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 %.

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

New Zealand: Article “How Mitre 10 is Transforming for the Future”.

In January 2021 the New Zealand Hardware Journal sat down with Chris Wilesmith, CEO of Mitre 10. Despite indicating that he would be leaving the position in September 2020 Chris Wilesmith will continue as the cooperative’s CEO following an easing of the trans-Tasman border restrictions.

At the start of his appointment as CEO Chris Wilesmith referred to a transformation said to involve “the single biggest investment in the history of Mitre 10”. One year into this transformation the cooperative continues to “drive efficiency, reduce costs and empower teams to focus on doing the right things for customers to create a frictionless experience”.

A series of workshops identified six key areas which the Mitre 10 NZ CEO calls “stratgic pillars”:

  1. Experience
  2. Solutions
  3. Inspiration
  4. Delivery
  5. Confidence
  6. Responsibility
You can read the entire interview in the New Zealand Hardware Journal February Edition HERE

EDRA/GHIN: Contribution to the United Nations Sustainable Goals.

The United Nations Sustainable Development Goals are a blueprint for a more sustainable future. We believe that the Home Improvement sector is one sector ideally placed to promote these goals, both in a way we organise our businesses and through the products and services we offer to our customers.

EDRA/GHIN have completed a recent project in which we collated some highlights of the work that the EDRA/GHIN membership complete to contribute towards these goals. This is by no means an extensive list, rather a collection of examples. All information provided was sourced from publically available information.

We fully understand that sustainability is a journey, not a destination, and we will update the document as our businesses continue to develope their own individual programmes.

The highlights of contributions to the UN Sustainable Development Goals can be found HERE.

Any reader who would like to know more about the project should contact EDRA/GHIN at info@edra-ghin.org

Trade Fairs: Management of spoga+gafa believe Trade Fair will take place.

The Trade Fair Management of spoga+gafa believe that the trade fair will take place from the 30 May to the 01 June 2021.

The spoga+gafa team are confident that the specialist trade show can, should and will be held a little over four months from now. However, time is still needed before they can better and more reliably assess what the situation will look like in early summer. Therefore, the management team will continue to observer how things develop in Europe and intercontinentally in February before a final decision is made.

The management team were also delighted to pass on that your garden lifestyle fair is in excellent shape. This is particularly demonstrated by the large number of reservations that have been received for all of the segments in all of the 14 halls.

Three events will also be held alongside spoga+gafa. The ‘Garden Summit 2021’ organised by the BHB wil take place on the afternoon of 1 June 2021. The VDG Winter Conference, the annual general meeting of the German garden centres will also take place at spoga+gafa 2021 as well as the Motoristen-Kongress.

The full Press Release can be found HERE

 

Sweden: Byggmax Grows by Almost 29 Per Cent in 2020.

 The Swedish DIY retail group Byggmax achieved a turnover of 6.801 billion SEK (675 million euros) in 2020, a growth of 28.9 per cent. Adjusted for currency and like-for-like effects, the Group’s sales rose by 28.5 per cent. In the fourth quarter, sales increased by 28.7 per cent to 1.222 billion SEK (121 million euros).

Online revenues grew by around 60 per cent; in 2020 this was around 50 per cent. The online business had a share of around 20 per cent over the year as a whole. “Our model of integrating e-commerce and markets enables faster growth,” says the annual report. “Order online, collect in store has grown much faster than home delivery and is one of the strengths of our 169 stores, and online sales typically increase by 15 percent where a new store is opened.”