TH SEPTEMBER – DIGITAL MARKETING AND SOCIAL MEDIA

Attendees at a recent Credit Control: From Start to Finish course.

12TH SEPTEMBER CREDIT CONTROL: FROM START TO FINISH Credit Control: From Start to Finish is delivered by Declan Flood, The Credit Coach, and is specifically designed for hardware stores dealing with companies and individuals. It concentrates on delivering excellence in credit, while walking the sensitive line between finance and sales.

This course covers a number of topics including: • your credit policy terms; • setting lines of credit for new/existing customers; • applying the correct method of collection, and; • mitigating risk.

Who should attend?

This course is designed for owners, credit controllers or managers of hardware retail stores and builders merchants who are responsible for the collection of the money due from both companies and individuals.

Cost: HAI Member: €100. Non-Member: €150.

Student Feedback: “Excellent course, Declan is the best tutor I have attended. Great knowledge and delivered in good humour.”

Tommy Shaughnessy, Aurivo Co-Op Society

The Digital and Social Media one-day workshop is designed for hardware retailers and suppliers who are looking to update and upgrade their business’ marketing efforts, and want to explore how the latest tools and tips will help them.

Greg Fry will take attendees through the fundamentals of digital marketing, including: • Digital marketing checklist; • SEO tools; • advertising – Google and Facebook ads; • email marketing; • video marketing; • social media tools and tips, and; • Google Analytics.

Who should attend?

Any hardware retailers, merchants or suppliers or dedicated marketing staff in the sector who are looking to upgrade their current skillset.

Cost per attendee: HAI Member: €200. Non-Member: €250.

Student Feedback: “Instructor very knowledgeable, new information and pointed in the right direction.”

Francisco Gomez, Botament

Greg Fry (right) with attendees at a recent Digital Marketing and Social Media course.

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Training

19TH OCTOBER MEMORABLE CUSTOMER SERVICE The Memorable Customer Service workshop aims to equip you with the necessary knowledge and attitude to

A recent Memorable Customer Service workshop.

25TH OCTOBER NEW: STOCK CONTROL New to the HAI classroom training suite, the Stock Control course will be delivered

by Keith Harford, retail expert. Good

Stock Control is a new addition to the HAI classroom training suite.

29TH NOVEMBER CONSULTATIVE SELLING SKILLS FOR RETAILERS AND MERCHANTS

A busy session during a recent Consultative Selling Skills workshop.

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deliver excellence in customer service to ensure customers continue to do business with you rather than your competitor.

At the end of this highly interactive workshop participants will be able to: • define customer service; • explain the meaning and significance of memorable customer service to a business; • state and explain the ‘three pillars of customer satisfaction’ (product, convenience and human factors); and, • demonstrate the ‘ABC’ (attitude,

customer service involves ensuring you have enough stock to meet demand at all times. Keeping accurate stock figures and ordering correct quantities of stock at the right price can be made easier – if you know how. This course is designed to help participants manage their stock and resulting costs more effectively.

By the end of the course, participants will: • develop an understanding of the importance of stock control; • better understand the problems of having too little stock; • understand the damage to a business’ cashflow of having too much stock;

The Consultative Selling Skills workshop aims to equip hardware retailers and merchants with the necessary knowledge, skills and attitude to deliver excellence in sales to maximise every selling opportunity with a customer.

Using the five-step process of consultative sales techniques, this course will explore the key steps in selling, including: • opening the sale; • establishing and distinguishing the customer’s needs and wants; • defining the features, advantages and benefits that match the customer’s needs and wants; and, • exploring the five main ways to

behaviour and competence) of face-to-face memorable customer service.

Who should attend?

This workshop is tailored to the needs of hardware retailers and builders merchants.

Cost per attendee: HAI Member: €200, Non- Member: €250 Student Feedback “Very clear, well put together, warm and welcoming.”

Michelle Lodge, Tim Lodge Ltd

• • •

be better able to identify ‘redundant’ or ‘obsolete’ stock; develop and maintain good stock control practices; and, understand that everyone in the business, regardless of their level, can make a positive contribution in this area.

Who should attend?

This course is designed for staff at all levels in a business. A pre-course questionnaire is used to customise the course for the attendants.

Cost per attendee: HAI Member: €200.

Non- Member: €250.

successfully close a sale.

Who should attend?

All hardware retail staff and managers.

Cost per attendee: HAI Member: €200.

Non- Member: €250.

Student Feedback: “This course showed me that even with 20 years of serving the public under my belt there were still new things I could learn. Having the knowledge is one thing but this course showed me new ways to utilise that knowledge in maximising the potential of every sale.”

Eamonn Crowley, JL Smallman Ltd

July/August 2017

01/08/2017 12:45

Business Support

IN ASSOCIATION WITH

Cyber security and cyber insurance Shane Hennelly, Joint Managing Director, Thompson Insurances on the threat of cyber attack and how you can manage cyber risk.

The recent ‘WannaCry’ ransomware cyber attack affected 200,000 organisations worldwide including the UK’s National Health Service (NHS). The most exposed computer systems were those operating older versions of Windows or those without Windows updates as they were not patched by Microsoft and were left open to cyber attacks.

If you send or receive emails and store customer data, you have a cyber risk exposure. If your customer data is breached by a cyber attack, you are open to legal actions by your customers and fines by the Data Protection Commissioner’s office.

Cyber insurance is a form of risk transfer worth considering but before exploring this let’s examine what your business should look at first if you are grappling with your cyber risk exposure.

As is so often the case, prevention is better than cure:

Short Term • • • •

Cyber security should be on your board agenda.

You should set up a cross departmental cyber working group within your business.

Your business should be familiar with your legal and regulatory obligations around data security.

Migrate away from Windows XP (unsupported by Microsoft since 2004) and older unsupported versions of Windows.

Medium Term • • •

Your business should have a formal Information Security Policy to include business partners/vendors obligations.

Ongoing staff training is critical to avoid innocent cyber breaches.

An Incident Response Plan should be drafted and regularly updated.

Long Term • •

Implement ongoing audits.

Carry out ongoing monitoring and testing.

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Shane Hennelly, Joint Managing Director, Thompson Insurances.

The 2015 NetDiligence Cyber Claims report showed that 78% of cyber claims relate to crisis services. This is a very important added value element of cyber insurance cover. When a cyber breach occurs, you can phone a 24-hour response line which immediately coordinates IT forensic engineers to figure out what’s happened and specialist legal and PR professionals to manage the fallout of a cyber breach in a controlled manner.

Customers frequently tell me their IT systems are current, robust and regularly tested and, therefore, cyber risk is not a concern for them. This is a big mistake. Studies show 35% of cyber breaches have an internal cause. This can be innocent, e.g., an employee clicking on an attachment within a spam email which opens your computer system to malware, or it can be malicious.

A cyber insurance policy can cover third party financial loss, cyber extortion costs, damage to your own computer systems, business interruption as a result of a cyber incident, previously mentioned crisis services and fines imposed by the Data Protection Commissioner’s office. The EU-wide General Data Protection Regulation (GDPR) becomes enforceable from May 2018 and provides the Data Protection Commissioner’s office with much wider powers to fine organisations as a result of data breaches.

An entry-level cyber insurance policy, with a limit of indemnity of €500,000 for an Irish-domiciled organisation with a turnover less than €10m and a minimum level of information/ IT security, costs in or around €1,000. Choosing a limit of indemnity is not an exact science but it boils down to your company size, risk profile and budget.

Thompson Insurances have partnered with HAI to offer members a free, no-obligation risk management survey.

Shane can be reached on shane.hennelly@nti.ie to discuss cyber insurance in more detail.

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Business Support IN PARTNERSHIP WITH

Don’t get caught by card scam Banking & Payments Federation Ireland is aware of a number of incidences in which hardware stores have been targeted by fraudsters who place big orders and pay with stolen card details, writes Erica McKinney, Financial Crime and Security, Banking and Payments Federation Ireland.

The fraudster typically gives a plausible story as to why the order needs to be fulfilled immediately and arranges for the goods to be picked up by courier. The transaction is later charged back when the genuine cardholder notices the transaction on their account.

•

•

A typical scenario A hardware store gets a call from a new customer saying they have been let down by a supplier on a job they are doing and are looking for a big order to be filled as soon as possible. They provide a listing of the materials required and advise that they will send a courier to pick the goods up. The hardware store is understandably keen to fulfil the order because of its value but also because of the possible repeat business it might bring.

The fraudster pays over the phone, using stolen card details.

The courier comes to collect the items and a few weeks later the retailer receives a chargeback, because a stolen card number has been used to make the purchase. Unfortunately, the hardware store is liable for the full amount and ends up at the loss of the sale amount and the goods supplied.

The use of a courier is important because it means the customer will never be on the premises and, therefore, cannot complete a chip and pin sale, be identified by CCTV or demonstrate that they actually have the physical card. This adds an extra layer of protection to the fraudster.

In some cases, the fraudster will try to maximise the fraud by hitting a hardware store a number of times over the course of a few days or weeks before the first chargeback is raised.

Protect yourself Protect yourself with the following advice: • Authorisation is not a guarantee of payment. It just states that there are sufficient funds available and the card has not been reported lost or stolen. It is the retailer’s responsibility

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•

•

•

Erica McKinney, Financial Crime and Security, Banking and Payments Federation Ireland.

to ensure that the genuine cardholder is carrying out the transaction.

Ensure staff are educated on the risks of taking orders over the phone. Your staff are the first line of defence in analysing an incoming order.

Always check the credentials of new customers, particularly if placing a high-value first order or making multiple orders in a short timeframe.

Be mindful of sudden big orders, especially when they are rush orders or a courier is being used to collect the goods.

If it seems too good to be true, it usually is too good to be true.

Watch out for multiple cards being offered. The fraudster is generally going to pay using a stolen card and won’t know the available limit so they may try a card that declines and then offer another number before the sale goes through.

Ask for a name and address for the card used and ask your acquirer (the bank or financial institution that processes your card payments) to perform a name and address check with the issuer. This might help identify the less well-prepared fraudsters, though it is worth noting that a positive name and address check is not sufficient to defend a chargeback.

Before taking transactions over the phone you should ensure that you have the correct terms in place with your acquirer. They will also be able to advise you on best practices for payment card transactions.

You can find more information including downloadable training documents on the following links: www.bpfi.ie/customer-assist/business-customers/fraudprevention-publications/ and www.bpfi.ie/customer-assist/business-customers/reducecard-not-present-risk/ July/August 2017

01/08/2017 12:45

Business Support IN ASSOCIATION WITH

Prevent and Save

Repak’s programme in action Repak’s Prevent and Save programme is a free service offered to Repak members as a means to reduce the amount of packaging they place on the Irish market. The programme includes an on-site survey designed to help businesses prevent packaging waste and reduce costs.

To fully understand your waste costs, your recovery operator should be supplying you with a breakdown (by weight) of all the waste which is being collected from your business. This means that you should be aware of: 1. What your waste collection is costing; 2. Areas where waste or overuse may be occurring; and, 3. Areas where you can make savings.

Two of Ireland’s finest hardware stores are helping to fund recycling in Ireland through their membership of Repak.

Recently, Morris’s DIY and McDonogh Trade Centre took part in the Prevent and Save programme which included a survey of their packaging systems and waste management practices.

Morris’s DIY Morris’s DIY is the largest independent builder’s merchants and DIY store in the southeast of Ireland. In order to prevent packaging waste and reduce the costs associated with waste collection, Seamus Reynolds from Morris’s DIY recently embarked on a mission to reduce on-site packaging and improve how waste is being managed at the newly-refurbished store on the Cork Road in Waterford. Seamus Reynolds, Manager, Morris’s DIY, commented: “In conjunction with Repak’s packaging technology team, we are now implementing a plan for the business that reduces the amount of packaging we accept on site from our suppliers and that helps us to reduce our overall waste costs.”

Brian Walsh, Packaging Technologist, Repak.

Brendan Maher from McDonogh Trade Centre has undertaken a number of initiatives to reduce waste such as reusing flower pots in the garden centre and updating the docket and invoicing systems to reduce paper waste.

Brendan explains how the company’s participation in the Prevent and Save programme is benefitting their business: “Our focus on waste management was impacted during Ireland’s recent recession. However, as a participant in the Prevent and Save programme, Repak are now helping us to introduce a realistic plan that reduces our packaging waste and improves how we segregate packaging waste for recycling.”

As a result of their participation in the programme, McDonogh Trade Centre is implementing a number of key changes including: • introducing packaging re-use initiatives with local suppliers to prevent packaging waste; • using a twin chamber baler to bale both plastic and cardboard rather than cardboard only to increase the free collection of recyclable plastics; and, • implementing an alternative waste collection system to reduce costs by more than 25%.

If you would like more information on Repak’s Prevent and Save Programme please visit the website at: www.repak.ie/preventandsave To avail of the Prevent and Save Programme or to obtain further information on any of the services provided by Repak please contact Brian Walsh or Colm Munnelly by email at prevention@repak.ie or, alternatively, by phone at 01 467 0190.

Here are just some of the changes that Morris’s DIY is making: • suppliers are required to take back pallets for reuse; • more goods are delivered directly from suppliers rather than through third parties to further improve opportunities to return and reuse packaging; • the use of skips on site is being reduced in favour of HELP WITH COMPLIANCE alternatives that improve segregation; and, • there is measured baling of cardboard and plastic Set up by industry in 1997, Repak aims to help its hardware materials. members comply with EU packaging waste legislation. If your hardware business has a turnover of greater than €1 million and places 10 tonnes or more of packaging on the Irish market then McDonogh Trade Centre Repak says it can help you with your obligation to fund recycling in McDonogh Trade Centre has been trading in the Galway area Ireland. Since the formation of Repak, Ireland has grown packaging for 150 years. The business offers a wide range of products recycling from around 15% at that time to 70% today. and services to builders, retailers and the general public.

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Intact cliQX is a bespoke online solution that has been designed to cater for both b2b and b2c e-commerce sites and integrate seamlessly to Intact Software.

Software innovations streamline business management systems Builders merchants are increasingly seeking ever-more sophisticated business management software solutions.

According to the IE Domain Registry (IEDR)’s Digital Health Index for Q1 Ireland’s e-commerce market is valued at €9 billion and is expected to grow to €14 billion by 2021. However, only 30% of Irish SMEs with websites can process payments or take sales orders online, and only 7% can run analytics for their online tools.

Sharing and protecting data As concern for data collection and protection grows, particularly with the imminent General Data Protection Regulation, more SMEs are looking at what is available to help streamline their business practices by reducing duplication, eliminating paper workflows, saving time, and making it easier to manage, share and protect their data.

In a 2015 survey conducted by Sage Ireland, 71% of Irish SMEs were said to be already using or had plans to adopt

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Merchant is a versatile business management software available from RNH Software.

July/August 2017

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01/08/2017 12:45

COMMERCIAL FEATURE

Versatile

Frank Quinn, Profile Technology and George Frazer, Topline Frazer’s

cloud computing technologies in their business representing a significant increase from April 2013, when the figure was at 38%.

Of those surveyed, 75% cited remote access to information as their key reason for investing. Among organisations that have fully deployed the cloud, almost half (46%) say they have seen their ability to reshape or resize the organisation improve significantly.

The productivity benefits have also been significant. Nearly onethird of respondents (31%), say they spend less time doing manual work within their department as a result of moving to the cloud and that the automation of processes has freed up time to focus on general management of the business.

There are some barriers, however, that are limiting Irish business owners’ abilities to change their business model, particularly lack of reliable broadband connection (13%), fear of cybercrime (17%), and ‘lack of technical know-how’ (29%). Fortunately for business owners, there is an increasing range of business management systems options available to support their individual needs.

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Merchant is a versatile business management software available from RNH Software designed specifically for wholesalers and retailers, such as builders merchants, electrical wholesalers, DIY stores, stationers and garden centres. RNH says the feature-rich software seamlessly integrates all sales, stock management, accounting and reporting processes into one easy-to-use package.

The system is designed to facilitate fast, efficient sales transactions by giving counter staff instant access to all the information they need at the point of sale, according to RNH. All accounting and back office systems are fully integrated, thereby automating routine business tasks. Merchant also features comprehensive customer communication facilities including email and SMS text messaging services, empowering businesses to effectively communicate with customers.

Functionality can be enhanced through the addition of optional addons. These include a business intelligence solution that enables companies to analyse and improve business performance.

RNH also offers two tablet apps. RNH SalesRep allows field-based sales representatives to access extensive customer information while on the go, connecting with Merchant via Wifi or 3G/4G, while RNH StockTake simplifies the stock count process, again connecting with Merchant via the internet.

Merchant is available as both a traditional ‘on-premises’ solution (with servers located on site) and a hosted ‘cloud’ solution (with servers located in a data centre). On-premises deployment is suitable for those businesses that require the flexibility and

July/August 2017

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COMMERCIAL FEATURE

control of housing their own hardware, while cloud deployment lowers up-front costs and eliminates the burden of updates and maintenance.

Easy to use Wasp Technologies Ltd has developed a powerful yet easy to use IntelliBrand Sales Platform for DIY stores. Drawing on many years of experience in the food and drinks industry, Wasp worked closely with many DIY distributors to ensure the IntelliBrand 10” tablet solution matches how a typical DIY sales representative works with a customer. As well as allowing an order to be quickly captured, Wasp says, the solution also gives the salesperson all the information on products and customers that they need in the field.

Wasp is also experienced in tightly integrating IntelliBrand to all major accounting, Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) systems further driving efficiency and reducing unnecessary administration. All the expected features are supported, from the powerful digital media sale presenter to new customer prospect recording, surveys, shelf auditing, CRM, photo capture in call notes and objectives.

IntelliBrand also includes a full spectrum ‘automated distribution’ reporting suite on all areas of the sales process. The in-built reporting suite is further enhanced by the addition of the Microsoft Power BI option reporting giving a live view of sales via dashboard reports.

IntelliBrand includes a webshop option which can easily be added once the IntelliBrand Platform has been deployed allowing authorised ‘trade only’ customers access to order as they wish when a Sales person is not available.

Wasp Technologies offers a free trial of IntelliBrand to the DIY store sector.

Wasp Technologies Ltd has developed the IntelliBrand Sales Platform.

Customised to individual needs Profile Technology is a leading supplier of specialised business management software for hardware stores, builders merchants and DIY stores, the company says. Profile has been providing specialist business systems in Ireland and the UK for over 35 years.

Profile Technology describes its system as a complete package for any store or merchant, being developed, sold and supported exclusively by the Profile team of business and IT experts.

Each customer is treated individually, with the system being moulded and customised around their needs. The knowledge and experience of hundreds of customers is incorporated by Profile into the system. This is passed on and shared with new clients who add their ideas which are subsequently integrated into the system.

The company says that this means there is synergy between the company and all its customers and each party benefits from the other.

Profile designs its system with each individual customer’s needs in mind. The live management dashboard gives managers a fast and up-to-date reflection of their current business affairs. Specialist features are designed for various product types such as timber, paint, tiles, batch control etc. and other unique requirements.

Profile Technology says it can provide your business with the ideal management solution that can save you and your business time and money. It gives you an immediate advantage over competitors through customer service and increased efficiency.

A bespoke solution As traditional bricks and mortar businesses find themselves amongst increased competition from online players in the market, interest continues to grow amongst merchants towards this potentially lucrative sales channel.

Building on Intact Software’s heritage of working with builders merchants and a deep understanding of the industry’s needs, the company says it was only a matter of time before it introduced its own e-commerce platform.

This summer, the company is set to launch Intact cliQX – a bespoke online solution that has been designed to cater for both b2b and b2c e-commerce sites and integrate seamlessly to Intact Software.

The new platform enables businesses to manage a single database where all stock, pricing and product details are updated in real-time online from their back office system, according to Intact. Intact cliQX also allows you to create a personalised shopping experience for each and every one of your customers. The online account portal allows your customers to securely log on to access their own account information, order status, history, price lists, product information, invoices etc.

Intact says its new e-commerce solution offers features and capabilities designed to create the optimum online store experience for your customers.

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COMMERCIAL FEATURE

Insulation helps spur energy efficiency

Kooltherm from Kingspan.

Renovation works to the value of over €1.4 billion have been put through the Home Renovation Incentive (HRI) scheme since its launch in 2013.

This incentive has facilitated homeowners in carrying out over 92,000 home improvement projects over a period of three years with an average spend of €16,000 per project, including wall and roof insulation.

The extension of the HRI scheme to the end of 2018 has added further activity to this sector. The increase in home improvement activity means that the overall repair, maintenance and improvement (RMI) sector has grown to a quarter of the entire construction industry output and accounts for €1 of every €4 spent in the construction industry.

As Irish homeowners are becoming increasingly environmentally-friendly and energy conscious they are starting to think of how they can make their home more energy efficient, saving costs. As many as one million homes, built in the last century, are significantly energy inefficient, according to the Sustainable Energy Authority of Ireland (SEAI), resulting in higher energy bills and, in some cases, poorer health and wellbeing for homeowners. Energy efficiency in the Irish residential sector

improved by 34.7% between 2000 and 2014, thanks, in part, to improvements in insulation standards and increased usage.

As awareness of available grants, such as the SEAI Better Energy Homes scheme and the HRI scheme, continues to grow, householders, community groups, local authorities and energy agencies alike are encouraged to avail of them, given that these grants can cover up to half of the costs of deep retrofitting projects. They are also encouraged, under the grants, to ensure they use SEAI registered contractors. This in turn continues to drive the quality of contractors and products, while stimulating market activity.

Kooltherm revolution Kingspan recently introduced its Kingspan Kooltherm lower lambda range. Kingspan says it has revolutionised its rigid insulation technology with the introduction of the Kooltherm low lambda product range for floor, wall and soffit applications; delivering premium thermal performance with a minimal construction thickness.

Jim Loughran, Kingspan Commercial Director, said: “The advanced composition of Kingspan Kooltherm lower lambda products ensures architects and builders now have even greater freedom to achieve spectacular designs, with inherently outstanding fabric performance, without having to compromise on internal living or working space.”

The new products have a lambda value of just 0.018 W/m.K (watts per square metre of surface area for a temperature gradient of one kelvin for every metre thickness) across all thicknesses. According to Jim: “Lower lambda Kingspan Kooltherm provides a level of performance that is unrivalled in the world of rigid thermoset insulation materials. At Kingspan Insulation, we are very passionate about product development and exceeding expectations. We invest heavily in research and development. Our new lower lambda range adds another dimension to our product portfolio, allowing us to offer even higher value products from our already extensive range.” (continued on page 48)

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COMMERCIAL FEATURE

Thermofoam strength Heat can escape from buildings through windows, doors and other wall breakthrough points, wasting energy and reducing efficiency. Thermofoam is a new, flexible PU expanding foam from Everbuild Building Products – A Sika Company, specially formulated to absorb movement, giving an airtight seal to reduce heat loss and in turn improving energy efficiency in buildings.

With global warming being one of today’s biggest concerns, all new buildings must be tested for air permeability ensuring the air tightness of the structure is up to standard. Any heated air lost though gaps and cracks must be replaced requiring additional energy, reducing efficiency and increasing carbon emissions which have been closely linked to global warming.

According to Everbuild, Thermofoam has been tested to the latest standard and is not only air permeability tested to EN12114:200-03 but also acoustic-rated to EN ISO 717-1 up to 64Db, temperature resistant (-40 to 80°C) and, finally, fire-rated to ISO 13501 Class E. An Everbuild spokesperson said: “The powerful bond strength and flexibility of Thermofoam gives excellent long-term thermal and acoustic insulation by inhibiting cracks from occurring during the contraction of building materials in areas such as around window and door frames, giving a hermetically sealed barrier.”

Thermofoam is available in 750ml tins and is compatible with the Everbuild range of foam applicator guns to give the user more control to apply the foam in hard to reach places.

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Thermofoam is available in 750ml tins and is compatible with the Everbuild range of foam applicator guns.

July/August 2017

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Classified Ads July/August 2017

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July/August 2017

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Smart spaces Rooms available for hire at HAI HQ If you need an easily-accessible meeting space on the way into or out of Dublin, HAI can offer you convenient and wellappointed rooms suitable for a range of requirements, from one-to-one to group facilities for up to 16 people.

Facilities A boardroom/ training meeting space for up to 16 people in a T-shape or in classroom style, with air-conditioning. A 62” state of the art screen is available with mini-Intel PC so you don’t have to connect a lap top. If you have a presentation or other documentation you want to place on the screen, all you need is a memory stick.

A six-person meeting space with tea/coffee/water facilities available. Ideal for a one-to-one meeting on the way into or out of Dublin. Alternatively, if you just need a pit- stop for refreshments, you are welcome to drop in as this space is available to HAI members free of charge.

€75 morning (9am to 1pm) or afternoon (1pm to 5pm) and €130 full day – HAI members. €100 morning or afternoon and €175 full day – non-members.

FREE to HAI members €50 morning or afternoon and €100 full day – non-members

Wireless internet access is available in both spaces as well as plenty of sockets, natural daylight and blinds.

Lunch is available, if requested in advance (24 hours’ notice) and starts at €4 per person for sandwiches.

Support

Directions to HAI Head Office

Location

From Dublin

On the city-bound side of the N7, more commonly known as the Naas Road, less than 1km across the border from Kildare. On the site of Johnston Logistics facing onto the Naas Road.

See the map for our exact location.

Junction 5 N7

From Naas

When you visit us take the opportunity to learn more about HAI. To book either of the spaces, or for further information, contact HAI at info@hardwareassociation.ie or call 01 298 0969.

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