NEWS NEWS IN BRIEF


n Theo Paphitis will head up the speaking slots on the main stage at the home and gift trade show, along with Not on the High Street co-founder Holly Tucker MBE. Autumn Fair has promised a line-up of industry heavyweights at this year’s show, as it highlights its role as the ‘Gateway to the Golden Quarter’ – the key holiday selling period of October, November and December. It will be hosting speakers from the likes of John Lewis, Pinterest, Made.com and Google’s Digital Garage across its four theatre and workshop spaces at NEC Birmingham next month. n Over 52% of UK shoppers believe that retailers need to offer a more seamless experience between online and offline commerce to retain their custom. This was one of the key findings from a survey of 1,000 shoppers, conducted by e-commerce agency, PushON, which stated that retailers should invest in technology that enables a better omnichannel experience. The survey also found that, for more than 82% of the public, shopping in a bricks-and-mortar store is preferential to purchasing online because products can be viewed before a commitment is made to actually buy. n Despite a 7% decline in home sales for the past week, the department store chain reported an ongoing interest in outdoor cooking and entertaining. John Lewis trading director Simon Coble said home sales were down for the week ended Saturday, August 11, adding: “However, customers have begun to buy new autumn winter products. Our new season own-brand House range is proving popular, with sales of the brand up 19% on the same week last year.” n A recent study reveals people are happy to rent long-term and have no plans to purchase a property in the future but still invest in revamping their home, with some spending over £30,000 in the past year. With more people renting in the UK than ever before, sofa specialist Sofology conducted the survey to explore the happiness level of UK renters and how they create that sense of ‘feeling at home’.


4 DIY WEEK 24 AUGUST 2018


Homebase announces CVA proposal and will cut thousands of jobs


Homebase has announced the next phase of its restructuring plan; the


company is to


launch a Company Voluntary Arrangement (CVA) and is seeking approval from creditors on a proposed plan to reduce its cost base in the UK and the Republic of Ireland. Homebase’s sales performance profitability


and declined


significantly under the previous ownership over the last two years. In addition,


the company has


faced an extremely challenging retail trading environment reflecting weak consumer confidence and reduced consumer spending. These


factors have had a


significant adverse impact on Homebase’s trading position.


After a comprehensive review, Homebase has concluded that its current store portfolio mix is no longer viable. Rental costs associated with stores are unsustainable and many stores are loss making. The CVA enables Homebase


to make essential changes to its store portfolio, reducing its cost base and providing a stable platform on which to continue its turnaround. Under the terms of the CVA


proposal, all creditors receive a better outcome than any other likely alternative.


It is anticipated that 42 stores will close during late 2018 and early 2019. The proposed changes to


the store portfolio will mean redundancies from those stores earmarked for closure. The process is expected to lead to a reduction of up to 1,500 roles,


Woodie’s parent company reports 9% increase in revenue


Grafton Group plc, parent company to DIY chain Woodies, has released its half-year report for the six months ended June 30, 2018, reporting an “excellent performance by Woodie’s retailing” in Ireland. Revenue saw a 9% increase to £1.45billion, with an 8% increase in constant currency. The company said Woodie’s DIY in Ireland celebrated its 30th anniversary recording exceptional growth in revenue and profitability with a particularly strong performance from seasonal products. The operating profit margin increased by 190 basis points to 7.5%. There has been continued


investment to support future profit growth with £120.1 million spend on Leyland SDM acquisition and capital projects. Grafton Group plc said the UK merchanting business strengthened its market position through revenue growth in new Selco branches and the acquisition of Leyland SDM in February. Despite relatively flat underlying activity in the market, the overall business increased profitability from realising self- help benefits complemented by a good contribution from the Leyland SDM acquisition. Chief executive officer,


Gavin Slark commented: “We are pleased to report a strong first half performance across


the Group with all segments reporting double digit growth in profitability. Excellent organic growth in key markets


has


been complemented by the positive impact of self-help measures and development activity. The geographic diversity of our operations continues to be an important strength of the Group. We made further progress towards our medium term financial objectives and invested £120 million on the Leyland SDM acquisition and capital projects to support future growth in profitability.” Grafton Group plc said the outcome for the half year leaves the Group well placed to meet our expectations for the full year.


The Home Depot reports an increase of 8.4% for Q2


The Home Depot has reported sales of $30.5 billion for the second quarter of fiscal 2018, an 8.4% increase from the second quarter of fiscal 2017. Comparable sales for the second quarter of fiscal 2018 were positive 8.0%, and comp sales in the U.S. were positive 8.1%.


Net earnings for the second quarter of fiscal 2018 were $3.5 billion, or $3.05 per diluted share, compared with net earnings of $2.7 billion, or $2.25 per diluted share, in the same period of fiscal 2017. For the second quarter of fiscal 2018, diluted earnings per share increased 35.6% from the same period in the prior year. “We were very pleased with


our record second quarter sales and earnings. Not only did our seasonal business rebound


from the first quarter, but our overall results exceeded our expectations,” said chairman, CEO and president of Home Depot, Craig Menear. “These results exemplify the outstanding execution of our combined team of store associates, merchants, suppliers and supply chain.” Based


on growth its year-to-date


performance, the Company updated its fiscal 2018 sales


guidance and


now expects sales will be up approximately 7.0% including the 53rd week, with comp sales growth of approximately 5.3% for the comparable 52-week period. Home Depot reported its strategic priorities which will look


to accelerate business


investment over the next three years to enhance the customer experience position itself for the


future and create value for shareholders.


This focuses on enhancing the Customer Experience: The Company will highlight the various ways it is leveraging its physical and digital assets to keep pace with changing customer expectations, while continuing to balance the art and science of retail to consistently deliver innovative products at the best value for its customers.


although every effort will be made to redeploy team members within the business where possible. The creditors will vote on the CVA on August 31, 2018.


Jewson invests £800k in Bury St Edmunds refurb


The


builders’


merchant is


ploughing funds back into its portfolio, with the £800,000 refurbishment of its Cratfield Road site, changing the layout and enhancing the product offering, as well as creating new jobs. The branch


– a 32,000sq


m building on the Morton Hall Industrial Estate - now features a dedicated kitchen and bathroom showroom, complete with a wide selection


of modern and


traditional product ranges and full-working demonstration models. With the new-look layout, Jewson has also grown its civils and tool hire offering, adding a storage compound for a growing range of equipment. The addition of Jewson-sister brand Graham, which specialises in plumbing, heating and bathroom supplies, is designed to help turn the branch into a one- stop-shop for local tradespeople. Branch manager Kirk Broom said: “We’ve been serving customers in Bury St Edmunds for 34 years...it’s essential that we have a stock of products readily available.”


“Our newly-designed branch will help to further improve our service and make sure we have all the products our customers need, whether they choose to click and collect or come to see us in branch.”


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