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.
Cainz will open two Style Factory shops in the Tokyo metropolitan area this summer.
These metro concept stores will offer a
place in which customers can find tips to express their own styles in daily life, hence their characterisation as “Lifestyle DIY Shops”. A wide range of selected products will be available, through a variety of services such as household products that make housework fun, DIY supplies to add a twist in the home and design-conscious interior products that create space to spend time with pets.
The floor layout of these stores will not be based on functional categories as in usual stores, but on solution categories such as “& Pet”, “SMALL SPACE”, “Good Sleep”, “Easy Yoga” and “CREATIVE-DIY” etc. Currently, the company operates one Style Factory shop in Nagoya.
Lowe’s Canada has unveiled plans to open a giant distribution centre in the greater Calgary area. The facility, which will be 1.23 million sqft in size, is expected to open in the autumn of 2021 and will represent a total joint investment of more than $120m. The DC will become part of a network supplying more than 470 corporate and affiliated stores under Lowe’s Canada’s different banners. The Lowe’s facility will reportedly be the largest leased DC in Western Canada. Construction is slated to begin this month.
The British home improvement retailer has opened two stores under the new Decorate by Homebase brand in Sutton in the South of London and in Cheadle in the greater Manchester area. These smaller format high-street stores are located in former Bathstore shops and provide, according to the retailer, everything customers need under one roof for decorating projects – from the initial planning stages, to the final finishing touches. Damian McGloughlin, CEO of Homebase, said: “We’re always thinking about new store experiences for our customers, to deliver on our vision to make Homebase the go-to place for the inspiration, expertise and products customers need to take their projects from start to finish. We’re extremely excited about this concept. This launch was initially in our plans for March, though we chose to delay opening to ensure we could open our doors safely for customers and our team. We are launching Decorate by Homebase on a trial basis at this stage, but we see potential to roll this out across more high streets in future.”
Read more at: www.diyinternational.com
Home Depot’s sales rose in the first quarter, but costs related to the pandemic, such as employee bonuses and reduced hours, ate into the retail giant’s earnings. Sales rose 7.1% to USD 28.26 bn, besting estimates of USD 27.54 bn, with same-store sales up 6.4%. Net earnings dropped by 10.7% to USD 2.25 bn, or USD 2.08 per share. Analysts had forecast earnings of USD 2.27 per share.
LIXIL Viva has reported higher sales and lower profits for FY2019 (ended 31 March 2020) with sales of JPY 18.5 bn (+4.2% YoY), operating profit of JPY 10.0 bn (-7.5%), recurring profit of JPY 9.3 bn (-7.1%) and net income of JPY 6.5 bn (-64.2%). It was the second year of the company’s three-year mid-term management plan and the company positioned FY2019 as an upfront investment phase in stores, digitalization and logistics. As a result, sales were 2.3 points below the plan due to voluntary sales-promotion cancellations in February and March 2020 due to the impact of the COVID-19 infection, but operating profit was 7.6 points above the plan due to an improvement in the gross margin. Comparable store sales were down 1.4%. The company is continuing with its plans to open seven new stores in FY2020.
Source: Diamond Home Center Magazine
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.