Benchmark 5yr average
1. Home Bargains 2. Al Murad 3. Wilkinson
4. Robert Dyas 5. Wickes 6. Argos
7. Tile Giant
8. Charlies Stores 9. Homebase 10. B&Q
11. The Range 12. Trago Mills 13. Leekes
14. Topps Tiles 15. Toolstation 16. Screwfi x 17. Axminster
18. Gardiner Haskins 19. Taskers 20. B&M
Latest year
2019 THE DIY MARKET SUPPLEMENT
STOCKTURN: HOME BARGAINS WELL AHEAD OF THE PACK
- 1 year
8.4 8.3 7.1 6.1 4.7 5.5 5.8 5.9 6.0 5.3 5.0 5.7 4.3 4.6 4.3 4.2 4.1 4.3 3.9 4.0 3.5 3.4 3.1 3.1 3.3 2.9 3.1 3.2 2.9 3.6 3.0 2.6 2.9 3.0 3.2 3.1 2.9 3.0 3.2 2.9 2.8 2.8 2.8 2.4 2.8 2.6 2.8 2.7 2.3 2.4 2.4 2.1 2.0 2.0 2.1 2.5 1.8 n/a
3.5 3.6
Source: DIY Week analysis of fi led company accounts We attach a lot of signifi cance to the
D
IY Week has always regarded stockturn as one of the critical retail ratios, because it says a great deal about how good the company’s management
are – not just as managers, but specifi cally as retail managers. Too much stock on the shelves is money gathering dust, and too little stock means empty pegs, and disappointed customers taking their business elsewhere. Stockturn is the ‘Goldilocks’ ratio: not too much, not too little, but just right. Home Bargains is obviously the star performer here. A fi ve-year average stockturn of 8.4 times is extremely impressive by any standards, even if the annual fi gures have fl uctuated between 7.1 and 9.5 in order to get there. Al Murad is impressive too, with a fi ve- year average stockturn of 6.1 times – it’s interesting that it should be so far ahead of the other tile specialists in the survey, Tile Giant (3.9 times) and Topps Tiles (2.9 times).
8 DIY WEEK THE DIY MARKET SUPPLEMENT
retailers in third, fourth, fi fth and sixth places in this table. Wilkinson has always had considerable expertise in stock management, and its fi ve-year average stockturn of 5.8 times is well above the average. Moreover,
it is remarkably
consistent in this respect, with individual annual fi gures of 5.9, 6.0, 5.7, 5.8 and 5.6. In other words, Wilko isn’t just good at managing its stock – it goes on being good at it, year after year. The same is true of Robert Dyas:
with a fi ve-year average fi gure of 5.3 times it’s not far behind Wilkinson, and again there is remarkably little variation from year to year. Moreover, it’s worth pointing out that many of the Wilkinson and Dyas stores are in town centre locations with restricted delivery access – it’s not just a matter of backing an artic up to a loading bay. We suspect that at both Wilko and Dyas, there are management personnel in place who have been running the stock operation for quite a while, and who know exactly
-2 years - 3 years
7.4 9.5 6.9 6.7 5.7 5.8 5.3 4.8 4.0 4.2 4.0 4.1 4.4 4.2 3.3 3.6 3.5 3.5 3.6 3.0 3.1 3.3 2.8 3.1 2.9 2.7 3.2 3.0 2.9 3.0 2.8 2.6 2.5 2.1 2.0 2.3 1.7 2.1 4.0
-4 years 9.6
3.9
6.8 5.6 5.7 4.2 4.4 3.3 3.7 3.6 3.0 3.3 3.1 2.8 2.7 3.0 2.3 2.2 2.2 2.2 n/a
what they are doing. And we suspect also that this sort of consistency in stockturn is easier to achieve when there isn’t a constant drive to open new branches; it can’t be a coincidence that Screwfi x and Toolstation are both well down towards the foot of this table. We assume that this is because both of them are continually stocking up new branches which haven’t yet reached their full sales potential. Consistency is the word for Argos, too. Running a retail operation in which the customer can’t see what’s on the shelf must present its own challenges. And Wickes merits a mention as well: not only is it remarkably consistent in stockturn, it also signifi cantly outperforms B&Q and Homebase. Finally, it should be explained that
B&M’s 65-week reporting period in 2013/14 means that we can’t accurately calculate a fi ve-year average stockturn; but its average for the past four years is 3.7 times, suggesting that it should be about half-way down the table.
www.diyweek.net
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