Sirius MD Steve Jones took a break from preparing for the buying group’s annual UK Trade Show in Milton Keynes to talk to Nicola Hanley about how it benefits members.
Often in life, if something appears too good to be true, it’s because it usually is. But that’s not the case for Sirius Buying Group, according to MD Steve Jones. “Some of the feedback we get from potential members is that it seems too good to be true,” he smiles. “It’s a nice problem to have. We look to develop longlasting relationships and any retailer that joins tends to become a long-term member because we’re able to deliver that value to them.”
Sirius was established in 2001 by Jones’ father and a group of electrical retailers in the South West of England who wanted to provide all the benefits of being in a buying group while allowing retailers to fully retain their independence. “Fast forward 23 years and here we are with nearly 200 members across England, Scotland and Northern Ireland,” says Jones. “And the group has evolved not just into electrical retail but also out into the kitchen studio space, which is great and it’s been very successful.”
Jones believes Sirius provides kitchen retailers with quite a unique proposition and is looking to venture further into that space. “Appliances can be a bit of a thorn in the side for kitchen retailers at times, particularly when you look at the margins you can make on furniture, worktops and all the auxiliary bits such as flooring and lighting,” he says. “It can be quite hard to compete on appliances unless you’re over a certain size. And that’s where being part of a community that specialises in appliances can actually help to provide retailers with the margin they need, making it quite an attractive proposition. We’re here to deliver more margin for our members and help them be more profitable.”
While the group is actively looking to recruit new members, both electrical retailers and kitchen studios, and is targeting 15 to 20 new members a year, it won’t just allow anyone to join. “We want to have a community of likeminded retailers that we help to thrive and be competitive in the marketplace.”
For retailers, there’s an initial joining fee of £3000, which can be paid upfront or on a payment plan, but Jones says they only take on members that are expected to double or triple that investment in the first year. “We take a quality over quantity approach,” he says. “There’s a minimum size of business and there are certain other requirements that we like them to have. Because we benefit our members with preferential terms with suppliers we need to make sure suppliers’ products are presented and sold in the correct way so they have that confidence too. But we don’t dictate how members run their business. We give retailers all the tools to help them grow their business and be more profitable.”
One of the ways Sirius looks to support members and suppliers is through its annual trade show, which it has been holding since the buying group’s inception. “It’s a big event, which has grown into a bit of a monster,” smiles Jones. Last year the show moved from its previous venue at the Forest of Arden hotel in Warwickshire to Marshall Arena in Milton Keynes. At the same time it became a two- rather than one-day event. “The new venue is a lot bigger and gives us more space to grow into but we’ve actually maxed out this year in terms of supplier attendance and the space they're taking. So that tells us we made the right decision last year to move.
“We’re expecting record member attendance. It’s a good way for members to meet senior personnel and to see new products and ranges. It’s also a promotional period with exclusive offers for those that attend so members can forward order and get the best prices for the remaining part of the year.”
Although Jones acknowledges 2023 and the first half of 2024 has been challenging for many, he is optimistic for the rest of the year. “Last year we were able to deliver more rebates for our retailers relative to the market performance and that’s the core part of our business model – delivering those rebates for our members.”
