CATEGORY TEAMS
Duff explains that many of NBG CMTs have decided that it isn’t really the right time to be negotiating new deals with new Suppliers. “That’s partly because we can’t get face to face and have those initial, vital meetings, and partly because, in a volatile market where no one is really quite sure what’s coming next, it’s not sensible to throw everything in the air and come up with a whole new range of supply deals. So, we have extended a range of deals across the categories, not just this one, just to buy ourselves and our Suppliers some time until we can sit down with them properly.”
Coomer adds that a further reason for extending deals rather than going out to market was to give those Suppliers that had worked hard to ensure a flow of stocks to the Partners reassurance that they would not be dropped as a Supplier at a point in time that could be really difficult for them. Certain categories did very well out of the lockdown, he says. “Landscaping, in particular, was flying out of the yard. In the run up to the first lockdown when there were lots of rumours that it was coming, we have never been so busy. In the main, people were buying garden products, because they suspected they would be off at home, and they wanted to have things to do.
“So, we had a massive surge in business. And then of course the weather was fantastic, so it just continued. The difficulty was continuing to operate once lockdown was announced. Demand was there and, as Coomers, we carry huge stocks anyway. The issue, really was having to stop for a few weeks and then trying to catch back up, when we did reopen our doors.”
In the months since the lockdown, both Partners and Suppliers have been selling as much as they can get their hands on in terms
of products, which means, Duff says, that the usual conversations around developing deals just haven’t been possible, but that time will return.
Coomer agrees. “Before the second lockdown there was much speculation that it was coming, and we had customers saying: Please don’t shut. You’re not going to shut again are you? That generated another flurry of panic buying. We reassured them pretty quickly that we wouldn’t be shutting the second time round, and the BMF were really quick out of the blocks with their guide. Plus, there were lots of documents available to reassure our customers and their customers that it was safe to continue trading, that it was safe to have people in your home working.” He says he believes that customers probably feel much more confident, many of them with full order books. I think our customers’ biggest fear would probably be getting hold of materials. And what will happen down the track, when all of this has to be paid for and there is fallout from the redundancies.”
Material concerns
Duff says that, from an NBG point of view, availability of materials is a worry, which is why the group is so keen to maintain those relationships with Suppliers. One consequence of the response to the situation, he adds, is that last year has probably thrown some potential Suppliers, further forward into NBG’s line of vision than might otherwise not have happened. “So, for some, it may have been a blessing in disguise.”
NBG generally has a steady flow of prospective Suppliers approaching the group wanting to supply Partners and, in the normal course of events, there would be a range of meetings and presentations between the
CMTs and the Suppliers just to see what potential might exist. Coomer says: “We’re always looking to grow the category and to make sure that we have all the deals and marketing initiatives in place that Partners, would find useful. But I think, in this particular year just gone, the Partners have largely been at the coalface, trying to manage their own businesses through some really difficult times. So, it has been a year of treading water in terms of developing new initiatives, and we have leaned really heavily on the NBG Central Team to do all the extras.”
More than ever, this has been a year when NBG and Suppliers have needed to be flexible and the key to it has been keeping those communication lines open.
Duff says: “We say to Suppliers, if you’ve got the product that’s great, if you haven’t got products, tell us, so we know. I think that some Suppliers were probably a little bit scared to tell us they were short on stock; therefore, our Partners would place an order only to be to find that the product wasn’t available. Or that the lead time was longer than there were current stocks available, so that leaves the Partner in a very difficult position of having no product. However, I think the communication from some of our Suppliers has been fantastic and they have kept us up to date as frequently as they can. With others, it’s been very, very difficult for many reasons; some of the time they don’t know when they will be receiving product either.”
Looking forward, Coomer says he feels fairly optimistic. “I think there’s lots of pent-up demand there and even after the vaccine has been rolled out, lots of people will still choose not to go too far on their holidays. Therefore, they will continue to choose to spend money on their homes.”
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