28 June 2010

Savvy distributors beat recession

The recession has cost kitchen and bathroom distributors £250m over the last two years – but around half of them have managed to boost sales in the last 12 months.

MTW Research says distributors felt the knock-on effects of a consumer 'flight to price' as they cut big-ticket expenditure and home rennovations, and forced retailers to rein in their spending too. However, its latest report suggests that there are a cluster of distributors who are well-positioned in terms of product offering and customer type to meet changing market demands more quickly, and despite threats such as lower public spending in the social housing sector, should be able to grow this year.

"Market positioning and product portfolio apparently had more influence on a distributor's fortunes during the recession than the undoubtedly rapid decline in volume demand," says the report, which suggests that 30% of distributors have a poor credit rating, and identifies 15% that are at immediate risk of failing.

The Kitchen & Bathroom Distributors Report is available from MTW on 0845 652 4324.