Retail Rundown: UK | Learnings from 300+ Trade Shows

Happy New Year everyone and hello 2024! Thanks to all of you who have subscribed so far, it's wonderful to see quite so many of you here.

In this month's issue, we will be taking a look at UK and Ireland retail specifically and doing a deeper dive into who the players are and some of their key nuances...

Also, it's trade show season! So if you are heading to CES, Toy Fair, Spring Fair or any of the other all-important shows, we are also going to drop some tips on how to select distribution/reseller partners following a trade show. It's far too easy to be swayed by a bit of good salesmanship and make a big mistake!

PS. Heading out to CES next week? Book a meeting with our team: here.

Retail Rundown: Destination UK ????

At Unlock we are passionate about retail, particularly here in our domestic market. One of these retailers was the meeting point of our founder Warren and Managing Director, Paul so if it weren't for UK retail, this newsletter wouldn't exist!

In this deep dive, we aim to give you a good idea of who the players are on and off the UK high street. We will purely be looking at a selection of the best omnichannel partners with bricks and mortar stores for now and will circle back with a look at the ecomm-only players in a future edition.

Argos

Annual Turnover: ￡4.2 billion (2022)

Store Count: 1,238 (December 2023)

Argos, a staple in the UK retail landscape, is renowned for its extensive product range and convenient shopping experience. At one time, famous for their extensive printed catalogues, found in nearly every UK home, today Argos is an omnichannel retail powerhouse.

• Wide Reach: Known for its extensive catalogue of 60,000+ products and nationwide presence, Argos is found both in its own standalone town centre stores and in their shop-in-shop executions in Sainsbury's supermarkets.
• World Beating Click-and-Collect Model: Pioneering in offering convenient purchasing options like online ordering with same day in-store pickups. They go one better... If it's not in stock at your local store, Argos' sophisticated logistics operation can have your product available for pickup in as little as 4 hours!
• Omnichannel Superheroes: Offering a whopping 60,000+ products (without a marketplace model), Argos is one of the largest traditional non-food retailers in the UK. They win market share by offering unparalleled convenience.

Currys

Turnover: Approximately ￡9.5 billion (2022)

Store Count: 301 (December 2023)

Currys, a leading electronics retailer, is known for its wide selection of TV, Audio, Mobile Phones, IT, Tech, SDA, White Goods and more.

• Physical Retail Done Right: As one of the largest electronics retailers with plenty of space in store, Currys offers customer the chance to get hands on with an extensive range of products.
• Customer Obsessed: Curry's employs a large number of knowledgeable staff on the shop floor who are trained to offer support to consumers with any product query they may have. They also have an after sales KNOWHOW team to help customers with any issues they may run into setting up their new purchase.
• Product Focus: The best known pure consumer electronics retailer in the UK, Currys maintains a laser focus on the consumer electronics category but has recently started trialling adjacent categories.

John Lewis

Turnover: ￡4.93 billion (2022)

Store Count: 34

John Lewis, a name synonymous with quality and service, stands out in the UK market for its premium product offerings. A department store offering everything from homewares, toys, clothing and an impressive electronics section.

• Fiercely Loyal Customer Base: John Lewis ranks top of the chart for customer loyalty in the UK (source). Why? It is hard to pinpoint precisely, but they are partner owned, meaning every team member shares in the success of the retailer. This translates to a very high level of customer service. Their annual Christmas advert has also become a festive institution and always guaranteed to have us shedding a tear over a mince pie!
• Extended Warranties: Offers market beating generous guarantees, making it a trusted choice for high-end electronics.
• (Sometimes) Knowingly Undersold: John Lewis abandoned their century old "Never Knowingly Undersold" strap line in 2022 due to fierce competition from online resellers. Prior to this, John Lewis would generously price match any offer for identical product in the market with the added bonus of their generous guarantee!

Harrods

Turnover: ￡831.6 million (Financial Year 2022/23)

Store Count: 1

Harrods, the epitome of luxury shopping, is a department store and a landmark of opulence and exclusivity in London. Very popular with wealthy tourists. It has become one of the prime London landmarks on most visitor's checklists along with Big Ben and Nelson's Column!

• Symbol of Luxury and Exclusivity: Harrods is synonymous with luxury, attracting a global clientele seeking premium products. The store's reputation for exclusivity is upheld through a carefully curated selection of electronics, ranging from the latest gadgets to bespoke, limited-edition items.
• Exceptional Customer Service: Harrods' commitment to excellence extends to its customer service. The staff, known for their expertise and attentiveness, provide a shopping experience that goes beyond the ordinary, making each visit memorable.
• Unique Shopping Experience: Harrods distinguishes itself with its lavish décor and unique thematic departments. The electronics section is not just about selling products; it's about delivering a shopping experience that aligns with the store's overall grandeur.

Harvey Norman

Turnover: €420 million (2022)

Store Count: 28 across Ireland and Northern Ireland

Harvey Norman is known for its diverse range of products, including a comprehensive electronics section that caters to tech-savvy customers.

• Diverse Product Range: Harvey Norman is celebrated for its extensive selection of furniture, bedding, electrical appliances, and computers. Its commitment to offering a variety of products under one roof makes it a preferred shopping destination.
• Global Buying Power with Local Relevance: Leveraging its international presence, Harvey Norman provides customers with the latest trends and high-quality products, often including locally sourced items, balancing global influences with local preferences.
• Entrepreneurial and Customer-Focused Culture: The brand is known for its energetic and positive approach, reflected in its customer-centric philosophy and competitive pricing, ensuring value without compromising on quality or style.

Selfridges

Revenue: ￡847.3 million (2023)

Store Count: 4

Known for its luxury shopping experience, Selfridges incorporates a diverse range of concession-based departments, including a well-curated consumer electronics section. This unique retail approach allows Selfridges to offer a variety of brands and products under one roof, appealing to a wide customer base.

• Selective Electronics Range: The consumer electronics department at Selfridges, predominantly concession-based via a small handful of carefully chosen suppliers, offers a curated range of high-end cutting edge gadgets and tech, catering to discerning customers looking for quality and exclusivity.
• Integration with Lifestyle and Luxury: Selfridges aligns its electronic offerings with the broader luxury and lifestyle products in the store, providing a seamless shopping experience that reflects its clientele's sophisticated tastes.
• Focus on Experience and Choice: The concession model enables Selfridges to provide a diverse and dynamic range of electronics, focusing on customer experience and choice, while maintaining its reputation for quality and luxury.

Navigating Distributor or Reseller Appointment Following a Successful Trade Show

It's that time of year once again!

As we approach CES next week, many consumer electronics brands will find themselves courted by various distributors/resellers from all corners of the world. While on the surface, this presents an excellent opportunity for brand expansion and partnership, it's crucial to navigate these waters with caution:

"Appointing the wrong partners, especially in Europe can have far-reaching and long lasting effects" | Paul McCafferty, Managing Director

Evaluating Distributor Claims: Many distributors or resellers will present themselves as the ‘biggest’ and ‘best’ in their market. It’s not unknown to see 2 or 3 from the same country on the same day with the same claim! It can be difficult to cut through this and understand their true capability, which is why it’s important to conduct thorough due diligence to verify these claims. One way is by asking pertinent questions such as:

• What are their priority channels?
• Who are their other brands?
• How big is their team?
• Which retail accounts do they have open?

Broadline or value-add: many of the brands we engage with are innovative and/or well designed. They are typically new to the market so we would always recommend a value-add distribution approach. These partners have proactive sales teams who are targeted with winning new business. They will typically require more margin but are the right choice for new brands looking to enter the market. Broadline partners are slick logistics operations looking to move enormous volumes of commoditised or established products for a small margin.

Understanding Motivation - Strategic or Tactical: Be wary of distributors who may purchase products at wholesale and then sell at a discount online. This practice can harm brand value and market positioning. It’s really easy to sell direct to consumers online, across Europe, which may not align with your strategy in each of the European countries

Selecting the Right Partners: The ideal distributor should align with your brand's values and market strategy. They should have a proven track record, a strong market presence, and a clear understanding of your target audience.

Remember, CES or indeed any other trade show is a great opportunity to get your product in front of retailers and distributors but is also a strategic opportunity to forge lasting partnerships. Choose partners who not only promise growth but also align with your brand's long-term vision... It helps a lot if you also like the people as you will (hopefully) be working with them on a daily/weekly basis!

That's all folks! Stay tuned as next month we take another EMEA retail deep dive, this time looking at the major players in France and we'll also share some tips for going to market following a DTC and B2B strategy in perfect harmony. We hope it strikes a chord!

As always if you'd like to chat to us, please book a call at the following link.

Best of luck for a tremendous CES and a fruitful year ahead!