1. The Allied Opportunity
1
“To re-launch Britain’s best known
flooring retail brand and revolutionise
the customer experience”.
2. Agenda 2
Introductions
Background and History
The UK Flooring Market
Allied market positioning
The Franchise model
Our proposition
Headline Financials
Summary
4. Introductions 4
Clive Hutchings (Pending)
Over 35 years retail experience from the sales floor to the Boardroom. Clive was CEO of
Allied Carpets Group plc from January 2002 to 2009 (reporting directly to the French
owners) and after taking Allied to its first operating profit in 7 years, he oversaw the
management of the business through its sale to Hilco and administration.
Paul Davies (In-situ)
With nearly 30 years Franchise experience with major brands such as Perfect Pizza, KFC, &
Haagen Dazs, Paul spent the last 6 years developing the franchise model at United Carpets
before joining the Allied team. He is a regular speaker at franchise events and is well know
and respected amongst the franchise community.
Moony Victoire-Nijjar (Pending)
Moony previously worked with Clive and graduated at Allied. He has considerable
experience as a commercial finance director and change manager with particular expertise
in the retail and distribution sectors. He has managed M&A projects including acquisitions,
private equity fund raising and main market IPO.
6. History
Over 60 Years Flooring Heritage
6
1953
Creation of the
company by Harold
Plotnek in
Birmingham
1978
Acquisition of
Allied by the
ASDA Group
1993
Acquisition by Carpetland
of Allied (excluding the
Maples Furniture). The
combined group was
renamed Allied Carpets
Group
1996
Floatation of
Allied Carpets on
LSE on 23 July
1996 with Mkt
Cap of £350m
1999
Launch of Allied
at Home
Acquisition of
Allied Carpets by
Saint-Maclou for
£83m
2009 - 2012
Administration
followed by Hilco re-
structuring with the
objective to downsize
the business to a
profitable going
concern
2004/05
Allied Carpets
first Profit for
seven years.
New Chairman
appointed.
2002
Appointment
of Clive
Hutchings to
CEO of Allied
Carpets Group
plc.
2012 - Present
Hodges family
acquire Allied
Brand
Franchise concept
tested
Clive Hutchings
joins team
Investment
partner sought
13. Original Allied Brand
No.1 Carpet retail brand
Still receiving over 3000 hits
to the web address
Customer profile ABC1- Middle
England
Brand perceptions:
Reliable
Trustworthy
Great Service
Carpet specialists
Always in SALE
A little dated
13
14. New Allied Brand
Values:
On Trend & Innovative
Simple, Clear & Transparent
Trustworthy, Credible & Professional
14
Target Customers:
ABC1 (Traditional Allied)
Professional Women
Younger couples/families
18. Customer Journey
Selection
• Room
• Carpet type – twist etc.
• Price per sq mtr
Estimate
• Measure & plan
• Add Fitting, Underlay etc.
Install
• Delivered to store
• Fitted by sub-contractors
18
Selection
• Colour
• Texture – suitability
• Project Budget
Estimate
• Measure & plan
• Upgrade underlay,
confirm
Install
• Delivered to Fit Centre
• Fitted to SLA standards
• Follow up “Happy Call”
OLD WAY NEW WAY
20. UK Franchising Overview 20
930 franchises in UK contributing £13.7b to economy
39,000 outlets employing 560k people
92% of franchisee businesses in profit
Only 2.3% of all closures due to commercial failure
Average age of new franchisee is 41yrs
50% increase in female franchisees 2005 to 2013
22,500 franchisees in UK (25% operate multiple units)
1 in 4 UK franchises export their model overseas
Biggest issue is recruitment
21. Allied Benefits to the Franchisee 21
Re-launch of a recognised and respected brand
Low entry price of £65k, up to 70% funding available
Use of 21st century technology & cutting edge design
Full support by team with proven achievement
Impressive ROI with committed franchisee
Competitive commission structure
Female friendly
BFA membership
Multi-site opportunity for suitable candidates
25. Our proposition
Locations
1000 – 1500 sq ft Showrooms
Main Rd/High St with good visibility and passing trade
Franchisee holds lease
No need for warehouse space
25
Operations
Owner/Managers supported by experienced Retail teams
Outsource service options until skills acquired
SAP system with data analysis and KPI reporting
26. Our proposition
Supply Chain
Multiple suppliers
No Stock
Individual Franchisee credit terms
26
Key milestones (Delayed)
Aug/Sept – Re-launch Yeovil Store & open 2 Franchises
Dec 2014 - 2 more stores opened to support “POC”
Feb 2015 – Launch at National Franchise Exhibition (NEC)
Dec 2015 – 28 stores opened with a further 20 territory
commitments
27. Marketing Platform
Website:
Simple, clear, inspirational & informative
View in a Room and Samples delivered within 48 hours
Full SEO and PPC strategy
Lead generator - Transactional for non-franchise territories
Micro site for franchisees
27
Store support
Initial launch using local radio, newspapers and Leaflets
Ongoing local magazines & radio
Potential Regional TV & Radio (when territories allow)
Social Media campaigns – Facebook, Twitter, Pinterest
Home Interest Magazine editorial – Allied Ambassadors
28. Growth Strategies 28
POC – 100
Franchisees
100 – 400
Franchisees
European
Franchise
Proof Of Concept.
Feb 2015 Launch.
Year 1
30 Franchisees
6 Corporate
Local & Social media
Recruitment Drive
Call Centre Support
Website Leads
Opening Teams
TV, Radio, Magazines
Supplier Rebates
Re-sales
Cutting Warehouse
Affinity schemes
Kiosks
Europe
Short -Term Medium -Term Longer -Term
36. Summary 36
RIGHT PROPOSITION:
That reflects Todays Customer needs
Simple, Clear & Female friendly
Franchise for rapid expansion and Owner/Manager motivation
“light” with no huge establishment cost or stock
Outsource supply chain to avoid handling and warehouse costs
Qualified Team to support
RIGHT TIMING
Housing market set to improve - Flooring market will follow
Pensions and “Buy to Let” exhausted
Franchise market looking for new Brand opportunities
Women in business on the rise