Direct Online Services, a Gloucestershire-based e-commerce business is on course to hit 67 per cent growth in revenue over two years (37 per cent in the last year alone) following an ambitious expansion programme across the UK and Europe.
Turnover at Direct Online Services, now the UK’s largest online retailer of kitchen worktops, has increased from GBP18 million in 2015 to GBP22 million in 2016 and is on course to surpass GBP30 million in 2017.
Founded in 2008 by father and son team Martyn and Will Rees, Direct Online Services is the e-commerce platform behind well-known kitchen furniture brand Worktop Express. In October 2016, Direct Online Services secured a GBP3 million investment from BGF which enabled the business to grow exponentially, expanding its product range and investing further in staff, IT, operations and marketing. Headcount has swelled from 100 people in 2015 to over 200 people, 10 per cent of which are based in Europe.
Following the success of the business in the UK, Direct Online Services is accelerating its expansion across continental Europe where there is a less developed online market. Having unveiled new depots in Central London last year and Birmingham in April of this year, Direct Online Services made further investment in its European operations with a new showroom in Viernheim (Germany). The business will also be opening two further sites in the UK this year, including one in Glasgow next month.
Following BGF’s investment, Direct Online Services is also expanding its product range, developing a variety of high-quality laminate worktops that are capable of outperforming traditional materials. Having launched in 2016, these products now account for around 20 per cent of all the worktops sold and will complement its growing range of premium solid wood worktops, strengthening Direct Online Services’ mass-market offer across the continent and bringing down the cost of traditional materials for the consumer.
This expansion in products will be matched by a large investment in bespoke software – including the launch of a dynamic pricing delivery model. Unlike many competitors, Direct Online Services manages its own distribution which enables it to guarantee next day delivery and scale-up the business without compromising customer satisfaction. The business will also continue to develop its bespoke online worktop configurator.
Will Rees, Director of Direct Online Services, says: “We are extremely proud of the growth we have achieved over the past few years but we won’t be taking our foot off the pedal now. We will be expanding our model across Europe where there is a growing appetite for premium kitchen furniture and strong demand for excellent customer service. Our IT-led approach and relentless customer focus will allow us to scale-up efficiently while maintaining our commitment to flawless and speedy delivery.”
Edwin Davies, Investor at BGF, says: “The rapid growth of Direct Online Services is a testament to the confidence and ambition of Martyn and Will. Direct Online Services has used BGF’s growth capital investment to scale-up the business, exploring new markets while maintaining its commitment to the excellent customer service. I look forward to our continued involvement with Direct Online Services as it expands across Europe.”
