DIY Week: This year continues to be challenging for everyone, but how has business been for EFG? Mike Smith: I’m very pleased to say it’s remained strong. The first quar- ter was still under Covid restric- tions and that was a real factor for us, but having come out of the pan- demic, we seem to be in a stronger position than we went in, with the customer base and with the way that we are working. There’s the constant frustration of stock chal- lenges, delivery difficulties and actually the communication from suppliers remains frustrating, but it’s been a very solid year. It was almost impossible to forecast, but when it all comes out in the wash, I think we’ll have ended up having had quite a positive year.
DIYW: That brings us nicely onto our second question. As we gradually return to this post-Covid new normal, what changes have you seen in the market? MS: I think in the first half of the year people were happy to buy anything at any time because they knew that stock was
an issue.
Something that we’ve noticed more recently are price increases from suppliers. In some cases these can be twice or three times a month, so people are becoming slightly more careful with their money and that has to be a direct result of the price changes, some of which are due to the increased cost of shipping.
DIYW: Do you think these changes are now here to stay? MS: I hope not because some of these higher prices are simply not sustainable. But the flip side of that is we have all our eight buyers constantly looking for new products to fill the gaps, either that are left by the non-stock, or those products that have almost become priced out in the marketplace. So I think it’s a very mixed picture.
DIYW: One thing you have mentioned in previous interviews is the growth in online sales and your delivery service; has this trend continued? MS: Yes, absolutely, that is a huge plus point for EFG, from a very good 2020 to an excellent 2021, we spent time, effort and money on our website in order to carry improved imagery and provide a better user experience. That has been the big success for EFG this year and I’m glad to say we’ve got some more very exciting updates coming in the early part of next year with a new app, which includes a customer portal. It’s very much a business in its own
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CHALLENGE
In the latest in our series of interviews with Mike Smith from EFG Housewares, we take a look back over the last year and discuss how the company has risen to the many challenges faced during what has been a challenging time for all businesses.
right now and will continue to be a very positive part of our business and one where the investment is going to be put next year.
DIYW: Looking at the success that you’ve had with online, what advice can you offer DIY and hardware retailers that are looking to improve their own online offer? MS: Something that I realised when I took over running our website is that information is absolutely key. The more information you can place on your website, which is something that we are looking to improve as well, that is absolutely key and also price is important too. Do your homework, make sure that you’re aware what other people are selling their products for and make sure that your prices run alongside that.
DIYW: That’s great advice, thanks. So online and deliveries is clearly some of the developments that have taken place at EFG; are there any others that you’re particularly proud of? MS: I think our customer service. In this day and age that cannot be overlooked. We can have the best price, we can have great stock coverage, but if we haven’t got the service to go with it, we haven’t anything. We’ve got a lady, Dee Blackburn, who heads up our customer services and she’s been able to speed up our deliveries from sometimes over 96 hours to now 48 hours, so halving it. Also improving the pick rate, the fact that she’s got things going out much quicker means that we can select the orders much quicker meaning that in a business that is reliant on stock or customers
who rely on us for stock we can fulfil a far greater proportion than we were even last year. She’s a star!
DIYW: Do you have any new products or ranges in stock or on the way that you’d like to tell us about? MS: As a business with over 35,000 products on the floor we are always looking for new products and ranges. Not so much new products this year interestingly, we are looking more for brand partnerships. This is nowhere clearer than our success with the Duralex partnership that we now enjoy, supplying some of London’s finest restaurants along with ecommerce and retail stores up and down the country. We are just in the process of signing agreements with some very well- known housewares and DIY names, purely because the cost for delivering stock for these companies is now so high that they want someone slightly better placed to do their medium and small deliveries and that’s where EFG comes in.
DIYW: That brings us quite neatly on to the next question and you’ve covered it a little bit in the last one, but what are your plans for the business going forward? MS: I think in the past EFG have been very much known for lots of products across lots of skews. This will remain but we are also looking to sign agreements with these well- known brands to essentially be their delivery/network hub in around the south of England and on a more national basis.
DIYW: With customers now coming back into stores, since we’ve come out of lock-
down etc. what do you think retailers need to focus on in order to keep customers coming in? MS: I think the big Covid paradox was that people actually went back to their smaller retailers, whether it be for advice, or for a more personal service and I think that is something that will continue. The retailers, whether it be the DIY sector or any other sector or walk of life need to provide a service and that is something that we at EFG will certainly do and we hope our customers continue to do the same.
DIYW: Now that we are getting back to this new normal, do you have any predictions for what’s likely to happen to the industry in the next 12 months? MS: That’s a very tricky question to answer. For the first time I’ve not been asked to forecast for next year because I simply don’t know what to base it on because the last two years have been so strange. We’ve had 18 months of pandemic, price rises, lack of stock but ultimately that’s where EFG come into our own. Because of the depth and size and range we carry, when things go a little quieter, which is my gut feel they may well do, that’s where we win due to our range and low minimum orders. So we’ve seen historically when businesses, or when industry starts to slow, we actually rise, so that is probably my gut feel. I also believe the increase in online ordering will continue, which is why we are making our website as easy as possible for people to use, so they can find the right products, and have them delivered almost the next day, which is what customers will want and expect.
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DECEMBER 2021 DIY WEEK 7
CONTINUING TO RISE TO THE INDUSTRY INTERVIEW: MIKE SMITH – EFG HOUSEWARES
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