A new decade of retail intelligence

In response to Retail Week’s VAT Bonanza article on 8 January, issue P1, I would like to echo the optimism that Adam Black touched upon for the profitability of the year ahead for retailers. In the wake of rising online sales, I would urge furniture retailers to work together and drive twelve months of ‘reason to buy’ recovery.

I passionately lobbied the Government not to increase the VAT on 31 December, but as a sector, we must now move on and use the pre VAT change sales uplift as a springboard to drive sales, helping to avoid the possibility of a dreaded double dip in retail performance.

Hitachi Capital Consumer Finance provided more consumer credit in 2009 than any other year over its 28 year history. With over £600 million lent to customers at the point of sale in 2009, our company funded a 50 per cent increase on 2008 in a bid to facilitate consumer spending.  The plan for this year is to support retailers with almost £1 billion of point of sale finance increase sales.

Both our own and our customers’ sales data clearly shows that when you provide a clear reason to buy, along with workable credit options, consumers will respond with an increased desire to purchase, driving sales for retailers.

2010 is the start of a new decade and I believe we as a sector need to be more responsive and innovative. Customers are increasingly savvy in their purchasing behaviour, especially in the big-ticket item sector (furniture, kitchens, bathrooms etc) both instore and online, it is important that we observe these changes and gear our marketing approach accordingly to drive sales.

The key to success, in my view, is innovative marketing based on detailed consumer market intelligence. Let’s embrace on and offline solutions and boost sales. The signs of recovery are beginning to appear in the housing market and national events, such as the World Cup, will generate significant marketing opportunities in the year ahead. By working together, I feel confident that our resilient sector will score continued sales momentum throughout 2010.

Gerald Grimes

Managing Director

Hitachi Capital Consumer Finance

For more information contact: Daniel Hobson Hitachi Capital (UK) PLC t: 0113 380 1030 m: 07917 264079 e: daniel.hobson@hitachicapital.co.uk