NEWS EXTRA THE BRANCH OF THE FUTURE IS TOMORROW
Steve Collinge, group managing director of Insight Retail Group Limited, shared insights into what the builders merchant branch of the future will look like.
INSIGHT RETAIL GROUP managing director Steve Collinge spoke at the BMF Annual Members Day Conference, highlighting the most important elements that the industry needs to consider moving forward.
He said: “For years, merchants have been the essential bridge between construction professionals and material suppliers; now they face increasing pressure to modernise, while preserving the personal, relationship-driven service that has long been the foundation of the trade.”
Collinge explained that, as demand fluctuates, costs rise, and, as sustainability increases in importance, merchants must rethink how they remain relevant, and provide value, in-store and online. “Over the years, there has been a fundamental shift in buying power,” he said. “Once, brands decided which retailers and merchants stocked their products. Then, following a growth in the power of merchant brands, they were the ones to decide which products and brands to sell in their branches. Now, with online prevalence and ease of delivery, the tradesperson themselves decides what and where they want to buy.”
The average age of the typical builder’s merchant’s customer is 53, according to BMF data; that of the typical customer of TradeKart, the app-based delivery service, is 30. Colling said: “These are two very different customer bases. The sole reason we are in business is to make life less difficult for our customers, and with a new generation of professionals entering the industry, it becomes a balance of appealing to the next generation while not neglecting your loyal customers.” He said that merchant customers tend to stick to well-known brands, (for example, DeWalt, Makita, British Gypsum) and prefer in-store visits to stockists they have used for years. They value relationships with in-store staff, and are more likely to buy in bulk, stockpiling materials for future jobs. They expect trade
discounts based on loyalty and bulk buying, and prefer traditional credit accounts with merchants. “Younger installers however, are more open to try new brands, especially if price and reviews are good. Shopping around for the best deals, often comparing prices and reviews online. They prefer to buy materials just in time rather than stockpiling, and expect quick quotes, digital invoices, and online credit accounts, willing to use buy now pay later options. They expect fast service, next-day or same-day delivery (click & collect). Visit stores less often, and are less understanding of lead times.” According to Collinge’s research, the pain points of younger customers include: long waits at trade counters, comparatively limited and inconsistent product availability across branches, service levels being dependent on individual staff knowledge, a lack of real time information, poor digital visibility of stock levels, limited out of hours access, with few self-service or 24/7 options, and unclear, inconvenient or inflexible delivery windows. Thus, Collinge suggests that the Seven pillars of the builders merchant branch of the future should be:
Service - Fast ordering, real- time stock visibility, and flexible delivery to make the branch an indispensable partner. Availability - A well-balanced product range so customers find what they need, when they need it Practical Knowledge - Trained staff and accessible expertise adds real value beyond the transaction. Flexibility - Transparent pricing, tailored discounts, and credit facilities. Safety - Strong practices protect people, reduce risk, and create a culture of trust.
Understanding customers - Data-driven recommendations and tailored rewards drive repeat business and long-term loyalty. Green and ethical growth - Reducing carbon, recycling, and responsible sourcing align merchants with customer and community values.
Collinge concluded: “During my research, I kept trying to find the thing that says ‘years from now, we’ve got to do this, that and the other’, but none of it was for the future, it was all achievable, and all relevant for now. The builders merchant branch of the future is not 10 years from now, It’s tomorrow.” BMJ
October 2025
www.buildersmerchantsjournal.net
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