A picture of turmoil is emerging at the UK’s largest estate agent, Countrywide, as it emphasises its retail qualities.
It comes days after the firm’s sales and lettings divisions were merged under Samantha Tyrer, who joined from a retail rather than an agency background, on September 1.
It is understood that some 10 to 15 top-level management jobs are at risk across the UK and, with an average spell of 15 years at working for Countrywide, the redundancy bill – should it include gardening leave – could prove expensive.
Online agent eMoov cheekily hinted that it would like to see their CVs and said that the changes at Countrywide were all about whether it goes online.
It is thought, however, that those people with jobs at risk could now apply for new, but very different, jobs.
Yesterday, estate agency division operations director Simon Perkins resigned from Countrywide. Insiders said he was apparently unhappy to go along with the redundancy plan.
Highly regarded, he was appointed in April 2012. He will be leaving at the end of next month.
Countrywide said yesterday evening: “Simon will continue to play an active role until he leaves, helping to support Sam Tyrer and the Retail Board during the transitional period. We wish Simon well for the future.”
The changes come in a month which most estate agents regard as pivotal for sales when they would try to avoid disruption.
Countrywide yesterday admitted there are “people at risk” and confirmed redundancy consultations, while saying that there are new openings.
Just months ago, group estate agency managing director Bob Scarff and group commercial director Nick Dunning both left, followed by the departure of high profile mortgage boss Nigel Stockton.
The highly respected Scarff left abruptly after a 37-year career with Countrywide. It was said at the time of his departure that he remained the only person on the board who had ever actually sold a house. He said at the time that he would not be leaving the industry but his next move is not clear.
Intriguingly, the well-respected finance service boss Stockton left just days ago on September 1 to become chief executive of wealth management business Bellpenny – whose chairman is Stockton’s old boss Grenville Turner, previously Countrywide CEO and who remains the group’s chairman. He has yet to comment.
While new group chief executive Alison Platt, who joined a year ago from BUPA, has denied that Scarff and Dunning were made redundant, both men notably declined to comment on their departures.
It is understood that Alyn North, formerly chief finance and operating officer for London and premier and commercial divisions, also departed this summer.
In July, it was announced that Samantha Tyrer, joining from Dixons Carphone, would be heading up the chain’s combined estate and letting agency business.
Yesterday, Platt said: “We’re committed to growing our business by building on the position and strengths we have and adding new capability and experience where needed.
“During this time of organisational change, we are moving at pace so we can get on with driving the business forward and delivering our purpose of bringing people and property together.
“We notified those who will be directly impacted by planned changes and consultations are ongoing as we have more roles to fit within the new structure than we have people at risk.
“There is huge potential and opportunity for those who wish to apply and we anticipate that the vast majority of roles in our new structure will be filled by our own talented people, many of whom are excited by the opportunity to move and progress within the Group.”
While it is not known what is driving the latest upheaval, Platt did say in an exclusive interview with EYE that Countrywide would be launching an online agency offering, whether via acquisition or launch.
It is understood that Countrywide has approached eMoov at least once, and may have done so again more recently.
Last night, eMoov boss Russell Quirk said: “The UK’s largest estate agency has been undergoing a substantial change since Alison Platt highlighted the online proposition as part of her focus on being brought into the business and it would seem this latest announcement is a step further towards the online sector for Countrywide.
“The online model is far leaner than that of a high street branch and as a result the operating costs are substantially less, resulting in a fairer fee for UK sellers.
“This latest move by Countrywide appears to be an attempt to re-align their business model with an eye on becoming a more streamlined business.
“Despite the traditional estate agency sector previously dismissing the threat of the online model as a non-entity, it would seem the high street is now starting to hurt.”
Quirk said: “My heart goes out to those in the firing line at Countrywide although Alison Platt tweeted to say they had new roles, so hopefully not everyone will be put out of work.
“However, should they feel a change of scenery, eMoov are always on the lookout for top-notch industry professionals. Our growth has allowed us to hire experts in product development, media, finance and marketing from a variety of sectors over the course of the last year.
“In battle there are always casualties. In the race to deliver a great service, at a great value, consistently on a nationwide scale, we all know how this ends. Online wins.”
Our revealing interview with Platt is here
This all seems a bit odd. It appears that a complete re structure is on the cards. I suspect the plan is for the Bairstow eves brand to fold in to some form of Hybrid agency similar to purple bricks with the other more profitable brands staying as they are for now.
Either way I think this is more about Countrywide making a statement about the long term sustainability of parts of the group as opposed to where they see the industry heading.
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Completely agree! Imagine the loss to Mortgage income if they had no High Street presence, what would CW be without FS income? …….CW – FS = FA (I suspect)
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Sorry Ros but what was the reason for including quotations and vexatious comment from Russell Quirk, did you think it somehow added something to the story?
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Aside from Quirk’s usual online tub-thumping it is apparently possible that Countrywide is talking to emoov. So yes Mr May, it does add something to the story.
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Why don’t you simply post as ‘Ros’ Ros?
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“… it is apparently possible that Countrywide is talking to emoov.”
It is equally ‘apparently possible’ that an asteroid will hit the earth in 2096 (give or take a year) and wipe out every lovely sweet marmoset on the planet.
I’m losing sleep over neither claim.
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High street agency bosses could learn a thing or two from Russell about the relentless PR job he does for online agencies. He may sound like a broken record to some, but it’s very impressive how he continually creates opportunities to preach about his part of the industry.
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As much as i dislike the guy (Russell not you!) you have a point.
I have been saying for some time high street agents need a voice nationally to promote our industry.
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Yes – but one who will speak positively for THE WHOLE industry, sp – and not just fluff up the feathers of the wren which is trying to kill off the entire eagle population…
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“fluff up the feathers of the wren which is trying to kill off the entire eagle population…”
Still can’t stop laughing at this….probably to best and most accurate quote ever!
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Why, thank you!
Sheesh – the things you have to do these days to stand a chance of getting ‘Comment of the Week’… ;o)
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Not sure i get the point? maybe a little slow on the uptake today.
But yes a voice that speaks for all high street agents in a positive voice.
I thought that the likes of NAEA, ARLA, Redress schemes and a like would take this on but i guess not.
I would happily contribute a monthly amount towards a speaker for our industry.
Even 500 agents contribute just £10 per month it would give “Our spokesman” £5000 per month to engage with the press and media.
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Ahhh… actually it’s ME who needs speeding up! I realise that you referred specifically to ‘high street agents’ – sorry I took it you were being more general.
My bad…
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Thank you, Mr Minion – I reckon you have just confirmed the suspicions of many and broken your cover.
Interesting that you try to pass off ‘smoke and mirrors’ as “PR” – especially when you consider the fact that the smoke involved is simply being blown up a passage where the sun will never shine on it. You of all people should know the difference.
But… as there is a high degree of possibility your salary may well depend upon it I suppose it is understandable…
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Morning PB. Always good to hear your view. Happy to be part of the industry leading media team.
Marketing Minion
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No denial then…
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Mr Quirk couldn’t afford my salary PeeBee, so I’m afraid your suspicions about my employment are incorrect.
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Oh I dunno – he’s trying to cobble together a cool mill with the latest in an ongoing string of Numptyfunding exercises… maybe he could after all…
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North of the Border Countrywide is a disaster however that may be more to do with the M25 centric corporate approach of Countrywide which doesn’t fit well with us Hairy Highlanders!
Online seems a good move for Countrywide and they could wipe emoov, tip topilo, purple thingy and co off the Online Map.
Nonetheless, a good High Street Estate Agency using the various technology and marketing available, where required, will ensure they remain the key factor in the best performing property sales for what remains most users most important financial possession.
Selling peoples homes is monumentally more than firing it onto a website!….. however real estate agents know that!
Online Property Listers should remain in the Soft Play Area at all times…. as they are just playing at estate agency!
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Agreed. They are really bad in the north where I operate. If they go fully online I can’t see them making it work at all. They’ can’t get it right with the real service section so if it goes online they’re basically saying “we we bad enough before and now we’re offering you less”!
I think it will be more of a hybrid so let them spend their money testing it while we all mop up.
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Hence we have the Sarah Beeney Bag, another Online Play Thing!
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I can’t help thinking that this strategy by Countrywide is too much, too quickly.
I think they would have done a lot better re branding Bairstow Eves and having larger offices in large towns/cities where they can service the surrounding towns without the need of high street offices everywhere.A leaner, cleaner B/Eves with “super offices” could have worked well for them.
The fact is that High Street agency is still the preffered sale route by over 95 % of sellers ,so why would Countrywide want to give all that up in the blink of an eye and gamble it all on an online future?….. A future which is likely to remain un profitable for some years to come (even E moov and PB agree on this point).
Countrywide should be pursuing a 2 pronged strategy – improving their current brands whilst developing other online options separately.
I feel very sorry for Countrywide Staff as these stories are bound to affect their capabilities at ground level, and if I were them I know where I would be heading….straight to the job agencies!
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Tough day for the people affected, they had to go home that night and tell their wife / husband / partner etc of the news but putting the flim flam from Russell Q aside it looks like they have put lettings and sales together and have some doubling up of senior roles?
Jonnie
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Aah come on if these are senior figures its no more tough than having to fire someone, they will walk into a similair job AND get a nice pay off.
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You may be surprised in the coming months. We’ve all been briefed and it all looks exciting.
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Oh good, looking forward to it JAM01; Bit of advice – don’t drink anything they give you in management meetings or seminars ….. I think I have an idea how they will keep the rest of the staff from jumping ship.
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I’ll let you know how the drink is next week Ric!
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Shows the folly of idiotic CEO appointments. An appointment of someone with the correct notional skill sets and no relevant experience or humility is crazy.
I blame not Alison Pratt but the collective stupidity of the Countrywide Board and, whoever, the brainless strategy people are who decided to appoint her. Self- Destruction 101.
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