"I can only say that we are currently talking about three potential own brand product ranges, brown and white. We hope to be able to launch either our own brand, or a brand which we all know and respect at the CIH trade show in autumn," says Stuart.

The focus

Everyone now comments on the tough times ahead. I ask Stuart what are, in his opinion, the greatest challenges for CIH members currently.

"When the market is tough the independents usually do best. They need to focus on what they want to deliver and decide who their consumers are. Stop trying to look after all the consumers. Stop fighting with Tesco and the Internet. Some of our members told me that the Internet has actually done them a favour. People who have seen products online, came to them looking for a deal. Some of them have never been to an electrical corner shop before." 

Is it likely that CIH will stop dealing with suppliers who are stripping products of value?

"Definitely. We have no choice. There is no future for us or for our members selling products where supplies haven't got a clear market strategy. At the moment they're just saying: 'This is a bucketful; take what you want.' Until they stop doing this we won't be able to support them. At the Christmas Suppliers Lunch we made a statement saying we are not giving the brown goods award this year. Brown goods are new technology and new technology should carry a premium price. In every market consumers have to pay top dollar for new products, in fashion for example. Why doesn't this hold in our industry?"

Stuart has definite views on how the industry can help itself: "At the moment too many manufacturers want to deliver everything to everyone, and they are not in control of their business. Why not put the prices up - to everyone, and put the service back into the business. And stop chasing market share. The market is vast, and there is plenty of room in it for everyone. Multiples are driving the prices down, making losses and spoiling business for everyone. This situation kills the latest technology overnight."

Our customer

What gives you confidence that independents will weather the recession well?

"I am very comfortable with our customer base. It is the same as John Lewis' customer base. It's getting older, bigger and wealthier. When people get older and wealthier they want service. When people purchase a washing machine they want the old one to be taken away, the new one installed, connected and receive operating instructions from a knowledgeable guy. If our members focus on this customer base, the next five years will be good for us."

New CIH stores

The Euronics new retail strategy included a refurbishment of between 50 and 100 stores in 2008. I ask Stuart to comment on its progress.

"We have now done 12 stores and two are in the pipeline. This  is reinvestment in the industry showing that business is not only about the price. I would like to see the momentum going and a new shop being refurbished every two to three months. In some cases it involves the partnership with suppliers - as in the good old days - who want to invest in the business seeing how professional it is."

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