European buying group MHK has reported the challenges of 2021, such as pressure on retailer’s cashflow and lack of fitters, will roll over into 2022 and says it is scoping out own-brand installation in the UK.
Easing pressure on retailers’ cashflow, managing director of MHK-UK and export director of MHK, Marcel Crezee said the organisation offers centralised payment, allowing them 30 days to complete a kitchen before payment.
Now tackling the lack of kbb installers in the UK, due to high demand of kitchen and bathroom sales, MHK is exploring the opportunity to supply retailers with its own fitters.
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MHK already operates its own-branded installation teams across several countries in Europe, with logistic centres and training facilities in Germany.
The group has two logistic centres, in Frankfurt and Cologne, which will check the kitchen order, arrange delivery with the consumer, and provide two MHK-branded fitters for installation.
Marcel Crezee commented: “In total, we have 150 fitters. So that will be our main project for 2022 and 2023 to find as many fitters as we can.”
He stated the company also has its own training school, in Germany, to create the required, accomplished fitters: “Each week we have 25 people starting lessons of how to fit a kitchen.
“At the moment we have more than 1,100 students working in a kitchen shop, logistic centre or starting to work as a fitter.”
The group is looking to create a similar model in the UK and Marcel Crezee said sales director of MHK Holding UK Paul Wheeler and sales manager David Morrish were seeking a logistic partner with its own installers.
However, he added MHK was also open to acquiring kitchen and bathroom installation companies in the UK.
Crezee said MHK is not solely a buying group providing better buying terms but a full service company, as it offers its own CARAT CAD software, inhouse developers to create retail websites and inhouse marketing team to create print advertising for its members.
“The next step was to give [retail members] installation services and I think that will be, for the next couple of years, a very interesting part for anybody who wants to join a group like MHK”, Crezee stated.
He warned kbb retailers there would be a drop-off in sales volumes in 2022, so they need to focus on selling high value or high profit projects and know how much money they must make to sustain a profitable business.
Crezee predicted 2022 would not match the “once in a lifetime” sales of 2021, which saw MHK-UK report a 55% growth in sales for Q1 2021, but it would still be a good year for kbb retail.