BUYING GROUPS - Flooring Focus
Independents all together.
Not why, but why not?
Each year we take a closer look at the role of buying groups in our industry and explore the reasons why retailers should join. Maybe
we are asking the wrong question – not why you should join,
but why not?
Jon Richardson at the Associated Carpet Group comments: “I’m been in sales all my life I think I have been privy to every style of sales pitch there is – when offered something that sounds too good to be true, I would inevitably reply ‘where’s the catch’. This, I think, is the most common response I receive when discussing the benefits of membership with a curious retailer.”
Depending on how you work out figures, about a quarter of mainstream independent retailers have joined one of the five main buying groups in flooring, so what is holding the rest back? The clearest clue is in that word “independent.”
Retailing is most often a proprietorial business and the independence of its practitioners is strongly defended. But the buying groups totally get this and go out of their way to complement the activities of a retailer rather than take them over.
Joining a buying group is not like a set of marriage vows to love, honour and obey – the groups accept that their members may want to do things their own way and preserve a relationship they have with a particular rep or a special deal with the supplier.
The groups’ mission is to woo their members with even better deals and special promotions as well as a whole basket of other benefits that go beyond the basic advantages of bulk buying in group.
The pandemic demonstrated much of this safety in numbers – while business was brisk for many retailers, the situation was always exceptionally demanding and buying groups played a significant role in helping businesses navigate the challenges, from social distancing, to supply chain issues, price fluctuations and enhanced internet competition.
And core to the appeal of many buying groups is the ability to use own-labelling to protect margins from price comaprisons and internet window shopping. Members can deploy this marketing approach as much or as little as they wish to get the balance right between supplier brands, buying group brands and their own store’s branded specials.
The
Associated Carpet Group (ACG) is one of the fastest growing groups with over 300 members across the UK and sets its pitch at generating greater profits and business growth – without risk.
“We’re not a management company, we want you to run your business your way,” it says. “Our objective is to secure the best trading terms with the best selection of flooring suppliers.”
The Group is a not-for-profit organisation and works on a subscription fee basis and encourages its members to place as many orders as possible with the group’s preferred suppliers. Members receive 100% of the advantageous, pre-negotiated rebates which are paid directly to retailers by the suppliers.
ACG also prides itself on a highly professional, exclusive group label scheme under the three brands Smart Choice, Special Ediition and finesse. Attractive, consistent point of sale units present competitive ranges of exclusive flooring – and, more importantly, avoiding the increasing threat of internet price comparison and retailer-to-retailer competition.
See also the ACG interview blog.
Metro is a group of independent retailers from the smallest operation to multiple-outlet businesses. Retaining independence is vital to Metro members, which is why all group activity is always optional, allowing members to select the best benefits of group membership while being 100% in control of their own businesses.
Since 1995 the group has had an own-label brand, Carpet 1st, encompassing the bestselling and best performing products. Members can maximise profits while supporting the group and authorised suppliers, under the Carpet1st brand or suppliers own branding.
The Group also offers a central buying facility with authorised suppliers, allowing members without direct accounts to order product from
those suppliers.
Metro has a dedicated Marketing Department with over 30 years of retail flooring experience, specialising in bespoke solutions for independent flooring retailers. This service allows retailers’ showrooms, to be transformed, on-site, with remarkable results inside and out. The service particularly appeals to new members that have previously not had access to professional and impartial marketing advice, design and production of material.
Members qualify for £600 of free, bespoke marketing support each year. This allowance can be spent on anything the Marketing Department can provide including display stands.
SMG has something for every retailer, large or small, long established or just starting out. Members run their business as they see fit but gain advantage from the most comprehensive package of benefits around and, all for the lowest annual membership fee.
With over 450 retail outlets throughout the UK, SMG is the largest flooring buying group and can offer independent retail members a package of benefits which include preferential Group pricing, rebates, promotions, a central ordering facility and options for own branding. Along with that, SMG offers retailers the opportunity to purchase furniture and beds from some of the top industry suppliers.
SMG offers members a selection of own branded unitary/product should they wish and the protection that offers retailers has made the Pure label a huge success.
Mike Reed, Head of Operations says
“Independent retailers are attracted to join SMG as the
Group guarantees that members can retain their complete independence but at the same time benefit from preferential discounts, rebate schemes and promotions from a
comprehensive range of approved suppliers.”
“On top of this, members can also access products from any Approved Supplier via our Central Purchasing Scheme, even without a direct account. And now with ‘Pure’ they can access an exclusive own brand range should they wish to – to any extent that suits their own business.
“Not only do Members benefit from great terms but SMG offers a fantastic business support package that is second to none. With a free of charge business support helpline, bespoke SMG retail insurance, interest free credit options, discounted utility brokerage and preferential credit card rates; it really is an all-round great deal,” he says.
Greendale Carpets & Floorings is a 130 store, members-owned group, a “not for profit” cooperative. Uniquely among the buying groups, Greendale has its own warehouse in Hereford which stocks over 2,000 rolls of carpet from top British and Continental manufacturers. Members share profits created via preferential prices, promotional activity and other support from the group.
Greendale offers it’s members a choice from over 200 ranges across all product categories which are all own labelled to colour level. This includes brand leading ranges as well as selected special products which offer outstanding value. The group’s large stockholding facility ensures its retailers can make more profit.
Members have their own geographic areas and Greendale products are not sold online. This offer is complemented by savings on manufacturer branded ranges giving members enhanced margin.
Other support includes a website, advertising and instore ticketing plus membership of the British Independent Retail Association which offers a range of support services for members including advantageous credit card and finance offers.
BRM (Bond Retail Marketing) prides itself on its history, experience and agility to navigate and keep pace with the ever-changing flooring marketplace – offering a bespoke personal service which can be tailored to serve each retailers individual needs, allowing the retailer to carry on with the day to day running of their business.
BRM has no joining fees and a family feel within the group. Its buying and marketing function has many years of experience negotiating with all types of suppliers/manufacturers both large and small in the UK market across all flooring product groups, with the addition of an online presence via www.beautifulflooring.co.uk where consumers are directed to BRM’s national retailer network.
“De-branding and profit engineering are all attributes we are skilled in developing with individual retailers to create successful and profitable business models that will stand the test of time,” says Carl Harris of
BRM. “Designer initiatives such as the Daisy Alexandra Subert collection gives our retailers unique and exclusive selling opportunities with enhanced margins.”
Flooring One offers a friendly and highly professional service to independent flooring retailers throughout the UK with the aim of increasing their profitability. Flooring One offers great financial benefits such as specially negotiated rebates from key suppliers, with some of the lowest prices and terms in the market.
The group is in partnership with over 50 of the finest key suppliers and works with them to offer members margin protection on rebranded products with dedicated support from its expert field merchandisers.
Flooring One is a subsidiary of Associated Independent Stores (AIS) which is the UK’s largest non-food buying group for independent retailers.
FOR MORE INFORMATION
ACG • 01942 825520 • www.acgcarpets.com
BRM • 07403 442229 • www.beautifulflooring.co.uk
FLOORING ONE • 0121 683 1426 • www.flooringone.co.uk
GREENDALE CARPETS • 01432 852000 • www.greendalecarpets.co.uk
METRO GROUP • 01204 393 539 • www.carpet1st.co.uk
SMG • 0118 932 3832 • www.smg-group.co.uk
