Special Report Retail
– naturally, this means less disposable
Carpetright was first formed by Lord
Harris of Peckham (pictured) and the
income. Therefore, we as a company
existing senior management team back
have to focus on promoting good value
in November 1988. and service while continuing to look at
fresh options to further improve the
business for the consumer.”
famously predicted the current economic Carpetright’s retail outlets are supplied
downturn before many economic observers. via its main distribution hub in Purfleet,
“The truth is we don’t have a crystal Essex. Harris explains that, previously,
ball, but we have been in business long the company had three separate ware -
enough to see downturns coming before houses and a distribution centre near
they fully arrive,” said Martin Harris. Huntingdon. The Huntington DC was,
“I would say we’re fortunate because however, mainly used for the purpose of
although we always go into any market cross-docking. Harris pointed out that
downturn early we tend to come out of it when the company consolidated its
early too. Two years ago we witnessed storage and distribution operations at
consumer demand slowly coming off the Purfleet a little over a year and a half ago,
pace; it was very gradual and I think the it also set about automating all its core
market will improve in the same way.” processes. By doing so, the company was
Continuing growth strtegy And apart from general market conditions, able to reduce staff levels by 150, while
Harris explains that there are two main also speeding up the whole delivery
Despite such phenomenal growth over
the past two decades, group commercial
director Martin Harris continues to look
for ways to ensure the company achieves
even greater sales volumes through
continuing to open new stores both in
retail parks and in the high streets within
the UK and other suitable countries across
Europe. In the UK alone, Carpetright
stores now total in excess of 600. However,
Harris has learned that less can mean
more in terms of the relationship the
company has with its carpet and flooring
suppliers. “The carpet market has been
completely oversubscribed for many
generations, so we’ve worked very closely
with a small number of suppliers over the
past 30 or 40 years, but have narrowed
the list down to around 15,” he said.
“Some might think this is quite a small
number for the size of business we are
today, but it provides all the variations
in carpet style and price range we need
Carpetright’s retail outlets are supplied
and I think it serves us and our customers economic factors that affect the company. via its main distribution hub in
well.” Harris explained that around 60 “One is our competitors, although we’re
Purfleet, Essex.
per cent of Carpetright’s suppliers are personally fortunate in that our last major
Belgian-based, with about 10 per cent competitor has downsized by 150 stores.
being sourced from Holland and the rest The second economic factor is the level process by nearly five full days. Harris
from the UK. “We tend not to stock from of employment among our customer recollects that when Carpetright acquired
the Far East because of the time carpets base. Unemployment figures are its Purfleet premises, it effectively bought
take to be delivered, plus the fact that increasingly becoming a challenge, with a building shell and little else. “It only had
you have to buy in very large quantities to the official figures nearing 2.5 million – walls, a ceiling, a concrete floor and a few
make it economically viable,” he added. although when you include the long-term struts,” he remembered. “However, this
sick and jobless benefit non-claimants, was converted into office and warehouse
the figure is I suspect more likely to be space very quickly. Ian Woosey, our
Economic factors nearer the 6 million mark. Also on the director of IT, made sure everything
customer front, tracker mortgages are worked from the outset – not just the
Based on his 50-year-long experience in coming to an end, so households that PCs but everything from the lights and
carpet retailing, his father and company have enjoyed the benefit will soon find printers to the kettles and toilets. Ian
chairman, Lord Harris of Peckham, themselves with larger monthly payments arrived on site on 17 December 2007. >>
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