Beaumont Tiles has a turnover in excess of $200 million a year and employs 800 people, and has just opened its 100th outlet in Australia. It’s a far cry from a side venture in the 1960s to Australia’s largest tile and bathroomware retailer. So what accounts for its success?
The family owned firm has adopted an aggressive approach to business growth in the face of a flat economy and for this retailer the tactic has paid off. At the core is a customer centric philosophy focused on sourcing the best product from global manufacturers, building best in class transport and logistics solutions to ensure the product is close to renovators and commercial builders.
In an industry once dominated by independent small businesses, often set up by ex-tilers, the Beaumont family has built a near national footprint and brand, introduced technology to provide a seamless business and consumer experience, and elevated the category into the home fashion arena.
The South Australian success story began back in the 1960s when local greeting cards and travel goods distributor R J Beaumont decided to import tiles after being unable to source suitable product for his own home. Today the family-owned company imports more than 100,000 tonnes of tiles a year in addition to those sourced locally.
In 2014 the tile business has a presence across the country of more than 50,000m2 in retail space and the same again in its four distribution centres in Sydney, Melbourne, Brisbane and Adelaide.
Beaumont Tiles managing director Bob Beaumont says the company has increased its national footprint by 25 percent over the last five years with a current focus on growing its NSW presence. Plans for the next five years include further penetration into the NSW market in metro and regional locations.
“We’re incredibly proud to reach our 100th outlet. Our absolute goal however has been to be the best at what we do and the growth has followed. This philosophy runs across the people we employ, the technologies we deploy, the products we offer and the value we place on our customers,” Beaumont says.
“We plough half our profits back into the business each year and a large part of this is to continually improve the customer experience.
“This plays out in our commitment to be the best in distribution so our product is close to consumers, so we can help them make the best choices, and by scouring the globe for the latest tiles to be at the forefront of style.”
Company policy is to source product direct and constant research and travel allows the team to spot fashion trends.
In the last 12 months Beaumont Tiles has opened a new $11million start-of-the-art 10,000m2 distribution centre in Sydney’s West and in Queensland secured a13,000m2 warehouse and office facility in partnership with Goodmans.
But it isn’t all about distribution and facilities. IT innovations include its Scan & Play software which allows customers to visualise their choice of tile in situ, and investment in IT for the back office means franchisees have real time access to financial and stock information. The strategy is to free up the paper and admin work so franchisees and store managers can concentrate on the customer.
And the company has invested annually more than $7 million in marketing in high profile sponsorships linking the brand with home renovation programs like The Block, House Rules and Channel Ten’s new program, The Home Team.
“With a 50 percent split of company owned and franchises store, it’s clear we’re happy to put our money where our mouth is. It’s been a great assurance to independent operators to realise the economy of scale they can achieve with our buying power, scale of infrastructure, and our own significant financial commitment,” Beaumont says.