Hornby Stores?

[Moccasin]

Today’s annual results haven’t gone down so well with investors but reading the financial report threw up this gem:

Furthermore, we have been experimenting with the development of a retail format. The fact that we own a set of established, complementary, yet differentiated brands, that can be combined in a physical format that is powerful and experiential, presents a great opportunity to reach, and appeal to, a wide demographic of new customers.

We have spent time and money developing a solution and speaking to potential partners who have cited interest in helping us roll out the format. The first expression of the retail experience will be opened in Margate, on the site of the current Hornby Visitor Centre, with the ambition of opening further sites in a more traditional retail environment, in 2024 and beyond.

So it looks like they’re planning to open stores to sell their own ranges, across all brands, directly to customers. Presumably they’ll be partly experiential to follow current market trends and they could be good - if done well!

Report is here https://polaris.brighterir.com/public/hornby/news/rns/story/xel63jr

[Bulleidboy]

It would appear they have already done a deal with Gaugemaster, who are now selling TT120 kit - previously only available from Hornby direct.

Personally, I don't think it is a good idea opening shops in towns - maybe in some of the huge outlets dotted around the country -Trafford Centre - Lakeside to name but two. My town, Basingstoke, has a large modern (all marble and glass) shopping precinct. I would say that seventy per cent of the shops are closed (un-occupied), and although the town is very busy on Saturdays, go in at 11am during the week and the place is disserted, staff will outnumber customers three to one. ModelZone used to have a fabulous shop in B'stoke., it was packed with customers (dad's and sons) on a Saturday, but empty for the rest of the week.

I think Hornby would be better served doing a good deal with selected existing model shops dotted around the country and also selling directly, and with items at the same price from whatever source.

[Moccasin]

Yes it's possible that they will partner with Gaugemaster on these "brick & mortar" stores, although my sense is that they're looking to create an interactive experience (e.g. scalextric competitions, Airfix kit building). With HM 7000 I can even foresee them having a layout that people can operate their own locomotives on. I believe they tried physical stores before and it didn't go so well, but depending on who they partner with and done well it could be a really compelling offer similar to how Lego stores have been successful.

[Rallymatt]

There are so many empty shops and units at most shopping centres now that a ‘Pop Up TT:120 Road Show’ is very feasible. Showcase the new range and get people using HM DCC

By focusing on TT:120 you would automatically side step the issue of established Hornby outlets throwing their teddies out but if course you could still show the ‘OO’ range/Scalextric and direct customers to the dealers & website.

Im sure many of the Centres would welcome baseboards rather than boards across the windows

[dBerriff]

It would not have to be a separate store. It could be a dedicated display unit within existing stores/shops. Whatever the format, it will be an interesting new development.

[Moccasin]

@RM yes I think, after proving a store concept at Margate, Hornby could establish such a pop-up/roadshow to create a buzz before expanding to a small number of city/shopping centre stores (Lego seem to do it well). Even a small sealed model rail layout, similar to the once-ubiquitous Thomas layouts, would attract families - in fact they could have an 00 Thomas layout displayed beside a TT layout just to show how much more can be accommodated in the same area.

Sadly, I feel that many model shops are unwilling to accept change and adapt to the new retail paradigm (hence some retailers' reactions to TT). Many shops' opening hours and locations seem only suited to a certain segment of the market (not working 9-5, car available) and as that has worked for them in the past they don't see a need to change. One model shop in Teesside used to be within walking distance of my former employer's office there but have now moved to an inconvenient location out of town.

I do appreciate that rents in town centres are (were) very high and some customers demand parking but, as you say, there are plenty of landlords now looking for tenants to bridge the retail/leisure market to fill their empty units and encourage longer stays by shoppers.

(If you're on another popular modelling forum, you may recognise some of my points)

[SteveM6]

I believe they will develop a retail model to ‘fit’ in existing outlets. Possibly similar to the model being developed by the EG Group/Asda. Go into an EG petrol station and you will find sales modules from Costa Coffee and similar. In Asda they have dedicated areas such as Claire’s Accessories.

The next one will be Krispy Kreme donuts (ours is being installed this week).

Now imagine Hornby producing a sales module that they can just ‘plug in’ their an existing shop and not just modelshops - Smyths Toys for example. Relatively small capital outlay and easily shut down if an outlet is not viable.

[Moccasin]

It would not have to be a separate store. It could be a dedicated display unit within existing stores/shops. Whatever the format, it will be an interesting new development.

There's an existing department store in Newcastle who already stock Hornby and who could easily accommodate a Hornby concession - they certainly "get" the way retail is going and it would be a great way to attract families who wouldn't ever go to an old fashioned model shop.

Model shops still have an important place, but the market I think Hornby are trying to expand into would likely be those who buy from department stores, Argos etc.

 

 

[Moccasin]

I believe they will develop a retail model to ‘fit’ in existing outlets. Possibly similar to the model being developed by the EG Group/Asda. Go into an EG petrol station and you will find sales modules from Costa Coffee and similar. In Asda they have dedicated areas such as Claire’s Accessories.

The next one will be Krispy Kreme donuts (ours is being installed this week).

Now imagine Hornby producing a sales module that they can just ‘plug in’ their an existing shop and not just modelshops - Smyths Toys for example. Relatively small capital outlay and easily shut down if an outlet is not viable.

Totally agree - refreshing that suggesting such heinous ideas here does not result in a pile-on grinning

 

 

[atom3624]

Could this mean that Hornby are accepting competitor marques are better than theirs, and will mass-market sell poorer detailed 'Railroad' models in Tesco's and Morrisons?

Could explain why there is the extended delay in the introduction of the newer ever-higher-detailed models slated for recent times?

Al.

[Moccasin]

Elsewhere in the report Hornby do talk about re-engineering models for a new entry-level price point.

[96RAF]

Could just be a new brand leader testing the water in their new post at HH.

[atom3624]

That's very true!

'How relevant is a hobby shop?' Answer is VERY, generally speaking.

There can be a few 'spur of the moment' impulse purchases, which may be made at 'general retailers', but it's far better from a hobby shop - preaching to the converted I know!

Al.

[Rallymatt]

The one store I would be talking to as it ticks so many boxes is Hobbycraft. Certainly in the North, crafting is big and their stores in this area are big and busy. Many of the retail park stores also have a mezzanine that I think they did crafting demos etc in prior to COVID, many of these spaces are unused, the thing about model railways and Scalextric is people want to see it going and have a play. As others have identified the model shop route isn’t growing the hobby but it does keep it ticking over. D2C has put a fire under the industry so something in the middle, non-modelrailway stores seems a sensible option.

[Tony57]

I wonder if Hornby will reinstate the service and repair center dealerships like in the old days rather then sending everything back to Hornby HQ?

[Moccasin]

That's very true!

'How relevant is a hobby shop?' Answer is VERY, generally speaking.

There can be a few 'spur of the moment' impulse purchases, which may be made at 'general retailers', but it's far better from a hobby shop - preaching to the converted I know!

Al.

 

 

Not saying that model/hobby shops aren't relevant but that a decent-sized market is poorly served by many of them due to opening hours and location. I would go as far as to say that some model shops are probably quite intimidating to a new or returning railway modeller, especially if you have your heart set on a TT set and they look at you as if you're mad...

As @Rallymatt says, Hobbycraft is a good store (which already sells some model kits) and is more convenient for the type of shopping trips many families want to make now (as a family to a retail park or city centre with a meal* as a treat). The retail market is moving towards turning shopping trips into a day out and Hornby's brands are very well placed to tap into that trend. Model shops have their place with stock on shelves and in glass cabinets, but seeing (and hearing!) model locomotives (or scalextric cars) travelling around a layout (racetrack) is, undeniably more appealing to a younger audience (and some adults too!).

I wonder whether linking up with some of the larger heritage railways and museums would be a direction Hornby can take too. Travel behind a 9F or a Class 50 and then take a model of one home to recreate the sights and sounds in the comfort of your own home.

 

 

* or sausage roll//steak bake

[Bulleidboy]

Hobbycraft would be a good store to use, as has been said they are usually very large units, with a large mezzanine. However, did Hornby fall out with them? The Hobbycraft in B'Stoke used to have a small Hornby range, Humbrol and Airfix - that has now all gone. Lots of Woodland Scenics and Tamiya.

[Rallymatt]

I would add that where I am, I have 3 great model shops, 2 specific model railway one general, within 7 miles of me, so I am very lucky and I support all of them as much as I can, but how many outside the hobby hunt out these type of specialist shops.

[Bulleidboy]

We have two dedicated model railway shops. One in the old town, only a couple of minutes walk from the main town centre, and one on the outskirts in a modern gated small business unit - this one is modern and very well stocked - but does not open at weekends, which does not bother me. I try to support both but lets be honest, online buying is so easy nowadays.

[SteveM6]

Not such a rosy picture where I live. The two nearest shops have closed in the last year, the next closest rarely has ‘new’ stock, the next nearest is about to be cut off by the expansion of the London ULEZ scheme.

The next one is not bad but tends to specialise in continental outline which leaves me with a 120 mile round trip to the Hornby Visitor Centre.

with virtually zero visual presence in the area, it’s no wonder Hornby are investigating how to catch the attention of potential buyers with this initiative

[Moccasin]

We have two dedicated model railway shops. One in the old town, only a couple of minutes walk from the main town centre, and one on the outskirts in a modern gated small business unit - this one is modern and very well stocked - but does not open at weekends, which does not bother me. I try to support both but lets be honest, online buying is so easy nowadays.

 

 

Presumably the modern well-stocked shop does most of its business online? I think some model shops are becoming little more than store rooms with retail access!

[Moccasin]

I would add that where I am, I have 3 great model shops, 2 specific model railway one general, within 7 miles of me, so I am very lucky and I support all of them as much as I can, but how many outside the hobby hunt out these type of specialist shops.

I can probably guess two of them! One of the model shops is close to a large major supermarket? I went to the Hobbycraft nearby for the first time a few weeks back and was impressed. It would be an ideal location for a Hornby concession. Ever since Modelzone left the market, there’s been a gap and there’s only Fenwicks filling it. My digital OO mixed goods set was from Modelzone - I think the price sticker says something like “boys’ toys”. I feel seen every time I look at it blush

[Rallymatt]

I hope you have popped into Dave’s shop, it’s a proper model railway shop and he is a lovely guy with loads of knowledge and help.

[Moccasin]

I’ve been in a couple of times yes. Think it was his son there last time I was in.

[ColinB]

Interesting post I have only just read it. To anyone that is not a Hornby disciple it is not a great surprise. They had that great year during Covid but generally model railways is not that popular. Hornby have also invested in new products, one the HM7000 has not been a roaring success basically because of it being late to the market. Their tier system alienated a lot of the Retailers and you only have to look at the Retailer Sales to realise things are not moving as well as they should be. So introducing a new set of Retailers I don't think is going to improve things. Then we have the hap hazard way new models reach the market, nobody knows when they are going to arrive. Ok for the die hard Hornby lovers, they will wait, for others they will find something else to spend their money on. They are just my thoughts.