BUSINESS HELPDESK HELP DESK
IOBM LOOKS INTO THE FUTURE OF MERCHANTING
The Institute of Builders Merchants held a Branch of the Future event to investigate how changes to the market and customer needs is to going to affect merchant career paths.
THE BMF’S ‘MERCHANT Branch Of The Future’ report, compiled by Steve Collinge, managing director of Insight DIY, and co-sponsored by L.E.K. Consulting, looks at how the market is changing, and provides a possible framework for how branches might evolve in the future. The event aimed to allow IOBM members to learn more about possible directions the sector could move in, and how they can best adapt, and harness those changes to the betterment of their careers. Collinge looked at changes to customers, and the way the market operates, splitting the builder’s merchant’s customer into two distinct types. Mick, a 50-something builder, who values service, visiting the merchant branch, and stays relatively loyal to brands, and David, a 20-something kitchen fitter, who values delivery to site, convenience and keen prices over brand loyalty. The report, Collinge explained, is broken down into seven Pillars: Convenience: Fast ordering, real- time stock visibility, and flexible delivery to make the branch an indispensable partner. The Right Range: A well-balanced product range so customers find what they need, when they need it. Expert Advice: Trained staff and accessible expertise adds real value. Payment, pricing and discounts: Transparent pricing, tailored discounts, and credit facilities. Health & Safety & Wellbeing: Strong practices reduce risk, and create a culture of trust. Personalisation and Loyalty: Data-driven recommendations and tailored rewards drive repeat business and long-term loyalty. Sustainability and Responsibility: Reducing carbon, recycling, and responsible sourcing align merchants with customer and community values.
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shrinkage and theft, highlighting the need for better systems, and new layout planning.
Collinge highlighted the rise of Click & Collect options, explaining the very real customer requirements behind it. “It fits the lifestyle and work patterns of tradespeople,” he said. “They aren’t at home to receive deliveries, so they prefer collecting items from branches. It also gives them the certainty of knowing what they have ordered will be there, in stock. Plus, if there’s a problem, if the order is wrong, it can be dealt with straight away, by a person.” The report highlights that customers now expect seamless, rapid, frictionless service, similar to their experience outside of their work lives.
“Merchants need to start thinking about how they will operate across multiple areas: last-mile delivery, range expansion, digital capability, branch operations, pricing and payment, health and safety, and data-driven personalisation,” Collinge said.
Price consistency will be more important in the future, the report suggests. Mike, the traditional builder, may be willing to pay a bit extra because he’s loyal to his usual merchant. Younger, digitally savvy customers will constantly price- check and expect transparency. Which means merchants will need to balance offering prices to attract the younger, newer tradespeople with maintaining their margin. Collinge pointed out that during COVID, when customers were not allowed into yards, accident rates fell dramatically, as did
He added that, while technological change will reshape how merchants are likely to operate, the fundamental nature of construction won’t change soon. Buildings still require people and materials to build them, something that will protect the industry’s long-term relevance. However, the process
of buying, delivering, and managing materials will change dramatically. The future merchant branch will be faster, smarter, safer, and more customer-centric. Branches must move away from a “stock and hope” strategy toward a proactive, strategic model with digital integration, data-driven decision- making, and personalised service. Collinge said: “This isn’t about excluding customers like “Mike,” who prefers the classic counter experience. Merchants must cater to both traditional and next- generation tradespeople. Customers are increasingly expecting digital convenience. Younger tradespeople entering the workforce have grown up with one-click purchasing, real-time tracking, and instant information. Branches in the future must reflect these expectations.” Merchant staff roles will evolve significantly over the next few years, not decades. Staff might evolve into rapid fulfilment specialists, and branches are likely to need people who can analyse processes, and streamline movement of goods. Collinge said transport
management will evolve too. “Modern logistics dashboards can show real-time driver location, optimise routes, and update customers automatically. This reduces wasted time, phone calls, and errors.”
Stock ordering, promotional planning, replenishment, new product launches, and customer engagement will all be supported by digital tools. Staff must be trained not just to use the tools but to understand data interpretation and how to improve operations. Collinge said: “The requirement to change, change what we do and how we do it, a branch level, head office level, both from a supplier and merchant retail perspective, is really, really important.” He also pointed out that the Builders Merchant Branch of the Future report is just that, a report, a look at how things are changing and what might happen. “It’s not a prescription, nor a template that merchant branches need to adopt. Things are changing and this is a way of helping merchants navigate and succeed in this sector.” BMJ
www.buildersmerchantsjournal.net December 2025
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