In a new series run in conjunction with Appliance Retailer magazine, Current.com.au will be speaking to the industry leaders, big brands and well-known identities that have helped shape the electrical retail industry in 2013.

Today, Leading Appliances national product and marketing manager Nicholas Fry talks about what is powering Australia’s newest electrical retailing group, the challenges it is facing and what’s next for Leading Appliances.

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How has the first half of 2013 been for your business?

Despite the continuing challenging retail environment, we are happy so far with our results, which have been exactly as we forecast and budgeted.

It remains a tough marketplace, with a lot of uncertainty still engulfing consumer sentiment, but we’ve been satisfied with the results on the back of all the behind-the-scenes work put in place to get The Leading Appliances group operational for our 1 April 2013 launch. The launch proceeded seamlessly and the first couple of months trading has been challenging but ultimately rewarding.

What are your predictions for the second half of the year?

As we accumulate purchases and sales data and get a clearer understanding of our group, our strengths and where the opportunities lie for us, we will tailor our marketing and promotional activity to meet our requirements into the second half of the year.

Our members are getting more comfortable in their new skin, consumers are starting to recognise and respond positively to our brand, and we approach the second half of the year with some optimism.

We have a very proactive marketing program to roll out — the suppliers have seen some really positive results and are very supportive — and our members are happy to be a part of The Leading Appliances group.

We are hopeful of adding new members to our group in the second half of the year to further strengthen our market position.

What opportunities do you see for the electrical retailing industry?

The digital switchover across various regions of Australia will present some short-term opportunities for retailers, without doubt.

But what our industry needs is sustainable opportunities to increase sales and increase average sale prices. The best way to achieve this is through innovation and education. We must remove the focus on price from the consumer mindset and use the innovation of the product, and an ability to communicate with and educate the consumer as to the features and benefits of the product, to increase the average selling price.

Margin squeeze is the biggest challenge in retail, driven by a ‘price-down’ mentality and the volatility of internet sales, so to overcome this we must return to the ‘good old days’ of professional and knowledgeable customer service and product innovation.

What threats are currently present in the industry?

I believe the main threat in the industry is the threat the Internet poses to traditional bricks and mortar retail. Given that the internet has no borders and more and more consumers are becoming tech-savvy and quite attuned to using ecommerce, a retailer can have the best trained staff and the most modern showroom, but still miss out on the sale to a smartphone app run by a guy in his garage who invests nothing into the industry.

Leading Appliances is mainly regionally based and many of our stores are second or third generation, so loyalty and personable service are very important. The challenge for retailers is to maintain their presence as a bricks and mortar retailer while accommodating new trends and keeping up with advancements in technology.

What is your favourite product of 2013 so far?

If I had to pinpoint just one product, and there’s quite a few which I really like, I’d nominate the new Electrolux UltraCaptic vacuum cleaner.

The July issue of Appliance Retailer magazine includes more discussion on the issue from more than 20 leading figures.

If you would like to take part in our Influencers series, contacteditorial@current.com.au.