Online delivered wholesaler Blueheath remains on track to break even this year, after making huge improvements to availability levels.
Availability has improved dramatically at its depot in Thurrock, Essex, said CEO Mark Aylwin - from as low as 65% in some weeks to an average of 98% now. In recent weeks it has even hit 100% on some national accounts.
The improvement follows a wide-ranging strategic review that began in September last year after the company reported a full-year loss of £4.9m.
Since turning its attention to unprofitable accounts, its delivery and buying models and central costs, it has made cost-savings of £3.1m and margin improvements worth more than £500,000. "We're well on track and by July should be in a position to break even," said Aylwin.
The Thurrock depot was a "big opportunity" for the company, Aylwin said. It had a turnover of £70m but this could increase to £150m. "Our depot in Wrexham is a fantastic success with a very good margin and a loyal customer base," he said. "The opportunities now lie with Thurrock, which is in a great location, to replicate this success."
Blueheath is planning to push KeyStore, the retail chain of buying group Key Lekkerland, of which Blueheath is a member, in the south east of England through the Thurrock depot, he added.
Aylwin said the company was on the hunt for a large ambient warehouse in the south east. It was also interested in expanding into fresh grocery and wanted to develop a network for fresh foods, he said.
Another priority would be to make better use of broadband technology. "When the company was launched, our service was revolutionary but the technology was not good enough," explained Aylwin. "Now, technology has come of age and there is a real opportunity to push this again with broadband."
Blueheath was also keen to exploit its website more, he said. "We are working with our suppliers to introduce elements such as online category management."
Other new areas for the company to explore online included direct marketing and planograms, he said.
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