It has been just over a year since Growth Tech team took over the ownership of Innovative Systems Limited and the company’s directors are still bullish on the growth path it has mapped out for the company.

Acquired in May 2022 from the Chang family, Innovative Systems was then a 35-year-old retailer of stationery and technological products, its flagship company being at the Sovereign Centre in Liguanea, St Andrew. The company also operated a recently opened outlet at the Super Valu Town Centre on Constant Spring Road, also in St Andrew.

Now under the leadership of Garth Walker as executive chairman — one-third of Growth Tech Limited’s founding directors to include Ryan Reid and Neil Lawrence — Innovative Systems has since expanded its distribution channels by incorporating an e-commerce website and has expanded its target market to include business-to-business (B2B) customers as part of a new growth strategy.

“When we bought the business we took a deliberate approach in terms of who[m] we sell to. So rather than just being a retail store, we formalised a B2B department and expanded it in terms of hiring new team members and have put some direct line of sight on that department, and we have seen some significant growth in that department,” Walker explained to Jamaica Observer in an interview.

“And we also have an online store, which we have an e-commerce website,” the executive chairman added, revealing that north of $1 million was spent to ensure optimal level operation.

The addition of the B2B Department and the expansion of the company’s staff complement has contributed to tremendous growth in organic sales, Walker shared, though steering clear of providing dollar value. That growth could swell when the company completes its new flagship superstore within the next two years.

In keeping with its growth strategy, Innovative Systems last month entered into lease agreement to occupy a 3,800-square-foot building at 109A Constant Spring Road, which formerly housed Telstar Cable Limited. In addition to renovating the property to house its superstore, Innovative Systems will also use the location as its head office to house administrative staff and executives.

Moreover, the company envisions providing additional services at the superstore including printing, photocopying, binding and graphic design.

“As we continue to look at the landscape in expansion mode, we took into consideration the opportunities we could benefit from, and this location came up on the radar. In our research on the area, we realised that the traffic, both pedestrian and vehicular, accounted for thousands of potential customers traversing the Constant Spring corridor on a daily basis,” Walker noted in a press release.

“We already have a store on Constant Spring Rd; however, that is located in a mall. This acquisition gives us the opportunity to control our own destiny, as we would have our own parking with our own frontage to propel us to our customers,” he added.

As to whether both Constant Spring outlets will continue to co-exist once the superstore is completed, Walker pointed out that it remains a decision to be finalised but in the meantime, renovation of the newly acquired property continues.

While admitting that most of Innovative Systems’ customer base comprise businesses and retail customers in the Corporate Area, he added that another layer to the company’s growth strategy is islandwide and regional expansion.

“Right now, I would say most of our customer base on the retail side and the B2B side is located in Kingston and we’re actually devising a plan now to expand that base. So we’re looking to expand that base in terms of the B2B Department as well, looking to move it regionally, carry it across the island and we’re also looking at locations outside of Kingston as well. We have our eyes set on Portmore and we have our eyes set on Montego Bay and St Thomas,” Walker informed Business Observer.

However, he explained that there is no concrete plan in place for that expansion as the company wishes to maintain a focused and strategic approach to realising growth.

“As you can imagine, we have a massive investment plan for Constant Spring, so we want to ensure that we keep focused,” he said, adding that $100 million has been earmarked for the renovation of the superstore.

In terms of expanding regionally, Walker clarified that such would not take place in a context of adding brick and mortar operation in another country. Instead, he said that this would be achieved through a partnerships that would allow Innovative Systems to compete on price and quality.

On the matter of partnerships, he disclosed plans to launch new product lines in the coming months.

The need for financial support to underwrite the growth strategies of Innovative Systems is not lost on Walker, who shared that the company’s investment into expansion drive has been due to additional capital it has raised through a bond floated by Mayberry Investments Limited in May this year, about a year after the change of ownership.

With the proceeds of the bond at $220 million, a release from Mayberry highlighted that “Innovative Systems, a subsidiary of Growth Tech Group, is set to unlock new horizons, drive innovation and solidify its position” in the electronics, technology and stationery markets.

It added: “The recently raised capital…serves as a launching pad for Innovative Systems’ two-year expansion. During this period, the world will witness the undeniable results of this momentous growth, setting the stage for an IPO that will unlock even greater access to affordable financing and propel Innovative Systems towards a future of limitless possibilities.”

When Business Observer asked how the bond will be appropriated, Walker noted that while some will be allocated to the superstore, he reiterated the need to grow the company’s staff, add new product lines and ramp up marketing.

“As you can imagine, growing a company has many facets to it. This location is just one piece of the puzzle,” he stated.

“There’s a lot happening within the organisation simultaneously and sometimes depending on what pops up first, then you may [need to] execute. So even if you earmark [funds] to do it within this timeline, you may have to do something else,” he continued.

Walker believes that the successful bond raise has positioned Innovative Systems to execute its goals, which includes both organic growth and expansion through acquisition.

“So we’re constantly keeping our eyes open for opportunities in the marketplace to see if a business is worthwhile acquiring,” he concluded.