Retail Arbitrage Series: Toolstation

Welcome back to the Retail Arbitrage series. We’re staying on the DIY theme this week, following on from our B&Q guide, and turning our attention to a store that often flies under the radar in the RA world – Toolstation.

Toolstation might not be the first name that springs to mind when thinking about sourcing opportunities, but there’s a surprising amount of potential here, especially if you’re combining it with Click and Collect trips or happen to be near a retail park. Over time, I’ve stumbled across several profitable products at Toolstation, and it’s definitely worth having on your radar as an RA store.

How Toolstation Works

Toolstation is a trade focused/DIY supplier, catering primarily to professionals, tradesmen, and people doing DIY. The shops are often located in industrial estates or retail parks, and are usually compact, minimal and easy to get in and out of.

Most Toolstation stores operate like Argos-style counters, there’s very little products out front. Instead, you’ll find a catalogue, a counter for Click and Collect, and a small display area at the front of the shop that houses a handful of reduced or discontinued items. Everything else is stored out the back and brought forward when requested.

The majority of the sourcing opportunity lies in their online operation, which supports Click and Collect, and allows you to browse clearance, deals, or brand led promotions from home. And importantly, Toolstation also offers a Toolstation Trade Club that gives 5% off all purchases, which helps margin.

Where to Find Profitable Items

Toolstation isn’t packed with visible retail stock, so when you visit in person, your focus should be tight:

• Check the shelving at the front of the store
• Look in the baskets near the desk or till, these usually contain reduced items or old stock
• Some stores have one or two end display units with discontinued or “manager’s special” lines.

This is where I’ve personally found profitable items like:

• Yale smart locks
• CCTV camera kits
• Payment card terminals

All of which were either sold on Amazon or flipped on eBay.

Online is where the more consistent products are found:

• Use Arbisource, price drop monitors, or manual clearance scanning to identify deals on brands like DeWalt, Makita, Milwaukee, Stanley, and Yale
• Build Click and Collect orders and pick them up when you’re next near a Toolstation store
• Don’t just rely on Amazon, plenty of these trade items have an aftermarket value on other platforms

How Clearance Works

Toolstation’s clearance process is simple and straightforward.

There’s no hidden clearance aisle or intricate discounting system. It’s just a matter of:

• Baskets or shelving at the front of the store
• Occasional yellow or white stickers to indicate markdowns
• Online clearance is usually clearer and more consistent than in-store

Because Toolstation stores are small, you’ll spot reduced stock almost instantly when walking in. If you don’t see a basket or discounted shelf, there’s likely nothing reduced in that store at that time.

Best Time of Year for Toolstation

There isn’t a seasonal pattern with Toolstation. It’s non seasonal and fairly consistent year round. You’re not going to see Q4 spikes like you would with Home Bargains or B&M.

Instead:

• Keep checking in throughout the year for random discounted lines
• Brand events and trade promotions happen intermittently (often promoted online)
• Clearance baskets are filled randomly i have found

It’s simply a case of checking regularly, especially if you’re nearby or collecting online orders anyway.

Toolstation Hacks

• Always use Click and Collect – this is how you know you are coming out with profit
• Sign up for the Toolstation Trade Club – it’s free and gives you 5% off everything
• Stack your deals – check if discounts overlap with cashback opportunities (though limited)
• Speak with the team behind the counter – some staff are happy to flag when new clearance stock arrives
• Double check the product before leaving the store – I’ve had items boxed incorrectly or missing entirely in the past, so always check before walking out
• Consider alternative selling platforms – Facebook Marketplace and eBay are excellent for tradesman tools and kit that don’t sell well on Amazon

Pros and Cons of Toolstation

Pros

• Great for Click and Collect
• Small, quick stop stores – in and out in 5 minutes
• Easy parking – usually on retail parks or industrial estates
• High margin opportunities, especially for non Amazon flips
• Access to a 5% discount via Trade Club

Cons

• Very little out on display for clearance
• Not much in-store for RA – it’s more of an online-first operation
• Often limited to one or two units per product
• Not consistent – you might go weeks without finding a solid deal
• No cashback compatibility in most cases