Dulux Decorator Centres UK
Anne Tattersall, Head of Commercial,
DDC
8th May 09
Outline
– Turnover & Profitability
– Network Development
– Operational Excellence
– Supplier Management
– Category Management
– Price Architecture
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Symposium
Dulux Decorator Centres
• 190 Stores
• £150m turnover
• 1200 employees
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Symposium
Split by Channel & Category
Channel Split
Premium Credit
Premium Cash
Contract Direct
Factoring
Paint
Woodcare
Category Split
Accessories
Wallcoverings
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Symposium
DDC Efficiency Measures
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Symposium
•
Efficiency Measures
2008 Average
•
•
•
•
•
•
Credit collection – Days sales outstanding
Stock turn
Stock availability – PDS
% of slow moving stock
Sickness absence rate
Manpower costs (% sales)
52.1days
•
Cost Base
% of sales
•
•
•
•
•
•
•
Stores manpower
Stores property & dep’n
Other direct stores costs
11.5%
6.5%
6.0%
Total direct stores costs
Head Office costs
Total costs
24.0%
7.0%
31.0%
8.3 times
99.0%
1.9%
2.5 days
11.5%
Network Growth & Development
Acquisition & Greenfield Sites
Fazeley
Fazeley
Wolverhampton
Wolverhampton
Distribution Strategy
Willenhall
Willenhall
Walsall
Walsall
Bilston
Bilston
Wombourne
Wombourne
Objective: Share Optimisation
TIPTON
TIPTON
PERRY
PERRY BAR
BAR
Erdington
Erdington
West
West Bromw
Bromwich
ich
Dudley
Dudley
CASTLE
CASTLE
BROMWICH
BROMWICH
Smethw
Smethwick
ick
• Regional brand share
Kingsbury
Kingsbury
Sutton
Sutton Coldfield
Coldfield
Birmingham
Birmingham
Coleshill
Coleshill
HARBORNE
HARBORNE
Stourton
Stourton
Harborne
Harborne
Stourbridge
Stourbridge
Edgbaston
Edgbaston
HALESOWEN
HALESOWEN
• Mapping
SOLIHULL
SOLIHULL
BOURNEVILLE
BOURNEVILLE
Solihull
Solihull
• Competitor review
Strategic Acquisition
Greenfield's: Low cost model
DDC - No. of Stores
200
175
150
125
100
2003 2004 2005 2006 2007 2008
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DDC Refurbishments
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DDC Refurbishments
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Operational Excellence
• Category Management
•Category segmentation & strategy
•Customer focused ranging
•Take advantage of new opportunities
•Data modelling & customer & store input
•Visual merchandising
• Supplier Management
•Consolidation
•Sustainability
•Service expectations
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Range Reviews: Supplier Rationalisation
No. of
Suppliers
2005
2006
2007
140
120
100
80
60
40
20
Preparation
Products
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Preparation
Equipment
Application
Finishing &
Cleaning
Wallpapering
tools
Range Reviews: SKU Rationalisation
2005
No. of
SKU’s
2006
2007
1600
1400
1200
1000
800
600
400
200
Preparation
Products
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Preparation
Equipment
Application
Finishing &
Cleaning
Wallpapering
tools
Category Segments
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Category Strategy: Segments & Roles
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Category & Strategies
which…..
Convenience
Map to Specific Tactics
Turf
Defending
Assortment &
Range Reviews
Traffic
Building
Pricing
Image &
Excitement
Creation
Preferred
Occasional/Seasonal
Destination
Category Roles Determine…..
Merchandising
Profit
Generating
Promotion
Transaction
Building
Service
Image
Enhancing
Sourcing
Visual Merchandising
•Bringing category strategies to life in store:
•Sales & margin aspirations
•Footfall measures
•Product availability
•Ease of purchase
•Help customers understand the proposition
•Trade up
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Understanding Hierarchies
BEST
BETTER
GOOD
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The Benefits
• Stock turn improvement
• Increased efficiency through reduced products &
suppliers
• Increased margin through cost reduction
• Increased sales through clarity / choice
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Understanding Hierarchies
SOLVENT USAGE
4”
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9”
WATER-BASED USAGE
4”
9”
Zonal Merchandising
General Fixing
Knives & Blades
HD Tools
Scraping
Measuring
Accessories & Kits
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Promotional Merchandising
•
•
•
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Right Product / Right Quantity / Right Site
Linked purchase opportunities
Link POS message and displays
Clear & easy to understand communication
to stores & our customers
– Quality briefing
– Consistency of display & message across all stores
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Promotional Merchandising
Clutter Free
Promotional
Areas
Impactful &
Inviting
Displays
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Summary
• Network Development
• Operational Excellence
• Differentiation
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