South West electrical retailer HBH Woolacotts is hoping for a post-lockdown sales surge as being stuck at home has encouraged people to upgrade their tech.
The Bude-based company has traded online and over the phone while its have been shut during Lockdown 3.0. having not been deemed essential by the Government.
However, has been able to offer a full range of services, including deliveries, installations, servicing and customer support.
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Director Chris Hemmerle remains positive and said: “Aat the start of the pandemic we were disappointed to have not been deemed essential, however we were determined to continue to offer customers a full range of services, regardless of the cost.
“There is no doubt many of the products we sell are essential to people’s well-being and livelihood, such as cooking appliances, laundry products and home entertainment.
“While it has been challenging at times, the service we have continued to offer has been very well received and appreciated by our customers and I think long term will stand us in good stead.”
Trade has, inevitably, been hit. About half the 160 staff the business employs have been placed on furlough under the Coronavirus Job Retention Scheme. Those still working are engaged in deliveries, online orders and phone support.
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“Our main income from the shops has gone,” Mr Hemmerle said. “It’s not ideal but we are not in a bad position because we are lucky to be in an industry where people still need our products.
“People are at home using their appliances more, doing home improvements and TV upgrades or new TVs so the kids can watch separately have been popular.
“I think we can be thankful for this as many other industries have been hit a lot harder and also for the Government support throughout as it has ensured that we can retain nearly all of our staff.”
However, ongoing challenges and stock issues caused by the pandemic as well as Brexit-related red tape and delays are becoming a real problem.
“There are global stock shortages, across the majority of industries” Mr Hemmerle said. ”It’s a bit of a perfect storm at the moment. In the first lockdown manufacturers reduced their forecasts, then demand came back stronger than expected which meant there was no supply or available stock. “Couple this with ongoing Covid-related labour issues in factories and major Brexit related delays and increasing transportation costs, it’s becoming a real issue. I’ve been in this industry 13 years and this is the worst it has been.”
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With good warehousing facilities across Cornwall and Devon, Woolacotts is taking opportunities to stock up where it can to minimise the effects of shortages and price increases to their customers and Mr Hemmerle sees it as a positive for the business.
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“We’re fortunate that we’re in a position to be able to invest in stock,” he said. “Not only does it mean we can meet customers’ needs but it also helps to minimise the risks to our communities and customers are now buying local more than ever.
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“People are understandably wary of travel from area’s with high infection rates and the fact you can buy stock that’s stored locally, delivered by local drivers and sold by local sales advisers, all who care about our communities, is a real positive”.
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The family-run firm is weathering the problems and said it is in good shape to recover once the economy unlocks and it is banking on a tech boom.
“We did well when we weren’t in lockdown last year,” Mr Hemmerle said. “Home entertainment and TV had some very strong demand particularly during the summer of 2020 and we’re expecting the same this year with upcoming Euros and Olympics always providing a boost to TV and home entertainment sales.”
The business has also spent lockdown investing in store improvements so it is in the best possible positon when lockdown rules are relaxed with Mr Hemmerle saying “We’ve used the time to complete a couple of major shop improvements including a big refurbishment in St Austell shop which would have taken out half the shop if it was open.
“It is probably a two or three month project, but the lockdown has been the perfect time to do this albeit unplanned. We’re confident in the future.”