Industry leaders claim pension access will have greater affect than Government change
A change to pension rules, which allows consumers to access their entire pot and withdraw lump sums will boost kitchen and bathroom sales say industry leaders.
Owner of Ripples in Harpenden Martin McDonough commented: ““We do have a high proportion of what I would imagine are customers considering or entering into early retirement. So, I guess if people have newly-found incomes and they are looking to invest in their property, whether it be kitchens or bathrooms, there is certainly going to be – I think – an increase in opportunities. Speaking from our point of view, I think definitely that we will benefit from it.”
And managing director of Mark David Enterprises, Mark David believes this access to spending power may even be more beneficial than the change in government: “The pension [financial changes] has got more impact for kitchen and bathroom sales. The new Government coming in – all that’s done is give a bit of stability. I think people who had a lot of money for spending will be a lot more willing to spend as a result of the election. It’s crazy. People were waiting for the election to make a decision, still after all these years. Since the election has been sorted – it’s a bit early yet – but I think people will start to spend money. I think the pension [changes] have got more impact for our market place.”
It is part of the reason why MD of buying group KBBG, Bill Miller exclaimed “independents have never had it so good”, at its recent AGM.
He explained: “If you look at the age group of customers wanting to spend – 50+. They have got a change in the pension provision and those customers expect service. They like the fact that it’s a local retailer. If you look at what’s happening in food retailing; what’s happening in DIY, big superstores are struggling. People now like the idea of sourcing more locally. I think it’s got a long way to go. I’m not saying we are there yet but I actually think we are at the beginning, now, of what will be a boom time for independent retailers – and independent kitchen specialists, if they get their act together.”
Miller predicted a “bumper” second half of the year, with double digit growth next year. “I think there are some fantastic retailers. And the quality of showrooms today, for kitchen,s are better than they’ve ever been. But there is still more to do to make sure there’s that clear gap between what the nationals offer.”