Turnover at independent buying group CIH is only marginally down, even though it has fewer members than a year ago and is operating in a marketplace in which some sectors are down by more than 10 per cent.

In his speech yesterday at the CIH suppliers’ lunch, CIH chairman Robin Millwood (pictured) said the buying group had managed to reduce members’ costs yet maintain profit in the company.

“In a tough year we have to take note that there are some suppliers whose turnover with us has fallen off a cliff and do not appear bothered, while others have started to put in motion plans to stabilise the market, but we have not seen the affects of this yet and may not do so until 2012 if at all.

“I can only re-iterate again that the members will continue to support those suppliers where a reasonable retail margin can be maintained.”

Mr Millwood pointed out that business had boomed with two companies operating in areas in which CIH has not traditionally been strong – they are IT and telecoms where Micro-P has increased business with CIH by 600 per cent, and small appliances where Magimix has upped its CIH business by 47 per cent.

“I would like to relate a couple of experiences from my own business and, for those of you that do not know me personally, I have two retail shops.

“With my main brown goods supplier (not a CIH account) I am just a drop in the ocean, so I only get supplies when the multiples and centres have had their fill and we were desperate for 37in TVs, so I ordered four from Best Buy with next-day delivery.

“As Baldrick says, my son had a cunning plan as Best Buy operates a price match +10 per cent and they will match Amazon. So, after the price match refund of £62 I actually bought these cheaper than I could direct even allowing for sales out allowances and settlement.

“It is no surprise that Best Buy is going,” he said.

Mr Millwood told his audience at The Dorchester Hotel in London’s Park Lane that CIH’s membership drive was proving successful "with more quality members having joined this year, several in the pipeline and numerous enquiries coming in every day". He continued: “Interestingly, there is still lots of interest from members from a rival buying group who are now realising that CIH/Euronics is the buying group to belong to”.

He added that more than 300 members are currently stocking CIH’s Blomberg exclusive Agency range, now extended to include built-in appliances, making it one of the buying group’s fastest-growing suppliers.

“Our euronics.co.uk website is going from strength-to-strength and with the national TV advertising is creating not only huge hit rates on the site but also directing the public to our 1,200 member retail outlets. Most suppliers have taken the opportunity to have their own supplier information pages on the website and with the new supplier lorry livery, the name Euronics is getting across to even more consumers.”

Mr Millwood also pointed out that during this peak season for stock movement, the buying group was benefitting from having two warehouses and two deliveries a week to members. He thanked HI Distribution for keeping the trucks rolling.

A new CIH award, The Supporter of the Independent, was won by Rangemaster, while Siemens took the title of Supplier of the Year, an award which now covers both white and brown goods.

See interview with CIH chief executive Stuart Cook in the December 9 issue of ERT magazine.