Independent Electrical Retailer - the leading trade magazine for the electrical industry
Bryan Lovewell explains why retra needs a greater voice in the industry
The profile of retra is growing and its voice in the industry is getting stronger - this is the perception of both retailers and manufacturers. Bryan Lovewell, retra Chief Executive, talks to Anna Ryland about the priorities of the association and its role in increasingly challenging times.
Published:  12 June, 2008

Bryan Lovewell, who took the post of retra chief executive in October 2007, is exceptionally well equipped to run the association. With 42 years in the electrical industry, he knows first hand its mechanics and sensibilities. He started from managing an independent electrical store, than he worked for a leading multiple, subsequently moving to white goods manufacturing. The last eight years he spent with EEIBA as appeals director.

Despite considerable progress which retra made on a number of issues over the last few years, there are still significant challenges ahead of the association and its chief executive. What does he plan to tackle first, I ask Bryan.

"The existing perception of retra is that of an association of retailers and manufacturers of brown goods, therefore my job as its chief executive is to widen retra's outlook and embrace all of the industry to include white goods, small appliances and floorcare.

"My role is to be 'all things to all men'; from government legislation to  relationships with manufacturers. In the past, the focus was more on the legislation, such as the WEEE Directive, which was very important at that time.

"Moreover, retra should be perceived as the first port of call on all the issues related to independent retailers. I don't think that the voice of retra has been clearly heard by the manufacturers until now and it is my objective to change this."

The market

I ask Bryan for his perception of the state of the electrical market.

"I sometimes think that lunatics have the key to the asylum - in relation to some areas of pricing and the way manufacturers handle pricing. All we do in this industry is to drive prices down; we launch marvellous products and in six months' time reduce their prices by half. The general public has been brainwashed by multiples and manufacturers to think that low prices are good. In fact, if the service and knowledge come into the transaction the customers will be happy with the price they are offered. The current situation is paradoxical. For example, the retail price of a flat panel TV fell by 40% in 2007. At Christmas, the prices fell even more and we didn't have enough stock to fulfil the orders.

"Let's endeavour to keep the prices up and keep the profit - and it is not a dirty word - as it keeps both manufacturers and retailers in business. Without it we cannot reinvest in the industry."

Communications

Retra is working hard to improve communication with its members. Over the last couple of months Bryan and Peter Mann, retra president, have been touring the country to find out what the concerns and priorities of retra members are.

"My objective is to increase awareness of retra in all sectors of the industry and to meet the members - so we can find out what members' problems are and take them to the appropriate government and trade bodies and to manufacturers etc. Peter Mann and I have been travelling around the country, meeting members and listening to them. Last week we have been to Scotland where we met 75 Scottish retra members. Next I am going to Derbyshire, after this I am attending meetings in the North West. Then I am off to Northern Ireland to meet our 42 new members. On return from Northern Ireland I am going to Hampshire and then I go on to Bristol.  I believe that since the members pay my salary they need to know my views on retra, but more importantly this is an opportunity for them to let me know what their concerns are. These meetings have helped to identify a very wide spectrum of issues which we need to address in the near future."

The pricing issue

As the economic conditions in the country are increasingly overshadowed by recessionary pressures, I ask Bryan what he perceives as the greatest threat to the independent electrical sector.

"Pricing in the high street is the main challenge for retra membership. The prices on the web are also the major concern, as it has been reported that the prices some manufacturers offer on the web are lower than cost prices retailers can obtain from them.

"If we don't get prices to the acceptable level for operators, the current situation will drive more companies out of business, including large multiples. For example DSG group has recently reported that it is planning to close 200 stores. This is a sign of our times that even the big boys begin to suffer. This is not about turnover, but this thing in the middle - the profit."

Voicing members' concerns

What are the expectations of retra members?

"They wish to be represented with a stronger voice to manufacturers. In this relationship they sometimes feel like second class citizens. And this is not only to do with supplies of the products and their pricing, it is related to what happens after the transaction: the after sales service (especially on brown goods) and spare parts. They are not always available and delivered in a fast and reliable way which impacts on the retailers' relationship with their customers.

"I think that there should be a code of practice, set up by Amdea and Intellect, on behalf of their members, which would clarify whose responsibility is the fulfilment of service calls in a clearly defined period, for example three days.

"At present retra members feel that they don't have sufficient support from manufacturers in this area. The after sales service is key for any brand and all manufacturers should understand this. It will affect the level of their repeat business. If the product breaks down but the customer gets good repair service they will remember it as a positive experience and will be more loyal to that brand.

"A manufacturer should also remember that if the retailer has a long-term service problem with a brand, they will take away that brand from their display and stop recommending it to their customers."

Opportunities or challenges?

"Energy efficiency and the climate change are great future opportunities for the independent sector, and challenges at the same time. I hope that when the new energy labelling system will enter the market, the manufacturers will support retailers by giving them a sufficient amount of  marketing material. In the past, the manufacturers didn't give retailers enough labels to display on the product. The label usually came with the display model but when this model was sold the retailer didn't have a replacement label to put on the next model. This is essential for the process of educating the consumer about energy efficiency and the labelling system.

"Also the digital switchover is offering new opportunities for the independent, from the population as a whole, but especially from older people who may need help and advice. I don't think they will find this expertise in one of the multiples.

"Another challenge and an opportunity for us is the disabled population in Britain. Do we, as an industry, cater for the special needs of these people? The EEIBA experience tends to suggest that we don't. How awkward are some knobs on the cookers, and how complicated are many remote TV controls? Retra members are ideally suited to look after the disabled and aging groups of our population.

"All these issues are part and parcel of the electrical industry. I have been in it for 42 years and I am as passionate about it as the day I started."







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