NEWS EXTRA
L-R: MD Jeremy Harris and chairman Mo Iqbal pick up their Fast Track Ones to Watch award
there and far more accessible.” Whilst his former employer Topps has been reassuring investors that it would start clawing business back after another slump in Q3 by introducing exclusive ranges as part of its “Out-Specialising the Specialists” strategy, Mr Iqbal doesn’t believe this tactic will work with today’s consumer. “At the end of the day, it’s a look you want, so you look at customer reviews and feedback and, if you are happy with the price and the product, that’s the one you choose. In tiles, there is no way the exclusive ranges are going to work; not when you are talking double the price.”
Building an efficient model Of course, without the overheads of a store network to contend with, Tile Mountain has the luxury of being able to offer lower prices and Mr Iqbal says this streamlined business model is key to its success. “We are in a position where we can deliver all of that saving into our pricing,” he said. “We are offering a good quality product that is sometimes from the same suppliers as the other tile retailers.” However, he also recognises that there is a demand from some customers to see the products in the flesh; something that has been highlighted by the overwhelming response to the two showrooms Tile Mountain now operates to complement its online offer. “What we have and are trying to build is a very efficient model, with all stock in one place,” he said. “But there are people that definitely want to go and visit a showroom to touch and feel the product and then go home and order. We don’t need as many staff, so it’s not as pricey as running a store. The customer is
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keen on price and we’ve realised that they are happy to travel up to 40 minutes to a showroom for the right price and product.”
He believes the cost of having
premises as retailer in the current climate has doubled, adding: “We are operating in a digital world.” With that in mind, it is important to note the role that technology and data holds within the business and in shaping its expansion, including the roll out of its showrooms. “Data plays a big part in our business and the decisions we make – more so than in traditional retailing, where if you were opening a new store, you would stick your finger in the air and hope for the best,” he laughed. The decision to open Tile Mountain’s second showroom in Stockport was taken in the firm knowledge that there was a high demand for its products in the region. “We were getting a lot of sample requests from the area,” said Mr Iqbal, “so we looked at that data and said ‘south Manchester looks hot for us and it supports the online offer well to have a showroom there’.” He added: “It’s another test for us. If it’s successful, we’ll do some more but we will be very select about the areas we choose. We look at where the search volumes are coming from and that data is really important.” And, it is this data that will ultimately determine the sites of the next Tile Mountain showrooms. The management team has earmarked a target number and Mr Iqbal believes that 15 locations across the UK will capture 80% of the customers the business wants to reach.
“The next 12-18 months are going to be an exciting time for the business,” he said. “We’ve done the data analysis and got the next locations lined up. We will sign
20 JULY 2018 DIY WEEK 9
up for another one this year and it might be that we look to build a new one, which I’d love to do.” He told DIY Week that the Tunstall outlet had been a dream 20 years in the making for him. “Topps didn’t have the desire to do something like that. It’s a labour of love,” he said, describing the showrooms, which he says are double the size of a standard retail outlet and serve to showcase Tile Mountain’s products but also feature a kids’ play area and somewhere customers can sit and have a tea or coffee to discuss their project. “Our showrooms are designed to be inspirational and customers can sit down and talk to someone about what they want. They aren’t a cheap solution – they’re just more efficient and they are an important part of the expansion. It’s the future of selling. He added: “We just need to pop these stores in the right location.” The Tile Mountain business is shaped by technology; something that Mr Iqbal finds both interesting and exciting but admits it is a very different model to the one he was used to working with during his days with Topps and Tile Giant.
“The most amazing thing is how the buying process has changed,” he enthused. “We used to do all of our buying by visiting trade shows and buying tiles that we liked and thought would do well but now it is all based on search volumes on the website. For example, when we saw a huge trend in searches for grey floor tiles, we reacted by expanding our range.”
He also loves the flexibility the e-commerce model allows and says the online theatre makes it far easier to try new things and run experiments. “It’s the first time I’ve ever worked in a business like this. The speed of making decisions has astounded me. In traditional retail businesses before, change is so slow but now, if Jeremy or I think of a wacky idea, it can be in place by the end of the day.”
The business has had another good year and is sharpening its tools, as it works to strengthen its position and become a force to be reckoned with in the tile market. “We’re at the forefront of what customers want,” he said. “We’re trying to accelerate that, so that anyone coming into the sector now will think twice.”
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