February 2018 ertonline.co.uk


Euronics partners with KBBG to offer kitchens


● By Amie Filcher and Sean Hannam


ELECTRICAL BUYING group Combined Independents


Holdings (CIH), which is part


of Euronics, has partnered with The Kitchen Bathroom Buying Group (KBBG), to enable members to become a “one-stop shop”. CIH members will have access to a “comprehensive” kitchen sales support package to help them to sell fitted kitchens, including access to “tremendous buying advantages from a variety of kitchen suppliers”. The KBBG is part of Der Kreis, which is Europe’s leading kitchen and bathroom buying group, with 38 years of industry experience. Euronics retailers will receive kitchen design training


from Nottingham-based Mascari Design creative director Renée Mascari and will be provided with Compusoft Winner Design kitchen CAD software. They will also be offered extra support with things such as a warehouse and delivery service and assistance in sourcing approved, local kitchen installers.


retail fitted kitchens. “We provide our members with a variety of electrical appliances and now, thanks to the KBBG, we can provide CIH members with furniture to complete the kitchen for their customers and become a one-stop shop. The independent electrical retail market can be challenging and we are thrilled to be able to strengthen our offering to our members.” KBBG managing director Bill Miller said: “The partnership with CIH is a natural fit with KBBG, as we share the same business ethos of supporting independent retailers. We offer a range of unique benefits and services to support and increase the success of independent retailers. This is now extended to CIH members who, like KBBG members, can now have access to the very best buying conditions and ongoing support and advice. “Our objective is very simple – to create a strong and sustainable independent channel, to ensure retailers achieve their full business potential. The independent market, for both kitchen


specialists and electrical


retailers, has had to face a huge number of challenges over the past five years. There is strength, and greater protection, in working together.”


Stuart Cook, chief executive of CIH, commented: “The partnership with KBBG is a great opportunity enabling our members to expand their businesses and


● The KBBG will be exhibiting at kbb Birmingham 2018, (NEC, March 4-7), in hall 19, on stand J115. https://www.kbb.co.uk/


9


‘Euronics members can physically


sell a kitchen and make a margin’ We ask Bill Miller, managing director of the KBBG, to tell us about the thinking behind its partnership with Euronics and how it will work


Q: How did the partnership come about? Bill Miller: We’ve been making good headway with kitchen studios, but I wanted to look at what other channels were open to our suppliers and us. I approached Euronics – they’re an expert in appliances and we’d like to think that we’re an expert in kitchen furniture. Euronics had been having internal discussions on ways in which it could improve margin for its members. Margin on freestanding is almost non-existent and on built-in it’s becoming more


of a challenge. I presented the dual benefits to Euronics – its members can physically sell a kitchen and make a margin, and they can improve the way they display their built-in appliances. Ultimately, it can enable them to sell more built-in products, and, perhaps, more premium built-in appliances, in a sympathetic, lifestyle setting. We’ve looked at what areas could potentially be an issue for a well-established Euronics dealer who’s never sold kitchens before.


Q: How many Euronics dealers will you be targeting? BM: Of the 800 Euronics members, there are about 40 who currently sell and display kitchens and we believe


there are another 100 who have an initial interest in kitchens. We’ve built a support package and tried to cover as many bases as we can. Of the 12 kitchen suppliers that we’re working with, we’ve narrowed it down to three that we will focus on with Euronics members. There’s a good, a better and a best offering – English company JJO; Nobilia, which is a German mid-range brand, and Nolte, which is our ‘full fat’ offering. You can have one brand, or a combination of all three, depending on the space.


Q: What are the requirements for Euronics members to sign up? BM: There are four elements: 1) Commitment: They need to want to make it happen; 2) Floor space: They need to display at least three kitchens; 3) Staff: They will need to have a dedicated, trained member of staff in-store – a champion of kitchens; 4) Investment: There’s a cost


involved and we’re looking for a 12-month commitment. The invoicing is done through Euronics, using its central payment system, which is ideal for members. Our belief is that it’s possible for an average Euronics dealer to sell one kitchen a week. The transformation that can have on their bottom line is absolutely amazing. We’re giving them an easy point of entry. The response we’ve had has been really positive.


Bill Miller


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