BUSINESS HELPDESK HELP DESK
THE BUILDERS MERCHANT BRANCH OF THE FUTURE
A new BMF report explores the changing buying habits of younger tradespeople. Steve Collinge, MD at Insight Retail Group and the author of the report, explains how shifting needs must transform merchant branches.
THE BUILDERS MERCHANT sector is at a crucial point, shaped by changing customer needs, digital progress, and evolving market dynamics.
For years, merchants have served as the essential link between construction professionals and materials suppliers, but now they face mounting pressure to modernise while maintaining the personal, relationship-focused service that has long been the backbone of the trade. As demand varies, costs increase, and sustainability gains importance, merchants need to reconsider how they stay relevant and deliver value - both in-store and online - to serve a new generation whose business practices differ significantly from those of their current customers. In preparing a research report on the future of the builders’ merchant branch, we visited a variety of branches - from high streets to trading estates - and conducted detailed discussions with a broad range of merchants, building materials suppliers, builders, and related tradespeople. The report examines the differing work styles and buying patterns of customers in their 50s - established in their businesses and familiar with current branch operations - and those in their 30s, who are more likely to base their expectations for service on consumer and online retailers. These two groups show notable differences in their purchasing habits, brand loyalty, use of technology and digital engagement, price sensitivity, and discount expectations - all of which influence their shopping preferences.
For instance, the younger demographic is more inclined
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to shop around, be influenced by online reviews and peer recommendations, and try new brands. They also prefer making just-in-time purchases and are less likely to stockpile materials compared to their older counterparts.
In terms of many current branch operations, the main issues faced by younger trade customers include: • Inconsistent customer experience • Lack of real-time information on stock levels, pricing, and delivery • Limited out-of-hours access • Inconvenient logistics, such as delayed or incorrect deliveries and inflexible delivery windows. One of the merchants I spoke to while researching this report summed up the solution perfectly, saying: “We are in business to make life less difficult for our customers.”
So how can merchants make life easier for millennial customers and those following them? In the branch of the future, convenience will be a key factor - ranging from digital tools to rapid delivery via third-party services, drive-through collections, 24/7 lockers, and seamless click-and-collect options.
Branch support However, there will still be a place for in-branch support. Expertise and advice will remain vital, helping tradespeople select the right products, plan projects efficiently, and stay informed about innovation and sustainability.
The report, exclusively available to BMF members, outlines seven pillars for developing the future branch - concepts that will support merchants’ traditional core while addressing the needs of younger trade customers.
We are not suggesting a concept bordering on science fiction; all seven pillars include ideas that can be implemented within the next few years. These service themes are designed to guide both single- branch and multi-site operations on how to enhance customer experience, foster loyalty, and achieve long-term growth. They are both aspirational and realistic, focusing on Convenience, the Right Range, Expertise & Advice, Payment, Pricing, Discount & Credit, Health, Safety & Wellbeing, Personalisation & Loyalty, and Sustainability & Responsibility. BMJ
• The Builders Merchant Branch of the Future is available free to BMF members, and can be downloaded from https://
www.bmf.org.uk/v2/BMF2/ Services.aspx
www.buildersmerchantsjournal.net November 2025
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