William Sinclair are pulling the plug on retail distribution through wholesalers because of margin pressure.
Sinclair’s retail MD Danny Adamson revealed yesterday that from 1 October, retailers will receive direct deliveries and invoices.
The three major wholesalers – Solus, Decco and Stax – have been informed of the change and retail customers will receive a letter early next week.
Sinclair is a key player in the garden care category and supplies ranges that wholesalers regard as core business. Rival suppliers have been asked by wholesalers to help fill gaps in their offerings.
Adamson confesssed wholesalers were “not best pleased” with the news but he believed they would understand the need to ensure garden retailers remained competitive. “Some of our competitors already deal direct,” he said.
He also allayed fears that small businesses with low delivery requirements might potentially miss out when Sinclair products are not available through wholesalers. “Our minimum order requirement is just £200 so I don’t think it will be too horrific for most people,” he said. “We cover a wide range of products and I’d like to think people will continue to have them in their warehouses.”
Adamson said pressure on margins was behind the decision. “We can’t afford to carry on paying the margin to our wholesalers. Growing media in particular is a highly competitive business and it does come down to the last penny.”
One major garden centre stockist told GTN Xtra he was surprised Sinclairs had not taken the decision earlier. “It makes sense – it’s probably not before time,” a spokesman said. “Let's hope there’s some extra discounts coming our way.”