In challenging market conditions it never hurts for a business to focus on its customers and this is exactly what Toolstation has continued to do, particularly in the past two years since Angela Rushworth became Managing Director.
“The market has been tricky, as it has been for so many within the merchanting industry, but we’ve had a positive year and have actually gained market share,” explains Angela. “Putting the customer as our Number One priority has certainly helped and part of this philosophy has seen us introduce a significant loyalty scheme called Toolstation Club, which now has 300,000 members.”
The popularity of Toolstation Club reflects the long list of benefits that members enjoy. “We’re able to offer substantial discounts and reward customers further based on their frequency of purchase,” adds Angela. “This allows us to provide an even more personalised service that’s tailored to their specific needs and requirements. We have a significant focus on our trade customer base, which has grown significantly in the past 18-24 months, although we also have a sizeable and dedicated DIY client base.”
Supplementing the success of the introduction of the Toolstation Club, Toolstation has also continued to be proactive from a bricks and mortar perspective too, having added around 20 new stores each year over the past two years, bringing its total portfolio up to 580-plus sites.
“As convenience is such a key element of our proposition, it’s important that we have good national coverage. We’re therefore constantly on the look out for opportunities where we can improve our presence in certain areas. There’s not many parts of the country where you can’t get to a Toolstation within 20 minutes, so it’s more a case of in-filling the gaps in-between.”
In addition to customer service and strong store coverage, the third and final key element of Toolstation’s approach is its product range, which requires a robust and well-developed supply chain. “We’re got a number of major suppliers onboard and over the past three to five years these have tended to be more trade-based. Our range is continually evolving in-line with our customers’ demands and we currently have access to circa 30,000 products. In terms of areas that have seen the most significant development recently, painting and decorating has been particularly strong, and is something that we’ve become well-known for, along with the likes of plumbing and heating, as well as landscaping.”
With all bases covered so well, Toolstation has been able to make the most of the opportunities that the market has been providing, particularly in recent months. “We ended 2024 strongly and we’ve been able to take this momentum into this year too. There was a high degree of uncertainty last year due to the General Election but the signs are that the situation is settling down, so we’re hopeful that the market will be more in our favour this year. Of course the changes regarding National Insurance is something we’re having to contend with but that’s the same for all businesses. It’s all about putting yourself out there, regardless of the challenges that come your way, and fighting for your share of the pie. This is only made possible by making your proposition stronger, which is what we’re continually striving to do.”
In her two years as Managing Director of Toolstation, Angela has helped the company to continue building its reputation within the marketplace, ably assisted by her colleagues. “I started my career at Screwfix so it really feels like I’ve come full circle and Toolstation is a great business to work for. The people here are amazing and play an essential part in the level of service we deliver for our customers, who we continue to put at the heart of our business. We therefore ensure that our workforce, which currently numbers in excess of 5,000 staff, are fully supported in every aspect in order to be the best they possibly can be.
“Training and staff development have always been an integral part of Toolstation and most recently we’ve been focusing on apprenticeships, which we have been strongly assisted by the support from the wider Travis Perkins Group that the company is part of. As part of this approach, we have been ensuring that we’ve got apprenticeship opportunities at every level throughout our store network and beyond, including within our head office. Fundamentally it’s all about developing our colleagues to feel more comfortable and confident in their roles. At a time when recruitment can be difficult, it’s vital we do our utmost to ensure our people meet their potential so they want to stay and develop their careers at Toolstation.”
This commitment to its staff is also reflected in Toolstation’s close relationships with its suppliers, which is also a huge benefit when it comes to training and general support, as Angela outlines: “Our largest strategic suppliers play a key role in helping us, not only with regards to providing in-depth product information, but also in terms of promotional activity. With the level of service we provide, it’s vital that our colleagues fully understand our product range so they can assist in offering the best possible solution. This can turn a single purchase into a basket of goods and a one-off sale into a repeat customer.”
Having covered so much ground in just two years, Angela and the rest of the team are in no mood to take their collective foot off the accelerator as the focus moves to the next 12 months. “The signs are positive at the moment but we’re aware that our ongoing progression will be determined by the rate in which the market picks back up. As an industry, construction has a number of issues it has to deal with, particularly the skills shortage, so it’s vital that we all pull together to attract people into the sector. As well as being MD of Toolstation, I am also chair of the Construction Inclusion Coalition, so I know the hard work that’s going on behind the scenes to draw youngsters the industry. This will be essential in securing the future of the sector and making it sustainable in the long term.”
Talking of sustainability, Toolstation has also been doing its bit from an eco perspective. “It’s an issue that we’ve been focusing on strongly within the wider Travis Perkins Group and we have set ourselves strong sustainable targets that we’re working towards in regards to packaging and energy usage. This not only relates to our own activities but is also mirrored in the message that we’re portraying to our customers. We have a lot of streams of work that are in process to drive further efficiently.
“We’re aiming to improve in all areas of our operation as we strive to keeping growing by continuing to utilise the customer insight and analytics we have to hand. We carry out monthly customer insight sessions based upon specific areas we want to focus on, and we also have robust feedback mechanisms. It’s all about constantly adapting and evolving, such as the same delivery option we’ve recently introduced.”
This forward-thinking formula is working well for Toolstation as it continues to grow its presence within the marketplace and is sure to continue doing so in the months and years ahead.