South Africa Edition 2

THE MARKET
Builders Warehouse is the “Home Improvement
A to Z” store that offers the widest range of
products under one roof. For anyone who is
building it, decorating it, fixing it, painting it,
planting it - or simply just wanting it - Builders
Warehouse has it all.
Builders Warehouse offers a vast array of
products including building materials, power and
hand tools, hardware, paint, electrical, lighting,
plumbing, sanitary ware and accessories,
décor, kitchens, bathrooms, garden plants and
accessories, outdoor furnishings and merchandise,
patio, pool and security, all under one roof.
Builders Warehouse targets the homeowner
undertaking home improvements, redecorating
or repair projects; the DIY hobbyist or enthusiast;
and small to medium sized building contractors.
The home owner and DIY hobbyist in the
LSM 6-10 bracket are targeted via television
product and price adverts, sponsorship of a home
improvement segment on Top Billing, print
promotions in community papers and select daily
press as well as advertising in home improvement
décor magazines.
Small to medium sized contractors are also
targeted through television, product and price
adverts, as well as community papers, SMS
campaigns, and a dedicated sales force that offers
personalised services to this segment.
Sales have increased dramatically over the last
few years, as enthusiasm for home improvement
has blossomed. Growth has also been pushed by
the major real estate boom, both in house sales
and building.
Product demand also increases around the
year for seasonal products like
heaters in the winter, and
outdoor furnishings and
plants in the summer.
Demand is directly
related to people wanting to perform home
improvement tasks themselves, rather than
outsourcing to a contractor. One of the services
Builders Warehouse offers is delivery, which has
become a customer expectation rather than a
value-added service.
Builders Warehouse accommodates fastpaced
lives by offering inspirational shopping as
well as a wide range of products and delivery in
a single store.
ACHIEVEMENTS
Builders Warehouse is the first big box format
home improvement store with every home
improvement requirement under one roof in
South Africa.
The annual turnover for the holding company
Massbuild for the 2007 financial year was
R4.9 billion. In the next three years, Builders
Warehouse will have a national footprint
incorporating 29 stores.
HISTORY
Builders Warehouse was originally established as
a sole proprietorship under the style of Pretoria
Portland Supply Company (PPSC).
In 1995, the group was restructured. PPSC
Wholesale acquired Pretoria Portland Supply
from Gadol, as well as Builders Warehouse from
Builders & Tile Warehouse.
The Warterhouse Group was acquired in 1996
and began trading on 1 April 1997, as Builders
Warehouse at the Atterbury Value Mart in
Lynnwood, Pretoria.
31 January 1998 saw the
Warterhouse Group purchasing
Pretoria Portland Supply
and Builders Warehouse,
Gezina, from PPSC
Wholesale while
Masana
trading as Tile Warehouse, acquired the complete
Waterhouse business on 1 June 2000.
During the restructuring, the company
refocused its marketing to include the DIY
customer, reducing its dependence on building
contractors. The Tile Warehouse Group was
purchased by MGS Handy House, on 31
December 2001. Massmart acquired Builders
Warehouse and Tile Warehouse on 1 January
2003.
Massmart acquired De La Rey, a familyowned
business in the Western Cape. The stores
were already largely aligned to the Builders
Warehouse format and were re-launched under
the Builders Warehouse brand in March 2007.
The twenty second store to open was the Nelspruit
branch, late in 2007.
Builders Warehouse has grown from being
seen as a local hardware store to being renowned
as a home improvement warehouse store that
offers a vast range of products and services for
consumers to improve, extend, fix and upgrade
their homes.
THE PRODUCT
Builders Warehouse offers a wide range of
quality branded products suitable for any home
improvement project. The wide range enables
a full product solution to consumers which are
complimented with key services, which include:
• Air conditioning installation
• Bathroom layout and design
• Blinds and curtain installation
• Boards cut to measurement
• Board edging
• Carpet installation (selected stores only)
• Dedicated builders counter and
quotations department
• Delivery
• Gas filling
• Glass cutting
• Key cutting
• Kitchen layout and design
• Paint colour mixing and advice
• Pool water testing and advice
• Remote control programming
• Shower door installation
RECENT DEVELOPMENTS
A number of products have been launched
exclusively through Builders Warehouse. They
include:
• Builders Pride, which offers contractors value
for money on products specifically selected
for them such as paint and paint accessories
• Bristol paint offers a full range of affordable,