Expansion for Scottish gardens chain |
© The Herald Originally published: 24.04.2007 |
by Simon Bain
Dobbies Garden Centres has told shareholders that it sees potential to open 75 more stores over the next 10 years.
Dobbies was reporting a 12.6- per cent rise in like-for-like sales in the 25 weeks since November 1, and a 38.8- per cent rise overall, ahead of opening its latest 48,000 square foot outlet at Dunfermline.
It plans a second opening, twice the size, at Sheffield later this year and has acquired a site at York to keep next year's growth momentum on track.
James Barnes, chief executive, told the annual meeting at the Alternative Investment Market-listed group's Midlothian headquarters that it was now 10 years since the group's flotation, and he hoped to open three stores next year, four in 2009, and more thereafter.
"It is an ambition, not a firm target, but we are confident of building a bigger business and if you extrapolate that out, it is 75 new stores on top of the 22 we have, which is almost 100 stores within the next 10 years."
Barnes said the new Fife store would be the first to feature Plantasia, a plant information centre, which would be educational, interactive and a mini-attraction in its own right. "It is leisure, tourism and education, local authorities like that, so it helps us in terms of site development."
Dobbies was also revamping its internet site to launch an online retail service, based in Reading, Berkshire, which it hopes will help to fuel sales growth.
The retailer's sales are being boosted by environmental products in areas such as water conservation and wildlife gardening. Now Dobbies is moving cautiously to establish some green credentials.
"We are starting to make strides in terms of our own environmental and social policy, " Barnes said. Two-thirds of its furniture was now from sustainable sources, rainwater was recycled, and the company was hoping to recycle plant pot plastic through a Midlothian company. "We are (however) finding it difficult to find an intermediary to shred it, wash it, and push it up the road, " Barnes said.
"Infrastructurally, the industry is in its infancy, but we understand what we need to do and are keen to do it."
Barnes added later that the company had recently taken advice from Strathclyde University and the Carbon Trust. "We are deeply conscious of not rushing out there and making wild statements or sticking up wind turbines, as tokenism." |