INDUSTRY INSIGHT


EXPANSION STILL ON THE CARDS FOR UK BUSINESSES


British businesses are still looking to expand despite economic uncertainty and the belief by some that the UK will be poorer post Brexit


Brexit was the second highest concern with 28% saying they were most concerned by restriction on EU goods and services and 20% concerned by the restriction of free movement of people; 10% of businesses were worried about the impact of rising inflation.


uncertainty and the belief by a significant minority (41%) that the UK will be poorer post Brexit. These are the key findings of a major survey of 2,700 UK businesses, including large corporates as well as high-growth businesses, carried out by serviced office provider Office Space in Town. In fact, the biggest threat to this expansion is cybercrime and other fraud outweighing other macro concerns such as inflation and leaving the EU.


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Much of this expansion has been playing out in the news, with Kingfisher’s star performer Screwfix rolling out new trade counters across the UK at a significant rate and setting out plans to up its estate from 534 to 700 locations. Speaking to DIY Week in September, marketing director Graham Smith said business was “on track” to hit its targeted 60 new openings by the end of the year, just as the chain has done every year for the past few years. “We still think there’s plenty of scope for expansion,” said Mr Smith. Meanwhile, B&M has not slowed its pace and is rapidly expanding its discount empire, opening 53 new


12 DIY WEEK 24 NOVEMBER 2017


ost businesses (69%) responding to a survey said they are still looking to expand despite economic


stores in FY2017 and already 20 deep in its target for 50 in FY2018. The retail group, owned and run by the Arora brothers, Simon and Bobby, doesn’t seem to be letting any economic fears slow down its expansion plan, recently acquiring the 251-strong discount chain Heron Foods and announcing a new UK target of 950 B&M stores – a huge step up from its current 572 outlets. Added to the list of retailers busy


growing their estate is The Range, which will have opened 23 stores by the end of the year and launched a new concept of stores in Cornwall, DFS with its recent acquisition of Sofology, and Oak Furnitureland, whose UK expansion programme has seen it open a new outlet each month for the past three years. And, it’s not just the multiples that are on the expansion trail: Covers Builders Merchant invested in a new-look Home Ideas store Chichester last month, Trago Mills opened a £3.5million build centre (pictured above), Whitehall Garden Centre acquired Woodborough Garden Centre to grow its portfolio to three centres, Coleman’s Garden Centre unveiled a new £5 million garden centre in Templepatrick; and Tool Shop has secured two new London units and committed to growing the business from 11 outlets to 15 by Easter. With this much growth in the


sector, it is an encouraging sign, and little wonder that the DIY Week Awards features a Business Expansion category. Of course, there are some businesses such as B&Q who are busy rationalising space in the UK, and we have news this week of Taskers restructuring its retail and distribution business, closing three sites; but the survey suggests the majority of businesses are still in ‘expansion mode’.


Cybercrime a threat to growth Cybercrime and other fraud came out as the main concern for UK businesses, with almost 40% believing this would be the most significant threat to their growth.


In light of continuing economic uncertainty, 44% of UK businesses intend to make the largest cuts to their office costs rather than making significant reduction to the size of their workforce. Only 17% of UK businesses intended to actively cut salaries, recruitment or bonuses. Office Space in Town CEO Giles Fuchs comments: “Businesses are still in expansion mode despite the twin threats of Brexit uncertainty and a rising interest rate environment. But it is also significant that cybercrime fraud is rated as a higher threat than the consequences of leaving the EU. “Against this backdrop, companies are sensibly looking, not to trim their workforce but to make cuts in other areas such as reducing their fixed office costs in favour of more flexible arrangements such as those offered by serviced offices where they get a high standard of facilities and services combined with a low cost arrangement. In an uncertain economic climate this is ideal”.


Retailers, are you continuing to grow and move your business forward despite economic uncertainty? Tell us about it and enter the DIY Week Awards at www.diyweekawards.net


www.diyweek.net


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