Online construction materials retailer cmostores.com is continuing to see rapid expansion with 2018 sales increasing by 44% continuing a trend of record growth.
With the firm’s e-commerce model continuing to grab market share from traditional builders’ merchants, consolidated group revenue rose 220% in just three years from £12.1m at the end of 2015 to £38.6m in the year to 31 December 2018. The business is now predicting further turnover growth to around £50m in the current financial year and will soon be launching two new superstores.
Over the last 12 months, the Plymouth-based company has seen a 35% increase in visits to its four online superstores which supply in excess of 70,000 products across the build cycle to both trade and DIY customers. The business is also expanding its trade offering so that professional contractors can now benefit from trade credit, exclusive discounts, rebates and rewards, in order to drive new accounts and sales from larger building firms.
“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,” explains Andy Dunkley, CEO of cmostores.com. “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.”
Sue Packer, chief financial officer of cmostores.com, added: “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.
“In 2018, cmostores.com acquired Webestores, successfully integrating it into the company’s online platform as doorsuperstore.co.uk alongside its existing roofingsuperstore.co.uk, drainagesuperstore.co.uk and insulationsuperstore.co.uk websites. Door superstore is flying and will be this year’s best growth performer,” she added.
Established in 2008, cmostores.com (previously known as Construction Materials Online or CMO) is a second-generation family business which now employs a 100-strong team at its new, larger headquarters in Plymouth. Private equity house, Key Capital Partners (KCP), made an £8.65m investment in the business in 2017 having recognised its potential.