INDUSTRY COMMENT: YEAR IN REVIEW
NEW NORMAL NAVIGATING THE
Having overcome the many challenges of the past couple of years, 2022 started well. It seemed like an economic recovery was on the way and we could get used to the post-pandemic ‘new normal’. That was until unexpected world events intervened and we were soon dealing with more economic uncertainty caused by supply chain issues, rising energy costs, increasing inflation, high interest rates and political turmoil. Once again, the industry rose to these challenges and continues to remain positive. Here, our panel of representatives from across the industry offer their thoughts and opinions on how this year has gone and what they expect in 2023…
STRONG PROGRESS IN ALL AREAS AND CONFIDENT ABOUT 2023
Gary Hopkins Sales and Marketing Director, Wilsons of Colchester
As we have proved to ourselves in recent years, humans have an innate ability to adapt to the unexpected!
Huge hikes in utility bills, big leaps in interest rates and inflation running at
levels that many of us have never experienced has once again tested our resilience. However, with disruption comes opportunity, and Wilsons has come through 2022 having made good progress in all areas of the business.
Our new look brand was rolled out in September, replacing the old logo that had originally been hand-drawn by one of the company founders. A strong focus on quick delivery and stock availability has been effective in maintaining our outstanding customer experience, and attracting new accounts covering the length and breadth of the nation and beyond.
TOUGHER THAN COVID
Andrew Goodacre Chief Executive, Bira
Before we focus on 2022, I think we need to put the past two to three years into some context. In March 2020 we saw the first lockdown as a result of the Covid pandemic. For the first time we divided retail into essential and non-essential businesses. Fortunately for the world of DIY, the pandemic
www.diyweek.net
became a really positive period for business. The shops were classed as
essential and for two years DIY was as busy as it
has been for many years. So, it should not surprise us that 2022 has been a very different year. Although the first quarter of 2022 was strong, as soon as the higher energy bills landed on the household
doormats, we saw a significant change in behaviour that resulted in reduced consumer spending. Combine weaker consumer demand with higher product prices, then this year has been a completely different challenge for retailers in all sectors. There was a need to learn how to retail in a high inflationary period – the first we have had for 40 years. There is still demand for consumers and trades people, but it is more discerning and retailers have to be able to offer value in service.
I would like to think that 2022 is
a reset after two very good years. However, I fear that the ongoing cost of living crisis is likely to mean that 2023 may well be even more difficult for retail. We will also be seeing a slow down in the housing market, which is also a negative trend. However, indie retailers are
resilient, determined and creative. We still know that local shopping is strong and so I urge all retailers to make 2023 their year of customer engagement and local enterprise.
DECEMBER 2022 DIY WEEK 13
The team has been strengthened with new recruits, and on top of this we have continued to invest in key brands such as Buffalo plungers, Sentry doormats and Orwell laundry products with new lines launched and many more to come. This was also the year we saw some more traditional products disappearing, including Pink Windolene, Parozone Bleach and the Garbina bin! Next year, we have a pipeline of exciting developments including website improvements and using technology to streamline processes and make Wilsons even easier to do business with. Bring it on!
RESILIENCE IN THE FACE OF PRESSURE
Steve Law Sales Director, Charles Bentley
The industry has had to show resilience once again in the face of ever- increasing inflationary
pressure, sitting alongside historically low consumer confidence levels. The knock- on effect of a challenging spring/summer trading period has left many companies within the industry facing real pressures as we head into the golden quarter. Decisions around whether to carry stock over into the next season or to turn the stock to cash at low margin, or a loss, offset against expectations around product costs into next year has been front of mind for many. It is fair to say that there hasn’t been a single unified decision-making. This will result in an interesting 2023 trading season. There will be continued challenges ahead in the short term but also considerable opportunities for those who put the consumer front and centre, for those who listen to what the consumer is telling them and for those who are geared up to deliver on that need.
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