BILL MILLER: KBBG THE ERT INTERVIEW


18


Q: What are some of the issues the Group and its members have faced in the past year or so? BM: I think the primary issue has been the sourcing of products, and with appliances especially I get the sense the relationship between suppliers and retailers has become more strained. No one has been immune to long extended lead times. It seems there are two fundamental issues – there’s the physical inability of a supplier to supply and dealers have accepted that, but I think the biggest failing is the lack of communication around exactly what is happening. What is the supplier doing to rectify the position and is there anything they can do to try and ease the situation? There’s either been wrong communication or often no communication at all, and this doesn’t sit well with the retailers. They feel they have been cut adrift. Not only this, but many don’t even see their reps anymore. “The minute it gets tough, the reps stop visiting or they only turn up once in a blue moon”, they tell me. Some dealers feel very strongly about this. I think some manufacturers really need to up their game in terms of the support they are providing. If they don’t, they could potentially have a long-term problem. Of course, there are plenty of other day-to-day issues.


Prices, for example, are literally changing on a weekly basis and the dealers have been taking a big margin hit. They don’t want to pass increased costs onto their customers and potentially lose a sale, so they are totally caught in the middle – squeezed by the supplier and squeezed by the customer. It’s an incredibly turbulent time. It will be interesting to see what the next 12-24 months brings in terms of enhancing that supplier/retailer relationship for a better future.


Q: Where do you see the market heading in 2023? BM: It’s a tricky one! There are so many uncertainties around still. There’s no denying that we could be in for some tough times as a country and as an economy, and in these times consumers will think hard about where they want to spend their money. Having said that, there is still an awful lot of demand in the marketplace; many people are still looking to change and update their homes, so for the most savvy and switched on retailers the future looks bright and I do think that next year has the potential to be a great year for kitchen studios. They need their business to be the best it can be; if they make sure their showroom is in tip-top condition, inviting and with interactive, usable products on display, backing this up with plenty of social media and online content to drive traffic, then I believe they will continue to see growth next year.


Above: BA kitchen furniture Below: Kitchen display, Herbert Todd & Son, York


October/November 2022 ertonline.co.uk


Above: BA kitchen furniture


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