Leading Edge Group makes changes to operating model

Leading Edge Group, Australia’s largest retail buying group, has initiated changes in its operating model, effective October 1.

This follows an 18-month review in whether it provides sufficient support for its 900 independent retail members and suppliers.

The group’s members include entertainment, with Leading Edge Music buying and marketing 50 independent retailers.

Some operate under the Leading Edge brand, others like Sydney’s Red Eye Records and Brisbane’s Rocking Horse Records do not.

The Leading Edge Group’s other verticals include electronics, computers, appliances, auto-electrical, digital cameras, phone repairs, jewellery and books.

The review found that the group remained effective in delivering a traditional buying group function.

But it needed to provide a wider range of support to members in the current retail environment.

The greatest challenges faced by Australian independent retailers are: the competition from other bricks and mortar retailers as well as online retailers; delivering an effective digital strategy; margin pressures; driving in‐store foot traffic; and finding the time to meet the overwhelming demands of running a small business.

The new model will address these.

“The new model will enhance the current Buying Group function through improvements to the way we work and introducing additional services in marketing, retail operations, training and HR,” said Struan Abernethy, Leading Edge Group’s group CEO.

“First and foremost, we needed to break down the siloes that we had within the business to enable our category team to focus on their core Buying Group responsibility and bring in experts to deliver these additional services,” he said.

“The restructure sees the responsibility of marketing, customer service, member recruitment, operations and conferences taken away from the category team and given to a newly formed Retail Services team.

“The category team now has the one and only focus of developing beneficial buying relationships between our members and supply partners,” Abernethy continued.

Other changes include the introduction of in‐field Relationship Managers, a Customer Service team and Conferences & Events team, along with enhanced Marketing, Retail Operations and HR teams delivering additional services to members and supply partners.