this is steinhoff uk - Steinhoff International

Sean Summers
NOVEMBER 2015
THIS IS STEINHOFF UK
1
U K R E TA I L M A R K E T
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U K R E TA I L M A R K E T
UK RETAIL MARKET
Value of UK retail expenditure 2015 & 2020
Fastest growing sectors 2020 on 2015
24.7% 23.2% 21.0% 18.6% 16.3% Clothing and Health and Homewares Electricals Furniture & Footwear Beauty Floor coverings Growth 2020 on 2015: + 16.8%
Average growth: +3.36%
According to Verdict, all sectors are forecast
to have positive growth in the next 5 years
(2015-2020), except for the following sectors:
• 
“Music & Videos” 32.2% decline and
• 
“Books, news & stationery” 7.1% decline
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UNITED KINGDOM
CURRENT AND PROJECTED MARKET SIZE
Does not include:
•  Kitchen
•  Bathroom
•  Office
•  Carpet & hard
flooring
•  Homewares
Source: Verdict
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UNITED KINGDOM
ESTIMATED SHARE OF THE 2015 UPHOLSTERY MARKET
1.  DFS 30.6%
2.  SCS 9.9%
3.  Harveys 7.4%
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UNITED KINGDOM
ESTIMATED SHARE OF THE 2015 LIVING/DINING ROOM MARKET
1. 
2. 
3. 
6. 
OFL 17.3%
Ikea 13.9%
Argos 6.6%
Harveys 3.7%
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UNITED KINGDOM
ESTIMATED SHARE OF THE 2015 BEDS AND BEDROOM FURNTIURE
MARKET
1. 
2. 
3. 
4. 
Ikea 11.6%
Bensons 9.4%
Dreams 6.6%
Argos 5.2%
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S T E I N H O F F U K R E TA I L
STRATEGIC DRIVERS
Strategic drivers
•Footprint expansion
•Continuous investment in stores
•Vertical integration of supply chain
•Sourcing expertise and infrastructure
•Logistics expertise
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STEINHOFF UK GROUP STRUCTURE
STEINHOFF UK GROUP – Vertically intergrated
CEO: Sean Summers
CFO: Philip Dieperink
Manufacturing
MD: Anthony Joyce
Relyon, SUK Beds,
Pritex, SUKU
Retail
MD: Alan Williams
Harveys, Bensons
Services
MD: Stephen
Campbell
Concorde Logistics
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STEINHOFF UK GROUP STRUCTURE
STEINHOFF UK MANUFACTURING
Managing Director :Anthony
Joyce
Mattress &
Divan
manufacturer
(I/C 30%)
Mattress &
Divan
manufacturer
(I/C 74%)
Foam
conversion &
Automotive
acoustic (I/C
26%)
Upholstery
manufacturing
and sourcing
via Steinhoff
Asia (I/C 100%)
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M A N U FA C T U R I N G
MANUFACTURING SITES & BRANDS
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M A N U FA C T U R I N G
.
Wellington, UK
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M A N U FA C T U R I N G
.RELYON
• 
Master bed maker since 1858
• 
500 employees
• 
3 manufacturing units in SW England
• 
7% of UK bedding market
• 
Exports to Europe & Eire
• 
Quality Accreditations ISO 9001
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M A N U FA C T U R I N G
‘
Relyon’s expertise in blending the very best in high quality natural fillings with
traditional, time-honoured skills…
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M A N U FA C T U R I N G
‘
…create the most luxurious hand-crafted beds.
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M A N U FA C T U R I N G
‘
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M A N U FA C T U R I N G
‘
Huntingdon, UK
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M A N U FA C T U R I N G
S
• 
Acquired in March 2013
• 
270 employees
• 
1 manufacturing site in Huntingdon, Cambridgeshire
• 
5% of UK Bedding Market
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M A N U FA C T U R I N G
BRANDS INCLUDE
Royal warrant holder for beds since 1915 mid to upper end with export and licensing potenKal 19
M A N U FA C T U R I N G
BRAND POSITIONING
£900
Value - £99
Modern
Traditional
Premium - £10,000+
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M A N U FA C T U R I N G
STEINHOFF UK BEDS
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M A N U FA C T U R I N G
‘
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M A N U FA C T U R I N G
ST
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M A N U FA C T U R I N G
‘
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M A N U FA C T U R I N G
‘
• 
• 
• 
• 
• 
Formed by Steinhoff in 2006
Manufactures furniture for sale to Group Retail companies
Closely aligned with Harveys
250 employees
Located in South Wales, where there is a strong tradition of furniture
manufacturing
The Lullaby
Bridgend, South Wales Factory
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S T E I N H O F F U K R E TA I L
RETAIL BRANDS
STEINHOFF UK GROUP STRUCTURE
STEINHOFF UK RETAIL BRANDS
Managing Director : Alan
Williams
Upholstery,
Dining & Living
room furniture
Mattresses, Beds,
Frames, Divan &
Bedroom furniture
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S T E I N H O F F U K R E TA I L
STEINHOFF UK RETAIL BRANDS
FURNITURE
• 
• 
• 
• 
• 
Product sectors: Sofas and Living & dining
156 stores
137,494 total square meters
Average store size of 881 square meters
We serve our loyal, traditional, middle market consumer whilst broadening our
appeal to younger more stylish consumers
BEDS
• 
• 
• 
• 
• 
• 
Product sectors: Bed frames, mattresses, divans, bedroom furniture
Beds market leader in the UK
258 stores
141,029 total square meters
Average store size of 551 square meters
We serve the middle and aspirational market from (comfort) and (the right bed for
you)
S T E I N H O F F U K R E TA I L
FURNITURE STORES CURRENT FOOTPRINT IN THE UK
156
258
• 
81% of Harveys and 74% of Bensons
stores have been refurbished to the
required standard.
• 
We are actively looking to expand
our footprint.
UNITED KINGDOM
414
RETAIL
OUTLETS
279k
M2
RETAIL
SPACE
+/-
4
500
employees
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S T E I N H O F F U K R E TA I L
‘
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R E TA I L S S E R V I C E S
Steinhoff UK Services
Managing Director : Stephen
Campbell
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R E TA I L S S E R V I C E S
‘
• 
Currently operate from 9 Distribution Centres based in Ayr, Warrington, Accrington,
Rotherham, Lutterworth, Tewkesbury, Avonmouth, Southall and Northern Ireland.
• 
Footprint of over 1.6 million sq ft of warehouse space.
• 
Operate over 220 delivery vehicles.
• 
Employ 425 drivers and drivers mates .
• 
Our delivery vehicles will travel over 10 million miles this year.
• 
Direct Home Delivery service (DHD):
Definition: 2 man delivery and assembly of product into a customer’s room of choice
including disposal of packaging material.
–  Our 2 man home delivery fleet will approximately 1million home deliveries this year.
– 
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R E TA I L S S E R V I C E S
‘
-  UK inbound logistics
18,260 TEU’S per annum
-  UK outbound logistics
approximately 1 million
home deliveries per
annum
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R E TA I L S S E R V I C E S
‘
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S T E I N H O F F U K R E TA I L
THANK YOU
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