Cmostores.com is continuing to see rapid expansion, with 2018 sales jumping 44% - boosted by new acquisitions – and continuing its trend of record growth, with new web stores in the pipeline.
The online construction materials firm, which rebranded as cmostores.com in February, has recorded exceptional growth in recent years, doubling in size following an MBO and investment of £8.65million by private equity house Key Capital Partners (KCP) in 2017.
The business maintains that its e-commerce model is helping to grab market share from traditional builders’ merchants and reported that consolidated group revenue rose 220% in just three years, from £12.1million at the end of 2015, to £38.6million in the year to December 31, 2018.
During this period, the business acquired Webestores and launched www.doorsuperstore.co.uk alongside its existing online web stores: drainagesuperstore.co.uk, insulationsuperstore.co.uk, and roofingsuperstore.co.uk. Cmostores.com chief financial officer Sue Packer said the new website “is flying and will be this year’s best growth performer”.
Cmostores.com is now predicting further turnover growth to around £50million in the current financial year and reveals it will soon be launching two new superstores.
Over the past 12 months, the Plymouth-based company has seen a 35% increase in visits to its four online superstores, which offer more than 70,000 products to both trade and DIY customers. In a bid to drive new accounts and sales from larger building firms, the business is also expanding its trade offering, so that professional contractors can now benefit from trade credit, exclusive discounts, rebates and rewards.
CEO Andy Dunkley said: “Online retail has revolutionised the high street and the many benefits of internet shopping including improved product choice as well as time and cost savings are increasingly being taken into more traditional and trade sectors by forward-looking e-commerce businesses. As a result, we’re seeing phenomenal growth, with our disruptive model already having a major impact on more traditional builders’ merchants.
“Over the last year, we’ve been continuing to invest in developing our operational and executive team to ensure that our business is scalable with further significant expansion expected as we focus on enhancing our trade division. As a business, we are well on track with our plans and have an ambitious vision to establish ourselves as the leading brand in online construction products.”
The second-generation family business, which was established in 2008 and previously known as Construction Materials Online, relocated to new, larger premises in Plymouth last summer and now employs a 100-strong workforce. The site, which also boasts a larger warehouse, has capacity to accommodate up to 250 employees and Mr Dunkley told DIY Week earlier this year he believes the company will “absolutely get to that size”, adding, “we continue to push the envelope”.
Cmostores.com chief financial officer Sue Packer said: “We have a clear plan and these latest results mark another key milestone in our development. We are financially robust and have huge potential for further growth. Already, we have been able to establish ourselves as a credible alternative by putting customers firmly at the centre of our proposition. Investment in providing user-friendly platforms, backed up by a knowledgeable sales team, has set us apart.
“We also place great emphasis on building strong, mutually-beneficial relationships with our supply partners, enabling us to add the latest innovative products to our online superstores. We look forward to building on this success as we continue to serve both DIY enthusiasts and the building trade.”