Xey seeks kitchen showrooms to achieve turnover objective in two years
Spanish kitchen furniture manufacturer Xey has aims for the UK to be its second largest market in turnover, within two years.
It believes this objective is achievable, as it was the company’s position at the end of the 1990s, when it served a network of independent studios and John Lewis in the UK.
Basque region-based Xey, which has headquarters and showroom in Zumaia, has returned to the UK after an eight-year absence, and is now looking for 30-50 showrooms nationally. After two months, Xey has already established two displaying dealers.
In addition, the company will also be seeking a major, multiple retail partner; however it proposes that will served by another brand within the Xey group, to avoid competition.
Xey is being distributed in the UK by Home Interiors Group, which is led by Colin Seaton and David Trevethan. The furniture manufacturer has invested £100,000 in marketing, plus will attend kbbBirmingham at the beginning of March.
The return of the 40-year old brand to the UK follows a change in shareholding structure, with one of its founders Victoriano Susperregui named as chairman at the end of 2012. At the same time, the management team noted 93% of sales were in the Spanish market and 7% of sales were export, in the main, to France and Portugal.
The UK forms part of its international strategy, which includes export to Latin America where Xey has set up solus Xey showrooms in Chile and Colombia. It also has plans to extend into Ecuadorian, Mexican and Costa Rican markets in 2014. In addition, Xey has a retailer in Pakistan and a future project in Morocco, and plans to set up a shop in Dubai. Xey estimates that 33% of its turnover will come from export in 2014.
Xey manufactures 25,000 kitchens a year and in 2012 had a turnover of €14million. It expects turnover will grow to €24million in 2016, showing an increase of over 70%.