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

World: Newly Published Global Home Improvement Report 2019

The 2019 edition of the EDRA/GHIN & fediyma Global Home Improvement Report 2019 has just been published. Containing detailed statistics for the Global home improvement market this report is a must-read for any parties with an interest in the market. The report can be purchased for €890.

Should any interested parties wish to purchase the report please contact info@edra-ghin.org.

In 2018, the DIY/home improvement world market turnover reached €594 bn, an increase of 1,1% compared to last year. North America and Europe combined represent approximately 87% of this market, although their joint population accounts for only 17% of the world population. The DIY markets of these two continents total €516 bn. North America and Europe reach 58% and 29% of the world market respectively. The United States of America had the highest average DIY expenditure per capita in 2018 at €932. Approximately 81% of the Global DIY market (€482 bn) is concentrated in only 8 countries: U.S., Germany, Canada, Japan, United Kingdom, France, Australia and Italy. Moreover, the three major DIY countries in Europe (Germany, France and United Kingdom) represent 50% of the continent’s market. The top 10 major DIY retailers worldwide are: Home Depot (U.S.), Lowe’s (U.S.), ADEO (France), Kingfisher (UK), Menards (U.S.), Bunnings (Australia), OBI (Germany), Bauhaus (Germany), Sodimac (Chile) and Ace Hardware (U.S.). Home Depot and Lowe’s account for 25% of the global market share. More detailed information is contained in the new edition of the “Global Home Improvement Report 2019”.

Germany: New IPM exhibition grounds

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 info@edra-ghin.org

 

For more information please visit: www.ipm-essen.de