Shop fitters find escape route from credit crunch

Aug 5 2008 by Chris Knox, The Journal

A SHOP fitting business says it is set to defy the current economic climate by expanding into Eastern Europe and targeting franchises.

Although Washington-based TSF Retail Solutions admits that a downturn on the high street means there is less business for shop fitters, it believes its work with out-of-town supermarkets will secure its growth.

Following further contracts with supermarket giants including Tesco and Sainsbury’s, the firm now believes it can grow its turnover from £30m to £40m over three years. Although it has built its success on supermarket work, with 95% of its turnover derived from it, it now intends to expand and has secured deals with airports in Greece and Russia to refit their duty free facilities.

This is in addition to its airport work in the UK, including a £70,000 refit of a Newcastle City Airport passenger lounge for airline FlyBe. The airline has also asked TSF to undergo similar work at its Gatwick Airport lounge.

Resources director Andy Collinson said: “It is true that many shopfitters are finding it hard at the moment as high street stores are finding themselves with less and less money for refurbishments in light of the credit crunch. However, we are fortunate enough to work for some very large out-of-town supermarkets and believe this, and the new airport work we are pursuing will allow us to continue growing.”

The firm, which also carries out work in France and Spain, is also keen to increase the work it does with franchises, which include sandwich chain Subway and mobile phone business O2.

It has been marketing its services to franchisees through a number of exhibitions and believes it can double the £1.5m it makes each year in this area over the next two years.

The 20-year old firm also recently purchased a 100,000sq ft warehouse in Peterlee to help support this expansion and now has four sites covering 300,000sq ft, three of which are based in Washington.

It has introduced a new joinery facility at one of the sites which will allow it to pre-produce fittings before arriving on site.

It believes the extra work and added floor space will lead to 40 new jobs in addition to its 154-strong workforce over the next three years.

“Although we will very much remain committed to our supermarket clients, we are now ready to take on new markets,” Collinson said. “It is getting tougher out there but we believe our reputation is now big enough to secure future business.”