chapter  11
Everything for the trade – next day: Screwfix Direct
Pages 6

Growth and transition The transition from an essentially entrepreneurial small business turning over £100,000 in the early 1990s to over £1 million by 1995 and to a concept worth, according to analysts’ estimates, some £200 million in sales today, created many of the challenges typical of a fast growing firm. Great commercial success led in particular to significant infrastructural challenges.At the end of the 1990s, the business was trading out of just 80,000 sq ft of warehousing. Allan’s appointment in 2001 was prompted by the need to put into place the systems, processes and resources required to manage a nine-figure turnover business and an exponential growth curve. Screwfix now trades from 580,000 sq ft from a range of buildings in Yeovil, has a sister unit of 500,000 sq ft in Leicester and an extendable facility of 317,000 sq ft opening in 2003 in Trentham in Staffordshire. ‘On the growth curve we are on, the business planning process must be different. It takes four years to put in place what we know now will be needed by 2005.’ Screwfix sources over 6,000 product lines. In addition to producing four 280-page catalogues every year, the business functions increasingly online, with web-based sales accounting for an estimated 15 per cent of the £140 million total annual revenue in 2001/2.