Wickes parent company, Travis Perkins, reacts to B&Q's new venture into the trade market, while Kingfisher's ceo Ian Cheshire explains the impact it will have on the sector.
Talking to sister website buildersmerchantjournal.net, Travis Perkins chief executive Mr Cooper conceded that TradePoint was "better than any they've made before," referring to the DIY chain's numerous attempts to break into the trade market.

However, despite the potential threat that the scheme could pose to both national and independent merchants, Mr Cooper appeared unfazed by the launch, explaining that although the scheme was new and high profile, it did not necessarily mean that it would be picked up by the trade.

"We're not sure that it will be a profitable move for them," he explained. "It might take some turnover, but there is a big difference between tradesmen who shop at Wickes and those who shop at B&Q and Homebase. If I had a tradesman doing work on my house, I would not be comfortable if he thought that one of those sheds were the place to go."

B&Q's expansion into the trade market was announced at a press conference last Thursday, following the news of Kingfisher's full-year results. The TradePoint model sees trade counters situated within existing large B&Q stores benefiting from their own entrance and exit, as well as a trade only manager and eight members of staff.

Once customers have been verified as genuine tradesmen using VAT numbers, they will be given their own TradePoint card for use in the trade area, as well as to browse the rest of B&Q's products at discounted prices. In a set-up similar to Argos, tradesmen can choose from 12,000 products in a catalogue and collect their purchase from staff at a manned counter. Next-day delivery is offered for non-stocked products.

The new format, which occupies between 4,000-6,000 sq ft, has already been rolled out to 38 B&Q stores, following a successful trial in nine branches. Kingfisher plans to extend the model to 118 large B&Q stores across the country.

Discussing the impact TradePoint will have on its existing Screwfix chain and the builders merchant industry as a whole, Kingfisher ceo Ian Cheshire told DIY Week: "Screwfix is a subset of TradePoint. It [TradePoint] has a bigger range - Screwfix can't habdle some of the products. TradePoint is broader and more convenient. The trade shop very locally and very often. It doesn't appear to cannibalise Screwfix...I think it's because the market is so fragmented. In Reading we opened a TradePoint right around the corner from a ScrewFix and sales actually went up."

He added: "118 stores is a drop in the ocean for the trade market. What tradesmen want is a trade brand, exclusive trade pricing, space that is reserved for trade and convenient opening hours. Most merchants are closed on a Saturday afternoon and Sunday but we're not."

Mr Cheshire explained that the clear pricing of items in the TradePoint catalogue may also be a draw for smaller trade firms. "Merchants have price files based on individual customer schemes - you don't know the price until you're invoiced. Bigger companies get good deals on price and the merchants make their money off the smaller tradesmen. B&Q's TradePoint catalogue is more transparent."

The group is now considering whether or not it will roll the TradePoint format out to the rest of its B&Q sites.