Industry News: Congratulations Go Out to John W. Herbert from Around the World on his 80th Birthday.

Congratulations to John W. Herbert, literally from all over the world: the general secretary of the international DIY trade association EDRA/GHIN celebrated his 80th birthday on Sunday 18 April 2021.

Due to the pandemic he moved the planned celebration to the Internet without further ado. Well-wishers praised his human attentiveness especially, his modest demeanour and, not least, his British sense of humour – qualities which support his, according to many, greatest talent: bringing people together and establishing networks.

John W. Herbert is one of the influential personalities of the international home improvement industry. The foundation of EDRA in the year 2004 stems from his initiative: the European DIY Retail Association, which he has since led as general secretary from his office in Cologne, and which was later extended by the Global Home Improvement Network (GHIN).

In this function he has had the opportunity to visit 53 countries with over 400 trips since he co-founded the association in 2002. He takes these opportunities to keep in contact with the 215 members of EDRA/GHIN who operate more than 32 000 stores in 75 countries worldwide and generate a total annual turnover of about EUR 320 bn.

John W. Herbert is a firm believer and lives out his personal credo in every respect: “Trade is the indispensable will to serve, trade is a matter of the heart.” He sees this as an essential prerequisite for success in trade. Those who have had the pleasure of crossing paths with John W. Herbert particularly appreciate his expertise, his knowledge of human nature, his uncomplicated, open willingness to talk and, of course, his dry English humour. Unmatched is his amazing memory for names and numbers. His vast experience, his professional know-how and his human qualities make John a sought-after and valued representative and moderator for the DIY industry worldwide.

However, the lively, healthy living and sporty John W. Herbert is not yet thinking of cutting back or even quitting, according to the official press release of the association. As a world traveller in the field of DIY, he is still in “cracking form” to continue representing the interests of the industry worldwide, on the international stage with maximum and relentless energy, and to cultivate professional connections for the benefit of the EDRA/GHIN members.

UK: Next and Homebase Announce Garden Centre Tie-up.

Next shoppers will be able to pick up a pot plant with their polo shirts from Monday, after the retailer announced a tie-up that will see the DIY chain Homebase put mini garden centres in its fashion stores.

The partnership between the two retailers will see Homebase garden centres open within the Next stores in Shoreham, Ipswich, Warrington, Camberley, Bristol and Sheffield.

Damian McGloughlin, chief executive of Homebase, said: “We’re delighted to be joining forces with Next and bringing our garden products and expertise to its stores. It’s all part of our wider commitment to make shopping with us easier and provide even more inspiration and expert advice.

“We’re a great nation of gardeners, with more and more people enjoying the benefits of gardening and being outside. The launch of these new garden centres means we’re able to offer more gardeners, both experienced and those just starting out, Homebase products in more locations across the country.”

The company has announced it is also planning to open more of its small-format kitchen and decorating stores adding a new site in Walton-on-Thames, Surrey. The openings will bring the total number of Homebase’s smaller stores to six across Guildford, Cheadle and Sutton.

Global DIY-Network: Next in the “Meet the CEO” Series – Mattias Ankarberg.

On Wednesday the 31st of March at Midday CEST John W. Herbert will continue the “Meet the CEO” series with an interview with Mattias Ankarberg, CEO of Byggmax.

Byggmax offers straightforward and excellent value construction materials and do-it-yourself products of high quality at the best price. No matter customers’ budget or previous experiences, Byggmax provide their customers with the know-how and the confidence to fulfil their construction dreams.

With over 170 physical locations in Sweden, Norway and Finland, as well as a popular online store, Byggmax is one of the foremost retail chains for construction and do-it-yourself products in the Nordics. The group’s annual revenue 2020 was SEK 6.8 billion and the corporate group is listed on Nasdaq.

Find out more about the Global DIY-Network

Europe: Kingfisher Full Year Results Demonstrate Impact of Covid-19.

On Monday the 22nd of March Kingfisher released their full year results. The group, which operates about 1,380 B&Q and Screwfix stores in the UK and Ireland, reported adjusted pre-tax profits of £756m in the year to 31 March, up 634% from £103m the previous year.

Overall sales, including the group’s operations in countries such as France and Poland, climbed 7.2% to £12.3bn. Click and collect sales surged 226% and account for more than three-quarters of all e-commerce sales, up from 62% in the previous financial year.

The company announced earlier in March it would be opening 50 Screwfix stores in the UK and Ireland this year, creating 600 new jobs.

“The Covid crisis has established new longer-term trends that are clearly supportive for our industry – including more working from home, the renewed importance of the home as a ‘hub’, and the development of a new generation of DIYers – and we expect these to endure,” said Thierry Garnier, the chief executive of Kingfisher.
“With our strategic progress, we are well positioned to capitalise on these new and positive market trends.”

Europe: Hornbach Group Increases Net Sales by 15.4% to Euro 5.5 Billion in 2020/21 Financial Year.

The coronavirus pandemic presented the Hornbach Group with a memorable 2020/21 financial year (March 1, 2020 to February 28, 2021).

People withdrawing to their own four walls, employees increasingly working from home, and consumers sustainably changing their behaviour – all these factors provided a veritable boost to demand for DIY and home improvement product ranges.

Against this backdrop, based on initial preliminary figures net sales at the Hornbach Holding AG & Co. KGaA Group increased by 15.4% to Euro 5,456 million. Hornbach Baumarkt AG, the largest operating subgroup, operated 161 DIY stores with garden centers and online shops, as well as two specialist retail outlets, in nine countries across Europe at the balance sheet date on February 28, 2021 (2019/20: 160). Sales here also passed the 5-billion mark, rising by 15.6% to Euro 5,117 million. On a like-for-like basis and net of currency items, group-wide sales at the DIY stores with garden centers (DIY) grew by 14.7 %.

Sweden: Byggmax Group Updates Financial Targets .

Byggmax Group’s Board of Directors has decided to update the group’s financial targets, to better reflect the company’s growth ambitions. Byggmax saw a sales increase of 29 per cent from 2019 to 2020. Yesterday, Byggmax Group held a Digital Capital Markets Day. The program covered Byggmax’s position and future ambitions, and also how Byggmax is impacted by some of the biggest trends of our time: discount, the home, and e-commerce.

“We have a strong position and are growing significantly faster than the market, with the fastest growth from e-commerce”, says Mattias Ankarberg, CEO of Byggmax Group. “The new sales target, to reach SEK 10 billion by 2025, clearly shows our ambitions to continue to grow fast. The other targets show our aim to do so with good profitability and dividend to shareholders, while maintaining a strong balance sheet and responsibility for the world around us.”

The updated financial targets are:
Net sales of at least SEK 10 billion 2025 (previous goal: organic growth of 10-15% per year)
Operating profit measured as EBITA of 7-8% (unchanged)
Net debt / EBITDA (excl. IFRS16, EBITDA rolling 12 months) max 2.5x (new target)
Dividend equivalent to at least 50% of net income (unchanged)

www.byggmax.se

Finland: Kesko – Good Development Continues in All Areas.

Kesko published their financial statements for the year 2020 last week.

The building and technical trade division saw net sales grow by 5.7% in comparable terms, and its comparable operating profit rose to a new level at €188 million. Net sales and profit grew in Finland, Sweden, Norway and Poland.

Consumer sales grew particularly strongly in 2020, but development was also good on the B2B side in both building and home improvement trade and Onninen’s technical wholesale.

Read the whole report here: https://lnkd.in/ganpjA8

CEO Mikko Helander said “I would like to thank all K-Group members for this record-breaking year and valuable work. A big thank you also goes to all our customers, shareholders and partners.”

Austria: DIY Stores and other Retailers Reopen.

From Monday 8 February, all retailers in Austria were permitted to reopen their stores.

This means that home improvement stores will once again be open to the general public as well as trade customers. However, opening times will be limited from 06:00 to 19:00 and protective measures will also be increased.

An area of 20 m² will now have to be available per customer instead of the previous regulation of 10 m². Further to this shoppers will also have to wear an FFP2 mask.

Following the reopening the editors of diy Magazine asked DIY retailers in Austria for a short description of the reopening and received statements from RWA / Lagerhaus, Hagebau, Hornbach, Bellaflora and 3e AG: these can be found HERE.

Generally the reopening was described as successful with good sales and no rush.

Europe: ManoMano Doubled Overall Business Volume in 2020.

ManoMano, the European online leader in DIY, gardening and home improvement, doubled their overall business volume to 1.2 billion euros in 2020.

The company also grew to have 50 million unique visitors per month (+70%) and 7 million active customers (+100%). The online marketplace has also stated that they will be increasing their expansion in northern Europe, through increasing investment in marketing, advertising and launching new services.

Looking towards the future, the company “continues to have high expectations for the largest B2C DIY market in Europe with a volume of EUR 82 bn and a forecasted growth of +26.3 per cent for online trade and +13.7 per cent for the stationary trade,” writes ManoMano in a press release.

Finland: Hardware Sales Increased by 5% in 2020.

The building and home improvement trade ended up growing by 4.8 per cent in 2020, but the growth was not evenly distributed in the industry. There was a clear difference between consumer and professional customer trade. As larger projects went on ice, consumers themselves began to improve the home and yard.

The high levels of new construction, which has been taking place for several years, started to decline in 2020, which was reflected in the professional customer trade. “Consumers, on the other hand, found pleasure in do-it-yourself, which was also reflected in the sales development focused strongly on consumer sales,” says Minna Liuksiala, CEO of the construction and DIY retail association RASI ry.

“Almost all yard and garden products were sold in record terms. Outdoor decking and grills, as well as plants and garden products saw a huge increase in demand. Demand for larger garden investments, such as outdoor hot tubs, also exceeded all expectations” continued Minna Liuksiala.

www.rasi.fi