Tesco restructure boosts kitchen and bathroom sales

Supermarket giant Tesco has restructured its bathroom and kitchen project, with the appointment of Mark Two to supply product and lead installations, boosting sales.

The restructure includes an appointment of a head of sales, new sales team and procedure, together with the recruitment of an in-house head of installations.

Tesco kitchen and bathroom sales are now being driven by Mark Two, which not only provides the product but also leads the installation. Liz Lakin, who works for Mark Two in conjunction with Tesco, leads the projects with Retail Installation Services (RIS) responsible for installation with the South.

In addition to Tesco, Mark Two also supplies independent bathroom and kitchen studios with its Lakes Kitchens and Balterley Bathrooms range. However, the distributor has recently lost business having supplied Dolphin Bathrooms and Focus, which both entered administration

However, it has led retailers to question whether the company’s focus on chasing volume sales with Tesco will detract them from servicing the independent and, ultimately, leading to its decline.

Diane Buckley of Stuart Henry Kitchens on the Wirral commented: “When Tesco get what they want, they will chew them up and spit them out”. She added: “When Mark Two has been spat out they will have no independents left because they will have deserted the Lakes range”.

Her view was re-iterated by anonymous industry insider M_eye_view, who commented: “Mark Two is going to find themselves in very big trouble soon, they keep chasing the ££s they will p**s off independents. They will walk. Tesco will squeeze Mark Two for what they can get and when they have what they want, pop goes Mark Two.”

But not all kitchen industry experts shared the same view. Tim Foley of Kitchensfitted.com said: "Good combination - be interesting to see how things progress. Catering for the masses wil always be more difficult." 

However, he believes Tesco with its online service will evolve better than other multiple outlets and DIY giants and present a possible threat to their business. But he says independents who embrace and invest in an online presence, give themselves the best chance to compete on a level playing field. Foley continued: "All businesses have to adapt and evolve - every change presents a risk - no threat if independents do similar."

And managing director of Mark Two Nick Hopkinson MBE shrugged off suggestions that Tesco would pose a threat to his business. He commented: “All change presents challenges. Without change we would have gone bust years ago.”