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.
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.
In Spain, demands are getting louder for large-scale home improvement centres, hardware stores and building materials suppliers to reopen.
The think tank Foro Regulación Inteligente has spoken out about this with extensive analysis. As an argument, it not only details the essential role of the more than 8,000 stores, or the 150,000 employees of the retailers and suppliers, but also the overall industry sales of €9m in its theory paper. The paper also highlights the role of this branch of trade and its product range as “the home’s pharmacy”. In addition, the study points out that Spain, in comparison to its European neighbours, is an exception if these businesses are to remain closed. It further states that large-scale DIY stores in particular have the possibility of guaranteeing social distancing and safety rules.
The Norwegian home improvement market grew by almost 5% in 2018 and further growth is expected in 2019. 2018 was a positive year for the players in the Norwegian home improvement trade. According to market figures from the main association of service industries Virke, they generated NOK 48.5 bn (around EUR 4.9 bn), which corresponds to an increase of 4.7% over the previous year. The growth resulted primarily from an increase in the professional business, which accounted for 62% of sales in 2018. More and more people who want to build and renovate rely on professional support for their projects instead of doing their own thing. Nevertheless, the end-consumer market also developed positively in terms of sales in 2018 (plus 1.3%), according to the association. For 2019, it lowered his growth forecast from 5% to 2% last September.
Register now for the most important international networking event in the Home Improvement Industry. More than 1,100 executive managers from 50 countries will gather at the 8th Global DIY Summit taking place on 10-12 June 2020 in Amsterdam. The event’s motto, The New Normal: Adapting to a Rapidly Changing World, will address the constantly accelerating pace of global change and the now permanent fixture of disruption in the business landscape. Register now to learn from the world’s leading authorities on these issues and participate in the industry’s best networking event!
Find out more at www.diysummit.org
IPM ESSEN will take place for the 38th time at Messe Essen on 28-31 January 2020. In a little over three months’ time, the world’s leading horticultural trade fair will be held on the completely modernized exhibition grounds for the first time. Eight large exhibition halls on one level, equipped with the latest infrastructure, the Galeria and Hall 1A will offer the ideal presentation area to more than 1,500 exhibitors from almost 50 nations. For the first time, visitors will also be able to reach IPM ESSEN 2020 through the new East Glass Foyer as an entrance. The range on offer at the international trade fair will include innovative products and services from the fields of plants, technology, floristry and garden features. IPM ESSEN will be accompanied by a varied programme and France will present itself as the official partner country.
Should any EDRA/GHIN Member wish to receive complimentary VIP tickets to attend IPM Essen please contact email@example.com
For more information please visit: www.ipm-essen.de