Growth tipped for home appliances and TVs.
Bi-Rite Home Appliances owner, Abdul Kayum Sacur shares his insights on the retail market and his expectations for the remainder of 2017.
The year so far… Business has been tracking along well and we have seen like-for-like sales grow year-on-year. An early cold snap has allowed a higher level of profitability for seasonal heating stock and the transition into the 2017 range of televisions has been handled smoother than in the past. However, certain opening price point products in the whitegoods area have been facing stock issues; fortunately, there have been plenty of options in these areas.
Second half predictions… We are aiming for a strong second half. Major appliances will show slight growth as a result of large capacity washing machines and the French Door refrigerator market. We also expect growth in the TV market, particularly in the 65-inch and above sizes.
Market opportunities… Online is definitely a huge opportunity for any retailer, although in-store execution should remain the core focus. Always looking for different ways to service your customer will create opportunities for growth. I believe there are still opportunities for new stores or existing stores to expand into new territories. Bi-Rite is working with existing members to open new stores, for new members to join the group as well as joint-venture partnerships.
Industry threats… The big question mark is Amazon and the impact it can have on our industry. We have seen the reports on how effective their operations are and what kind of conversion rates they have. There are many examples seen overseas where retail has adapted to compete profitably against the likes of Amazon. Ultimately, more competition will mean everyone will have to improve their offering.
Best product for 2017… I have been impressed with both OLED and QLED technology. In addition to the technology piece, these suppliers are driving change through consumer insights, and this is apparent through features and benefits such as cable management solutions and more intuitive smart systems.