Curtains-to-cushions retailer Rosebys has wrested more favourable contracts from suppliers to drive the business forward, following the£51 million MBO in May.
Managing director Tony Richards said Rosebys now deals with a smaller pool of suppliers, and is keen to share information and forge closer working ties with them.
'With so many businesses going from public to private, it was not new to everybody,' said Richards. 'They understood where we were coming from and negotiated.'
The retailer intends to boost direct sourcing levels, which stand at 20 per cent, and is targeting countries such as China and Bangladesh to improve margins.
Lloyds TSB Development Capital backed the buy-out of the 400-store business from Homestyle Group. The deal included the 42-shop Fabric Warehouse chain.
Rosebys has been conducting market research to build customer profiles for the three formats: Rosebys retail park and high street, and Fabric Warehouse.
Richards said Fabric Warehouse has huge untapped potential. The specialist store previously lacked uniformity, with stores run as manager fiefdoms. A dedicated buyer, Steve Taylor, has been appointed and the supplier base has been cut by 20 per cent. Pick-up items from Rosebys' core offer have been introduced into 17 stores alongside bespoke furniture.
The retailer is in the process of closing 60 unprofitable high street stores, but, in the long term, Richards foresees expansion on all fronts.
- Company profile: page 12.
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