EXPERT OPINION EXPERT OPINIO EXPERT OPINIO


THE ‘LACK OF CONSUMER CONFIDENCE MA Y CONTINUE’ INTO 2018 FOR INDIES


CE MAY AY


2017 has been a relatively tough year for independents, with uncertainties surrounding Brexit, a record decline in sales across retail in October, and the growth of online over in-store shopping;r,, and the gr meaning plans need to be put into place if retailers are to avoid more battles for the new year


n October s for the new year D independents Yea Hardware’s


espite the curr ent decline


in the


economy and downward trend of consumer spending this year, manyr,, taken


have the


decr eased footfall into their stride and have seen many successes this year: Broad Street DIY’s hosting of a ‘Ladies Night’ to develop women’s DIY


skills, W Wa Walton


Flooring Centre’s ‘Retailer of the Ye r’ award at the Merseyside Independent Business Awards for its exponential business growth due to its outstanding contribution to the Knowsley region, and Hafod advert


festive that


would rival even John Lewis’ £7 million Christmas ad, to name a few.


A challenging second half Chief


executive of Home


Hardwar e, Martin Elliot, spoke of a challenging second half of the year for independents, he said: “I would say that 2017 has been a mixed year for a lot of independent retailers. The majority of our members experienced a buoyant trading period during April, May and early June due to Easter being later this year combined with some excellent Spring weather which helped to significantly increase sales of gardening products.


“The second half of the year appears to have been much tougher. Months when sales were up were often followed by a month when the sales were not so good. The colder weather is currently boosting sales of heating products and Christmas Gifts are selling well. In terms of the year ahead we will be heavily dependent on the weather as usual.


confidence


“The current lack of consumer may continue, the


ongoing uncertainly over the Br exit


negotiations and www.diyweek.net the


implications to everyone may lead to consumers keeping their money


in their pockets and avoiding any unnecessary expenditure. We


e will endeav making our more


“We will endeavour to continue promotions


attractive to consumers to help encourage increased footfall and sales.”


Chancellor Philip Hammond also delivered the budget for 2017 in late November, anr,, and although there were some positives that the British Independent Retailers Association (BIRA) could note, with it came some doubt about the future of the economy. BIy.. BIRA commented on the budget: “BIRA welcomes some of the practical details such as boosting the housing market by house building, investing in technology and reducing the stamp duty to first time buyers. All of which should feed into gr eater retail spending in due course.


,an


“BIRA have been, and continue to be really active in championing the bricks and mortar retailers who are facing an unfair burden of business rates compared to those trading online, and therefore, the tinkering with the rates reform, which whilst welcome, is nowhere near enough and will not slow down the pressures on the high street and independent retailers.”


A year of stops and starts CEO of Mica, Michael Ball believes Brexit has caused pressure on independents, he said: “2017 has seen our members and indeed a ll


independent retailers income. face a


challenging retail environment with a continued squeeze on disposable


There was


a hope at the start of the year that while big ticket items may str uggle, smaller items (repair replace) would be more resilient. The early months backed this theory, with most Mica


r y, r,, not shops


enjoying strong sales in the early months.


“Unfortunately the year then played out more as a series of stops and starts, with stores reporting


r..


ON


a poor early spring, followed by an excellent later spring/early summer and then another year on year dr op in autumn. Positively the early signs are that this winter is looking up with a record busting November. This creates a picture of resilient sales overall as we approach year end, but clearly a more complicated story on the ground.


p in autumn. Positively “Taking r, soundings from


individual shop owners, some have been pleasantly surprised by the year


ar, and are now planning


or already reinvesting in their shops to build on success. Others, especially


wher e footfall has


been af fected (often by changes to parking or new supermarkets affecting town centres, especially Aldi), are concerned with how to adapt their business to the new market conditions.


“Looking across our industry there have been several market consolidations which have impacted business this year I’m pleased to say most have led to r enewed investment, or improved ordering access for our members. I suspect the biggest merger not to happen this year; that of Akzo Nobel & PPG; would not have been so positively received. Most independents I have spoken to this year don’t want to see a


y,, business this year r,, but


further r eduction in paint supplier competition.


y,,


“Wider still and the inflationaryWiider still and the inflation pressures fr om Sterling’s 2016 devaluation have continued to filter through to independents. “It’s always difficult to judge the direct effects of consumer confidence on instore sales, but surely politics must take some credit, or blame, for the downward dir ection this year . In addition to the most bizarr e general election, and the collapse back in February of the devolved government at Stormont, the biggest factor af fecting confidence must be the genuine/media driven (take your pick) belief that Brexit could cause a major shock to the economy . “I continue to feel this is unlikely, if not impossible, giveny,,


nlikely if not impossible, giv the EU’s ability to come up with a last minute fudge to suit any palate. The recent achievement of sufficient progress hopefully points to a smoother landing than predicted by many


y..


“So we now look forward to 2018 hoping the inflation will fall back, the political waters will be calmer


almer r,, confidence will return,


and the government will finally wake up to the plight of small businesses in the UK. I think even Santa might struggle with that list.”


15 DECEMBER 2017 DIY WEEK 15


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