Going, going, gone!

History
The business of Floors 2 Go commenced trading in 1999 from its head office in
Birmingham as a family owned and managed business. Rapid store openings have
contributed to its impressive growth record. Professional management has
subsequently been introduced into all areas of the business and has since driven
the business forward and contributed to its recent success. Turnover increased
from #8.6 million in 2001 to #44.1million in 2003.

Products
Floors 2 Go offers a large range of products, the majority of which are own
label brands such as Bingo Loc, Next Step and Fast Fit. The laminate products
are all glueless/clickfit targeted largely at the home DIY market. Floors 2 Go
also offers ranges of engineered hardwood and solid hardwood flooring together
with installation and aftercare accessories and trimmings.

Strategy
The ongoing strategy has been to open regional clusters of stores within
targeted television areas and once critical mass has been achieved, to support
these with television advertising campaigns. Floors 2 Go has exploited market
conditions with a combination of competitive pricing, wideproduct range and
customer service.
Outlets are mainly located on main roads in areas with a population of at least
100,000 at the edge of towns and where in most cases there is car parking. The
Directors consider proximity to DIY outlets as beingadvantageous.
The Directors believe that Floors 2 Go is well established in the flooring
industry. Their strategy is to continue to open new stores in regional clusters,
particularly within the South East of England and Scotland supported by
television and press advertising.

Market
The market for laminate and solid wood in the UK is currently estimated by
Mintel International Group Limited and AMA Research Limited to be #360 million
per annum and is projected to grow to over #440 million per annum by 2006.
Retail growth in the laminate and wood flooring market has been strong with the
product taking market share away from carpets, assisted by the high media
profile of television 'makeover' shows where wood and laminateflooring features
prominently.
Floors 2 Go has only just recently launched a range of solid wood floors which
the Directors believe would suggest that there is a significant opportunity to
expand in this sector.
There are a number of other competitors in the market including the large DIY
retail outlets, builders merchants and other independents. The Directors believe
that few if any of these competitors are able to offer the same combination of
specialist flooring products along with theexpertise and advice of the sales
assistants that Floors 2 Go offers throughout its stores. respectively.