“We are working together with the garden sector to prepare ourselves for a new normal in daily life. We are underscoring this shared conviction under the hashtag #gardenbackstronger,” Koelnmesse says. The management of Koelnmesse has issued a further statement to exhibitors and visitors to the Spoga+Gafa show. In the statement, business division director Catja Caspary and Stefan Lohrberg, director of Spoga+Gafa, confirm: “As delighted as we are that most of the comments we’ve been getting from exhibitors and visitors have been confirmatory, we take their concerns very seriously, especially the uncertainty felt by our partners from overseas.” The feedback has encouraged the trade show management team to make the decision to let Spoga+Gafa go ahead on 6-8 September 2020 in Cologne.
An increase in sales of 19.2 % has been reported by the Australian chain of DIY stores Bunnings for the period of January to May 2020 compared to the same period last year. In the first half of financial year 2019/2020 (1 July to 31 December 2019) the sales growth amounted to 5.8 %. In the overall financial year until now, i.e. from July 2019 to the end of May 2020, an increase of 11.3 per cent has accumulated.
Bunnings’ parent company Wesfarmers also believes the effects of Covid-19 are responsible for this growth, as customers continue to spend more time working, learning and relaxing at home.
The German DIY store chain Hornbach has reported a rapid increase in sales from its DIY stores and almost doubled earnings due to the coronavirus crisis. According to initial preliminary results, sales in the first quarter (1 March to 31 May 2020) have grown by 18.4% to EUR 1.492 bn. The operating earnings adjusted for non-operating impacts on earnings (adjusted EBIT) increased by around 90% to around EUR 160m.
The reason for the significant improvement in earnings is essentially the strong sales growth at home and abroad, reports the company. They state that in the course of the coronavirus crisis, customer demand in the stationary and online business has risen significantly since mid-March – also benefited by the pleasant spring weather in 2020.
The largest sales growths were achieved in May 2020 with plus 36 per cent (March 2020: minus 2 per cent; April 2020: plus 17 per cent), after all of the initially up to 64 Hornbach stores which were effected by official sales restrictions were reopened.
Lowe’s Canada has unveiled plans to open a giant distribution centre in the greater Calgary area. The facility, which will be 1.23 million sqft in size, is expected to open in the autumn of 2021 and will represent a total joint investment of more than $120m. The DC will become part of a network supplying more than 470 corporate and affiliated stores under Lowe’s Canada’s different banners. The Lowe’s facility will reportedly be the largest leased DC in Western Canada. Construction is slated to begin this month.
OBI have significantly expanded its board. Having previously consisted of just two people, Sergio Giroldi as CEO and Oliver Geiling (CFO), the new board of the German market leader now has seven members. The new additions are Franz-Peter Tepaß as chief sales officer for Central Europe (Germany, Hungary, Czech Republic, Slovakia), Sebastian Gundel as chief customer officer with responsibility for defining the customer offering, channel management and customer communication (he continues in his role as country director for OBI Austria), Markus Vieler as chief sourcing officer with responsibility for all OBI’s sourcing-related activities (also retaining his post as country director of OBI Poland), Oliver Tackmann as chief IT & logistics officer and Dr Gonn Weide as chief strategy & implementation officer.
The Chilean trade company Cencosud increased its sales in the field of home improvement in the first quarter by 0.6% compared to the same period last year. It has reported the sales volume to be CLP 286.668 bn (EUR 320m). In local currencies, sales would have grown by 13.9%. This discrepancy is primarily due to inflation in Argentina where Cencosud made sales of CLP 118.596 bn (EUR 132m). In Argentinian pesos, that was 30.0% more than in the same quarter of the previous year, however, when converted to Chilean pesos, results in a minus of 2.3%. On the Chilean home market, Cencosud made sales with its home improvement division of CLP 149.532 bn (EUR 167m) and thus an increase of 2.4%. In Colombia, sales grew by 6.2% to CLP 18.540 bn (EUR 21m), however dropped by 1.9% after adjusting for currency effects. Cencosud’s DIY sales channels are Easy and Blaisten. Since the fourth quarter of 2019, the e-commerce share in Cencosud’s DIY business has risen from 3.3% to 4.5%.
Home Depot’s sales rose in the first quarter, but costs related to the pandemic, such as employee bonuses and reduced hours, ate into the retail giant’s earnings. Sales rose 7.1% to USD 28.26 bn, besting estimates of USD 27.54 bn, with same-store sales up 6.4%. Net earnings dropped by 10.7% to USD 2.25 bn, or USD 2.08 per share. Analysts had forecast earnings of USD 2.27 per share.