THE ERT REPORT
What are the biggest pressures on your profit margins?
Topping the list is stock availability, with
84.2 per cent of respondents identifying it as one of the most important forms of supplier support. It sounds obvious, but retailers can’t sell what they don’t have, making reliable supply one of the biggest factors influencing both sales and customer satisfaction. Closely behind comes margin protection,
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very retailer faces challenges, but this chart identifies exactly where independent electrical retailers believe the greatest pressure on profitability is coming from. Unsurprisingly, online- only competitors dominate the findings, with an overwhelming 89.5 per cent of respondents identifying them as the single biggest threat to their margins.
The scale of the problem is hard to ignore. Online businesses often operate with lower overheads, can react to pricing almost instantly and are increasingly supported by manufacturers’ direct-to-consumer activity. For independent retailers, competing solely on price is rarely a sustainable strategy. The survey also shows that rising operating costs continue to weigh heavily on businesses. Wage increases, higher energy bills, business rates and transport costs all contribute to shrinking margins, meaning retailers are under pressure even when sales remain steady. Chasing turnover at the expense of margin is clearly no solution either. As explored throughout this
report, today’s consumers
are increasingly influenced by expertise, trust and the overall buying experience rather than price alone (Pages 30–31). That creates opportunities for retailers to compete through value instead of discounting.
And this isn’t a fight retailers can necessarily win on their own. Fair pricing policies, dependable stock availability and support for the independent channel all play an important role in protecting profitability. The next chart explores exactly where retailers believe manufacturers can make the biggest difference.
Which areas of supplier support are most important to your business? If there is one chart manufacturers should pay particularly close attention to, it is this one. The message from independent retailers is both clear and remarkably consistent: dependable support matters more than ever.
reflecting the commercial pressures highlighted in the previous chart. Retailers are looking to manufacturers to help create a level playing field through fair pricing policies, dealer programmes and commercial support that enables independents to compete sustainably. The importance placed on after-sales support also demonstrates that the customer journey doesn’t end at the point of sale. Reliable service, technical assistance and spare parts availability all help retailers maintain customer confidence and protect their reputation. Training, marketing support and regular communication continue to play an important supporting role, helping retailers stay informed as products and technology evolve. None of this is particularly extravagant. What
retailers are asking for, above all, is consistency. That message continues on the following page, where retailers assess how supplier support has changed over the past 12 months and identify the biggest opportunities for independents in 2026 (Page 33).
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