An estate agent is closing all four of its high street branches to take space in a large office building where it will operate as a ‘hub’.
Orchards of London has been operating out of offices in Shepherds Bush, Acton, Chiswick and Ealing. It has already closed the Shepherds Bush branch ahead of the move to its new home, West World, in mid-December.
The building is at the junction of the A40 and North Circular, and from it the staff will cover all west London postcodes, driving a fleet of new pink and black branded Minis.
Five new jobs have been created and a spokesperson stressed: “This is an offensive move, not a cost cutting defensive one – it reflects the changing environment, and the fact that high streets no longer have the footfall they did, and are expensive.
“Business can be better run from a hub and resources used better.”
Orchards, which employs some 25 staff, became part of the Hogarth Property Group earlier this year, and moving with them are mortgage and financial services company Paul Alexander, Hogarth Acquisitions, and Hogarth Design and Build.
The re-modelled business will open longer hours, 9am to 9pm Monday to Friday.
Group chief executive Paul Connolly said: “This is a positive move that will enable us to scale up more easily and take advantage of improvements in technology whilst enhancing the customer experience by being available when, and how, they want, in today’s 24/7 environment.”
Group managing director Liam Doherty added: “We believe that ‘tinkering around the edges’ of estate agency is tantamount to standing still.
“This move, coupled with further investment in people, technology and marketing, will reinforce our position as the agent of choice in west London.”
Certain markets/locations have to adapt so, reluctantly in one sense, I agree that Hub style operations may suit some agents.
Sadly however it’s just another nail in the High Street generally, both the Government and Councils crucifying the High Street which month on month becomes a souless place in many towns/cities. Business may not always move with the times however those responsible for maintaining and encouraging our High Streets must walk/drive around their Local Areas with their eyes shut!
Great Britain is gathering pace, at looking poorer! The next rebrand will be to drop the Great from Great Britain!
Happy Black Friday…..
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I think this is a great idea and brave.
It is a common misjudgment that closure is failure. Not at all. This is a smart move that reflects modern estate agency.
Sure the competition will try to knock you for ‘closing’ offices. You will make more money than them with fewer overheads and as you say, far less to pay on the ‘per branch’ Rightmove costs.
I did exactly the same as you a year ago.
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Good morning.
This is obviously a major decision and is based on considerable research and analysis and our view of the best way forward for our business and, crucially, our customers and clients.
We are investing heavily in marketing, technology, brand and people – there are a few cost savings to be had but the real driver is to put ourselves ahead of the game – for example we changed our lettings fee proposition a year ago to be ahead of the tenant fee ban and this, whilst carrying a short term cash-flow shortfall, is now generating consistent month on month revenues and allowing us to grow.
In our view business cannot stand still and challenging and changing times calls for more radical and innovative approaches.
As for the competition – we compete now and look forward to doing so in the future!
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Sounds like a politicians answer.
How do you expect this to help moving the business forward if you don’t mind me asking? The only thing i can see it do is reduce costs via headcount, premises and rates – Which i am guess is a rather large saving.
Where is the benefit to the buyer, seller, tenant or landlord? – I assume that you do not have to increase fees?
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Contacted my council to ask about some kind of rates relief. You know as per the budget.
Letter back says. Does not apply to Estate Agents.
I am seriously considering quitting the High Street, the rent and rates are now too much to bear.
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Make an appeal to the tribunal not the council.
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Also will save 3 rightmove licences as well . with rm arcane charge by branch policy. It’s time rightmove charged by stock not branch. Like it does for its pay any way chums
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Portal licensing may reduce our costs slightly but we are focused on obtaining value from any of our spend.
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I am not a fan of these Hubs.
The High Street is still the marketing arm for new Vendors even if they don’t actually come into your office, they still feel comfortable you have a high street presence.
The only issue I find with the High Street where there is a Controlled Parking Zone is parking for the staff. Even if you have a permit, there is no guarantee you will get a space. Business permits in West London cost about £800 P.a per car.
If a successful agent needs to downsize and move into a serviced office/hub then it just shows more agents will also be suffering. Most will close up and also try something from a serviced office/hub.
Keeping up staff morale is also a major factor for good customer outcomes.
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It would be a surprise if every business wanted to run the same way and one of the issues, in our opnion, in the industry is the over simlilarity of offerings that often results in the public only differentiating on fee.
Clearly performance and service are key drivers and we are proud of our record over the last decade and are shaping ourselves to do even better in the decade ahead.
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The challenge will be maintaining image and presence – closing anything sometimes leads to the assumption you have gone bust…..
They won’t save everything they hope to, as they will have to increase their marketing spend significantly.
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Agree. You don’t always save by centralizing.
“The re-modelled business will open longer hours, 9am to 9pm Monday to Friday.”
They only working Monday to Friday? If so the model will not work.
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We have obviously thought about the challenges – the strengths, weaknesses, opportunities and threats that exist.
We have a robust and experienced management team and excellent outside input.
For clarity, we will continue to be open at weekends but are extending our hours Monday to Friday to meet the needs of our customers and clients.
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Good luck – it is always interesting to see how new models work – no substitute for hard work and ingenuity
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Cheers!
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Good luck, I hope it works out for you.
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Thank you – cheers!
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Rather than moving into serviced office premises, I’ve noticed a lot of agents moving from the traditional “Estate Agents Row” to more visible, traffic friendly shops. You still retain the shop front, but they’re often a lot cheaper, bigger and a lot more visible. I reckon this seems a more sensible route for those who want to dispense with branches but maintain a comforting, visible presence.
One in my town opened a few years ago in the middle of the town centre and struggled. She then refurbished a dilapidated building on the busiest traffic junction, moved her business into it, and she’s now smashing it. That’s just one example.
To me, if you combine that (traditional agency) with proper online functionality, local knowledge and great service then you’ll be the best agent in town in the majority of cases, and you’ll put yourself in a position to survive what will no doubt be a serious cull over a coming years.
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We are not moving to serviced offices.
Our plans are taking all of the strengths of our existing operation and enhancing them by our plans – our people are key and we will be better palced to spend more time with customers and clients.
Our new brand and investment in marketing and technology will support the operation going forward.
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“The plan is to grow the business over the next three years to over 100 staff, 10 offices”
Taken from their own website ….. Guessing its a consolidation to reduce costs. Nothing wrong with that its the sensible thing to do “Cut your cloth accordingly” – But why try and add the spin that its a better service?
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Hi Smile Please
Whilst there are clearly some useful cost savings from the consolidation into one location, as previously stated, the main purpose of the changes (and the physical premises move is just one aspect) is to better position ourselves to deliver higher quality services across longer opening hours (i.e. at times the customer and client wants). Our twenty five plus staff will benefit from improved technology to assist them with freeing up more customer facing time and our marketing will significantly change and increase, all of which will directly assist our customers and clients.
In addition our fellow group companies Paul Alexander mortgage consultants and the Hogarth Property Group will also be relocating to the new offices and they and their customers will gain from the closer communication and facilities.There is, for example, onsite car-parking unlike High Street premises which will benefit everyone.
We are actually creating five additional roles as part of our restructuring.
The business will re-brand at the time of the move (over the weekend of 14th-17th December) and the current website will be updated – next year it will be rebuilt from the ground up.
We see this as a major investment in the future and our commitment to continuing to provide the best estate agency services in West London.
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It would be interesting to hear how it all went in 6 months.
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Of course – from our perspective we see this as the way forward – it is clearly up to each and every business to find their points of difference and build on them. Naturally it will require us to continue to deliver quality and performance and to build on what we have achieved in our first decade.
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Whilst many comments point to cost saving I would have thought that the consolidation of a strong team of 25 people working together, covering the previous compact geography, should translate into a powerful offering for both clients and applicants.
The window provided by the high street is now challenged dramatically by the the window on the laptop and phone as technology turns the “25” into personal self contained mobile branches.
Sounds like a well thought out measured response to a changing future and not a a short term knee jerk.
Domit right and you won’t need any luck!
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spin2009
Like you – we believe in making one’s own luck!
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Well done to Orchards of London to take the time to answer the questions. Some balanced answers and I see the merit of a location such as yours in London or indeed any large city/town where parking and access are an issue.
Certain processes can be done remotely and reduce the need for clients to call in for compliance contract/leases etc, but back office systems will need to be tight and compliant. Agents who have tried this in the past have only really thrived due to the standard of their team and the main fee earners…in other words genuinely good operators. Foxtons grew on the back of it in their heyday and I have seen some out of London businesses make it work. Long hours with real people is a step in the right direction!
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Thank you P-Daddy
We agree with you – people are very much at the heart of everything we do – ours and, of course, our clients and customers.
We aim to create greater opportunity for more personal contact not less!
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Some of the comments on here are rather silly. Its obvious that a few think every location is the same. In very expensive areas like London a hub strategy makes perfect sense. In cheaper towns relocating to cheaper roads makes sense. For some working from home will work. We have to accept that this binary option of high street or internet isn’t the way this industry is going. Sticking to the old ways out of habit means withering on the vine. Adapt. The market has.
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Dear rsvstu97
We obviously agree with you!
We are in the process of actioning major changes to reshape aspects of the business to be best placed, in our opinion, for the future.
We are certain that there will be several different variants of operation evolve but complacency will not figure successfully for anyone!
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The ones that are left on the high street will thrive.
The more which work from home or serviced offices will create more opportunities for the high street agents.
For example I can’t see a Chiswick vendor instructiing someone working from a serviced office in Hanger Lane on the A40.
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