Global: Garden Trends Report 2021 Published.

Garden Media have published the Garden Trends Report (GTR) 2021.

The 2021 GTR Highlights:

•   How businesses have altered their strategies to come out successful during the pandemic
•   What future cities will look like
•   How people will adjust their home spaces to accommodate the new way of stay-at-home life
•   Finding joy and gratification in new ways

The GTR offers a peek into what will be trending in horticulture in 2021 and beyond.
Also presented are the six industry trends are going to shape the future post COVID-19, push business strategy pivots, and create a shift in home and work design.

A complimentary copy of the report can be downloaded HERE

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.

Global DIY-Network: Interview with Sergio Giroldi, Group CEO of OBI and EDRA/GHIN President.

On Wednesday the 21st of October John W. Herbert interviewed Sergio Giroldi, Group CEO of OBI and EDRA/GHIN President.
The interview was the first in the “Meet the CEO” series on the Global DIY-Network.

Two topics dominated the discussion: the coronavirus crisis and digitalisation.

OBI are continuing to evolve their digital offer, responding to the digitalisation of society. However, Mr Giroldi pointed out that Brick & Mortar physical stores will continue to play a principal role in the home improvement retailing landscape. Mr Giroldi repeatedly emphasized that the customer’s want and need interaction with real people that can be best provided in the physical store.

In response to questions regarding coronavirus, Mr Giroldi spoke of the significantly increased sales of nearly all DIY retailers. Particularly, the Click & Collect offer for customers has proven to be an increasingly used channel. OBI are also considering offering collection of goods purchased online at a number of new “collection points”.

Sergio Giroldi also discussed the newest OBI concept stores and inner city touch points, creating increased awareness of the brand in city centres. Through the Global DIY-Network viewers have the opportunity to re-watch the interview in its entirety, virtually visit the newest OBI Future store in Marsdorf as well as their Create by OBI! store and learn about the concepts behind them.

A day before the interview Mr Giroldi was diagnosed with Corona-Virus and so the interview was conducted from his home. The whole EDRA/GHIN Team wish our President a speedy recovery.

Finland: Hardware Trade showing Good Growth.

In Finland the third quarter of the building and home improvement trade continued to develop positively, with growth reaching 2.5%. The cumulative growth for the first half of the year stands at 6%.

Data from the Finnish DIY Retail Association RASI ry has shown that the soaring growth rates of spring and summer have now leveled off, but growth is continuing.

Minna Liuksiala, CEO of RASI ry, said “The growth of consumer sales and, on the other hand, the slowdown in the growth of professional sales can be seen more and more clearly. The slowdown in new construction has been predicted for a year by a sharp decline in the number of building permits. On the consumer trade side, the largest increase in late summer and early autumn, still over ten percent, was achieved in yard and garden products as well as tools and supplies that consumers use for independent renovation.”

www.epressi.com

USA: NRHA Expands Membership To Include Paint, Decorating Retailers.

The North American Retail Hardware Association (NRHA) is officially broadening the reach of its membership to include independent paint and decorating store operators and will be changing the association’s name to reflect this evolution.

Effective immediately, the association will be known as the North American Hardware and Paint Association (NHPA) and will represent the interests of all independently operated hardware stores, home centers, lumberyards and paint and decorating outlets throughout North America.

“Independent hardware stores and home centers share so much common DNA with independent paint and decorating retailers that this expansion of our membership can only benefit the industry as a whole,” says NRHA president and CEO Bob Cutter. “We are excited to offer paint and decorating retailers an expanded breadth of resources, and we look forward to combining all of their ideas and insights with the already strong pool of retail thought leaders from the hardware side of the channel.”

This broadened member base will help independent retailers from across the home improvement spectrum as NHPA can now tap into a wider network of retailers for research, best practices, success stories and more.

https://yournhpa.org/

Europe: Kingfisher Release Half Year Results To 31 July 2020.

Kingfisher have released their half year results for the six months ended 31 July 2020.

The results demonstrate a resilient performance in H1 with strong sales recovery in Q2 as well as a stronger demand for home improvement across their markets. However, sales were down 1.1% in constant currency, reflecting adverse impact of COVID-19 in Q1 being partially offset by strong recovery in Q2.

In its home market in Great Britain and in Ireland the DIY retailer increased sales by 3.7 per cent (like-for-like: 2.4 per cent) to GBP 2.753 bn (EUR 3.002 bn). Furthermore, E-commerce sales at Kingfisher are up 164%; now representing 19% of total Group sales in comparison with 7% last year.

Chief Executive Officer, Thierry Garnier, said: “We delivered a resilient financial performance in the first half of the year, with the adverse impact of COVID-19 in Q1 offset by a strong recovery in Q2. This recovery has continued into Q3 to date, with growth across all banners and categories.” He continued “The crisis has prompted more people to rediscover their homes and find pleasure in making them better.”

www.kingfisher.com

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.

 

UK and Ireland: B&Q Launches New ‘Build a Life’ Campaign.

B&Q has recently unveiled its new brand campaign, ‘Build a Life’, that celebrates the belief that anyone can change their home to make life better.

You can watch the new campaign here

B&Q believes that anyone can improve their home to make life better.  Our homes are where life happens – a place we grow-up, learn, and live our lives.  Home has never been so important and a recent survey by B&Q found that lockdown has changed British attitudes towards our homes for good, with 57 percent agreeing our homes are more significant in improving our lives than ever.

This new campaign highlights that there’s so much more to everyday DIY. The strategic thinking from Uncommon, appointed by the brand last year, celebrates life in the home and the power of home improvement to change lives. Originally inspired by the amazing things people do to improve their homes to make their life better – something made even more significant by lockdown – the campaign taps into the fundamental truths about our homes and reflects the role B&Q has played in transforming the UK’s homes for the past 50 years.

Chris Graham, Marketing Director, B&Q said: “At B&Q we’ve been making, growing and selling the tools, materials and know-how to improve homes for over 50 years. To us, these things are more than bricks and mortar.”

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.