Following the opening of its sixth branch in Waltham Abbey, Car Spares Factors’ (CSF) Sanjiv Shah invited us to the branch. Considering the branch had only been trading for four days, we were grateful for his valuable time.
Walking into the newest CSF branch in Waltham Abbey, it’s manic! One side of the room there is a member of staff trying to open and organise the contents of large cardboard boxes, ready to fill the freshly-installed mezzanine floor, while others are manning phones, which during my visit were never quiet!
I almost felt guilty for pinching an hour of Sanjiv Shah’s time, as, like when anyone moves house, there’s little room or time for distractions; however, there was no shortness, nor a feeling of being unwanted, as I was introduced to members of staff, shown the premises and offered a drink.
As I navigated the boxes and point of sale material littered around the branch, we were able to find a peaceful place to conduct our interview. Before I asked a question, though, he put one to me and that was whether I’d heard the news about Motor Parts Direct’s acquisition: “I’ll ask the questions, thank you!” I joked in retort.
That broke the ice for what was a relaxed and enjoyable interview; Sanjiv, co-owner of CSF alongside his brother, Avnish, refused my offer to sit down and preferred to stand up against the radiator, with the backdrop of other industrial units and the sun beaming down on them.
The purpose of my visit was to understand the logic behind opening a sixth branch, particularly in Waltham Abbey, and get to the heart of a family business that began its life in Highbury, a stone throw’s distance to the old Arsenal stadium, back in 1977.
Waltham Abbey welcomes its first factor
A civil parish in the Epping Forest District of Essex, within the metropolitan and urban area of London, I was surprised to learn Sanjiv’s claim that the Waltham Abbey branch I was standing in was the town’s first motor factor.
He said: “In the industrial estate we’re based in, there are eight garages. Turn right out of the estate, and there are even more garages. There are farms nearby, which have units that have garages fitted in. We’ve also got easy access into Cheshunt, Chigwell and Enfield – it’s a fantastic spot and amazing that we’re the first.
“Initially, we’re staying in a three-and-a-half mile radius – around 120 garages – then, once we’ve established ourselves and got a good clutch of customers buying off us regularly, we’ll then look to put more vans on the road and go further afield into the likes of Hoddesdon. There’s more than enough business.”
CSF growing its empire
Over the last 45 years, CSF has matured from a small retailer in Drayton Park, Holloway, started by Sanjiv’s father, to a multi-branch business, with stores dotted around London, south Hertfordshire and now Essex: New Southgate (head office), Welwyn Garden City, East Barnet, Haringey, Park Royal and, obviously, Waltham Abbey.
The initial strategy was to take on sites, where either businesses were in financial difficulty or the incumbents “wanted out” – rather than explore greenfield sites. That model has evolved over the years, Sanjiv admitted, largely down to “more nationals and fewer independents left”.
It is a shift that suits CSF, though, as Sanjiv explained: “We’re now having to open up fresh depots and start from scratch, which, in some ways, is better than the previous business plan because we can now lay out the branch exactly how we want and put a stock profile we want in there.
“Usually, the biggest challenge is that we have to work extra hard to get out there and chase customers. When there’s a good, loyal customer base and a new business comes along, it’s very rare that those same customers switch to the new boys. There is still a level of loyalty in the industry.”
The pace in which these sites are identified, developed and opened is also measured, rather than hasty.
Sanjiv said: “We’ve never expanded at a fast rate, where we simply open and move onto the next one – it’s not our style. We like to make sure that once we open a branch, we get it up-and-running with the right people, get it profitable, and we don’t overstretch ourselves. Then, once we’re ready, we find the next right location – like this one in Waltham Abbey.”
“Price-tag is justified”
The subject of pricing is always one that sparks a conversation. Sanjiv conceded that CSF “isn’t the cheapest” and has never hidden from that fact when speaking to garage owners or technicians, but he believes the price-tag is justified by the service and reliability that customers receive:
“We promise helpful service, product on the shelves, and having the right people on the phones. We’ve also invested in cataloguing and IT system technology. We offer the customers as many methods of communication as we can – our own app, WhatsApp, telephone, e-mail etc. If our phones are really busy, they can send a quick WhatsApp message and they will receive a response within minutes – it’s all about service!
“We aim to have every service kit on the shelf at all times. If it’s on the shelf and the invoice is printed, we want it on the van within 10 minutes and with the customer within the hour. Our locals receive a delivery within 20 to 30 minutes; whereas, further afield, we promise to have it with them within the hour.”
Lots of points, lots of questions, so I started with availability, which was the first time Sanjiv felt a little uneasy – understandably, he didn’t want to throw any brands under the bus! He was careful, neutral in his answer by saying the majority of suppliers CSF works with are “back to pre-pandemic levels” but that wasn’t the case for every supplier. We’ll leave it at that.
Onto the app and perhaps a familiar name to Professional Motor Factor readers or indeed users of its technology: Automotive Automation (AutoMM).
Users can simply download the app, enter the registration number, send a list of the parts they need and decide whether they need to buy the parts now or just receive a quote. As soon as that enquiry is sent, it pings a member of staff in the office and they can put a quote together, send it back within a minute or two. If the customer agrees, they simply press ‘send’ and that’s the order completed.
Sanjiv added: “While 80% of orders are done over the phone, the app, as well as WhatsApp, is handy because if we’re particularly busy or short staffed, garages can still place their orders with us, rather than waiting for the phones to become available – it gives the garage more flexibility and options.”
Electrification
How are factors responding to EVs? Are they staying away from these parts, sticking to what they know, or are they embracing the technology? While Sanjiv can’t speak on behalf of all factors, he believes they’re all trying to learn more about these particular parts and what can go wrong with them – what does CSF need on its shelves?
He answered: “We’ve already put wishbones on the shelves for Teslas because there’s been demand for them. Once we sold our first pair, we kept the stock coming and are selling well. It’s a case of learning. I’ve actually bought a Tesla to drive for the next three years to understand what parts wear or could go wrong.
“We’ve evolved with the industry; 15 years ago, we wouldn’t have had a flywheel on the shelf, but now we’ve got 25 to 30 flywheels at each branch. This is why we hired a procurement manager, to keep an eye on market trends.”
Supporting Sanjiv’s claim about keeping an eye on the future, he revealed that CSF runs EV courses for its garage customers, which take place monthly and for up to six technicians at a time. In conjunction with the IMI, these training courses allow the delegates to become level two or three qualified.
Cost of living/energy – gamble?
On the way over to CSF – just over an hour’s drive – I was listening to a radio phone-in, where anxious callers were telling the host they would struggle to pay bills and mortgages as a result of the cost of living crisis. Business owners were part of that conversation, so I wanted to ask Sanjiv how rising costs are impacting CSF and if opening the Waltham Abbey branch was a gamble.
He replied: “It is a gamble, but what I would say is that this is our fourth day of trading and if we carry on at the rate we’re going in terms of sales, we will probably breakeven by the end of the month, which is astonishing. It’d be a record for us because it normally takes anywhere between three and six months to get a branch really going. We’ve got around 10 to 12 garages ordering regularly from this depot already.”
Staff
Everyone, bar one member of staff, is newly-recruited to the Waltham Abbey branch, and Sanjiv credits the CSF brand for inspiring people to apply for jobs: “As soon as word gets out that we’re looking for staff, applications flood in – it’s a nice position to be in! We’ve got a strong name out there; we regularly speak to garage professionals too, who sometimes recommend people to us.
“With this new branch, we’ve spent the last few months training the new recruits at head office. They’ve learnt about us as a company – the CSF way.
“Staff are key; we have to look after our staff in every way possible. We’ve got to make sure we show them how valuable they are. We appreciate what they do. I make a point to branch managers “this is how you treat staff” and “this is how you get the best out of colleagues”.
“We’ve had members of staff with us for 20 to 25 years – they don’t want to leave! – so we’ve obviously done something right!”
Fire still burning strong
During the conversation with Sanjiv, his enthusiasm and commitment hit me, and I could tell that he lives and breathes CSF, so I wanted to know what keeps that passion going.
He said: “There are 75 families that rely on us to ensure that we’re here every day, so that they can put a roof over their family’s heads – I love that pressure. I love dealing with customers; I still pick up the phone and have a chat with the customers, and I love working with all my staff. When I walk through the door, staff and I chat about anything and everything and we have a bit of banter, and that’s important – I don’t want to be ‘suited and booted’. We all muck in!”
The Waltham Abbey branch is up-and-running, but if Sanjiv’s love for the job is anything to go by, I don’t think it’ll be the last.
