Strength in numbers

The unique consolidation of the UK DIY market into just three remaining large superstore groups makes it easy to overlook the fact that perhaps 40 per cent of the market is still in the hands of independent retailers. Most of these are family-owned shops, some as small as 100 m², and typically located on the high street rather than on the retail park.
Such retailers have experienced years of decline, with thousands closing down. Many believe that this decline has now reached a “plateau” and that the independents are beginning to fight back. The remaining shops are able to capitalise on their strengths – in particular, customer service and product knowledge.
Mica, the largest voluntary trading group for the DIY retail sector, has undoubtedly played a part since its formation in 1996 in arresting the decline of the independent. By all accounts Mica is becoming increasingly successful – March was a record trading month for the group.
Mica Hardware stores are positioned as generalists in DIY retailing.
The Mica concept originated in South Africa, where it has a 20 per cent market share. In looking to export the brand, Mica spotted the United Kingdom. The UK organisation is still 10 per cent owned by Mica South Africa.
The concept is similar to Spar in grocery retailing. Store owners are given freedom in their day-to-day decisions and benefit from training, marketing and expertise provided by the group. In exchange for this they sign up to regular promotions and abide by a number of key standards. In this way local knowledge is combined with the marketing power of a centralised group.
Mica Local demands less onerous branding conditions.
“It’s not just about building up a uniform Mica image, although that is important, but we are mainly concerned to see our member stores improving and becoming more and more successful businesses,” explains Belinda Barnard, Mica UK marketing director. “We let the local store management do what they are best at, while we allow them to benefit from the economies of scale in marketing and buying that Mica opens up for them.”
During its first eight years Mica UK has grown to 185 stores with a combined turnover of € 116.5 mio. Mica stores are located in all parts of Britain, from Cornwall in the southwest up to the north of Scotland, and they range in size from 93 m² to over 1 020 m²
Having grown steadily since its formation, the group is now embarking on a phase of consolidation. “We are now concentrating on improving store standards…