Finland: Hardware Sales Increased by 5% in 2020.

The building and home improvement trade ended up growing by 4.8 per cent in 2020, but the growth was not evenly distributed in the industry. There was a clear difference between consumer and professional customer trade. As larger projects went on ice, consumers themselves began to improve the home and yard.

The high levels of new construction, which has been taking place for several years, started to decline in 2020, which was reflected in the professional customer trade. “Consumers, on the other hand, found pleasure in do-it-yourself, which was also reflected in the sales development focused strongly on consumer sales,” says Minna Liuksiala, CEO of the construction and DIY retail association RASI ry.

“Almost all yard and garden products were sold in record terms. Outdoor decking and grills, as well as plants and garden products saw a huge increase in demand. Demand for larger garden investments, such as outdoor hot tubs, also exceeded all expectations” continued Minna Liuksiala.

www.rasi.fi

Europe: Kingfisher Release their Q4 Pre-close Trading Update.

Kingfisher plc released their Q4 pre-close trading update yesterday.

Kingfisher has continued to experience strong demand across its markets with Q4 20/21 Group LFL sales (to 9 January 2021) up 16.9%. Financial year to date (1 February 2020 to 9 January 2021), Group LFL sales are up 6.5%.

Thierry Garnier, CEO of Kingfisher, welcomed the results by saying:
“The safety of our customers and teams remains our first priority while we fulfil the essential needs of our customers. We will continue to support our colleagues during these most difficult times, and I want to express my sincere appreciation for all our teams as they continue to operate in such a challenging environment.”

The full pre-close trading update can be viewed here

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.

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.

China: China International Hardware Show 2020 (CIHS 2020) Postponed

In view of the continuous spread of COVID-19 throughout the world and the latest epidemic prevention requirements in China and the Government of Shanghai, the China National Hardware Association and Koelnmesse have prudently decided to postpone the China International Hardware Show 2020 (CIHS 2020) from August 7 – 9, 2020 to October 8 – 10, 2021. The event will still be held at the Shanghai New International Expo Center (SNIEC).

Co-hosted by the China National Hardware Association and Koelnmesse, CIHS has been held for 19 continuous editions and become the largest international professional hardware show in the Asia-Pacific region.

 

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/

Germany: Hornbach reports 18% sales rise

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.

Source: www.diyinternational.com

Spain: Pressure grows for opening of DIY stores

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.

Source: www.diyinternational.com

Norway: Market reports growth in 2018 and 2019

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.

 

Source: www.baumarktmanager.de

World: Registration open for Global DIY Summit 2020

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