Homeform chief sets out his three-year plan

Chris Pavlosky, who was appointed last month after being hired as interim chief executive in June following the departure of Tony Vicente (Retail Week, June 25), said: “My job as chief executive is to lead the company to a position where Sun can make a successful exit. We have a three-year plan to sell the business.”

Pavlosky said he will focus on customer service, trimming costs and the product offer in order to revitalise the group, which runs the Dolphin Bathrooms, Sharps Bedrooms and Moben Kitchens fascias.

He expects the retailer to post positive EBITDA for the year ending March 2010, after recording a loss the previous year.

Pavlosky said focus on customer service is crucial because Homeform’s offer is “very complex”. He said: “We’re selling, delivering and installing kitchens, bedrooms and bathrooms - they are not simple projects.”

The retailer will also seek efficiencies. He said: “The top line is very challenged across big-ticket retailers, so we have to look at reducing costs.”

For instance, Homeform will consider whether to “consolidate the number of suppliers” to achieve greater economies of scale.

He maintained that under his watch, Homeform would “develop products our consumers want. We operate at the top end of the mass market, for people who want it done for them. We’re not the DIY proposition.”

Pavlosky, who has worked at Dixons and MFI, insisted the UK is “still a fairly robust marketplace and we’re dealing with people who do have discretionary income”.

He said demand for big-ticket items has reduced year on year, but Homeform expects consumers to bring some purchases forward to beat the January VAT increase.

He said: “We don’t expect next year to be a recovery year but with cost reductions and service improvements we can continue to grow our bottom line without growing the top.”

Homeform runs 167 showrooms, including 83 concessions in Homebase, Bhs, Next and Laura Ashley.