Stu’s Views: Part 1 COLUMN


The times, they are a-changin’


By Stuart Tickle, Managing Director at AWE W


elcome to my new column in ERT; I’m delighted to be an exclusive contributor to the magazine and I look forward to sharing with you updates


and opportunities from the world of smart home. I was very sad to read recently of the demise of Retra. Since 1942, it has been the voice for retailers and service providers in the consumer electronics industry and has been key to our growing success as a supplier to retailers. On a personal level, I would like to thank Howard Saycell and the Retra team for everything they have done for the independent retail community, and I wish them well. As an independent retailer running my dad’s


shop – called Audiolite – back in the 90’s, I was excited to be part of a vibrant community of retailers and manufacturers selling the latest home tech. We moved on from selling CDs and midi-systems to laserdisc and surround sound, and then plasma TVs and DVD. Home cinema and home control was just becoming a thing. With the trade side of the business growing, AWE exited retail and evolved into the specialist


Me presenting a demo at one of AWE’s ‘Expo’ events at it’s Show Apartment in Epsom


distribution company it is today, servicing what was then a high-end market of custom installers.


It was obvious that traditional


retail as we knew it was in decline. ERT was running the Turning Point campaign under Sean Hannam’s tenure, and most knew that something had to change. With my ongoing passion for indie retailers burning, the amazing Tony Dugdale invited us to be speakers at the 2012 Retra Conference in London. Our presentation slot was after the lunch


break. Few knew of AWE in the retail channel at that time and we had a very quiet morning! After we presented, we were busy for the rest of the day answering questions from interested retailers wanting to know more about this installation thing. Our key message was “the custom install profit opportunity” suggesting adding more value to the box by offering solutions, installed. With RRP enforcement by then frowned upon, online players were always going to (and do) sell a box cheaper, so margins would tighten. Shops were starting to struggle as the previously independent retail benefits of


February 2024 ertonline.co.uk


local stock and fast delivery were eroded. Customer service, demonstration and advice remained important, but it wasn’t enough alone for many to survive. Fast forward to today and the UK home installation market of residential technology (AKA smart home or custom install) data for 2023 has just been published by CEDIA*, showing: • The UK market size is £2.9 billion and growing. That has tripled in 10 years!


• Integrator companies range from <£25,000 per year to more than £5 million in revenue;


• Median project sizes are £18,000 to £27,000, so not all ultra-high end;


• One in four companies now serve mass- market consumers, up from just eight per cent in 2021. Tech UK has also published a different measure of “the connected home” and values the retail B2C sales of relevant products in 2023 at £4.9 billion alone*. Please don’t take this as my soapbox “I told you so” moment. It is not. All of you reading this have, I’m sure, potentially already diversified and done a great job too, perhaps even doing installations beyond brown goods. I just thought this might be useful context for what my column will be about going forward; I intend to provide thought-provoking pieces that you can decide if appropriate to consider for your business. Either way, I welcome your feedback; you can find me via LinkedIn or you can contact the ERT team via editor@ertonline.co.uk.


*Sources: CEDIA UK Professional Smart Home Market


Analysis 2023; techUK State Connected Home report, June 2023. The family shop – Audiolite – in the 90’s where I first worked of the 13


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