Headlam Group, the UK’s leading flooring distributor, announces important changes to its operating model as it accelerates its customer-led growth strategy. These changes will see the Group evolve and simplify its model, consolidating 32 local trading businesses into one Mercado business, creating greater efficiencies and making it simpler to work with Headlam.
With these changes customers will now have access to one national product and price list, and with enhancements to its highly successful Trade Counter network, will offer customers further flexibility in how they order and receive products.
Headlam’s regional business heritage, product breadth and national scale has secured its position as the market leader in UK flooring distribution. Whilst the flooring sector as a whole is facing a number of macroeconomic and industry pressures, with high inflation, rising material costs, supply chain disruption and the cost-of-living crisis, the Group recognises its unique opportunity to be at the forefront of sector recovery.
Despite these unprecedented market conditions, Headlam has fulfilled close to 3.5m orders, equivalent to 41.7m square metres, over the past 12 months. This reflects its vast number of customers, to whom this strategy is largely focused. The initiatives will see the Group bring its customer value proposition to the fore, simplifying its operations to deliver long-term value and growth.
Introducing Mercado, part of the Headlam Group
To better service its customers and deliver excellence as standard, the Group is consolidating its 32 local trading businesses under one brand. Mercado will now deliver the broadest range of flooring products across England and Wales, under one roof.
Customers will have access to Mercado’s extensive, and now expanded, product portfolio, serviced by one dedicated sales representative. Its redesigned sales team will operate as a national salesforce, providing local ASMs with the capability to draw on a national network; they will represent specialist teams focused on traditional retail and contract. A local service but on a national scale.
To further increase efficiency, all buying operations will be brought together to simplify the purchasing process, creating one national product and price list. In addition to its existing next-day delivery service, the Group will be enhancing its Trade Counter offer so that customers can order and collect products from anywhere.
This unification will also be reflected in the Group’s nationwide distribution network, starting with plans to open a new site in Rayleigh. This will be better placed to meet future delivery expectations and ensure stock is in the right place at the right time.
Mercado is also launching a new specialist ecommerce website and app, allowing customers to shop its full product portfolio online. These changes present a truly integrated, nationwide offering under the Mercado name.
Chris Payne, CEO at Headlam, commented: “In May 2024 we announced plans to accelerate our customer-led growth strategy by simplifying our business model. We took the time to listen to our customers, suppliers and colleagues and their valuable insights have shaped our strategy for the better.
“There is real growth opportunity in the flooring sector and we are evolving to be at the fore of sector recovery. We are putting our customers at the heart of our strategy, offering them more products, nationwide availability and streamlined ordering processes; making working with Headlam easier and more convenient. We remain committed to our customers, whether independent retailer, fitter, contractor or supplier. By continuing to work with Headlam, our customers will continue to have access to the company’s unrivalled scale, including the largest fleet, a national distribution network and the broadest range of products in the UK.
“Mercardo is the right choice for the future, as it is a brand that has been serving the UK for almost 100 years, with existing national recognition and customer trust. We look forward to introducing these exciting changes over the coming months.”
