Headlam, one of the UK’s largest floorcovering distributors, has provided investors with an update on what it describes as its transformation plan to return the group to profitability.
The highlights of the action plan include refocusing on independent retailers and contractors while eliminating loss-making revenue, consolidating its purchases and leveraging its scale as a large purchaser, and reducing its SKUs. As the company discussed with The Stocklists in last month’s issue, Headlam has previously had up to a staggering 80,000 individual SKUs, of which just 3,000 drove almost 50% of its total sales. It also hopes to improve stock turn and reduce its overall footprint, further reflecting a revised business model.
According to the update “the board believes that that delivering successfully upon these actions will return the group to profitability and provide a sustainable financial position.”
Key outcomes Headlam aims to achieve as a result of these actions are a return to profitability in 2027, the disposal of surplus properties and a material lowering of inventory.
Please click to view more articles about
Business News