Headlam Group, the UK’s leading flooring distributor, announces important changes to its
operating model as it accelerates its customer-led growth strategy. These changes will see
the Group evolve and simplify its model, consolidating 32 local trading businesses into one
Mercado business, creating greater efficiencies and making it simpler to work with Headlam.
With these changes customers will now have access to one national product and price list,
and with enhancements to its highly successful Trade Counter network, will offer customers
further flexibility in how they order and receive products.
Headlam’s regional business heritage, product breadth and national scale has secured its
position as the market leader in UK flooring distribution. Whilst the flooring sector as a whole
is facing a number of macroeconomic and industry pressures, with high inflation, rising
material costs, supply chain disruption and the cost-of-living crisis, the Group recognises
its unique opportunity to be at the forefront of sector recovery.
Despite these unprecedented market conditions, Headlam has fulfilled close to 3.5M orders,
equivalent to 41.7M m2, over the past 12 months*. This reflects its vast number of
customers, to whom this strategy is largely focused. The initiatives will see the Group bring
its customer value proposition to the fore, simplifying its operations to deliver long-term
value and growth.
Introducing Mercado, part of the Headlam Group.
To better service its customers and deliver excellence as standard, the Group is
consolidating its 32 local trading businesses under one brand. Mercado will now deliver the
broadest range of flooring products across England and Wales, under one roof.
Customers will have access to Mercado’s extensive, and now expanded, product portfolio,
serviced by one dedicated sales representative. Its redesigned sales team will operate as a
national salesforce, providing local ASMs with the capability to draw on a national network;
they will represent specialist teams focused on traditional retail and contract. A local
service but on a national scale.
To further increase efficiency, all buying operations will be brought together to simplify the
purchasing process, creating one national product and price list. In addition to its existing
next-day delivery service, the Group will be enhancing its Trade Counter offer so that
customers can order and collect products from anywhere.
This unification will also be reflected in the Group’s nationwide distribution network, starting
with plans to open a new site in Rayleigh. This will be better placed to meet future delivery
expectations and ensure stock is in the right place at the right time.
Mercado is also launching a new specialist ecommerce website and app, allowing
customers to shop its full product portfolio online. These changes present a truly integrated,
nationwide offering under the Mercado name.
Chris Payne, CEO at Headlam (pictured), comments:
“In May 2024 we announced plans to accelerate our customer-led growth strategy by
simplifying our business model. We took the time to listen to our customers, suppliers and
colleagues and their valuable insights have shaped our strategy for the better.
There is real growth opportunity in the flooring sector and we are evolving to be at the fore of
sector recovery. We are putting our customers at the heart of our strategy, offering them
more products, nationwide availability and streamlined ordering processes; making working
with Headlam easier and more convenient. We remain committed to our customers,
whether independent retailer, fitter, contractor or supplier. By continuing to work with
Headlam, our customers will continue to have access to the company’s unrivalled scale,
including the largest fleet, a national distribution network and the broadest range of products
in the UK.
Mercardo is the right choice for the future, as it is a brand that has been serving the UK for
almost 100-years, with existing national recognition and customer trust. We look forward to
introducing these exciting changes over the coming months.”