THE ERT REPORT


‘While conditions may be challenging, we as a sector remain strong’


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rising costs, margin pressures, online competition and changing consumer behaviours. But these challenges aren’t new, and the insights from the report help us at Euronics to ensure we are supporting our agents exactly how they need it most.


T


What struck me most when reading the report is how resilient retailers


remain. Although just under half of respondents reported a slight sales decline in the past year, more than one in five still experienced growth. Almost a third stated their sales had remained broadly unchanged, too. We are finding that businesses that continue to perform well during unpredictable times are those that are comfortable with looking critically at their operations, and despite challenges, continue to adapt in response. They’re asking crucial questions such as ‘How can we strengthen profitability without compromising on customer service?’. There’s more focus on the quality of sales now. Retailers are interrogating margins and understanding which products deliver long-term value for both customer and business. When we’re talking to our agents, they report that they are striving to make better informed decisions about where time and resource investment is best spent. Through these conversations, we know that data analysis is becoming


an increasingly important part of that process. Our agents are using product performance, stock movement and margin analysis to make smarter commercial decisions, by identifying slow-moving lines and optimising showroom space. It’s sometimes not simply working harder that will drive success, it’s working smarter across each aspect of the business, to ensure long-term sustainability.


Customer behaviour continues to change, too, with today’s clientele taking longer to make decisions and comparing options carefully to ensure greater value. Now, customers arrive in store having already researched the products they want online. Crucially, online shouldn’t only be viewed as competition, as we know many of our agents are building their own online presence. By


he findings in the inaugural ERT Report highlight many


of the independent


pressures electrical


retailers continue to face:


Harry Kyriacou, CEO of Combined Independents (Holdings) Ltd (CIH), the electrical buying group, part of Euronics, Europe’s largest electrical buying group.


transforming their websites from a basic requirement into a meaningful, and measurable, part of turnover through web sales, retailers can offer customers greater choice and increase their own reach. Yet, while online can support the sale, information alone doesn’t equate to expertise. There’s an opportunity here for real reassurance, through product demonstrations and expert advice from trusted voices. The value independents bring to the customer experience through service care cannot be replicated by an online algorithm or AI chatbot. Customers still yearn for a tangible, face-to-face service experience that can only be achieved in-store. The report also reinforces the value retailers place on strong supplier partnerships, with stock availability identified amongst the most valuable forms of supplier support. Availability and reliability are important differentiators here, because when customers are looking for products quickly, retailers need reassurance their supplier won’t let them down. This is what we offer at Euronics. It’s clear that the sector needs dependable, long-term partnerships over short-term solutions. We’re in constant conversation with our agents, enabling us to react fast to industry changes. This year we’ve revisited our ranging, concentrating on products that do drive sales, and we’ve improved availability across key lines. We’re able to maintain that flexibility too, enabling us to respond quickly to changes in demand. When retailers know they can access stock quickly and consistently from a dependable source, they’re in a strong position to trade with confidence. That’s why the wider Euronics community remains important too, as


we’re finding some of the most valuable insights come from discussing these common challenges and learning from them together. We remain committed to our exclusive forums, such as Showcase, Conference and TradeShow, and we encourage our agents to engage, collaborate, and feedback so that we know we are offering the right support where it is needed the most. We’ve continued to welcome new agents this year, demonstrating that retailers recognise the advantages that come with membership of a buying group with the strength of Euronics As we see it, while conditions may be challenging, we as a sector


remain strong which makes us optimistic about the future. By continuing to evolve alongside our agents, we’re here to help retailers bolster stronger, sustainable businesses for the future.”


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