NEWS


Kingfisher provides an update on


Kingfisher has provided


an update on the impact of the COVID-19 pandemic on its business, along with the measures it is taking to actively manage the risks to its customers, colleagues and operations.


New partnership between IKEA and Tmall


IKEA’s choice of Tmall as its only – and first – third-party marketplace shows global brands recognise Tmall is the most-effective entry point to expand into the world’s second-biggest economy. Home to hundreds of thousands of top brands, Tmall is the preferred platform for brands seeking to digitise its China operations and forge a better understanding and closer connection with consumers in China.


The tie-up also underscores NEWS IN BRIEF


n The British Independent Retailers Association (Bira) is calling for the Treasury to set up an emergency business fund to help those affected by Coronavirus. n Spending time in green spaces has proven benefits for mental and physical health which the gardening-for-health charity Thrive and family- owned garden centre group Notcutts want more people to access through a new free tool called Cultivating Wellbeing in Gardens and Nature. n Homebase has announced it has signed a new partnership with lifestyle brand, Dwell. n The National Homebuilding & Renovating Show is postponed due to concerns about coronavirus. The event was due to take place from 26-29 March at the NEC Birmingham but has been put off until July 2020.


4 DIY WEEK 20 MARCH 2020


IKEA’s and Tmall’s shared goal of meeting consumers’ pursuit of a more comfortable and convenient lifestyle. “IKEA is the world’s leading home furnishing


retailer and


loved by many Chinese consumers,” said Jiang Fan, president of Tmall and Taobao at Alibaba Group.“It is truly exciting for us to help IKEA explore online channels and to enable more Chinese consumers to purchase IKEA products with greater convenience.”


The opening of the flagship


store will make the IKEA brand and products more accessible to Chinese consumers and lets IKEA learn how to engage with customers nationwide in a new way. The digital shop features


around 3,600 IKEA products and home furnishing items. China, as a market, has undergone strong digital development and now offers advanced and unique


solutions for brands and consumers. The collaboration with Tmall exemplifies IKEA’s commitment to bringing the brand closer to the many Chinese consumers both online and offline by offering diverse meeting points, which Chinese consumers prefer, said IKEA. Inter IKEA


(owner of the concept and global franchisor), IKEA Retail China and Tmall cemented their partnership via an online signing ceremony held concurrently Shanghai and Hangzhou.


in


Positive trading results in 2019 for Travis Perkins


Travis Perkins Group produced a positive performance in 2019 against a challenging market backdrop, with early signs of progress from the strategic initiatives set out in December 2018. Total Group revenues grew by 3.2% in 2019 to £6,956 million, and by 3.8% on a like-for-like basis. Sales growth was driven by a good performance from the merchant businesses despite the challenging market environment, with continued 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 lower margin wholesale business,


whilst the branch-based business continued to grow.


Adjusted operating profits


grew to £442m, an increase of 7.8% when compared to the 2018


illustrative comparative


(including the impact of IFRS 16). The increase of £32m was driven by improvements in all segments, with the biggest increase coming from the strong recovery in Wickes. Toolstation UK also grew profits


strongly, but this


was offset by the consolidation of Toolstation


Europe in Q4,


and the corresponding losses of around £4m. The transformation of P&H continued to make good progress, improving the balance of business and improving margins.


digital


Risk management Following the outbreak in Asia, the fompany formed a central committee to monitor and


Supply chain and availability


The Company has global sourcing offices in China, other Asian countries


Approximately 25% of its total annual cost of goods


manage risks. It also established committees in all its retail businesses. These committees continue to monitor closely the impact on all areas of our business, as well as ensuring publicly available advice is followed and that appropriate safeguards are quickly implemented. From the start of the outbreak, the company has taken measures to protect its colleagues and customers, to limit the impact on profitability and to preserve financial flexibility.


and Europe. sold


(COGS) are directly sourced from the Far East. We also source from Eastern and Western Europe, including Italy (c.4% of COGS), as part of our supply chain.


In China, over 95% of our vendors’ factories have reopened,


with capacity


starting to rebuild. In addition, approximately two thirds of our outdoor and seasonal product orders were shipped before Chinese New Year. At this moment over 85% of placed orders have a less than four- week delay against their original schedule. In Italy, while nearly all of our vendor factories remain open to date, uncertainty remains over how goods can be transported from the region.


Systems B.V.


Colleagues and customers Kingfisher


has implemented


a series of actions to protect the


health and safety of our employees, including restricting travel and meetings, the adoption of flexible working arrangements for colleagues, and the recommendation to colleagues and customers to follow specific health protection protocols. Contingency plans have been drawn up to ensure


Sales and demand Up to Saturday 14 March we have experienced no impact on demand from COVID-19. In February 2020, Group LFL sales were +7.6%, or +2.3% excluding the leap year impact. In the first two weeks of this month (up to and including Saturday 14 March) Group LFL sales continued to be positive, with growth across all businesses within our core markets, strongly supported by e-commerce


Dulux Decorator Centre launches charity initiative


Garden therapy sites in Birmingham, outdoor play areas in London and beach huts in Brighton have all been transformed using the power of colour as part of a year- long programme of charity initiatives by Dulux Decorator Centre. Teams from stores across the UK have worked with 20 different schemes - one for every new or refurbished decorator centre in 2019 - investing more than £10k and many more man hours to make a difference to the local communities they serve. Now, with more than 230 stores nationwide, Dulux Decorator


Centre is preparing to embark on its biggest charitable initiative yet in 2020 as the business brings colour to people’s lives as part of its 125-year anniversary celebrations.


www.diyweek.net


COVID-19 pandemic


continuity of customer service in stores and in head offices, including encouraging work from home where appropriate.


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