Family business Beaumont Tiles is targeting Sydney as the next area for expansion as part of its national growth strategy.

The Adelaide-based national tile retailer plans to open 12 stores across New South Wales over the next 12 months.

Danny Casey, CEO of Beaumont Tiles, told Franchising, “The population in Sydney and the lack of stores around the CBD means this is the right strategy.”

Right now the brand is represented in five outlets in the Western Suburbs but expansion will see stores open on the north shore, northern beaches, inner west and south east regions of Sydney.

Two of the expected 12 stores are being finalised now.

Typically sites are in high traffic areas with flexibility for off-street parking important for the mix of retail and trade customers.

An independent corporate real estate and project services firm, PCG, has been engaged to scope for new locations.

“We’ve also sent letters out to about 40 current tile retailers. We’ve strategically looked at their positions geographically and in the industry, and invited them to contact us. Bringing in existing stores works well with the system we have.”

The brand has a national strategy of growth through new stores which can be corporate, franchised or acquired, but the focus is on franchising.

In addition to the stores, PCG, is on the lookout for suitable warehousing and logistics premises.

$24 MILLION INVESTMENT

Beaumont Tiles is investing up to $24 million including capital expenditure and stock in the strategy and this includes the introduction of an integrated computer system.

The franchisor-funded new IT development will result in a benefits for franchisees such as a streamlined order process, the ability to view stock holdings and financials.

“From a company view we can provide greater assistance on HR, payroll and accounting,” added Casey.

STRATEGY ON TRACK

The acquisition of the family owned Majer Tiles Group in Queensland last year has proved a smooth transition, Casey said.

“It’s now a fully integrated business and providing a greater return than we expected. When you have two family businesses come together there are always difficulties but after the first couple of months it became streamlined. We still have all 44 Majer stores on board. It’s gone tremendously well, and quicker than we expected.”

The company expects to be close to 30 additional outlets by the end of 2014, and is currently in negotiations over a handful of stores in Queensland and Victoria.

A new Bathurst outlet recently became the company’s 95th store.