UK: Mixed results for Kingfisher

In the UK and Ireland, B&Q total sales dropped 3.3% to £1,773m in H1, impacted by the axing of installation services and declines across showroom and weather-related categories. Kingfisher reported a number of exceptional items for the half year ended 31 July, including a £68m restructuring charge relating to redundancy costs following the group’s plans to close 11 stores in France and 19 Screwfix Germany outlets. The retailer described financial performance in the half as “mixed”. Screwfix, Poland and Romania delivered like-for-like sales growth for the period. However, sales at B&Q and Castorama France, were disappointing, with the retail group attributing declines to “a weak consumer backdrop in the UK and disruption caused by new range implementation”, alongside ongoing transformation-related issues at Castorama France. B&Q like-for-like (LFL) sales declined by 3.2% in H1.

Online was a more positive story, as B&Q’s total digital sales continued to make good progress, with sales growing by 10% and now representing 5% of total sales. The retailer also recorded a £1 million profit in the period on the disposal of properties in the UK.

Screwfix grew total sales by 9.9% (+5.1% LFL) to £882m, driven by specialist trade desks exclusive to plumbers and electricians, strong digital growth of 18% (now accounting for 32% of total sales); and the continued roll out of new outlets. The retailer opened 16 new Screwfix outlets in H1 19/20, taking its estate to 643. The company’s longer-term target is to operate around 800 outlets in the UK, and the business said it remains “on track” to open stores in the Republic of Ireland in the second half of the year in order to complement its existing online presence. Total sales for the Kingfisher Group were down 0.9% in constant currency.

 

Read more at: www.diyweek.net

Chile: Falabella reports slowed growth

The Chilean retail group Falabella has been feeling the effects of the currency turbulences in South America on its home improvement business. In the second quarter, the DIY division made sales of CLP 952.074 bn (€1,209 bn), i.e. only 0.8% more than in the same quarter last year. On their home market in Chile, division sales declined by 3.5% to CLP 529.457 bn (€672m), same store sales by 4.2%. Figures from Argentina appear drastic: -16.2% with sales of CLP 27.784 bn (€35m). There was a plus of 37.3% in local currency, for which the high rate of inflation is primarily responsible, and an increase in same store sales of 13.5%. In Brazil, the group raised its home improvement sales by 18.1% (in local currency: 16.8%; same store sales 18.2%) to CLP 48.176 bn (€61m). The company attributes growth to factors such as better sales in the remodelled Sodimac Dicico stores. Sales in Colombia, the second largest market for the DIY division, grew by 5.9% to CLP 191.126 bn (€243m; in local currency: 10.8%; same store sales 8.1%). There was a plus of 10.1% to CLP 155.531 bn (€198m; in local currency: 1.8%; same store sales 3.4%) in Peru.

 

Read more at: www.diyinternational.com

Germany: IPM Essen gearing up for 28-31 January 2020

IPM Essen is preparing for its next edition, taking place on 28-31 January 2020 in Essen, Germany.

The world’s leading horticultural trade fair revolves around solutions and innovations in the green sector. The International Plant Fair has been held annually at Messe Essen since 1983. Here exhibitors increasingly present products that are sustainable and suitable for climate change. These include heat- and cold-tolerant plant and shrub varieties, environmentally friendly and resource-saving packaging solutions, organic fertilisers and substrates, air-cleaning, easy-to-care for indoor plants and pots made of sustainable and biodegradable materials.

The annual show attracts around 53,000 trade visitors and accommodates over 1,500 exhibitors from 46 countries. IPM Essen is one of the EDRA/GHIN Recommended Global Trade Fairs.

Any EDRA/GHIN Member who requires complimentary VIP Tickets for IPM Essen should contact info@edra-ghin.org 

More information at: www.ipm-essen.de

Russia: Technosystem reports 17% growth

The Siberian Technosystem Group (owner of brands Domingo Home Improvement Centre and Pervomaster Construction Centre) has reported its results for the first half of 2019. Like-for-like turnover grew by 17%. This year, a new Loyalty Program for small wholesale professional customers was introduced in the Domingo chain, and a CRM system for interaction with key customers was launched in the Pervomaster chain. The board of directors also approved a strategic plan for the development of Domingo home improvement centres, according to which within the next three years it is planned to launch seven supermarket-format stores with an area of 2,000-3,000 sqm, twelve outlets of the Shop at Home format and six franchised stores. The main development regions will be the Kemerovo and Novosibirsk regions. By the end of 2019, it is planned to open three Domingo stores of the At Home format and two supermarket stores.

South Africa: 4% sales rise for Cashbuild

Cashbuild, EDRA Member and building materials, DIY and hardware retailer in South Africa, racked up sales amounting to ZAR 10.821 bn (€659m) in fiscal 2018/2019 (ended 30 June 2019), which comprised 53 weeks. Scaled down to 52 weeks, the company’s sales were ZAR 10.622 bn (€647m), 4% more than in the previous year. At the reporting date, Cashbuild operated 315 stores, including 59 P&L Hardware stores and one DIY store. During 2018/2019 the company opened nine Cashbuild stores and two P&L Hardware stores, as well as refurbishing 26 stores. Five Cashbuild stores, three P&L stores and six DIY stores were closed. Cashbuild operates more than 300 stores in South Africa and the common monetary area with Namibia, Swaziland and Lesotho as well as in Botswana, Malawi and Zambia.

Read more at: www.diyinternational.com

Germany: Christmasworld, Floradecora, Creativeworld & Paperworld set for Jan 2020

Messefrankfurt is gearing up for its quadruple trade fair taking place in January in Frankfurt. Christmasworld, the world’s biggest trend and order platform for the international seasonal and festive decoration sector, will take place on 24-28 January 2020 as well as Floradecora, the market place for fresh flowers and decorative plants. On 25-28 January Messfrankfurt will also be hosting Paperworld, the international trade fair for stationery, office supplies and writing instruments, and Creativeworld, the world’s largest trade fair for hobby, craft and art supplies uniting the most important manufacturers from all over the world. Christmasworld, Floradecora, Creativeworld & Paperworld are all EDRA/GHIN Recommended Global Trade Fairs. Any EDRA/GHIN Member who requires complimentary VIP Tickets to these trade fairs should contact info@edra-ghin.org.

 

More information can be found at: www.messefrankfurt.com

Germany: Sales up 5.5% for OBI

The German market leader OBI increased its net sales in the last financial year by 5.5% to  €6.4424 bn. Sales in Germany amounted to €3.2614 bn, equivalent to an increase of 4.2% and slightly outstripping the sales figure outside Germany (€3.1811 bn; + 6.9%). The figures were released by the parent company Tengelmann. The number of OBI stores grew by 2% in the same period to 668 outlets, while the workforce increased by 4.8% to 47,367.

 

Read more at: www.diyinternational.com

U.S.: Home Depot profits exceed expectations

Home Depot has reported its Q2 net income was $3.48 bn, or $3.17 per share, compared with $3.51 bn ($3.05 a share) for the comparable period last year. Those numbers missed analyst expectations of $3.08 a share. Sales rose by 1.2% to $30.84 billion, compared to $30.46 bn a year ago but fell short of the expected $30.99 bn. Same-store sales increased by 3% overall and by 3.1% in the U.S., missing forecasts of 3.5% growth.

 

Read more at: www.hardlines.ca

U.S.: Lowe’s Q2 comp sales up

Lowe’s Cos. has released its second-quarter results with net earnings of $1.7 bn, up from $1.5 bn in the second quarter of 2018. Sales for the second quarter increased 0.5% to $21.0 bn from $20.9 bn, while comparable sales increased 2.3%. Comparable sales for the U.S. home improvement business increased 3.2%. “We capitalized on spring demand, strong holiday event execution and growth in paint and our pro business to deliver strong second quarter results,” said Lowe’s President and CEO Marvin Ellison.

 

Find out more at: www.hardlines.ca

Australia: Strong results for Bunnings

The DIY store chain Bunnings, with its currently 374 locations in Australia and New Zealand, increased its retail sales in the previous financial year 2018/2019 (ending 30 June 2019) by 5.1% to AUD 13.162 bn. Store-on-store sales grew by 3.9%. In the second half of the year retail sales amounted to AUD 6.256 bn, which corresponds to a growth of 4.7% compared to the same period last year. According to the annual report by the parent company Wesfarmers, Bunnings has now extended the testing of its click and collect offer, which started with a single store trial in Victoria, to all stores in Tasmania. The report further states that the ongoing development of broader digital capabilities and the staged roll-out of a full online transactional offer for Australia and New Zealand remain the main focus.

 

Read more at: www.diyinternational.com