Regal is a distributor of paper, household, toiletries, drinks & janitorial products to the retail and wholesale sector
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Left to Right - Stewart Daniels, Chris Hughes and Nick Hughes

In this day and age, when satisfying a customer’s every need is cited as the wholesale
holy grail, it’s rare for a business to declare: “We don’t want to be a one-stop shop.”
Yet, this is Regal Wholesale’s successful philosophy.

While many wholesalers are trying to
stock as wide a range as possible,
managing director Chris Hughes and his
team have taken the conscious step of
cutting back. The wholesale business, based in the docklands area of Wallasey, Merseyside, proudly lists less than 1,000 lines. Yet it occupies a 25,000 sq.ft. warehouse and its turnover has grown just about every year









for the past 23. Last year it was up on the year before by an impressive 24%. The explanation, according to Chris, is that the business focuses on what it is good at - paper goods, bulky items which need to be handled in a particular way.

However, it hasn’t always been like this. The business was founded by Chris’s father, Bill Hughes, who started off operating from a van. He concentrated on delivering toilet rolls and kitchen rolls to independent retailers on the Wirral and in Liverpool. By 1984 he had reached a turnover large enough to warrant him trading out of his own premises and, as it continued to increase, the business moved first into one warehouse and then into the current one in 1999, although Regal are now in the process of looking for even larger premises to continue their rapid growth. Chris took over from his father, who is now the company’s chairman, several years ago. Young and determined to succeed, his initial instinct was to broaden the lines carried and to move into new ranges. However, he soon realised that this was a mistake. He explains: “We got to the point of expanding our range and listing 1,500 lines, just because we were trying to catch up with everyone else. But we soon realised that this wasn’t our strength. It was then that we took the decision not to be just like all the other wholesalers around us.” As a result, about 18 months ago, the business was restructured and the listings reduced. Chris has working with him his brother Nick, in the role of sales director, and also on the board is Stewart Daniels as operations director. The three together have formed the strategy that is moving the business forward. “We don’t see ourselves as a standard wholesaler, but as a niche player,” says Chris. “We stock toiletries and household products, with some food clearance lines. The business focus, however, is very much on paper goods and it forms over 50% of our turnover. We focus on what we are good at, and that gives us a real drive.” Clearly it is the business’s specialisation which continues to propel it forward. Regal Wholesale currently has one of the biggest ranges of paper products available under one roof, around 250 skus. As Chris explains, it is the sheer size of these lines that makes the selling of them such a specialised area. “Because toilet rolls are so bulky, people have to order every week and, because they are a fast moving item, toilet rolls tend to form the base of any order we receive. We then try to encourage our customers to add on the household goods and toiletries, which account for around 25% of our turnover. “We know it’s hard for smaller retailers to buy the goods direct from the manufacturers, because of their bulk and because manufacturers want to supply a full truck load of products. So, that’s where we fit in. With us,
retailers can mix the type of paper they take, be it branded, unbranded, clearance or regular. We can provide that mix.”
Furthermore, because of the huge volumes it can turn over,
Regal has also been able to develop a paper goods brand called Designer, specifically for independent retailers and wholesalers. Created around the time the business was restructured, the brand allows Regal to sell its lines to other wholesalers, without anyone compromising their business name. Chris reveals that in the space of 18 months, Designer has become one of Regal’s best sellers.
While being a specialist drives Regal forwards, there are
two further facets to its business which add to its security and success - technology and membership of the Today’s Group. The company has been a part of Today’s for the past ten years. It’s an association which, according to Chris, is extremely useful in terms of contacts, networking and general advice and support. “We’ve learnt a lot from Today’s - they are very important for us,” he explains. “We are a Group 3 member, which again serves to allow us the flexibility in operations which we thrive on.” As for technology, it is the development of its use within the business which really seems to be shaping Regal Wholesale’s future. Regal uses Sanderson, Today’s preferred supplier, and has invested hugely in its IT infrastructure, in both warehouse technology, such as radio frequency hardware for warehouse management and stock control, and also on the internet, with an online ordering system going live around 18 months ago. “Relative to the size of our business,” Chris reveals, “our investment in IT is high. We’ve got a very strong IT team. We’re forward looking and always trying to stay ahead. We were one of the first delivered wholesalers - certainly within the Health & Beauty arena - to use a coloured brochure. What’s more, we print it ourselves, which means we can make last minute changes, add products right up to the deadline and be very flexible with the content.”
As for the web, Chris acknowledges that in the short term
the business is spending a disproportionate amount on its
website - www.regalsales.co.uk - compared to how many sales it generates, but this is very much an investment in the future. “We’ve picked up a number of national companies via the web. They are so far away we would never have been able to physically visit them, but getting them on our web page is as good as being there. I think we’re getting their attention because we are a bit different.”
Without doubt, further developing the online business is a part of Regal’s strategic plans for growth. To date, although enthusiastic and fully committed to the online sales system, the company has been fairly quiet about its development, wanting to make sure it worked properly before shouting about it. Now Chris says he is confident the website is fully functional and it is building the customer base really well. “We’re still quite regional, so it’s very good for our business to spread further afield. We also get a lot of new customers through word of mouth and have recently taken on a new sales person to increase our coverage.”
Chris concludes: “The market is changing rapidly. Years ago we used to supply a lot of market traders, but they have been fading away and in their place we’re getting larger retailers and chains of shops, all serviced with a very high degree of professionalism. Our philosophy for success is founded in building strong, friendly relationships with our customers, developing a high level of trust through excellent service. Customers are getting more sophisticated all the time and that will continue to increase, so we know that in order to succeed we have to continue to develop, which is exactly what our plans are aimed at.”

 

 

 


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Regal Wholesale Limited
Registered Office: 4 Kelvinside, Wallasey, Wirral, Merseyside CH44 7JY. Registered in England No. 238 1169