On top, online

The early part of 2006 looked grim for retail and trade sales. Big chains like B&Q and Wickes, both previously viewed as strong growth engines, went into reverse, with B&Q forced into redundencies, store closure and a fundamental review of its future target market. Builders' Merchants' trading may be less volatile, but sales proved quieter too.

Virtual sales result in real growth

Look around for real growth and it is elusive: unless you go online. Online sales have raced ahead; e-tail is the fastest growth area with unmatched earnings. Internet shopping now accounts for 10% of Uk retail spending, totalling £80 billion, with 45 percent of shoppers increasing online spending in 2006 (IMRG).

The world's biggest online grocer, Tesco, with internet sales and home deliveries clocking up 'very good returns' since its home shopping launch in 2000, understands the advantage and has expanded its website to include non-food items. Supermarkets were the first to realise that existing warehousing, distribution centres and transport could be put to extra profitable use with little additonal expenditure.

Nowadays people buy everything, from holidays to cars, to sofas and conservatories on the web. Even larger, premium purchases are made online. A growing number of surfers are buying homes from builders online, such as McCarthy and Stone.

Web trade sites

Once people become comfortable, often keen, internet buyers, it doesn't stop there. Those who buy CDs and holidays off the web are happier sourcing trade materials for work in the same way. Screwfix Direct, trade sister to B&Q, has gown through online sales, ranking number 46 in the IMRG Hot Shops List for the most opoular (by visits) UK websites in April 2006.

But there are few online opportunities for builders and tradesmen to actually buy trade products from Builders' Merhcants. Many independents have no web presence at all.

This follows a trend of only a third of small businesses in Bristain that use the web to generate business (Lloyds TSB). Of those merchants with websites, many are inadequate, amateurish and unfocussed, with low search engine visibility.

Websites can fulfill different functions; some are simply showcases, without the mechanism to purchase directly. Others are good websites offering product information with the ability to purchase by email or phone, for example www.kellaway.co.uk in Bristol. Some sell directly online but offer local delivery only; www.jparrboro.co.uk services the Middlesborough area.

Industry leader, Travis Perkins, still has the edge with its Trademate online purchase service for trade customers, see www.trademate.co.uk. But the few independents leading the way with national coverage (or partnerships providing national coverage) and a good website like www.longandsomerville.co.uk, will quickly gain ground on merchants who ignore the virtual world of trade sales.

In a static, more complex market if you don't have a website to support your business, growth will be hard. Having the right website with the right back-up and appearing on the right search engines is an important way to take your business forward. It's not costly and it's not complicated.

It makes sense because using existing stock, sites and transport to generate more sales can rebalance the power between different sized businesses. SMALL can be as big as BIG on the internet, and the additional turnover can put independents in a different league.