Exclusive: Car dealer's taste for food sector

A YORKSHIRE car dealership which is one of Britain's leading independent motor groups has revealed bold plans to move into the food market.

Gilder Group, the 120m turnover Audi and Volkswagen trader based in Sheffield, wants to open an upmarket food store and restaurant at one of its former garages later this year. If it is successful the shop would be "the first of many", chief executive Garry Scotting told the Yorkshire Post.

The firm is also on the acquisitions trail and is interested in buying other motor groups within 90 minutes' travelling time. Mr Scotting said they would look for firms which had clusters of two or three dealerships in areas like North Yorkshire, Lincolnshire and Derbyshire.

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Gilder is ready to expand beyond the vehicle market, however, after it clearing its 25m debt. The group has increased sales, raised more than 11m by offloading Audi franchises in Hull and York to JCT 600, and carried out a a sale and lease back of its headquarters with pension fund Standard Life.

Now it wants to convert its former Banner Cross dealership on Ecclesall Road, Sheffield, into a 5,000 sq ft food store selling more than 700 products, as well as a restaurant and bar.

Mr Scotting said: "People are getting more interested in food miles. We have seen the success of Chatsworth farm shop and we want to offer that.

"All the kinds of things we have done in this business we will take. We will not compete with Sainsbury or the local butcher – it is somewhere in between.

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"It could be the first of many but we need to have one (initially]. We are very excited about it."

The group has yet to decide on a name but it could be known as Scotts of Ecclesall. A new planning application is set to be lodged this month – after permission for a larger building was refused – and, if successful, the store would open in the autumn or before Christmas at the latest, Mr Scotting said. A managing director will be appointed. It comes after Scarborough-born retail entrepreneur Arthur Harris last month increased the size of his new Lincolnshire-based supermarket chain. Haldanes Stores now has 26 outlets and wants to reach 50 eventually.

Gilder was one of the first two VW dealers in the UK after Major Jack Gilder found and repaired a Beetle in Germany during World War Two.

Its sites today are Audi in Sheffield and Doncaster; VW retailers in Chesterfield, Rotherham and Sheffield; a VW service centre, bodyshop and commercial vehicle centre, in Sheffield and a trade parts operation in Chesterfield.

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The group, which is owned entirely by Mr Scotting after a buyout in 2002, has 385 staff. It turned over 142m excluding trade sales in 2009, but this included seven months of trading at Hull and York.

It aims to match that performance on a like-for-like basis this year by turning over 120m, backed in part by new lines from marques such as the VW-made Polo. Its pre-tax profits for 2009 were 2.7m before amortisation, after suffering a difficult 2008 when the car market struggled and Mr Scotting had to "fend off" Royal Bank of Scotland as well as put staff on short-time working temporarily.

The Government's vehicle scrappage scheme is due to run out next month, but Gilder hopes to replace the effect of this with the strength of its own sales. It is also looking to expand its network of dealerships.

"We are talking to other people about potentially growing our business. Not having lots of debt, we are in a strong position.

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"We don't just want anything if it is cheap – we are interested in quality brands of two or three sites that gives us an opportunity."

Gilder's green look

Car dealers are not known for their green credentials but Gilder Group's 15.4m head-quarters on Bochum Parkway in Sheffield, into which it moved last year, has been designed to be as environ-mentally friendly as possible.

More than one-and-a-half acres of glass were included to increase the flow of natural light in the building, which was previously the home of Meadowhead School. About 500 tonnes of recycled glass bottles were turned into grit sand and used in the forecourt and parking areas and a wind turbine is used to generate some of its electricity.

There is also a huge tank at the back of the valet bay which holds up to 65,000 litres of rain water collected from the building's roof. When full, this can be used to wash 400 cars.

Garry Scotting, chief executive of Gilder, said: "We do green things here but at the end of the day we sell motor vehicles."