Dulux Decorator Centres UK Anne Tattersall, Head of Commercial, DDC 8
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 Amsterdam Licensee Symposium Dulux Decorator Centres • 190 Stores • £150m turnover • 1200 employees Amsterdam Licensee Symposium Split by Channel & Category Channel Split Premium Credit Premium Cash Contract Direct Factoring Paint Woodcare Category Split Accessories Wallcoverings Amsterdam Licensee Symposium Amsterdam Licensee Symposium DDC Efficiency Measures Amsterdam Licensee 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 Amsterdam Licensee Symposium DDC Refurbishments Amsterdam Licensee Symposium DDC Refurbishments Amsterdam Licensee Symposium 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 Amsterdam Licensee Symposium Range Reviews: Supplier Rationalisation No. of Suppliers 2005 2006 2007 140 120 100 80 60 40 20 Preparation Products Amsterdam Licensee Symposium 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 Amsterdam Licensee Symposium Preparation Equipment Application Finishing & Cleaning Wallpapering tools Category Segments Amsterdam Licensee Symposium Category Strategy: Segments & Roles Amsterdam Licensee Symposium 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 Amsterdam Licensee Symposium Understanding Hierarchies BEST BETTER GOOD Amsterdam Licensee Symposium The Benefits • Stock turn improvement • Increased efficiency through reduced products & suppliers • Increased margin through cost reduction • Increased sales through clarity / choice Amsterdam Licensee Symposium Understanding Hierarchies SOLVENT USAGE 4” Amsterdam Licensee Symposium 9” WATER-BASED USAGE 4” 9” Zonal Merchandising General Fixing Knives & Blades HD Tools Scraping Measuring Accessories & Kits Amsterdam Licensee Symposium Promotional Merchandising • • • • 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 Amsterdam Licensee Symposium Promotional Merchandising Clutter Free Promotional Areas Impactful & Inviting Displays Amsterdam Licensee Symposium Summary • Network Development • Operational Excellence • Differentiation Amsterdam Licensee Symposium
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