NEWS | Round-up VIEWPOINT Are you water wise?
Tom Reynolds, chief executive of the Bathroom Manufacturers Association, highlights some key industry responses to Defra’s Mandatory Water Efficiency Labelling consultation
Victorian Plumbing claims to be ‘UK’s No1 bathroom retailer’
ONLINE BATHROOM retailer Victorian Plumbing claims to be the UK’s No1 bathroom retailer with further market share gains despite a drop in gross profit for its full year results.
Consumers could be
DEFRA’S PLANS for a mandatory water efficiency label have been widely discussed, and a host of stakeholders have now submitted their reactions. While I can’t summarise every response we and others have made, here are some of the key trends. A number of environmental NGOs, particularly Blueprint for Water and Waterwise, have welcomed the general principle of mandatory water efficiency, but have called for greater ambition from the Government, including ‘minimum standards’ that would have banned some fittings. The list of products Defra selected for labelling leaves room for ambiguity, especially around the status of electric showers. The BMA and Yorkshire Water both agree that they should be included, as these showers constitute around half of the UK shower market. On dual labelling, the BMA and BEAMA shared the view that Government should identify the existing Unified Water Label (UWL) as an acceptable means to comply with any new requirement. Using the UWL would also reduce unnece- ssary duplication of work already undertaken. The BMF agreed and
mentioned the
overwhelmed by too much information at the point of sale – in effect, causing ‘poster blindness’
large costs for Government to develop their own scheme. Several organisations dis-
agreed with the idea that energy information should feature on the label (for taps and non-electric showers). Interestingly, the British Retail Consortium said consumers could be overwhelmed by too much information at the point
of sale – in effect, causing ‘poster blindness’. Defra
is planning a database of water-labelled
products. While some information is helpful for consumers, trade associations pointed out that most of the proposed information has no benefit. Defra proposes a high level of visibility for the new label, with an onus on manufacturers and retailers to ensure it is displayed correctly. The BMA believes the label must provide consumers and specifiers with the data required to make an informed purchase. It should therefore appear where consumers do their
pre-
purchase research, often in a digital format for retail and trade channels. For bathroom products, purchasing routes to market are far more complex than many other consumer products; therefore, policymakers must be realistic in their labelling expectations. Finally, Defra says an ‘enforcement authority’ will monitor compliance with the label requirement – with little detail on how it will be enforced. This is critical to have a level playing field for everyone. The BMA are eagerly awaiting the next steps. Considering that the first draft of regulations is due to conclude in 2023, with any changes coming into force by 2025, a swift yet considered plan will be welcome.
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In its results for the year ended September 30, 2022, Victorian Plumbing reported a 40% drop in operating profit to £12.1 million compared with 2021. Gross profits fell 7% to £121m from £130.5m in 2021.
Revenue was more or less flat, increasing to £269.4m from £268.8m in 2021 and £268.8m. Mark Radcliffe, founder and chief executive officer of Victorian Plumbing Group plc, said: “Following a tough first half of the financial year, we have returned to growth in the second half, increasing our market share and establishing our position as the UK’s No1 bathroom retailer.” The retailer quotes the Mintel UK Bathrooms and Bathrooms Accessories Report 2022 as the source for its claim to be in the No1 slot. Radcliffe added: “Our distinctive brand and extensive choice of quality bathroom products – including quality own-brand ranges and an unrivalled suite of third-party options – remain compelling drivers in attracting consumers to Victorian Plumbing.”
He added: “The strength of our supply chain and our strategic investment in inventory means that the majority of our products have high availability.
“As a highly cash-generative business with a
strong balance sheet and growing momentum through 2022 and into 2023, we see the macro
operating and economic environment as an opportunity to further strengthen our market position and we enter the new financial year as the UK’s No. 1 bathroom retailer with confi- dence and real excitement in our plans for further progress.”
In the second half of 2022, revenue for the online retailer was up 6% on the previous year, however compared with 2019 it would have been an increase of 78%. Total orders reduced by 3% to 880,000, however the average order value was up by 3% to £306 per order.
The company said it had continued to invest
over the past year with developments to its consumer-facing website as well as testing of a new Trade app to drive repeat B2B business. Looking to the next year, Victorian Plumbing has already seen a strong start to its new financial year with a 10% revenue increase while maintaining H2 gross profit margin.
Euronics chairman speaks out against manufacturers selling direct to consumers
STEVE SCOGINGS, chairman of CIH, part Euronics, spoke out against direct selling at its annual event where the buying group announced its top suppliers of the year. Scogings touched on the challenges the buying group has faced during 2022, especially manufacturers selling direct to the consumer.
Scogings commented: “Why continue down this path when we can offer you a better solution? As independents, we are the experts in managing consumers issues, we are on hand to help a consumer who cannot work a new product or is having issues on how to tune their TV or has a service issue and wants someone to hold their hand through what they need to do to get the product repaired. We also deliver and install better than any third-party delivery company as it’s our reputation on the line. Consumers are continually choosing our members to fulfil their needs because of this second-to-none service offering.”
Looking to the future, he urged brands to work with CIH and reconsider direct selling: “My hope
this year is that we all work together to confront this challenge and help produce a solution that helps all of us to achieve the growth we require, but also give the consumer the best experience. You do not need to do D2C to have a strong brand and if you are willing to work with us, we can prove it.” Euronics also announced its top suppliers of the year at the event. White Goods Supplier of the
Year was Hoover Candy, the award for the brand that has shown a commitment to independent retailers was Liebherr, and Members’ Supplier of the Year was Beko/Blomberg. Scogings also announced that Euronics is to launch a major new e-commerce platform in April next year, called Euronics Evolution, which the buying group hopes will rival the major online players. Scogings added: “Our intention is to grow this business to rival the major online players over the next three years and once again cement our place as the best omni-channel offering in our market.”
· January 2023
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