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

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Presentation transcript:

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

Amsterdam Licensee Symposium Outline – Turnover & Profitability – Network Development – Operational Excellence – Supplier Management – Category Management – Price Architecture

Amsterdam Licensee Symposium 190 Stores £150m turnover 1200 employees Dulux Decorator Centres

Amsterdam Licensee Symposium Split by Channel & Category Channel Split Category Split

Amsterdam Licensee Symposium

DDC Efficiency Measures Efficiency Measures2008 Average Credit collection – Days sales outstanding52.1days Stock turn8.3 times Stock availability – PDS99.0% % of slow moving stock1.9% Sickness absence rate2.5 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 costs31.0%

Amsterdam Licensee Symposium Network Growth & Development Acquisition & Greenfield Sites Distribution Strategy Objective: Share Optimisation Regional brand share Mapping Competitor review Strategic Acquisition Greenfield's: Low cost model

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 Preparation Products Preparation Equipment Application Finishing & Cleaning Wallpapering tools

Amsterdam Licensee Symposium Range Reviews: SKU Rationalisation Preparation Products Preparation Equipment Application Finishing & Cleaning Wallpapering tools No. of SKU’s

Amsterdam Licensee Symposium Category Segments

Amsterdam Licensee Symposium Turf Defending Traffic Building Image & Excitement Creation Profit Generating Transaction Building Image Enhancing Assortment & Range Reviews Pricing Merchandising Promotion Service Sourcing Destination Occasional/Seasonal Preferred Convenience Category Roles Determine…..Category & Strategies which….. Map to Specific Tactics Category Strategy: Segments & Roles

Amsterdam Licensee Symposium 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 WATER-BASED USAGE 4” 9”4”9”

Amsterdam Licensee Symposium 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

Amsterdam Licensee Symposium Promotional Merchandising Clutter Free Promotional Areas Impactful & Inviting Displays

Amsterdam Licensee Symposium Summary Network Development Operational Excellence Differentiation

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