trade: comment
“When we come to reflect on 2020 in the years to come, will it be the year that the consumer realised the true value of independent electrical retailers again?”
This month, we’re delighted to hear from Howard Saycell, CEO of trade body Retra, who looks at the effect the coronavirus pandemnic has had on our industry, and praises the resilience of so many in the sector.
C
ovid-19 or coronavirus has had a devastating impact across the globe.
Many millions have contracted this terrible disease, and sadly many have died. Until there is an effective vaccine, this is likely to continue, and many more individuals and families will suffer. In addition to human suffering, economies across the world have also been badly affected. In some countries, the taxpayer will be paying off the debt created by this virus for generations to come. Shopping patterns have changed dramatically in the last few months. What once were prime sites are in many cases now almost a liability. With little prospect of a return to anything like the old “normal”, these prime, expensive sites have little if any footfall. The whole landscape of retail has changed. Yet, in this ever-changing world, as well as all
the suffering and economic blight, there are also some winners - at least in the economic sense. For many in the travel and hospitality industry, the impact of the disease has been devastating. There are many sectors of the economy where with the current restrictions the sums just do not add up. We have seen a big rise in unemployment which without government intervention would have been even higher. When the furlough scheme ends in October, we can expect to see unemployment rise even further. Yet, some people have found themselves better off financially. Office workers who are working from home and do not have either the hassle or the cost of their daily commute are in many cases better off. They have more money each month and have far less stress through not having to worry about the traffic or using congested public transport each day. Many companies are saying that productivity is up since more people have worked from home. Private sector employees and civil servants have, in many cases, enjoyed more time at home with their families and have a much better “life work” balance. A great many people have spent more time at home than ever before
action moratorium, Brexit, the return of business rates, a possible crash in the stock market and a potential resurgence of the virus. None of us know how all these things will
potentially impact the wider economy and the industry that we all work in. What is clear, is that uncertainty is bad for business confidence and uncertainty is something we are not short of just now. As an industry we should be proud of how we
have handled the pandemic as a whole. Many independent electrical retailers have proven their value to their communities and provided a service that others simply could not match. Most continued to deliver and install throughout lockdown, looking after the old and most vulnerable people in their communities. We all know the incredible job our wonderful
and have consequently taken stock of their home environment. No surprise then, housewares is one of the areas of the economy that is currently buoyant. If you cannot go on your annual holiday to Spain, then why not make your home more comfortable? For electrical retailing, there has been a big increase in both interest and sales. Many retailers have traded very strongly throughout the lockdown and the trend has continued since stores could re-open. Those with a strong online presence have probably seen the best results. TV, MDA, SDA and IT sales are all significantly ahead of pre- pandemic estimates. So much so that retailers and manufacturers are now struggling to find the stock to meet the demand. Whilst this may look like a relatively rosy picture
for independent electrical retailers, I do not believe there is any room for complacency. Whilst our sector is currently doing rather well, we are not immune to the harsh economic realities of the market. As we move into what is traditionally our busy period as an industry, there are some heavy storm clouds on the horizon. Just a brief selection of the issues we face in the coming months include stock shortages, the end of the furlough scheme, the end of the landlord’s
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NHS have done, and we all applaud their commitment and dedication. Whilst many of us have worked from home or been furloughed there are legions of people who have worked all the way through these last few months. Shop workers across the board, bus and train drivers, binmen, delivery drivers, lorry drivers, postmen and women - the list goes on and on. All heroes in their own way and helping to keep the very fabric of society together. There can be little doubt that there will be challenging times ahead. Looking at independent electrical retailers and our retra members I am very proud of the job they have done and continue to do. It’s hard to find any good to have come out of coronavirus, but I do think it has given our industry an opportunity to prove our worth and shine in the face of adversity. We have long served the community, supplying essential advice, products and services that every home in the land needs. When we come to reflect on 2020 in the years to come, will it be the year that the consumer realised the true value of independent electrical retailers again? I very much hope this will be the case. It is just sad that it has taken something as truly awful as Covid-19 to make that happen.
September 2020
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