Merchant focus: Expansion plans

Merchant focus: Expansion plans

Whilst the disruption that has dominated most of the year continues as the nation maintains its rear-guard action against the coronavirus pandemic, many of the sector’s largest merchant businesses have forged ahead with plans to open new branches through both acquisition and the launch of brand new sites. PBM reports. 

With an uneven series of lockdown measures still in place across the four nations of the UK and a final departure from the European Union close on the horizon yet remaining to be precisely settled, the year has not exactly been easy to navigate. For all the uncertainty, the merchant sector’s relatively strong recovery since the initial easing of measures in the summer has allowed the pause button to be released and expansion plans to be actioned once again.

Focusing on some of the sector’s largest merchant business, there has been a real flurry of activity in recent weeks right across the nation. MKM Building Supplies, for example, has extending its geographic coverage in Scotland through the acquisition of DTC Merchants’ three branches based in Dumfries and Irvine, Ayrshire.

Established by Donald Young, Roger Thomson and Colin Cameron in 2007, DTC has grown impressively and has carved out a first-class reputation in its territory. Donald Young, who has run and driven the growth of the company, will remain with the business for a period of time to assist with the ownership transition.

The acquisition of this high-quality merchant network in the South West of Scotland continues the rapid growth of MKM and expands its geographic coverage still further, and closely follows on from the opening of a further new branch in Scunthorpe in November.

Up to 10 additional jobs will be created in Bristol when Selco Builders Warehouse moves from its Bedminster branch into a new 140,000 sq ft site on Cater Road, Bishopsworth on December 14. The new location will be the largest outlet in the company’s 69-strong UK network and Chief Executive Howard Luft said: “The internal space at Cater Road alone is more than double the size of the old site and there is the added advantage of a huge external yard.”

The new store will host more than 12,500 building supplies and materials, with wider aisles making it easier for customers to shop. Reflecting one of the year’s key developments, the branch will also feature a dedicated Click & Collect area.

Despite the ongoing coronavirus crisis, Selco has also unveiled plans for its first branch opening of 2021 with a new location in Bootle scheduled to open in April and becoming its 70th UK branch. Howard explained: “Liverpool has been a long-term target area and we are delighted that we will be bringing that to reality next year.

“The coronavirus crisis has been an extremely challenging period for the entire country and it’s been no different for us at Selco, but we are determined and excited to keep moving the business forward.”

The year’s unpredictable trading conditions have equally not dampened the outlook of Williams Trade Only Plumbing and Heating Supplies which was set to open the doors to its 39th branch, in Poole, on 1st December. Despite the unprecedented challenges, the independent merchant has retained all its branches and maintained its ambitious plans for substantial further growth.

This latest branch to open in the South West joins the firm’s ‘huge’ Bristol regional fulfilment centre and trade counter which opened in 2019. MD Ray Stafford commented: “Poole is the first in our next wave of branch expansion, which will include locations in Wiltshire, Buckinghamshire, Oxfordshire, Bedfordshire, Essex and Hertfordshire in addition to Dorset. These additional sites will be supported by further investment in our second distribution centre, which will be created by the expansion of our current site at Milton Keynes. This expanded distribution facility will come online early in 2021.”

Lastly, and continuing its own ongoing ambitious expansion plans, Huws Gray Group has acquired Leeds-based Milford Building Supplies. Milford was established 41 years ago from a single site on Cardigan Road in Headingley and the business grew steadily through the 80s and 90s with a second site on Skinner Lane in the Mabgate area of the city acquired in 1997.

This acquisition is the first in the Leeds area for Huws Gray and significantly strengthens the company’s presence in Yorkshire. Matthew Owen, the Group’s Head of Acquisitions, said: “We are delighted to be actively on the acquisition trail again, and optimistic about the future.”

National Timber Group has launched a new division named ‘National Timber Systems’ to supply trussed rafters, gable and party spandrels, engineered joists, floor and roof cassettes as well as the innovative NYTROOF rapid fit ‘room in the roof’ system. The new brand will combine the design, manufacturing, and logistic capabilities of National Timber Group’s existing portfolio — which have been previously provided through Arnold Laver and NYTimber — to create one high-quality national offering.

Newly-appointed MD Nick Kershaw previously led NYTimber and founded its engineered wood products division in 2010, successfully diversifying the business and creating a new £10m revenue stream. He said: “I’m really excited about the new division and what we will be able to offer our customers in the future.”

The new Chandlers Roofing Supplies branch in Guildford is said to be the largest of its kind in the region. Following a multi-million pound investment, the 17,500 sq foot flagship branch in Peasmarsh uniquely features a ‘drive thru’ facility whilst the “huge new warehouse and equally large yard” can stock in excess of 600 roofing products.

This latest branch joins the newly opened Leatherhead branch whilst a further new branch is set to open in Rye, East Sussex and will bring the number of Roofing Supplies branches in the group to nine, operating from the Midlands to the South East.

AVS Fencing & Landscaping Supplies, which became part of Lawsons Holdings back in February, has acquired West Sussex-based Bell Davis with its site in Worthing becoming the eleventh AVS branch in the south of England.

AVS MD Roger Peace said: “We are delighted to acquire this longstanding business, extending and enhancing our ability to serve customers with high quality fencing and landscaping products.”

A version of this article originally appeared in PBM’s December edition. Please click here to read the full issue online.

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