Page 32 - HW February 2020

sales agents
Hardware “experience” outperforms grocery
STRIKEFORCE’S TIM MCKIBBIN says that while he is starting to see some self check-outs coming through hardware, and expects “click
& collect” to become more prevalent, his view is that hardware won’t ever be as strong as grocery in the online space because of the overall store experience.
“The big boxes are more engaging environments than ever,” agrees Central Region Sales’ Stephen Edlin.
“It’s a pleasant experience to walk around one of these stores and it’s become a recreational activity for many people. And there comes a time, particularly in the hardware industry, where you’ve simply got to touch the product.”
Attitudinally, hardware and grocery are quite different, says Angie Samuel at Storelink.“Grocery has become quite transactional and mechanical and there can be a lack of collaboration on the merchandising front.
“Hardware is less restrictive, giving people an opportunity to go into a different environment where the hardware retailer really appreciates the support and investment from the suppliers. And we’re definitely influencing orders a lot more in hardware compared with grocery.”
Comparing the two, staying with Storelink, Tony Puppyn considers grocery to be transactional, while hardware is high engagement and much higher growth rate.
“Consumers get a great shopping experience and that opens up so many opportunities, not just for retailers but also for suppliers.
“This high-engagement channel should sustain future growth and if you look at what’s going on in the economy, we’ll be building houses for a lot longer, doing renovations and it’s cheap to borrow money, so this channel is going to fizz away for a number of years to come.
“As a result, we’re looking to build a much larger presence in the channel and are actively looking for more hardware clients.”
“With the large suppliers, we’re encouraging them to recruit reps or territory managers if the business can afford it.
“Having been a sales manager, I would suggest a company rep with intimate product knowledge of their range is always going to be better than a sales agent or a merchandising company.
“If you can get the business to a point where you can get another bum in a car, that’s the ideal, and we’ve even helped a couple of our customers shift that way.”
Reflecting on the past year, it’s been business as usual for Derek van der Vossen and his 30-strong team at VRM who
remain immersed in hardware, principally working for suppliers to the Bunnings chain but happy to head in whatever direction a supplier demands.
“Quite a few range changes in the past year have meant changes with a lot of our customers,” he says.
“And, as Bunnings has continued to grow, the challenge
has been around having enough resources in-store and it’s an issue throughout New Zealand. Because Bunnings is requiring suppliers to do more in the stores, there’s a greater need for our services and a high expectation of service and reliability.”
30 NZHJ | FEBRUARY 2020
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