Floorwise is a medium-sized carpet and floor coverings retailer. It operates some 150 outlets throughout England, Wales and Scotland. Currently, turnover is in the region of £120 m with a pre-tax profit of £14.4 m. The company claims a 10 per cent market share. It has been opening new outlets at a rate between 25 and 30 per year and sees a potential for a total of 250. This would increase market share to 20 per cent. Like-for-like sales show a growth rate of 15 per cent: the overall growth rate for sales was 40 per cent and profit 75 per cent. Gross margins have also shown increases and are currently 42.5 per cent (a 0.75 per cent increase for 1993/94); operating margin has increased by almost 30 per cent over the year and is currently 12.0 per cent. Average turnover per sq. ft is also increasing and is now £100 per sq. ft. Stores are operating from an average selling area of 10000 sq. ft. Stock holding at £11 m gives a stockturn of 10.9: in 1993 it was a little over 11. This very small decrease is seen as an achievement by the company, when the increase in the number of stores is considered — more than over 30 stores were opened during the year.
KeywordsExpense Vinyl Concession
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