Combined Independents Holdings (CIH) – the electrical buying group which owns Euronics – has announced a significant change to its contribution structure, which it says will make joining more accessible for independent retailers.
Effective from this month, CIH will significantly reduce the upfront cost for new members by lowering the contribution requirement from their first year’s annual turnover.
Under the new policy, this contribution is now less than 1%, marking a sharp decrease from the previous contribution benchmark of around 8%.
CIH believes the move will open the door to a broader range of large and small retailers, who will now be able to access the benefits of being part of the electrical buying group.
Along with the contribution change, CIH also announced a revision to its internal share policy, with existing members now receiving an additional seven shares each from April 1.
According to CIH, this new structure will not only make membership more affordable but will also strengthen the group’s overall position in the market. The buying group said these changes will enable it to grow its membership base, increase buying power, and enhance shareholder value for existing members.
“These are significant steps forward for CIH and its membership,” commented Harry Kyriacou, recently appointed CEO of CIH. “We will be able to encourage more retailers to access the range of services, benefits and exclusive ranges that CIH membership provides.
“This will allow us to build on our current level of 435 members and over 600 stores across the UK. The changes will also benefit existing members and set CIH on an exciting path for additional investment and expansion.”
Mike Perrett, Credit Manager at CIH, also added: “These important changes put CIH in a strong position for future growth. This transformation is supported by existing stakeholders who will also retain oversight and control on membership applications through our regional groups, to ensure the quality standards and service levels provided by CIH members remains high. We are looking forward to the future”.