European DIY Retail Association
Global Home Improvement Network 
  
Current affairs in the Home Improvement Industry 
20 April 2016 ● Issue 277
 
World: Retailers flock to Stockholm for the 4th Global DIY Summit
Global_Summit
The 4th Global DIY Summit has mobilized top decision-makers from every corner of the earth to come to Stockholm. No less than 260 CEO's and senior executives from over 70 outstanding home improvement retail companies from 45 countries have already registered to attend the congress taking place on 8 and 9 June 2016 in Stockholm, Sweden. Some of the retailers already registered for the congress are:
 
ACE Hardware ++ ADEO ++ Assofermet ++ Attard ++ Baucenter ++ Bauhof ++ Bricoalliance ++ BricoKing ++ BricoLife ++ Bunnings ++ Byggmax ++ BYKO ++ B&Q ++ Cainz Corporation ++ Cashbuild ++ Castorama ++ Cencosud SA ++ CFadda ++ Construmart ++ Daiken Corporation ++ DCM HOLDINGS CO. ++ EASY RETAIL ++ Fujiwara Industrial Co. ++ Globus ++ Hubo ++ JCS Start ++ JOYFUL HONDA CO. LTD. ++ JUMBO Markt AG ++ Kesko ++ Kingfisher ++ KOHNAN SHOJI CO ++ KOMERI Co. ++ K-rauta AB ++ LIXIL VIVA CORPORATION ++ Lovenskiold ++ Lowe's ++ Marktjagd GmbH ++ Massbuild ++ Merkur ++ Mitre 10 ++ Niebau Baumarkt ++ OBI ++ Petrovich ++ Plastmo A/S ++ Praktiker ++ Praktis ++ PROMART HOMECENTER ++ Rasi Ry ++ Screwfix ++ Silvan ++ Sodimac ++ TechnoSystem ++ TEKZEN ++ Test Rite ++ toom Baumarkt GmbH ++ The Home Depot ++ Topline ++ True Value Company ++ United Hardware Ltd. ++ Wickes ++ Woodies ++ Zeus... among other outstanding companies!
 
Don't miss this unique opportunity and join the world's No.1 Home Improvement Networking Event.

Germany: Christmasworld introduces Floradecora in 2017
Christmasworld
Christmasworld is the world's most important order venue for the international decoration and festive articles sector. Held annually in Frankfurt, it presents the latest products and trends for all festivities throughout the year and provides innovative ideas for decorating large-scale and outdoor areas for the wholesale and retail trades, shopping centres, DIY markets and the green sector. The last event was attended by 966 exhibitors from 45 countries and over 37,000 visitors from 114 countries. For the first time next year, Christmasworld, taking place on 27-30 January, will introduce the new 'Floradecora' product group. This will offer buyers fresh flowers, plants and flower arrangements for seasonal decoration - at an ideal time towards the beginning of the year, right at the heart of Europe's strongest market for flowers. With its full-service offer and unique stand design, the innovative trade-fair concept recommends itself to new exhibitors such as flower and plant growers and producers, flower wholesalers, importers / exporters, sales groups, cooperatives, suppliers of ceramics and floristry supplies, logistics companies, finishing and packaging workshops, as well as auction houses. 
Taiwan: Taiwan Hardware Show offers Buyers Program for EDRA Members
Strategically put together as Asia's leading premium business platform for the hardware industry, the 16th Taiwan Hardware Show (THS) will come back in high momentum this 12-14 October 2016. Taiwan Hardware Show is offering Corporate Buyer's Program for EDRA members with benefits such as Airfare Subsidy, Accommodation Subsidy, Matchmaking Services, and Factory Tour! For more information, please contact Ms. Wang: ths@kaigo.com.tw .
Turkish: Tekzen Group posts 30% sales growth
tekzen logo 100x36.jpg
The Turkish Tekzen Group has generated total sales of € 825.5 m in 2015, (2014 = € 635 m). This is a sales growth of 30% compared to last year. Founded 20 years ago, Turkey's leading DIY retailer now operates 115 home improvement and DIY markets with locations in Turkey (110), Georgia (1), Iraq (1), Romania (2) and Cyprus (1). As the Turkish newspaper "Milliyet" reported the total volume of the Turkish home improvement market is estimated to be approximately ten billion dollars, but the `DIY stores and wholesale chains only represent 13% share of the DIY sector. The lion's share of this market is still conducted through traditional sales channels: small corner shops, street sales or craft bazaars.
Germany: Good results in Germany 
Germany_map_flag The market leader OBI has matched its previous year's figures with a total revenue of € 6.7 bn (national and international) in 2015. Bauhaus achieved a sales increase of 5.5% (= € 320 m) to € 6.12 bn and Hornbach also managed a significant sales increase of 3.8% (= € 150 m) resulting in € 4.05 bn. On the whole, the Top 20 DIY store operators increased their revenues by € 881 m (+ 3.1%) to € 29.3 bn in 2015.  
Germany: Screwfix launches nine new stores
Screwfix
Screwfix, the British DIY retailer, will open nine more stores in Germany in 2016, says Bernd Hilscher, Managing Director Screwfix Germany. The new small pick-up stores for DIY products will be located in the Rhine / Main region and are located in a radius of about 250 km around Frankfurt. A new site is being sought for the Cologne region. The British DIY chain with German headquarters in Offenbach, opened its first four stores in 2014 in Germany, followed by a further five in 2015. Screwfix branches are currently located in Koblenz, Dreieich, Hanau, Offenbach, Gelnhausen, Wiesbaden, Fulda, Giessen and Ludwigshafen. Screwfix is owned by UK company Kingfisher and has over 460 locations in the UK alone. Overall, more than 7,000 people work for the company.
UK: Homebase to lose 149 jobs
Homebase logo
Homebase's new owner Wesfarmers has confirmed that 149 support role jobs will be axed over the next few weeks. Several UK offices including Milton Keynes have been earmarked for the redundancies and a consultation period has been scheduled to begin from 18 April. A representative for Wesfarmers confirmed that the redundancies would be made in the support function sector. The redundancies are all part of the restructuring of Homebase as Wesfarmers moves towards creating a brand it describes as stronger, more cost effective and in a position to offer employees the best opportunities.  
Baltic: Kesko merges operations
kesko 100x63.jpg
Kesko has now completed the centralisation of its Baltic building and home improvement trade, which was announced in autumn 2015, in Senukai (UAB Senuku Prekybos centras). The company's name will be changed to Kesko Senukai. In the arrangement, Kesko sold the shares in its wholly owned companies responsible for the operations of K-rauta stores in Estonia and Latvia to its subsidiary Senukai, which is majority-owned by Kesko. The Kesko Group company Senukai, the other co-owner of which is the Rakauskas family, is regarded with its subsidiaries as the market leader in the Baltic and Belarus building and home improvement market with 49 stores of its own, 59 franchise stores and sales of € 583 m.  
UK: B&Q closes Craigavon store ahead of schedule
B&Q
B&Q has confirmed that its store in Craigavon, Northern Ireland, closed last weekend - more than six months ahead of schedule and resulting in around 50 job losses. A B&Q spokesperson confirmed that the store was being shut down last Saturday, despite initially being earmarked for closure in 2017. B&Q Sprucefield, meanwhile, will close by the end of the year. Five stores in total were earmarked to close across Northern Ireland, resulting in the loss of around 300 jobs. Stores have already closed in Londonderry and Balymena. It's part of B&Q's closure programming affecting 60 stores across the UK.  
Germany: Globus DIY stores report strong growth
globus_logo 100x67.jpg
The DIY arm of the Globus Group has achieved a turnover of € 789 m in the first half of 2015/2016, representing an increase of 7.2% (as of 31.12.2015). The Group as a whole recorded sales of € 3.64 bn, which maintains the previous year's figures despite weak currencies. In addition to further expansion in Northern Germany and the completion of the integration of eleven former Max Bahr stores, including the opening in Göttingen Globus DIY is now represented at 88 locations in Germany.
UK: Cash injection sparks UK launch of online DIY marketplace
A major European online marketplace for DIY and gardening products is now looking to challenge B&Q and Homebase head-on following funding of £10.4m. Founded in France in 2012 by Philippe de Chanville and Christian Raisson, ManoMano allows customers to buy DIY products online from a network of merchants, connecting the buyer directly with the seller. The start-up has over 1.8m unique visitors a month and 400,000 customers, and has benefited from a rapidly-growing DIY market in its own country and on the continent. The company says that while UK sellers offer a maximum of 35,000 products and services online, ManoMano offers 150,000 products, from spades and stainless steel barbecues to the most specific, technical and esoteric pieces of DIY and gardening equipment - even including full-scale wind turbines. Commenting on the UK launch, Mr de Chanville said: "We're delighted with the €13m raised, which means that we can really focus on the €40bn market in the UK. The British are world-renowned gardeners and DIYers, and so we think they'll love ManoMano, which we like to believe is the online temple for garden and home equipment." Mr Raisson added: "We have a bigger range and lower prices than incumbent retailers. ManoMano also serves as an online community with forums, advice papers and messaging tools, so if you're a professional, a hobbyist or a first-timer you can find anything you want." ManoMano is also looking to grow its existing operations in Spain and Italy.  
UK: B&Q changes new staff pay structure
B&Q
Following the controversy on B&Q's changes to staff wages - in which the retailer pledged to raise the basic pay while cutting wages elsewhere - bosses have made the decision to extend compensations which they say will mean most staff are "better off or unaffected". 


UK: Sales up for Topps Tiles
topps tiles logo 100x100.jpg
Total revenues for the 26 weeks ending 2 April at Topps Tiles stood at £108m, the retailer has announced, up £4m on last year, equating to a 4.7% like-for-like rise. The first quarter saw sales up 4.4% LfL, and up 4.9% in Q2. Topps said the sales growth during the period's second quarter was impacted by the earlier Easter, which fell within the first half of its trading year in 2016.  
Canada: RONA takeover progresses
Lowe's bid to acquire RONA has cleared another as the Superior Court of Quebec issued a judgment to green-light the deal under the provincial Business Corporations Act. The fate of the proposal now rests with the federal Competition Bureau and the Investment Canada agency, having already won the unanimous recommendation of major stakeholder Caisse de dépôt et placement du Québec (which manages provincial pensions) as well as the approval by RONA's common shareholders. Industry insiders anticipate that the deal will close by early summer. 
UK: Sainsbury's set to buy Argos
Argos
Home Retail Group has confirmed it is backing Sainsbury's £1.4bn proposal to take over Argos. The deal comes after months of speculation and a dramatic, game-changing bid from Steinhoff, only for the South African retailer to drop out at the last minute. Sainsbury's expects the deal to complete during the third quarter of this year.
UK: Clas Ohlson closing some stores in favour of small formats in London
clas ohlson logo 100x62.jpg
The new Clas Ohlson store in Ealing Broadway Shopping Centre is constructed in Clas Ohlson's new smaller store format where omni-channel and interaction between stores and e-commerce is more accessible for customers. Clas Ohlson is planning to close a total of seven stores in the UK during financial year 2016/17. It is reported that the Swedish retailer will focus on accelerating the clustering of new smaller-format stores in the London region. "We are in the process of optimising our network of stores in the UK market to improve the long-term profitability of our UK business. As part of this development, we are now taking the opportunity to exit a number of stores that have not met expectations in terms of sales and profitability. However, our commitment to the UK market remains solid. It is our intention to continue our expansion by adding new stores in the London area," says Klas Balkow, president and CEO of Clas Ohlson. Following the opening of the new smaller-format stores in St Albans and Ealing earlier this year, the plan is to open an additional one to two stores in the London area during financial year 2016/17.  
 
EDRA/GHIN Members




Join Our Mailing List


Content responsibility:
John Herbert and
Catherine Morga
n