Countrywide has made it plain that it wants to buy up traditional high street independents, large and small, anywhere in the country.
In what seems to be a ringing vote of confidence for the high street, the firm has expressed no interest in online agents – although CEO Alison Platt, in an interview with EYE, did say that Countrywide would launch an online offering.
Its strategy looks set to give a number of independents an exit strategy, but how Countywide will deal with a potentially large number of many local brands is less clear.
However, the largest estate agency in Wales, now sold to Countrywide, will retain its identity.
John Francis, which operates a 21 branch network covering Swansea and south Wales, was one of three substantial regional independents whose sale to Countrywide was announced on Friday.
The business has told the South Wales Evening Post that it will continue to operate under its brand name and be managed by directors Bethan Edmund–Harper and Richard Emmanuel.
Former owners Nigel Jones and Trevor Carr will become consultants.
Edmund-Harper told the paper: “We are delighted and excited to have joined the UK’s largest property services group.
“John Francis is a strong brand and a well known business in Swansea and across south Wales, and as part of Countrywide we believe that the business will continue to flourish and grow.
“The business will continue to trade as normal across our branch network and our employees will continue to deliver a high quality customer service as always.”
In Liverpool, Countrywide has snapped up two of the city’s biggest independents, Clive Watkin and Sutton Kersh.
It is thought that its interest in the city is largely driven by prospects in the private rented sector.
Last year, Countrywide announced its entry into the ‘build to rent’ sector via a partnership with Hermes Investment Management to create a residential property fund for the private rented sector.
The fund, called Vista, targets high-quality, purpose-built residential stock across the UK.
Earlier this year, it was announced that a scheme in Liverpool, Baltic Village, was sold to Vista in a deal worth over £50m.
The scheme will consist of 324 apartments but has been a symbol of Britain’s property market crash and subsequent revival.
Work started on the city centre site in 2006, but the scheme collapsed in 2007 with debts of £46m, becoming one of the biggest property failures in Liverpool. The site was abandoned, but the Baltic area has since undergone transformation. Baltic Village is due for completion next September.
The sudden growth in what was already the UK’s largest estate agency group puts under the spotlight what Countrywide will do with all its brands – with speculation that it will drastically reduce its number.
However, a spokesperson told EYE: “We are not looking to reduce to a handful of brands.”
She emphasised that Countrywide’s business proposition is all about local brands, but added: “We are looking at consumer research.”
Countrywide has emphasised that it will continue its growth drive – its ambitions are to double in size within five years – and says it wants to hear from any agency owner, whether of single of multiple offices, anywhere in the UK.
It has openly released contact details for agencies looking to sell, saying its commercial director Bruce Evans can be reached “in absolute confidence” on bruce.evans@countrywide.co.uk
The huge buying spree by the corporates is not unprecedented, echoing what went on in the late eighties to nineties – but which ended in tears.
Ironically, Countrywide itself began after precisely that, with the legendary Harry Hill buying Nationwide’s estate agency business for precisely £1.
I had the great displeasure of working for the Countrywide Group after their £1 acquisition of Nationwide. They were woeful to work for and woeful as an estate agency group!
And so deja vu….. it is in my view a great shame that Countrywide are going to most likely trash the Independent Estate Agency Industry by hiding their brand behind the much more trustworthy/valuable independent face of our independent brand
The Winners?….. the business owners that take The Countrywide £££’s! Everyone else in my view will suffer from the inept management that is endemic with Countrywide.
It’s yet another example of Corporate Estate Agency trampling over our industry! Welcome to Supermarket Estate Agency Sweep – your host is Countrywide!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
That’s how it was when my father was there …. And my father fathers … It’ll never change …….
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I have to say I think it’s funny! I am sad for the staff who have shown loyalty and commitment to business owners but in effect its like first time farmers spending cash on un-clipped Ducks at a Christmas market.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I agree with GPL 4 years ago Countrywide bought out a family run 6 office business within 2 years most of the loyal hardworking staff had left, within 4 most of the portfolio had moved on due to inept management and distrust, I wish all those new acquisitions all the luck in the world, there going to need it……!!!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
GPL. Alison Platt wasn’t in charge when you were in CW. Those who were previously under the old regime and are still with, or more interestingly have rejoined, state the culture is totally different and in 5 years time, many outside of CW may see a big difference too. There is certainly a huge difference inside already, I can assure you.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
JAM01 – Please give me 1 positive change that has happened for you as an employee?
Forget new phones, new computers, office refurbs – these should have been done years ago but were held back because they needed to float and needed to show they were as profitable as possible.
All i am hearing is increased responsibility, diversification of the work force and more centralized departments.
CW cannot change its offering or the house of cards collapses. All they are doing is refocussing from sales and the extra revenue streams to Lettings and the extra revenue streams.
Why do you think you know have a head of retail which covers pretty much everything instead of an M.D. for sales and lettings?
If you are in sales now expect to pick up the slack with letting in the future, As has always been the case, good agents leave CW better prospects and earnings potential not to mention environment elsewhere.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Here here smile please! Nobody can possibly make ‘substantial change’ to an organisation this big that technically has no ‘Owner’ to fully care in a short scale of time. I echo GPL from my on experience and know many still very unhappy. I am pleased for you JAM if you feel differently, your detachment echoes senior management, but I am sorry to tell you that you are a minority, not the vast majority. Equally, whilst they are streamlining, a lot of people should be afraid. There is a reason why they want to buy (all to do with figures and propping them up), but retail is about one thing only, maximising profit and we are seeing quite clearly with the cutting of staff that if you are not about to make yourself a valuable asset and pay for your seat the door will be opened for you to leave.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Ok. Been an employee for 12 months and my results have earned me a trip to France for lunch and drinks, a Thames boat trip with dinner and drinks, £300 towards an office function and a dinner trip to the Shard followed by drinks. Top people are being rewarded. Perhaps those that left just couldn’t cut it where results and accountability are a pre-requisite day in day out, and go into the independent world full of slippers and wooley jumpers?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Jam01 sounds like you are easily bought. for the record many of us had metrication rises through the ranks and attended many “Perks” and rewards.
Still does not get away from the fundamental issues with countrywide in that customers are employees feature well down on the list of priorities.
As for slippers and woolly jumpers, when was the last time you walked into an independent? most have far superior staff, tech,service and dress a great deal better to the corporates.
you obviously enjoy it, and genuinely glad for you, but there will come a time your realise what a sham it is…..
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
and not are – one day i will read back before posting!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Ah, JAM01, I am pleased you are happy and meeting targets. Or, I do have to ask, are you part of a recent acquisition and still in migration? I well remember what myself and my colleague refer to as ‘quarantine’ before migration where they enjoy throwing as much at you as possible to show you how wonderful they are to work for. Indeed my colleague managed a beautiful all expenses paid trip overseas in her time (I had escaped long before then). For us it wasn’t a question of meeting targets, that we could do as we had proved throughout our career. It was more a case of not wanting to meet CW interpretation of ‘performance’ which is what it felt like it mostly was to be fair. Until they get rid of farming all the functions out, particularly those financials in India and let the companies they buy run as the successful companies they are nothing will change, they will just be plugging the leaky bucket with acquisitions to keep their shareholders happy!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I did a morning once with Countrywide, went to lunch………
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The same will happen as did with the 80’s takeovers. The talent that CW pay good money for will leave. These people then set up new progressive and good service rival agencies and CW gets left behind. Its the evolutionary cycle.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I think it fair to assume that there will be a cull of non-performing branches and any CW branches within proximity of the new acquisition branches should be looking over their shoulders.
Every company has deadwood, that’s a fact…. however, there are many good estate agents at CW I’m sure, unfortunately they have mostly been driven downwards in the moral department! I have to be honest and say any CW staff that I have interviewed for vacancies have an empty/haunted aura about them….. they really seem to have had the enthusiasm and life drained out of them….. and I say this with NO humour at all.
Neglected branches, neglected staff, neglected management….. even with New Management our industry would not miss CW if they were to go out of business tomorrow….. my only concern would be that the good people get new jobs within our industry.
No doubt Allison Platt is trying to bring something new to our industry however Carphone Warehouse we are not, in my view Countrywide is a Toxic Brand and dying a slow death….. the only thing Allison can do is dump the brand and start over! ……and surprise, surprise she is!…. by acquiring independent brands, if she is smart she would keep them, don’t manage them, let them trade/grow and sit back and watch the company grow without all the baggage that comes with Countrywide!
Countrywide bought one of the biggest brands in Scotland several years ago and killed it……. it is a shadow if its former self and is tainted forever by its CW link/ownership….. I assume every Real Independent Estate Agent will distance themselves from their New Countrywide Branches/Opposition who remain hidden behind their previously Independent Brand.
Take heart all Real Independent Estate Agents….. despite all the ups n’ downs of the property market we remain at the core of it and hopefully make our industry what it really is……a Service & Sales Industry….. rather than the Corporate Sales & Products Industry which we have endured since the Late 1980’s/90’s.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I wonder if there are any stats/ facts on whether CW have increased turnover of ANY branches/groups they have bought? This doesn’t include increasing profit by stripping back costs/ staff etc. which seems to be their default business model.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Classic strategy for largest incumbent in an industry under threat from technology…..buy smaller, more profitable versions of themselves and watch the margins erode until none are profitable and you have no more cash to spend acquiring more.
Then comes your Blockbuster moment
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I agree with GPL 4 years ago Countrywide bought out a family run 6 office business within 2 years most of the loyal hardworking staff had left, within 4 most of the portfolio had moved on due to inept management and distrust, the company was eventually rebranded and absorbed into existing brands and offices closed I wish all those new acquisitions all the luck in the world, there going to need it……!!!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register