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Wickes, currently the number five British DIY retailer, is celebrating its continuing independence, having won a long-running take-over battle with the number three player, Focus Do It All
Wickes occupies a unique position in the UK market, with a tight focus on a relatively small number of core building products targeted at trade customers and the DIY enthusiast.
This is very different from the Focus Do It All profile that includes pets and crafts within its stores, which generally have a focus on decorating. This may be one of the reasons why the takeover bid was rejected by Wickes shareholders. Having seen the company recover in recent years from the financial problems of the mid-nineties, they will not now be looking to dilute Wickes’ key asset – the strength of its brand within its target market – as the result of an inappropriate merger.
The owners of Focus Do It All, however, have argued that Wickes is too small to survive alone in today’s highly competitive market. Despite losing the battle for control of Wickes, Focus Do It All has a 30 per cent holding in Wickes and may get a seat on the board. This means that the tussle between the two companies has possibly not reached its final conclusion.
For the time being, however, Wickes is pursuing its renewal strategy alone, while Focus Do It All must look for other ways to grow its business, whether by acquisition or further organic growth.
This is very different from the Focus Do It All profile that includes pets and crafts within its stores, which generally have a focus on decorating. This may be one of the reasons why the takeover bid was rejected by Wickes shareholders. Having seen the company recover in recent years from the financial problems of the mid-nineties, they will not now be looking to dilute Wickes’ key asset – the strength of its brand within its target market – as the result of an inappropriate merger.
The owners of Focus Do It All, however, have argued that Wickes is too small to survive alone in today’s highly competitive market. Despite losing the battle for control of Wickes, Focus Do It All has a 30 per cent holding in Wickes and may get a seat on the board. This means that the tussle between the two companies has possibly not reached its final conclusion.
For the time being, however, Wickes is pursuing its renewal strategy alone, while Focus Do It All must look for other ways to grow its business, whether by acquisition or further organic growth.
