Hornby Stores?

[BritInVanCA]

I don't live in the UK anymore but when I go back I stay with family in West London and there is nothing. All the model shops have closed down. I even used to make the tube trip to Beatties in central London on special occasions but last time the only thing in central London was Hamley's which is useless.

I find it strange they are getting into bricks and mortar when so many are getting out. I remember Microsoft trying to following the Apple Store model and failing. Even Apple Stores aren't as popular as they used to be.

[Moccasin]

I think it’s less of a surprise if they think they’ve found a compelling way to use their many brands to create an offer that attracts customers to their stores over and above the desire to buy/browse products.

As I said previously, Lego stores may be a decent comparison. There’re interactive areas and they sell products which (other than the very smaller pocket money sets) are not as readily available on the High Street. In fact the Lego stores readily co-exist in shopping centres with Smyths & The Entertainer, yet (certainly with Hornby, less so with Corgi/Airfix) a Hornby store would be about the only place to get a decent range of their products.

The pocket money price point for Hornby (a wagon, a building, some track) is often only really available in model shops or online.

[SteveM6]

My view is that Hornby will not be ‘getting into bricks and mortar” - it’s way too expensive. However they will undoubtedly be looking for ‘partnerships’ with existing retailers so they can piggyback on their existing premises.

I also see a comment above saying “HM7000 has not been a roaring success”. Probably a bit early to make sweeping generalisations like that. Half the market has only had it for two weeks.

[Moccasin]

Yes concessions is what they’re seemingly planning, rather than their own stores. As @Rallymatt says, there’re plenty of retailers with spare/poorly utilised retail space which offers a lower risk entry into the market. Many of the points still stand though - done well they could attract a very different clientele from traditional model shops - the word “experiential” seems key. Some standalone store chains started as concessions and some have both, so who knows what the future holds.

[Rallymatt]

To grow any market, you need to look beyond the traditional marketplace. Put your wares in front of a new audience. This means a dynamic approach to marketing, not doing the same old stuff via the same old people with the same old product. That in turn means identifying opportunities that the current market presents. Be agile and reactive not tied down 😁

[Moccasin]

Someone elsewhere spotted that they've registered Hornby World as a trademark and subsidiary for their retail and experience effort (as well as Hornby India as a distributor).

I think that gives a good clue that their offer will be something rather different.

It will be interesting to see how it develops, and how the model retail industry reacts (if the reaction to the launch of TT120 is a clue, I'd guess that the answer may be "not very positively").

[ColinB]

Perhaps I am wrong but Hornby seemed to have a good arrangement with Rails until they messed it up with the tier system. Rails were very proactive in the Model Railway market constantly reminding people what Hornby models were coming out, a similar service as they do with Bachmann. I used to buy a lot of my Hornby locos from Rails as I virtually do with my Bachmanns. I assume Hornby stamped on that agreement because they thought they could make more money in other ways. So it appears they can't, so who would want to work with them now? It reminds me of a subsidiary of my old firm, when it was part of the larger organisation its managers strived to become independent, for people like me it was obvious that it would be bust in two years ( I used to look at how our competitors worked I had also worked for other firms). Low and behold they spun off the firm and it was bust within 4 years (ok, it took longer) and those managers that pushed for independence lost their high value pensions. As for Rails they seem to be doing just fine without Hornby.

[Moccasin]

@ColinB I don’t think they’re necessarily planning to partner with existing model rail shop operators, but with a different retailer who has wider experience and can help them bring something new to the market.

From reading the annual financial report, they’re trialling something new at Margate first and then rolling out with a partner elsewhere. The emphasis is on “experience” rather than just on retail.

[SteveM6]

It is perhaps an easy assumption to make that Hornby announcing a new adventure in retail means to many that they are opening shops.

Given the current Seattle of high streets and the economy in general, they should be applauded for thinking outside the box.

Will an ‘experiential outlet’ draw me in? Unlikely, but then I am not in the target demographic.

It will be interesting how this new retail model will be implemented at the HVC - it already stocks most of the ranges and has a Scalextric layout and demo rail layout already in situ. As for ‘experiential’ the sausage rolls in their cafe already fit the bill.

[ColinB]

Well Moccasin you are probably right, but this word "experience" seems a bit over used lately. The first issue they will have is the availability of promised products, how can you push a product when you don't know when it is arriving. Most retailers are having issues even Amazon.

[Moccasin]

Yes I think the initiative may be aimed at those who are just starting on their journey and might find a model shop intimidating or old fashioned, rather than those who are on first name (or at least imperceptible nod of recognition) terms with the model shop staff. Time will tell!

[Rallymatt]

Returning to the hobby via TT:120 has clearly demonstrated to me how unwelcoming the some of the loudest mouths in the hobby are. It would be refreshing for a new direction. One where enthusiasm is supported and innovation embraced.

[ColinB]

I have to admit that there are so many different types of Model Shops that using a global umbrella for all of them is a bit unfair. Today I went round Monk Bar in York and TMS near Whitby, the way they run their businesses are totally different. One is totally computer driven the other is a Model Shop. Personally I like the shop approach as I see what I am getting there and then, which sets it apart from the computer approach as I might as well just order it on the web. There are many locos that I have bought because I liked the look of them in the shop. Conversely there are an awful lot that I have ordered over the Web and been disappointed. You mention the HVC but similarly a lot of Heritage lines stock Model Railway products which I assume is probably close to the "experience". I don't know if they actually sell many Hornby products that they display. Trouble is most of Hornby products are targeted at enthusiasts that is why they can justify the price, so I don't think that they will change that very easily. Perhaps they should bin the locos and concentrate on "Play Trains" which possibly could have a big market. Never know, perhaps that is why someone retired.

[SteveM6]

We will soon find out what the shop model will be - Hornby announced today that the HVC will close for a couple of months from 17 July for its refit.

No coincidence that they have also announced an ex-display sale for 15/16 July.

[Moccasin]

Hornby have bought 25% of Warlord Games. Could be a good fit for whatever retail presence they’ve got planned, given the popularity of Games Workshop & Warhammer stores and their in-store gaming.

[atom3624]

Possibly to boost the Steampunk sales?

[Moccasin]

Possibly to boost the Steampunk sales?

 

 

Ha! I did idly wonder the same!

[Moccasin]

Warlord also own Skytrex, who manufacture 00 gauge items in resin and offer to act as a manufacturing subcontractor …

https://skytrex.com/collections/oo-gauge

[The son of Triangman]

Hornby having it's own stores is bound to go down like a brick budgie with the trade as it's cutting out the small retailers again. The poor sales growth in the report is a concern with a mere 2.5% as opposed to 10% in 2022, as it shows a big slide in the market. 49.3 gross profit margin seems a bit thin, costs need looking at, a figure around 60 - 65% gross profit margin would be more nearer the mark.

[Moccasin]

Yes the trade are unlikely to welcome Hornby stores/outlets or whatever, even though they’d mostly address very different markets (established/dedicated/experienced for trade vs new/emerging/casual for Hornby).

Will be interesting to see how TT120 changes things since there were only about 3 months of sales in the 22-23 figures, and those were with limited stock.

[What About The Bee]

Good Old Fezziwig

The kind benevolent master of business. Generous to staff. What mistake did Fezziwig make? Fezziwig did not change with the times. He lost his business and fortune, preserving his way of life.

Retail is dying as we know it. The internet is playing an enormous role in this. When Hornby produces a model, does it really matter who you buy it from? Isn't it the same model? I can buy that model from 15 different retailers, or from Hornby themselves. What is the difference? The price?

Decades ago, before the internet, models were only available from retailers. You bought what the retailer had on the shelf or you traveled far and wide, to see what the other retailer had on the shelf. Now, I dial in the product number into Google, from the comfort of home, and have many, many choices, shipped directly to my home.

Ah, you say, but the model shop offered cogent advice and offered repair service. Repair service is a significant differentiator but expert advice is given freely, right here. I am in awe of the expertise, but no model shop is required. Further the advice given here is not targeted at another sale and is peer reviewed.

One complaint I do read about from retail stores is fundamental. They maintain a bricks and mortar store, paying rent, etc. The client comes in and inspects the product. Once the inspection is complete, the client goes right out to the internet, from within the store and price competes it on the very spot, right in front of the clerks. And then the client demands the lowest internet price.

Hornby "experiential" stores could complement the business. Experience the product as a showcase. Buy the product on the internet.

Don't be Fezziwig.

Clinging to the old ways, because it holds sentimental value, is a recipe for bankruptcy. The times are changing Hornby. Bricks and mortar retail is changing. Change with the times.

Bee

[Moccasin]

It must be very frustrating for the traditional stores to have to compete with internet prices and the new TT retailers aren’t as competitive as prices for Hornby club members (which must grate).

While Hornby aren’t in the league of, say, Lego & Apple, both those companies absorb their retail store costs for the greater good of their business. Apple can also use stores for repairs which, for out of warranty devices, can be quite lucrative. Hornby are (currently) generous with their repairs. Lego don’t have that revenue stream though.

Will be interesting to see how Hornby dip into retail.

[Edvard4]

Good to hear about the changing format. I see that the HVC (Hornby Visitor Centre) is now closed for a long refit. I think the timing is odd?? I would have waited until after the summer holidays and then cracked on with it between mid September and early November. I wonder what it will look like ?? Personally I think it should have a repair desk and perhaps a window into the area where the technicians fix things?

I would like to the HVC stocked to the rafters with all products in the range. Oddly at sale times you find things that are "out of stock" .Luckily the HVC is only 30/40 minutes from me so I will get chance to see it. As for up country retail, I did see the Hornby outlet at Swindon, but prices were almost retail then. I think the McArthur Glen outfits would do well, but they need to be filled with end of lines and reduced price stock.

Lastlty, I think its time for some new models. There are some great new aircraft to have in kit form both Civillian and Military. There are new warships and submarines, plenty of new military hardware too. What about the all the new modern cars for Scalextric, Teslars, or a whole range of """" Electric"""" cars or Formula E. The list goes on....perhaps I need to apply for the Marketing Directors role !!!! Happy days...

[Moccasin]

Interesting social media post from Hornby today.

They're asking those near to Margate, or willing to travel, and with specific model railway skills which they would be willing to publicly showcase to get in touch.

It could be something or nothing but I do wonder whether they’re seeking people to give demonstrations of model techniques at the re-vamped Visitor Centre. Part of that experiential retail they are planning maybe?

[SteveM6]

I saw that as well M. Trying to work out if I have anything to offer that they may be interested in.