Japan: Japanese Home Improvement market-2019.

According to the Diamond Home Center magazine in Japan, the total sales of Japanese home improvement industry in FY2019 hit a record high for the second year in a row, reaching  JPY3.9 trillion, falling just short of the JPY 4 trillion wall.

However, the market as a whole is not on the same trend. Although some major companies, such as Cainz and Kohnan, have contributed to the increase in total sales, many companies have continued to remain flat.

In contrast, the total number of stores increased by 11 (excluding the Ken-Depot 66 stores consolidated by Kohnan) to 4,812, but the pace of growth has been declining over the past few years.

In the past, major companies were actively opening new stores, but more and more companies are now shifting their investment into the digital field and renovating existing stores. The trend of steering clear of new store openings is likely to continue in the future.

Trade Fairs: Horticultural Industry is Committed to IPM Essen.

“For the majority of the exhibitors, participation in IPM ESSEN as an indispensable communication and sales platform is a matter of course. We are currently experiencing not only in Essen that large fairs with international participation can once again be held successfully. The be-all and end-all is a functioning hygiene concept, and we have proven that”, says Oliver P. Kuhrt, Managing Director of Messe Essen.

“A fair is not a concert or a soccer match. The distances between the participants is greater, and they are also much more widely spread over time. That’s why we are expecting regional shifts due to travel restrictions, but assume that not much will change in the overall picture”, adds Sabina Großkreuz, Head of Marketing at Messe Essen.

Effective hygiene protection is not only lived practice in the event organization, but also one of the focal points of the IPM ESSEN 2021: “The IPM Discovery Center, in which we present innovative concepts for the point of sale every year, is dedicated to the topic of safe garden centers in 2021”, explains creative director Romeo Sommers. “From shop-fitting to visitor guidance and product presentation, we will be showing solutions for active infection protection, which today is a prerequisite for successfully addressing customers.”

IPM ESSEN is the world’s leading horticultural trade fair revolving around solutions and innovations in the green sector.

 

USA: Amazing 2nd Quarter Results at The Home Depot.

“I’ve never seen a quarter like this” analysts have said about the results posted by The Home Depot. Like for like sales are up by 25% compared to last year. It is thought the one of the main reasons behind this incredible growth is that customers are stuck at home during the coronavirus pandemic and are enjoying a “summer at home” tackling home improvement projects they have previously put off.

Net Earnings at The Home Depot are $4.3 Billion compared to $3.5 Billion and earnings per share have increased by 26.8 per cent.

The Home Depot has also announced that it will open three new distribution centres in Georgia over the next 18 months to support the growing demand for flexible delivery and pick-up options for professional and DIY customers.

In 2017, the company announced a USD 1.2 bn (EUR 1.02 bn) investment to expand its distribution network with approximately 150 new supply chain facilities nationwide, with the goal of expanding the company’s existing same-day and next-day delivery options to 90 per cent of the US population.

The company is also working to make online shopping easier. How successful The Home Depot has been in this regard is shown by the increase of more than a billion dollars in revenue from online sales in the last six months.

In the first quarter of 2020, online sales increased by as much as 80 per cent, due in part to the effects of the Covid-19 pandemic. Interestingly, 60 per cent of customers collect their online purchases from the store.

 

USA: Announcing the 2020 National Hardware Virtual Show.

The National Hardware Show team is excited to announce that they’re launching the 2020 National Hardware Virtual Show to take place from October 12-15, 2020.

Capitalizing on the technological opportunities of NHS Connects, they are now going to enable visitors to connect virtually for 4 full days. The 2020 National Hardware Virtual Show will be offer industry education, direct appointment setting and connections and a virtual product showcase to feature products.

Contact us at info@edra-ghin.org to not miss out on your chance to enjoy this virtual exhibit experience.

www.nationalhardwareshow.com

South Africa: Cashbuild Accquire The Building Company.

EDRA/GHIN Member, Cashbuild, is pleased to announce that it has entered into a definitive sale and purchase agreement to acquire 100% of the issued share capital of The Building Company Proprietary Limited (TBC).

TBC is a leading Southern African building materials retail and wholesale business, providing a full spectrum of services through its portfolio of 13 well-known brands across its three divisions. TBC has an established presence across the coastal regions of South Africa, comprising 160 TBC outlets and 21 franchise stores

In the prior financial year ending 30 September 2019, TBC achieved revenue of c.R8.2 billion across the retail, wholesale and specialised divisions. In the twelve month period ended 31 March 2020, TBC achieved revenue of c.R8.0 billion.

Cashbuild’s management identified geographic expansion and incremental access to additional segments of the market as key areas for potential growth. An acquisition of TBC allows Cashbuild an opportunity to drive these growth initiatives while still maintaining its commitment to its customers in the South African and neighbouring markets.

Japan: Cainz Open a New Type of Membership-Only Pro-Store

This August Cainz will open its first pro-concept store, “C’z PRO”, in Yokohama, Japan. This will be its entry into the membership-based wholesale business for construction professionals. Since July the company has started recruiting members on their C’z PRO website.

The C’z PRO store will offer wide range of building materials and tools as well as a variety of services. The store will have a “Creative Space” for members only, providing rental tools, copy services, a library of catalogues and building material samples. Members will also be able to use this space as a meeting spot for information-sharing with each other, including free drinks.

Cainz have also developed a unique ordering service for their “C’z GO!” stores. An online application enables members to search and purchase all products offered in the store in real time. There are also three options for picking up the items: pick up at the store during business hours, pick up from a pick-up locker outside the store at any time, or have the goods delivered directly to the site.

 

Japan: DCM HLDGS Demonstrate Significantly Increased Sales and Profits in Q1.

DCM HLDGS posted an 8.8% YoY increase in sales to JPY124 billion in March-May, partly due to the favourable impact on sales due to Covid-19, as seen in many countries throughout the world. DIY Retailing has been classified as essential retailing in Japan.

The number of DCM-branded items increased by 3,400 SKUs from the same period last year, now making up some 23,300 SKUs, and the improved mark-up rate has pushed the gross profit margin upward 0.9 points YoY to 33.9%.

On the other hand, the SG&A expense has been cut down by 2.6 points YoY to 26.0%, partly due to a reduction in newspaper flyers as the company refrained from aggressive sales promotion during the height of the pandemic. As a result, operating profit was up YoY by 70.4% to JPY11.6 billion.

The sales of gardening, DIY projects and infection-prevention-related products have significantly increased due to the stay-home and remote work trends seen in Japan.

 

Germany: Spoga+Gafa Suspended for 2020 and Switches to New Date from 30 May to 1 June 2021

With the entire area almost fully booked by the spring of 2020, and thus outstanding registration levels for spoga+gafa, the trade fair situation increasingly came to reflect the current developments around Covid-19 and the economic situation.

For this reason, the spoga+gafa team reassessed the overall situation together with the Advisory Board and decided that it was best to respond to the cancellations and wishes of a large number of industry exhibitors and visitors by suspending spoga+gafa 2020.

At the request of the industry, Koelnmesse have also permanently moved the date for spoga+gafa to the first half of the year. In future, this means that the largest garden lifestyle trade fair in the world will be held at a time more convenient for orders by large segments of the industry. In 2021, spoga+gafa will take place from 30 May to 1 June.

www.spogagafa.com

Japan: Arckland Sakamoto Acquires LIXIL Viva

Arckland Sakamoto, a regional DIY chain in Japan, recently announced that it will make LIXIL Viva a wholly owned subsidiary of its company.

The integration, based on a spirit of equality, will result in a transition to a holding structure by the end of fiscal 2021. The holding company targets sales of JPY 500 billion and operating income of JPY 40 billion (operating margin: 8%) in 10 years.

In FY2020, LIXIL Viva posted sales of JPY 196.9 billion and Arckland posted sales of JPY 112.7 billion, therefore posting combined sales of JPY 309.6 billion, beating out Nafco, the fifth largest company in the Japanese DIY sector.

Following the integration there will be a total 138 stores – 38 Arckland stores and 100 LIXIL Viva stores. The two companies have little area overlap and are complementary, with the aim to become a leading company in the industry as a national market, rather than a regional chain.

https://diamond-rm.net/homecenter/

Japan: Cainz Opens First “Style Factory” Shop in Tokyo Area

Cainz will open two Style Factory shops in the Tokyo metropolitan area this summer.

These metro concept stores will offer a
place in which customers can find tips to express their own styles in daily life, hence their characterisation as “Lifestyle DIY Shops”. A wide range of selected products will be available, through a variety of services such as household products that make housework fun, DIY supplies to add a twist in the home and design-conscious interior products that create space to spend time with pets.

The floor layout of these stores will not be based on functional categories as in usual stores, but on solution categories such as “& Pet”, “SMALL SPACE”, “Good Sleep”, “Easy Yoga” and “CREATIVE-DIY” etc. Currently, the company operates one Style Factory shop in Nagoya.

https://diamond-rm.net/homecenter/