Blackfriar: Marshalls determined to show it’s not under the weather

MANY British companies use the unpredictable and mostly lousy UK weather as an all-purpose excuse for poor sales.

This isn’t the case with Marshalls, the Huddersfield-based upmarket paving specialist.

Yes, last month’s deluge hit sales as installers were prevented from laying down new paths and patios. Working conditions in April were dire as rainfall rose to exceptionally high levels of 138mm for the month. This was ten times the 14mm rainfall in April 2011 and up from 27mm in April 2010, according to the Met Office.

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But the group sees April as a short-term blip that it can recover from. One of the few weaknesses in Marshalls’ strategy is its reliance on the weather remaining dry in the UK.

If there is one thing we have learned over the past four dismal summers, it’s that a company dependent on balmy UK sunshine needs to rethink its business model.

Marshalls is doing exactly this with its expansion into Europe.

The UK currently makes up 97 per cent of sales, but Marshalls hopes to achieve 10 per cent of sales from Continental Europe by 2015.

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But even more interesting could be a potential move into the Middle East and Asia, where Marshalls hopes to increase its business as a “niche premium player”.

The Middle East and Asia are two areas where wet and dismal weather really won’t be a problem.

Marshalls now needs to cash in on its status as a premium, classy brand with a quality heritage.

It has impeccable Olympic credentials having provided hundreds of tonnes of paving and landscaping products to the Games’ various sites.

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The Olympics have showcased Marshalls’ ability to deliver on prestigious projects and the company is top of the list for architects and contractors.

Marshalls’ work on the Games, worth £10m, has now concluded but there will also be opportunities once they have finished, including reconfiguring roads and modifying the athletes’ village.

If Marshalls is to find a successful niche in these up and coming markets it needs to retain its upmarket status, not chase after commodity work.

The company has a canny and experienced management team operation under chief executive Graham Holden.

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Its foray overseas has the potential to become a prime example of how to export quality Yorkshire products.

The demise of Clinton Cards appears at first glance another death knell for the suffering high street. The loss-making card retailer, a familiar name on high streets and shopping centres across the country, faces a bleak future after its biggest shareholder called in its debt.

Administrators at Zolfo Copper are now trying to find a buyer for about 430 of the chain’s stores, after yesterday revealing 350 will close. Some 2,800 of Clintons’ and its Birthdays brand’s 8,000 staff will lose their jobs.

But while Clintons’ demise is a sorry story, and one which leaves another big hole in Britain’s beleaguered retail workforce, there was a sense of inevitability about it.

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The bleak consumer climate has clearly played a part in the chain’s collapse, as customers watch their pennies and opt for cheaper alternatives.

But Clintons also missed numerous opportunities to take advantage of its established brand and sizeable footprint and create a business with longevity.

Blackfriar has visited Clintons’ stores on numerous occasions, but usually leaves empty-handed.

Their tired decor, over-priced cards and curious inability to capture the mood on trends and taste, meant the chain was fighting a losing battle.

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Clintons also struggled to muscle in on the booming online market for personalised greetings cards, and never seemed a serious challenger to the more established internet players such as Moonpig.

Supermarkets have also squeezed the retailer’s presence on the high street, recognising the high-margin card business as a valuable addition to their already broad spread of products.

Clintons’ inability to move with the times and renew the brand in the face of admittedly fierce competition has similarly battered other retailers in recent years – notably computer games retailer Game and shoe seller Barratts.

The former failed to make a swift enough transition to the internet, and was outdone by the likes of Amazon and its low-cost model. Barratts, by its own admission, did not put enough quality materials into its products, opting for synthetics when consumers wanted leather.

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But Blackfriar believes there is room on the high street for niche and specialist retailers – if they pitch it right.

Despite the lure of internet shopping, consumers will always want the convenience of good quality and fairly-priced retailers.

The high street is suffering a painful transition – made worse by the recession – but there’s life in the old dog yet.