CJ Lang is drawing up investment plans for its Martex cash and carries says John Wood

Customers of the Martex chain of cash and carries in Scotland can expect to see the parent company CJ Lang investing in the depots in the near future, according to chief executive David Walker.

“Customers in all our C&Cs will see improvements,” promises Walker, “as the business will have a new focus on the depots.”

He accepts that confidence in Martex had been hit when one of the depots was sold, leaving it with five at locations in Dundee, Ayr, Penrith, Cupar and Aberdeen, but says it now has firm foundations.

“We won’t be buying any new cash and carries but this is a good business, all the depots are profitable, we own each of the buildings, and there is a business case for investing in them.”

CJ Lang commercial director Dick Smith, who has overall responsibility for
Martex, warns that funds will be limited. “There is a big future in cash and carry and we need to invest, but with a margin of one per cent we will have to justify any spending.”

The first step in drawing up the investment plan has been a study tour to other cash and carry depots organised by Smith. In two and a half days, 12 Martex staff visited 10 cash and carries in England and four in Scotland.

As Martex is part of the Landmark buying group, many of the visits were to fellow Landmark members, such as Bestway, Hyperama and Parfetts, but non-members such as Makro were also willing to host the team.

The aim of the exercise was to generate ideas for ways Martex depots could be improved, and Smith says it was “very worthwhile.” It has already led to plans for a reciprocal visit from fellow Landmark member Bellevue Cash and Carry in Edinburgh, and Smith says the two might be looking to exploit synergies.

David Good, the general manager of Martex’s flagship depot in Dundee, and his staff have now been given a “blank piece of paper”, says Walker, and invited to come up with designs to turn it into the perfect 21st century depot.

“We want them to come up with a wish list,” says Walker. “Obviously not everything will be feasible, but we will cost it and say what we can do.”

He adds: “We want to do the whole thing at Dundee first and then use that as a blueprint for the others.”

Walker says investing in the depots will benefit customers and improve loyalty, and it will also help to motivate staff. “They will have more pleasant surroundings to work in and will see that the company is investing in their future.”