Overview: Covid-19 virus – impact on home improvement retailers globally

EDRA/GHIN are monitoring all the countries where our members are operating and where we have information on the effects that Covid-19 is having on the respective home improvement retail businesses. We are updating this information on a daily basis and shall continue this until the crisis ends… whenever that will be! To view this database, please click here: Covid-19 Virus – Impact on the Home Improvement Industry.

The Home Improvement Industry Working Together in the Age of Covid-19

The European DIY-Retail Association (EDRA), the Global Home Improvement Network (GHIN) and the Home Improvement Manufacturers Association (HIMA) acknowledge the effects and the extraordinary breadth of the current worldwide Covid-19 epidemic and the impact the virus is having on the lives and health of its citizens. They are also of the belief that life and health have, and always will have, preference over any economic interests.

Companies all over the globe are aware of the impact of Covid-19 on the supply chain and in particular on the production of goods in China and its ability to supply the global markets. Today, Covid-19 poses a risk to supply chains all over the world. It is therefore essential that all stakeholders in the supply chain work together to continue to supply our consumers with products with the least disruption possible. At the same time, we must take every measure to protect our consumers and employees from infection of Covid-19.

We believe, that in this most unpredictable situation, we must all work together in a fair and practical manner. Only by working together can we ensure the best results in bringing essential goods to consumers around the world.

The dependence on production from China varies from company to company. When goods are not available from China, manufacturers and suppliers must do all they can to find procurement alternatives to try and fulfil their contractual obligations with their contract partners and must inform them of any delivery bottlenecks or supply chain disruptions.

We are calling upon stakeholders in the supply chain network to find sensible solutions in the event of possible delivery bottlenecks and supply chains disruptions during this most difficult period, and not resort immediately to legal means. The ability, openness and flexibility to offer alternative products at short notice, and to avoid panic-buying, can help ensure a comprehensive supply of products to consumers.

In summary, we are only able to reduce the risks in the supply of products if we all work together. Constructive and fair partnerships from all supply chain stakeholders will enable this, and by doing so, we will be able to continue to fulfil the needs of the consumer.

Find the original statement here

U.S.: National Hardware Show postponed to September

The National Hardware Show has been postponed and will now take place on 1-3 September 2020 at the Las Vegas Convention Center in Las Vegas. Originally the event, which is celebrating its 75th anniversary in 2020, was scheduled for 5-7 May. “We know how important the National Hardware Show is to our customers’ business and it is our top priority to provide a place where the hardware and home improvement industry has the ability to come together and allow business to continue,” said Randy Field, group vice-president, Reed Exhibitions. “Therefore, we will be holding the National Hardware Show September 1-3, 2020. We believe this is the right decision for our customers and the industry in general, which is a vital part of the supply chain for manufacturing and distribution of products.” The fair organisers are “working with our partners to find solutions to logistical and operational issues that may arise. We are here to help, but ask for their patience as we ensure all of our customers are taken care of,” said Field.
More information for visitors and exhibitors can be found on their website

 

Germany: Tendence 2020 cancelled

In response to the corona crisis, Messe Frankfurt has cancelled Tendence 2020. “We fought to be able to hold Tendence here in Frankfurt at the end of June, despite the currently very tense circumstances. The situation, which has now become even more acute, unfortunately leaves us with no choice but to cancel the event. We look forward to welcoming the industry back to Frankfurt in 2021,” says Stephan Kurzawski, Managing Director of Messe Frankfurt Exhibition. As a “necessary consequence” of the Tendence cancellation and to support the industry, Messe Frankfurt is offering Nordstil in Hamburg (25-27 July 2020) for the first time as a platform for the spring and summer 2021 collections. Due to the current situation, Nordstil will provide its own area especially for the Tendence product segment “Sunshine State” – large volume suppliers with new ranges for spring / summer 2021 (formerly Hall 11.0). This means that all buyers who wanted to place their pre-orders for the coming spring and summer 2021 at Tendence can now do so in Hamburg a few weeks later.

More information can be found on the Tendence Website

UK: Kingfisher publishes unaudited figures

On account of the coronavirus situation, Kingfisher has put back the publication of its sales figures scheduled for 24 March 2020, by two weeks; this was in response to a request by the Financial Conduct Authority addressed to the country’s listed companies. Kingfisher has released unaudited figures, however, indicating that the company’s total sales in fiscal 2019/2020 (ended 31 January 2020) came to £11.513 bn. This equates to a drop of 1.5% from the previous year and 0.8% less in constant currency. The British group achieved a sales increase of 1.0% in Great Britain and Ireland, but only thanks to growth of nearly 10% by Screwfix, as sales at B&Q shrank. In France, Castorama and Brico Dépôt jointly saw their sales fall by 3.2% (both adjusted for currency and for currency and sales area). An increase in sales was recorded in Poland and Romania.

Read more at: www.diyinternational.com

Japan: DCM HLDGS board changes and operations integration

In March 2020, DCM HLDGS announced the promotion of its vice president, Mr. Yasunori Ishiguro, to the position of president, and former president, Mr. Toshihiro Hisada, to the position of chairman with representative rights. In addition, they intend to integrate their five operating companies, DCM Karma, DCM Daiki, DCM Homac, DCM Sanwa and DCM Kuroganeya by March 2021.The holding company was established in September 2006 through a joint stock transfer between Karma, Daiki, and Homac, and later acquired Sanwa and Kuroganeya. The company now operates 673 stores across the nation as the largest player in Japan. Since then, the company has worked to unify its organization, internal systems, information systems and operations as well as to develop private label, improve logistics and integrate the operations of group companies. The decision to integrate was made in order to respond more quickly and effectively than ever before to the demands and social and economic changes that may occur in the future. DCM HLDGS predicts an operating revenue of 449.5 billion yen (+0.8% YoY) and operating profit of 23.0 billion yen (+9.5% YoY) for the 2019 financial year.

 

Source: Diamond Home Center Magazine

UK: Travis Perkins reports 3.2% sales growth

Travis Perkins Group produced a positive performance in 2019 against a challenging market backdrop, with early signs of progress from the strategic initiatives set out in December 2018. Total Group revenues grew by 3.2% in 2019 to £6,956m, and by 3.8% on a like-for-like basis. Sales growth was driven by a good performance from the merchant businesses, with continued growth in Toolstation and a strong recovery in Wickes. Nick Roberts, chief executive officer, commented: “Against a challenging market backdrop we have delivered a strong operational and financial performance across the Group. Our merchanting businesses gained market share as a result of a range of initiatives to improve our customer proposition, including increased local empowerment for our branch managers, while the pace of the Toolstation expansion accelerated.”
Read more at: www.diyweek.net

Romania: Leroy Merlin reports 20% growth

In 2019, ADEO-owned Leroy Merlin Romania, the second player on the Romanian DIY market, increased sales by more than 20%, in the year in which the French retailer registered over 12 million clients in its stores. The retailer launched in February 2020 the new communication campaign “1001 projects together”, that focuses on the quality time with family and and involves the employees of the company.

Find out more at www.bricoretail.ro

UK: Homebase looking confident

Homebase has delivered a £3.2m profit, compared with a loss of £114.5m in 2018. Like-for-like sales were up 2.6% and gross margin rate were up 2.8% in the year, as customers responded well to new ranges, and improvements to both in-store and online shopping experiences. This has meant that nearly all 164 stores are now profitable. Damian McGloughlin, CEO of Homebase, commented: “18 months into our turnaround, we’re extremely proud of what our team has achieved, working hard with our partners to return to profit and lay solid foundations for growth. We have a very clear vision for Homebase, and we’re excited about the plans we have for the future.”

Read more at: www.diyweek.net

UK: Wickes reports 7.4% revenue rise

The British DIY store chain Wickes has increased its sales in the year 2019 by 7.4% to GBP 1.342 bn. Like-for-like growth amounted to 8.6%. After twelve refits and one new store opened, 135 of the overall 235 Wickes stores will now be operated according to the new store format. As previously reported, the parent company Travis Perkins wants to demerge the Wickes chain. The demerger process is expected to be completed in the second quarter of 2020.

www.diyinternational.com