THE MONTH


Merchants close doors to collections as virus takes hold The coronoviris pansemic has


meant that most merchants have temporarily closed their businesses, either fully or for collect business.


Huws Gray Ridgeons’ chief executive Terry Owen told customers that the group – the UK’s 5th largest – would be closing all branches of Huws Gray, Ridgeons, ATC, RFP, Plumbstock, Qualplas and AC Roof Trusses branches with immediate effect. “We have kept all our branches open and fully functioning as long as possible, and we would love nothing more than to be able to continue to operate normally,” he said in a statement. “However we do not live in ‘normal’ times


at present, and after a careful assessment of all our options involving trade and retail customers alike, as well as our employees and suppliers, we feel that we must do the right thing for the greater good.


Earlier, independent merchant Covers announced that it would only be dealing with cash or credit card payments rather than credit account payments, citing the great pressure on the credit control function of staff illness, self- isolation and unexpected childcare with the closure of schools. Up in the Midlands, Frank Key Group has decided that, for the safety of all staff and customers, their branches will be


Other merchants closing temporarily include Selco, whose managing director Howard Luft said: “We are living in unprecedented times and I’m certain this is the right and responsible decision for everyone connected with Selco.


closed for three weeks. James Norton, managing director, Frank Key Group, says: “We believe suspending trading is the responsible approach to safeguarding the health and wellbeing of all our colleagues, customer and partners during this public health emergency.


Travis Perkins results inch ahead as


recovery takes hold Group revenue at builders and plumbers merchant group Travis Perkins rose 3.2% to £6.9bn for the financial year ended December 31 2019.


Sales were 3.8% ahead on a like-for-like basis, driven by a good performance from the Merchant businesses despite the challenging market environment, with continued excellent growth in Toolstation and a strong recovery in Wickes. The P&H business recorded a modest reduction in sales across the year, but this reduction was concentrated in the


Builders merchant group Grafton saw a good performance from its Irish and Netherlands merchanting businesses but weaker demand for the UK operations to see an overall fall in revenue of 1% to £2,924m for the financial year ended December 31 2019. Average daily like-for-like Group revenue decreased by 0.4 per cent in the period from 1 January to 23 February. This comprises a decline of 1.5 per cent in UK Merchanting, growth of 2.0 per cent in Irish


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lower margin wholesale business, whilst the branch-based business continued to grow. Plans to divest the divison have been put on hold due to the coronavirus pandemic. Merchanting sales grew by 2.6% in 2019, and by 3.3% on a like-for-like basis. Increasingly challenging market conditions in the second half of the year were the result of significant levels of political uncertainty impacting consumer confidence. The specialist merchants continued to win market share in their respective markets. Sales in CCF


Grafton sees UK demand weaken


Merchanting, growth of 1.3 per cent in Netherlands merchanting, a decline of 0.3 per cent in Retailing and growth of 6.7 per cent in Manufacturing.


Gavin Slark, chief executive officer said: “2019 saw growth in revenue, profitability and earnings per share alongside continuing progress in evolving and re-shaping our businesses to enhance our value proposition to our customers and drive sustainable growth for our


shareholders. Strong organic growth in our Merchanting and Retailing operations in Ireland and in the profitability of our Netherlands operations helped offset a challenging year in the UK due to political and economic uncertainty.


“The outlook for 2020 is of continuing but moderating growth in Ireland and the Netherlands and while reduced uncertainty may lead to some uplift in the UK RMI market,


“The main concern was around the social distancing within our branches and the health, safety and welfare of our customers, colleagues and suppliers was the clear top priority in our decision making. While we look forward to opening the doors to our branches once again, everyone’s sole focus now has to be to remain safe and play their part in what is a huge global effort.


Kent Blaxill opens in Lincoln


and Keyline were impacted by the slowdown in larger projects in the fourth quarter.


In 2019, Toolstation demonstrated outstanding revenue growth of 25.7%, and 16.3% on a like-for-like basis. Some 65 branches opened in 2019, bringing the overall network up to 400.


The doors are now open at Kent Blaxill’s new decorating supplies store in the city of Lincoln. In March 2020. Commercial director James Park said, “We looked for a suitable site for some time so it’s great to see our 3,000 sq ft location at Bishops Trade Park now open.’


He continued, “We’ve created 4 new jobs and the site offers great parking and easy access for trade and retail clients. It’s exciting to bring new paint brands to the area, including the No. 1 Scandinavian brand, Tikkurila, who


we remain cautious about the speed of any recovery. Given the strength of our brands we look forward to another year of progress for Grafton, with a strong balance sheet and rigorous financial discipline.”


www.buildersmerchantsjournal.net April 2020


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