NEWS EXTRA
SCREWFIX WINS WITH CONVENIENCE
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s has become the norm, Screwfix delivered a stellar performance in Kingfisher’s latest H1 results. Sales
were up 18.7% to £727million, offsetting declines in the B&Q business, with like-for-like figures up nearly 12%. The roll out of trade counters has continued at a pace, with 16 opening in the first half of the financial year and the business “on track” to hit its targeted 60 new openings by the end of the year, said Screwfix marketing director Graham Smith, who added: “just as we have done over the past three, four, five years.” Speaking to DIY Week at the fifth annual Screwfix Live event, Mr Smith said the business was in a great place and had a lot of growth still to enjoy.
He echoed the sentiments of the official Kingfisher report which attributed the solid sales performance to strong growth from Screwfix’s specialist trade desks, which exclusively serve
plumbers and electricians, but added that click and collect has also been particularly strong. “It’s our fastest-growing channel,” he said. Screwfix has, for some time, been ahead of the game with its logistical efficiency, speedy delivery and click and collect service, now taking the wait time down to just one minute of ordering. As a result, the retailer saw a 47% increase in sales via this channel during the half. Explaining how much Screwfix’s customers value the service, Mr Smith said: “The fact that we can have a customer sitting having their lunch in their van, place an order and have it ready as soon as they’ve finished…what could be more convenient than that?”
Digital drivers Screwfix has put a lot of focus on creating convenience for its busy customers – the majority of which are professional tradesmen – and has invested a lot in expanding its digital capabilities, most recently creating a brand new app. “Mobile is the fastest-growing
sector,” said Mr Smith of the channel which delivered an increase of 124% last financial year and has already grown 109% in H1 FY 2017/18. Discussing the thinking behind the app, he continued: “We understand that our customers’ shopping habits are changing so we want to be there for them however they want to get in touch with us. “We offer next-day delivery, same- day delivery, click and
collect...the app allows them to use Craigslist and they can pull up their old orders and receipts. We’re trying to meet their needs and make it easier for them to complete their jobs. We listen to our customers and what’s important to them.”
And this, Mr Smith believes, is the secret to Screwfix’s success. With increasing competition from retailers, including the likes of Bunnings, now targeting the valuable trade customer, Screwfix works hard to make sure it offers more than just the right products. It strives to ensure it operates a tight ship in terms of efficiency and product availability, and is constantly looking at ways to makes it is offering a level of convenient service that its customers, which also include serious DIYers, have now come to expect. “We’ve all targeted the trade,” said Mr Smith, “but we think we have a great proposition for them. We work hard to talk to our customers and match their needs. We are here to help the, get their jobs done quickly, affordably and right the first time.”
International expansion It is therefore, little wonder that Screwfix has taken its winning formula overseas. Screwfix opened its first stores in Germany in 2014 in the Rhine-Main area and now operates 19 trade counters in the country. The cost of set up was the main contributor to Kingfisher’s
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international £15million retail losses during H1 this year but the format is certainly expected to deliver. Mr Smith said of the German offer, which he believes plugged a gap in the market: “We want our German customers to have the same shopping journey. We really wanted to keep it as close to the UK version as possible. It really is a different way for customers to shop over there. There’s not another model that’s as close to us.”
He continued: “We brought German tradesmen over to the UK to look at Screwfix. Once they got it, they absolutely loved it. They’re used to shopping in bog box stores.” And how do customer needs and wants differ between the two European countries?
“All tradesmen want the same thing,” said Mr Smith. “They want quality product on time – and convenience. Time is money; if you’re not working, you’re not earning.” And expansion is still underway at home. Despite having 534 trade counters under its belt in the UK, Screwfix still sees plenty of opportunity for new branches across the country. In March this year, announcing its full-year results, parent firm Kingfisher revealed it had upped its overall target for Screwfix outlets in the UK and Ireland from 600 to 700. “Across the UK and ROI 90% of households are within a 20-minute drive of one of our counters,” said Mr Smith, “but we still think there’s plenty of scope for expansion,” adding that the group is looking at a variety of locations and different footprints. For now, it’s full steam ahead at Screwfix, with the company set on increasing access to the brand both in the UK and abroad. If the year continues in the same
way, we can expect another set of solid results from Screwfix when Kingfisher announces its H2 figures.
13 OCTOBER 2017 DIY WEEK 5
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