Competitive organisation

Home Hardware Southwest Limited was established as a buying group in 1962, though at that time it was still called Barnfords (Devon) Limited. “We were only in north Devon in those days,” explained John Fewings, executive chairman of Home Hardware Southwest, describing the early years before the advent of DIY chains and sheds in the United Kingdom.
Today the organisation has more than 200 members. The majority of these are hardware retailers, though some shops selling cookware or other housewares are also members. They achieve combined sales of £ 60 mio to £ 80 mio (87 mio to 116 mio euro) in stores ranging from 330 m² to 950 m² in size. Their customers consist not only of end-consumers but also of trade customers such as builders and plumbers. Some stores even have their own trade departments.
Fifty of the 220 members operate under the Home Hard-ware logo.
There are two grades of membership. Ordinary members must buy 1 500 “A” shares, which come to £ 1 500 (2 166 euro). They then receive annual retroyspective rebates based on their level of trade with the company. When a hardware/DIY retailer wants to be-come a corporate member it costs £ 1 000 (1 444 euro) for the right to use the Home Hardware name. Members also pay a separate one per cent levy for promotional and development purposes. On leaving members are able to sell their shares.
Currently there are about 50 corporate members trading under the Home Hardware name, which was adopted in 1974.
Home Hardware Southwest operates two warehouses. One is located at Barnstaple in north Devon and the other, which opened last year in early December, at Halesowen near Birmingham in the Midlands.
The stores consist of between 300 m² and 900 m² in size.
The distribution radius has seen continuous growth far beyond Devon since the founding of the organisation, so that weekly deliveries are now made to members in the Midlands, south England and south Wales.
Some years ago Home Hardware Southwest formed a new company, Home Hardware UK Limited, jointly with Home Hardware Scotland with the aim of increasing their purchasing volume.
Direct delivery agreements have been negotiated on behalf of members. These enable them to buy about 200 000 lines on preferential terms from 220 suppliers. Invoices are sent to the head office in Barnstaple.
Home Hardware Southwest is a member of Unimer, which is a builders’ merchants’ buying association that offers members direct deliveries from 300 suppliers.
Home Hardware sells products under…