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B&Q – Purchasing Card Programme Mike Cartwright, B2B Manager, September 2009


Introduction to Kingfisher plc 

Kingfisher plc is an international business, operating 800 stores in 8 countries

Employs 80,000 people worldwide and attracts nearly 6 million customers every week

B&Q is the largest DIY retailer in the UK, nearly twice the size of our nearest rival

Operates 322 stores in the UK, with our Warehouse stores stocking around 40,000 products under one roof

Well-known consumer offer, but around 12% of B&Q sales are made to professional tradesmen and women

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The B&Q Offer 

B&Q offers the largest range of building and home improvement products, under one roof, in the UK

That’s up to 40,000 products from paint and brushes, bricks and plasterboard to kitchens and bathrooms

Open 7 days a week, 8 ‘till late at 323 stores nationwide

Supported by a wide range of services including dedicated trade staff, Call and Collect ordering, site deliveries along with paint mixing and timber cutting

Underpinned with our Price Match policy offering great value every day at B&Q

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Corporate Social Responsibility 

B&Q has Chain of Custody certification for both FSC and PEFC wood – covers more timber-based products than any other retailer

Awarded “Big Tick” for approach to International Climate Change

Becoming a One Planet Living business

4,000 eco products in store

5-year Community Regeneration Strategy with a programme of community projects

Tenant / resident DIY training programme in partnership with social housing providers

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P-card. Why do it at B&Q? 

Significant Purchasing Card market, £2b+, RMI (repairs, maintenance, improvement) a key sector

To make our customers’ lives simple:  Dovetails into existing purchasing processes our B2B customers may use

To attract new B2B customers to B&Q  Removes a barrier to trade with B&Q

Aimed at non-strategic, high volume, low value purchases – very much B&Q’s bread and butter in the B2B market

No real impact on store process, almost identical to a credit card transaction

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Development of Visa Purchasing Card 

Having reviewed the business case for a number of P-card options, B&Q focussed on Visa based cards as its entry into the Purchasing Card market

The aim was to become a Level 3 merchant, flowing VGIS transaction data via every till and ultimately to the customer via its issuing bank

Gaining accreditation with the main banks was a reasonably smooth process

The project went live in November 2007 with all B&Q tills accepting Visa Purchasing Cards with a Level 3 merchant capability

After a few initial issues with “gross” and “net” invoicing the process is now relatively seamless

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Getting our Level 3 Message to Market 

Undoubtedly the biggest challenge of the project and the one requiring most investment has been getting our message to market

Targetted the trade (RMI and Public Sector) with advertsing, directmail, E-shots, exhibitions and in-store

Worked with Visa and the main issuing banks in an attempt to reach their P-card customers

Partnered OGC Buying Solutions, an executive agency of HM government, to communicate to key public sector organsiations

To date, growing our P-card sales has been slow but we remain convinced it will be a worthwhile investment in the long-term

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Trade Discount Card 

Visa Purchasing Card holders qualify for a B&Q Trade Discount Card which offers up to 30% savings on B&Q purchases

Up to 5% quarterly discount plus up to 25% discount on selected products

Monthly statement showing discount and savings

Multiple cards operated by single account

Used in conjunction with P-card, a very strong B2B purchasing package

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What Next? 

Developments in our P-card strategy is dependent on achieving a significant rise in P-card sales

Subject to this sales growth there are a number of areas that could be developed:  Accepting other payment platforms, eg, Mastercard  Accepting P-card payment on-line  Developing “Lodge” cards

The immediate challenge is to reach organisations currently running a Visa Purchasing Card programme and have an RMI spend requirement

Suggestions gratefully received!!!!!

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