Global DIY-Network: Interview with Werner de Jager, Group CEO of Cashbuild.

On Wednesday the 4th of November John W. Herbert interviewed Werner de Jager, Group CEO of Cashbuild.
The interview was the second in the “Meet the CEO” series on the Global DIY-Network, following the interview with Sergio Giroldi on the 21st of October.

Cashbuild operates in 7 countries in Southern Africa with a network of 318 stores trading through 2 different brands – Cashbuild and P&L Hardware.

As in other countries, the coronavirus pandemic had a positive effect on DIY store sales following the lockdown in South Africa. Cashbuild has seen a sales increase of  about12 per cent in May compared with May 2019, 13 per cent in June and 22 per cent in the third quarter. Online sales had also grown exponentially by 300 per cent, and Cashbuild are continuing to work hard to expand its e-commerce engagement, primarily targeting mobile commerce.

According to Mr de Jager, the reason for the growth is that “People have re-established and regained the value of their home and their property”. The Cashbuild CEO assumes that this situation will remain like this following the current boom in new building activities.

The next in the series of the “Meet the CEO” interviews will be held on the 2nd of December with Declan Ronayne, CEO of Woodie’s, part of the Grafton Group and one of the largest Home Improvement Retailers in Ireland.

Germany: Bauhaus Joins the BHB.

From mid-November, BAUHAUS will become a new member of the German DIY Retail Association – the BHB, and in effect a member of EDRA/GHIN.

BAUHAUS, with sales just under 7 Billion Euros in 2019 and 500,000 associates, is the 8th largest retailer in the Home Improvement industry. The chain has a presence in 19 countries through over 270 specialist stores – more than 150 of these located in Germany. BAUHAUS will also bring with it a high degree of strategic and operational experience in association work.

BAUHAUS is delighted with the membership and is looking optimistically towards future cooperation. The new membership of the BHB shows the importance of association bodies, especially in the turbulent times we are currently experiencing, and demonstrates that cross-company cohesion is taking a more prominent role.

BHB Board spokesman Franz-Peter Tepaß emphasized this by saying “the last
months alone have shown that the industry is particularly successful when working in unity in regard to communication with politics, authorities and the media. Viewing the challenges that the industry is likely to face in the years to come, it is good to know that the most important players are collaborating under the neutral umbrella of the BHB”.

Footnote: John W. Herbert, General Secretary of EDRA/GHIN, congratulated both the BHB and BAUHAUS for coming together, recognising the excellent work the BHB does for its members.

Trade Fairs: IPM 2021 Postponed.

The IPM ESSEN, which was planned for January 26 to 29, 2021, has been cancelled.

Against the background of the increasingly dynamic situation and worldwide travel restrictions, Messe Essen have stated that there is currently not the planning security required for the serious preparation of the international trade fair participants. As much as the green industry has wished for IPM ESSEN as a communication platform, there is a great deal of uncertainty in view of the recent occurrence of infections in important markets such as the Benelux countries or France.

Nevertheless, Messe Essen is giving the industry a stage at the planned date of the fair and, together with its partner associations, is organizing a top-level meeting between decision-makers and politicians.

“The anticipation of the IPM ESSEN was great, especially after the past months of full renunciation by all those involved, the more difficult it was for us to decide to cancel the fair”, explains Oliver P. Kuhrt, Managing Director of Messe Essen. “However, it is our responsibility to enable our exhibitors to plan their participation in the fair seriously. Against the background that many of our customers come from abroad and are increasingly insecure due to the difficult travel conditions, however, this is not possible at present. We have therefore decided to cancel before the hot phase of stand planning begins”.

The next IPM ESSEN will take place at Messe Essen from January 25 to 28, 2022.

NHS: Registrations Are Open For The 2020 National Hardware Virtual Show.

Registrations are now open for the National Hardware Virtual Show.

Taking place from October 12th – 15th the Virtual Show will feature 4 days of keynote presentations, educational seminars and product pitch panels, direct appointment setting and networking between buyers, leading manufacturers and top suppliers, and a robust virtual product showcase featuring newly launched and never-before-seen products.

Alongside the Virtual Show all registered attendees will be able to join the NHPA for their All-Industry Conference. This year’s line-up features content from industry experts, successful retailers, and channel partners including special keynote speeches from Dan Starr, president and CEO of Do it Best Corp., and Kevin Hancock, CEO of Hancock Lumber, all centered around the 2020 theme of Industry Disrupters: How Today’s Leaders Are Winning the Retail Game.

EDRA/GHIN Members should contact us at info@edra-ghin.org should they wish to register for the show

Europe: Hornbach Maintains Strong Growth In Second Quarter Of 2020/21 & Opens Its Seventh Branch In Romania.

The Hornbach Group benefited once again in the summer months from consumers spending more time in their own four walls, a trend that has been intensified by the coronavirus pandemic.

At Hornbach Baumarkt AG, which operated a total of 160 DIY megastores with garden centers and online shops in nine European countries as of August 31, 2020, like-for-like sales net of currency items grew by 20.6 % to Euro 2,949.0 million in the first half (2019/20: Euro 2,444.7 million). On a like-for-like basis and net of currency items, the DIY stores with garden centers generated sales growth of 19.4 % in the first six months.

Further to this, the seventh branch of Hornbach in Romania will open its doors in Oradea on September 30, 2020.

“Despite temporarily closed markets in several European countries, we have been able to record positive business development in the course of the corona pandemic. With above-average sales growth, the six Romanian stores, which were allowed to remain open all the time, played a significant role in this,” said Hornbach Baumarkt CEO Erich Harsch.

In the coming years Hornbach is planning further openings in Romania, including stores in the Black Sea metropolis of Constanța and in the country’s second largest city, Cluj-Napoca.

 

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: 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.

USA: The Home Depot Announces Renewable Energy Goal

The Home Depot, the world’s largest home improvement retailer, today announced companywide sustainability progress in its 2020 Responsibility Report, which outlines the company’s 2019 progress on its corporate responsibility strategic pillars: focus on people, operate sustainably and strengthen communities. The report also introduces several new goals and provides an update on the company’s recent response to COVID-19 and social equality issues.

As part of its existing pledge to reduce carbon dioxide emissions by 50 percent by 2035, The Home Depot reduced its greenhouse gas emissions by 10 percent in 2019, driven primarily by energy reductions and supply chain efficiencies.

New goals include a commitment to produce and procure energy from 335 megawatts of renewable and alternative energy projects by 2025.

Read the full report here: The Home Depot 2020 Responsibility Report