NEWS


Stax acquires PDS Logistics


Wholesaler Stax Trade Centres has made a further investment in its supply chain with the acquisition of the logistics firm for an undisclosed sum. Stax will assume control of PDS with immediate effect and hopes the move will allow it to gain greater control of its own logistics. In a statement issued today, it said that the acquisition will allow Stax “to fully secure the vertical integration of our supply chain whilst adding another feather to our cap in the form of a full distribution network that can be offered as a standalone service to help other suppliers in the sector.” Historically, the national wholesale business has accounted for more than 60% of PDS’ logistics operation, which should allow for minimal transition and means there should be no interruptions to its service.


Established in 1965, PDS


provides Stax with an additional fleet of vehicles plus a further 65,000sq ft of warehousing and fulfilment/distribution space. The company was founded by John McLelland, who now plans to exit the business full time but will continue to provide Stax with consultancy on an ad-hoc basis. The deal will also secure the jobs of the existing staff who will continue with their responsibilities towards the day-to-day management of the company.


M&S to ‘rejuvenate’ its home offer following 5.3% loss in half-year profits


High Street giant M&S reported a 0.7% decrease in like-for-like revenue in its Clothing & Home categories when reporting its half year results this week. It also recorded a 0% change in Clothing & Home revenue from October 1, 2016 to September 30, 2017. Full price sales increased by 5.3%. Revenues were adversely impacted by “the decision to reduce the number of clearance sales in the period from four to two,” the company said. However, channels for the future suggests M&S expects online share of sales to grow “very significantly” with plans for a “digital first approach” where one third of the Clothing & Home sales will be online in the medium term.


The group looks to emulate a faster approach to consumer shopping like other home retailers, such as Argos and Habitat, promising “significant changes” in Food and Clothing & Home to create a “more commercial” M&S. “We will continue to


modernise our supply chain which needs to be faster and lower cost than today. Our digital fulfilment capability, while currently operating well, will require further investment to enable more rapid growth online and help us match increasingly fast competitor fulfilment rates,” the company reported.


M&&S chief executive Steve Rowe said: “We have made good progress in remedying the immediate and burning issues at M&S I outlined last year. In


Clothing & Home early results are encouraging.”


The next phase of transformation includes acceleration of the UK Clothing & Home space rationalisation plan which sees plans to step up its overhaul, coming a year after it first announced that it would shut 30 of its larger UK


Akzo Nobel in merger talks with Axalta


Dutch coatings firm, Akzo has confirmed it is in “constructive discussions” with US rival Axalta with a view to creating a “leading global paints & coatings company through a merger of equals”. Akzo made its statement this morning in “in response to market speculation”, it said, as it also confirmed that the separation of its Speciality Chemicals division still remains on track for April 2018.


Commenting on the news, Axalta explained that it, “will


pursue such a transaction only if its board of directors determines that it is in the best interest of Axalta to do so.” Talks are still in the early stages and Axalta added that, “there can be no assurances that a definitive agreement between the parties will be reached or on what terms.”


What the interest rate rise could mean for housing and home improvement


With interest rates set to increase between 0.25% and 0.5% for the first time in 10 years, speculation and predictions have been rife over what impact this will have. Although not a huge increase, the shift is likely to leave some people worse off – particularly borrowers, who Prolific Mortgage Finance’s Lea Karasavvas believes will be in for a shock. “Mark Carney has handed a generation of borrowers, who have never experienced a rate rise, the fright of their life,” she said. However, like many, Lucy Pendleton of estate agent James Pendleton believes that the news should not be a huge surprise


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to anyone and that buyers have prepared themselves for the pick- up in interest, meaning there should be no slowdown in the market.


“Buyers are savvy and won’t


be thrown by this,” she said. “Most have been telling us they have already factored in an entire percentage point rise over the course of the next year… This small increase won’t move the market and will actually give buyers more certainty about the direction of travel.”


Last year saw a 6% increase in home improvements that required planning permission across the UK, with more than 100,000


applications submitted to London planning authorities alone. Huge growth in remortgages were also reported last month, pointing towards a number


of homeowners opting to stay put and take on home improvements rather than move.


Of the impact the rate


increase is expected to have, Ms Karasavvas said: “Homeowners knew the writing was on the wall. We normally expect fairly equal numbers of remortgages compared with new purchases,


but we saw remortgaging running at 90% of all mortgage activity in October.”


She continued: “That


represents a massive flight to safety for those already on the housing ladder and not a hugely encouraging vote of confidence on the demand side.”


The announcement follows an unsuccessful takeover attempt by PPG Industries earlier this year, when Akzo declined a €26.9billion offer from the American company.


The firm


came under pressure from its board for rejecting the lucrative offer and tensions were high, resulting in legal proceedings.


stores, with a further 45 being downsized or converted to food- only, deciding to also close 53 loss-making international stores. It has so far completed six of the 30 announced UK closures. Overall profit before tax fell by 5.3% for the group; however Mr Rowe has plans in the pipeline to “make M&S special again.”


B&M opens stores in Llanelli and Skelton


B&M has increased its presence in South Wales with the opening of a new store in Llanelli. The B&M Home Store with


Garden Centre is located at the new Cross Hands Business Park, opening its doors to the public on Saturday with the help of some special guests. Chairman of Carmarthenshire Councillor Irfon Jones and his wife Jean Jones were on hand to cut the ribbon to officially declare the store open. Store staff nominated a local charity to join in the opening day fun. Representatives from Wales Air Ambulance attended the store opening and raised money throughout the day as B&M’s VIP guests. They also received £250 worth of B&M vouchers as a thank you for taking part. B&M Cross Hands store manager said: “We’re feeling really positive about the creation of new jobs for local people and feedback from customers has been great so far.” The Llanelli store is the second B&M in the town, following the Bargains store located at Parc Pemberton.


The north east will soon have a new store also when B&M opens its doors at the newly-built Skelton Retail Park, Cleveland on Wednesday, November 22, creating 50 new jobs.


10 NOVEMBER 2017 DIY WEEK 3


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