Sell Side Analyst Trip – 12-10-12
Screwfix Targets the Small Tradesman
Main Shopping Mission is Convenience
Key Factors : Locations, Availability, Speed
Typical Trade Counter Model
Performance First
Half 2012 :
Total Sales Growth +8.9%
With strong cost control and
improving gross margins
Giving strong profit growth
+19.1%
And among the highest
returns in the group
Deep Understanding of Customers through Data
Trade Universe
You are what you buy
Leading Edge Multi Channel Systems & Capabilities
Order via …
Single view
of the customer
Telephone
(Voice)
Mobile
(iPhone,
App or
SMS)
On-line
Store
(Stocked)
Store
(NonStocked)
EDI e.g.,
B2B
Pick up
from store
stock
(Warehouse)
External
supplier
delivery to
home
Tailored UI’s
Fusion Platform
Order & delivery
in any channel
Flexible & modular
Fulfillment options …
Deliver to
home
Deliver to
store
Next day
Next day
Click or
call and
pay collect
in store
Three
minutes
Pick up
from store
display
Now
Three
minutes
7–14 days
Leading Edge Logistics Infrastructure and Systems
White label
Range control
Flexible routes to
customer
Unique and Flexible Store Model
Stock room
size
Front of store
size
1400 sqft,
a
10k
Large
ft2
0 skus
2 800 sqft,
700 impulse
skus
18k skus
3
b
5k ft2
Small counter
3k skus
Small ranged
"best sellers"
11k skus
4
c
3k ft2
Medium
Multiple Counters
Standard counter
2k ft2
Standard
Add-ons
5k ft2
5k skus
Showroom
Medium
ranged
7k skus
5
d
c2k ft2
c4k skus
Small
10k ft2
7.5k skus
Large
ranged
Other ?
Constant Business Model Evolution - Segmentation
Now over 80,000 members
Has gown by over 18,000
members this year so far
Constant Business Model Evolution - Segmentation
Now over 65,000 members
Has grown by over 17,500
members this year so far
Constant Business Model Evolution – Store Segmentation
Combined physical
Plumbfix and Electricfix
Specialist service
Constant Business Model Evolution – Size Optimisation
Small Format Opportunity
1 London
2
3
2 Urban
3 Suburban
4 Market town / rural
1
4
Constant Business Model Evolution – Size Optimisation
Less space
Less investment
Less running cost
Constant Business Model Evolution – Segmentation in Small Store
Combined physical
Plumbfix and Electricfix
in small format counter
Constant Business Model Evolution – Model Aided Other Group Growth
TradePoint evolution
helped by Screwfix model
Constant Business Model Evolution – Work Wear Trial Store
Constant Business Model Evolution – Bathroom Trial Store
Constant Business Model Evolution – Screwfix Plus
c2,000 Sq Ft
front end
New categories
Shops within shop
Constant Business Model Evolution – Screwfix Plus
Shops within shop
Screwfix has the highest
direct import participation in
the group at 29%of Sales
Constant Product Evolution – Group Trade Brands
Constant Product Evolution – Group Trade Brands
New range launched in Screwfix and Brico
Common range sales +40% Retail prices -20%
Cash margin +60%
Being extended to other products
Constant Product Evolution – Group Trade Brands
New range launched in
Screwfix
Pilot SKU’s launched in
Brico
Initial results exceeding
expectations
Screwfix leader in group in
Multi Channel Retailing
Web traffic up over 40% year on year
Mobile traffic up over 300% year on year
Unique Click & Collect Service
20,000+ Orders a Week
Real Time Stock on Every SKU in Every Store
Order On Line
Collect in 3 Minutes
Dynamic
Recommendation
Increases
conversion by
62.9%
Predictive search used on 38%
of orders
Drives higher conversion than
free searches
Online shops
Driving 55%+ increase in
sales in these categories
year on year
We send out over 5 million e-mails per week
And we are collecting c13,000 more e-mails each week
Mobile and Tablets now core to
offer
Mobile now generates more
sales than our biggest trade
counter
Mobile Phones 16% of Traffic
Tablets 10% of Traffic
Mobile Site same functionality
as main site
E.G.
Click & Collect
Algorithmic content
Video’s
70% of mobile orders are for
Click & Collect
Over 54,000 Product
Reviews
50% of Reviews 5/5
Average Score 4/5
Onsite Forum
YouTube Video Site
486 YouTube video’s with over
875,000 views
On site forum over 63,000 members
Social Media
Very active Facebook community
Implications for Group Multi Channel
Screwfix capability & experience
being used on delivering strategic
group multichannel platform
(Project Darwin)
Darwin, will build a market leading
e-commerce, mobile and assisted
selling capability in store, using
web based technology
Implications for Group Multi Channel
Initially a B&Q project, but
being built in such a way
as to be reusable by other
op co’s
TradePoint first
implementation of Group
Multi Channel Platform
1st Qtr 2013