Dulux Decorator Centres UK Anne Tattersall, Head of Commercial, DDC 8 th May 09.

Dulux Decorator Centres UK

Anne Tattersall, Head of Commercial, DDC

8th May 09

Amsterdam Licensee Symposium

Outline

– Turnover & Profitability

– Network Development

– Operational Excellence

– Supplier Management

– Category Management

– Price Architecture


• 190 Stores• £150m turnover• 1200 employees

Dulux Decorator Centres


Split by Channel & Category

Premium Credit

Premium Cash

Contract Direct

Factoring

Paint

Woodcare

Accessories

Wallcoverings

Channel Split

Category Split


DDC Efficiency Measures• Efficiency Measures 2008 Average• Credit collection – Days sales outstanding 52.1days• Stock turn 8.3 times• Stock availability – PDS 99.0%• % of slow moving stock 1.9%• Sickness absence rate 2.5 days• Manpower costs (% sales) 11.5%

• Cost Base % of sales• Stores manpower 11.5%• Stores property & dep’n 6.5%• Other direct stores costs 6.0%• • Total direct stores costs 24.0%• Head Office costs 7.0%• Total costs 31.0%


Network Growth & DevelopmentAcquisition & Greenfield Sites

DDC - No. of Stores

100

125

150

175

200

2003 2004 2005 2006 2007 2008

CASTLECASTLECASTLECASTLECASTLECASTLECASTLECASTLECASTLEBROMWICHBROMWICHBROMWICHBROMWICHBROMWICHBROMWICHBROMWICHBROMWICHBROMWICH

SOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULL

PERRY BARPERRY BARPERRY BARPERRY BARPERRY BARPERRY BARPERRY BARPERRY BARPERRY BARTIPTONTIPTONTIPTONTIPTONTIPTONTIPTONTIPTONTIPTONTIPTON

BOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLE

HALESOWENHALESOWENHALESOWENHALESOWENHALESOWENHALESOWENHALESOWENHALESOWENHALESOWEN

HARBORNEHARBORNEHARBORNEHARBORNEHARBORNEHARBORNEHARBORNEHARBORNEHARBORNE

Smethw ickSmethw ickSmethw ickSmethw ickSmethw ickSmethw ickSmethw ickSmethw ickSmethw ick

BilstonBilstonBilstonBilstonBilstonBilstonBilstonBilstonBilston

BirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirmingham

ColeshillColeshillColeshillColeshillColeshillColeshillColeshillColeshillColeshill

DudleyDudleyDudleyDudleyDudleyDudleyDudleyDudleyDudley

EdgbastonEdgbastonEdgbastonEdgbastonEdgbastonEdgbastonEdgbastonEdgbastonEdgbaston

ErdingtonErdingtonErdingtonErdingtonErdingtonErdingtonErdingtonErdingtonErdington

FazeleyFazeleyFazeleyFazeleyFazeleyFazeleyFazeleyFazeleyFazeley

HarborneHarborneHarborneHarborneHarborneHarborneHarborneHarborneHarborne

KingsburyKingsburyKingsburyKingsburyKingsburyKingsburyKingsburyKingsburyKingsbury

SolihullSolihullSolihullSolihullSolihullSolihullSolihullSolihullSolihull

StourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridge

StourtonStourtonStourtonStourtonStourtonStourtonStourtonStourtonStourton

Sutton ColdfieldSutton ColdfieldSutton ColdfieldSutton ColdfieldSutton ColdfieldSutton ColdfieldSutton ColdfieldSutton ColdfieldSutton Coldfield

WalsallWalsallWalsallWalsallWalsallWalsallWalsallWalsallWalsall

West Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ich

WillenhallWillenhallWillenhallWillenhallWillenhallWillenhallWillenhallWillenhallWillenhallWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhampton

WombourneWombourneWombourneWombourneWombourneWombourneWombourneWombourneWombourne

Distribution Strategy

Objective: Share Optimisation

• Regional brand share

• Mapping

• Competitor review

Strategic Acquisition

Greenfield's: Low cost model


DDC Refurbishments


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


Range Reviews: Supplier RationalisationNo. of Suppliers

20

40

60

80

100

120

Preparation Products

Preparation Equipment

ApplicationFinishing & Cleaning

Wallpapering tools

2005

2006

2007140


Range Reviews: SKU Rationalisation

Preparation Products

Preparation Equipment

ApplicationFinishing & Cleaning

Wallpapering tools

No. of SKU’s

200

400

600

800

1000

1200

1400

1600

2005

2006

2007


Category Segments


Turf Defending

TrafficBuilding

Image & Excitement

Creation

ProfitGenerating

TransactionBuilding

Image Enhancing

Assortment & Range Reviews

Pricing

Merchandising

Promotion

Service

Sourcing

Des

tinati

on

Occ

asio

nal/

Seas

onal

Pref

erre

d

Conv

enie

nce

Category Roles Determine….. Category & Strategies which…..

Map to Specific Tactics

Category Strategy: Segments & Roles


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


Understanding Hierarchies

BEST

BETTER

GOOD


The Benefits

• Stock turn improvement

• Increased efficiency through reduced products

& suppliers

• Increased margin through cost reduction

• Increased sales through clarity / choice


Understanding HierarchiesSOLVENT USAGE WATER-BASED USAGE

4” 9” 4” 9”


Zonal Merchandising

General Fixing

Knives & Blades

HD ToolsScraping

Measuring

Accessories & Kits


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


Promotional Merchandising

Clutter Free Promotional

Areas

Impactful & Inviting Displays


Summary

• Network Development

• Operational Excellence

• Differentiation

Dulux Decorator Centres UK Anne Tattersall, Head of Commercial, DDC 8 th May 09.

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