NEWS


House of Fraser saved by Sports Direct in £90m deal


Akzo Nobel acquires Trade Paints


Akzo Nobel has announced it has purchased the business and assets of Surrey-based Trade Paints. With three stores in Epsom, East Molesey and Sutton Akzo Nobel takes its total number of Dulux Decorator Centres in the UK to 209. “These


stores excellent additions


will make to


the


DDC network,” said Alistair McAuley, managing director of Akzo Nobel’s Decorative Paints business in the UK and Ireland. “Our Dulux Decorator Stores network has been expanding this year to allow us to give the best possible offering to our customers.” “Trade Paints is a great business with a strong customer base


and will enable us to


develop our store operations and business in Surrey. We’re delighted to welcome Trade Paints employees to the Akzo Nobel family.” Trade Paints will continue to trade under its current format from its stores in Epsom, East Molesey and Sutton operating under the


leadership of John


Henderson, Dulux Decorator Centre managing director. Dulux Decorator Centres


offer on hand expert advice to customers as well as helping with green initiatives by offering can recycling and more sustainable products such as the latest water-based paints.


The department store chain was


acquired by Sports


Direct after appointing administrators on August 10. Mere hours after House of Fraser (HOF) revealed it had called in Ernst & Young when “discussions with interested investors and its main secured creditors have not concluded in a solvent solution”, Sports Direct International plc announced it had acquired the business from the administrator.


The £90million deal includes the business and assets of House of Fraser Limited, House of


Fraser (Stores) Limited and


James Beattie Limited, the House of Fraser group’s main operating companies (the “Operating Companies”) and means that Sports Direct will take on the HOF brand, all UK stores and all


of the stock in the business. The last-minute save by Sports


Direct, which already had an 11% stake in the business and also has a share of nearly 30% in Debenhams, raises hopes that some of the 17,500 jobs,


including 12,500 concession positions,


at risk first


administration could be rescued. The


agreement


by HOF’s since


Sports Direct took ownership has been to save the flagship House of Fraser store on Oxford


Hot weather boosts Kingfisher’s UK performance


Consistent hot weather this summer has helped B&Q and Screwfix deliver what Kingfisher described as “improved performances”, with like-for-like (LFL) sales up 4.2% in Q2 “within the context of a continuing weak UK consumer backdrop”. The international home


improvement group posted a 6% increase in total sales to £1,005million for its Screwfix and B&Q chains in the UK & Ireland in the second quarter ended July 31. B&Q UK & Ireland saw sales increase 3.9% in the quarter, up


3.6% on a LFL basis. This was driven by a strong performance of weather-related categories during the long run of warm weather, which saw a 7% LFL uplift during Q2, having seen declines of 6% in the previous quarter. This was a welcome boost after the hit it took as a result of the Beast from the East earlier in the year. Sales of hosepipe, sprinklers and accessories were reportedly up 400% on average for B&Q during the quarter, with consumer demand said to peak in the last week of June. The 296-strong chain


also sold a total of 305,000 fans. Retailers across the high street enjoyed strong sales of cooling products during the period, with John Lewis in particular reporting that fans and air purifiers saw triple-digit percentage growth during the last week of June. Screwfix, meanwhile,


delivered sales growth of 11.8% to £407million in Q2, up 5.5% on a LFL basis. The figure was an improvement on the 3.6% LFL uplift reported in the previous quarter. The chain opened 12 new outlets during the trading period.


Heatwave delivers record online sales for garden sector


Despite UK online retail sales slipping to their lowest year-on-year (YOY) growth in 2018 this July, with most categories seeing declines, the hot summer boosted garden sales, delivering a record 22.4% YOY increase last month.


The uplift in July built on


garden’s staggering +49.9% YoY growth in June, according to the latest IMRG Capgemini e-Retail Sales Index.


IMRG strategy and insight


director Andy Mulcahy said: “The British weather is often the cause of much misery or joy for British retail, and July was no different. The main beneficiary


www.diyweek.net


of the prolonged heatwave in July was the garden sector, with 22.4%


year-on-year growth,


which is in contrast with recent difficulties experienced by some on the high street. Shoppers keen to capitalise on the sunshine focused their attention on gardening products – which was also to the detriment of the home sector, which reported a year-on-year decrease of 5.8%. The positive weather, which started in May, has transformed the garden sector’s 2018 performance into an impressive 24.5% year-to-date growth.” However, it was less positive


across the board, with online retail sales falling to their growth


in 2018 so far this July, as consumer spending slumped in the weeks following England’s FIFA World Cup exit. Online sales increased by +10.0%


just (YoY) in July,


well below the three, six and 12- month rolling averages of +14.7%, +15.0% and +12.7% respectively.


Capgemini principal consultant in retail customer engagement Bhavesh Unadkat commented: “The interest rate hike could also impact the amount of disposable income people have to spend, while consumers are being more cautious after high credit card spend over the summer.”


Johnstone’s Trade reveals 2019 colour of the year


As part of its Voice of Colour Program, Johnstone’s has announced that Night Watch (PPG1145-7) – a rich, classic green – is positioned at the forefront of design trends for the year ahead. Every year, a Global Colour


Team from Johnstone’s parent firm, PPG, meets to discuss and develop future colour and design


trends. These colour


stylists represent different markets from across the world, and from their collective knowledge of global trends, a Colour of the Year is selected. In keeping with design trends for the coming year, Night Watch was described by the team as evoking “lush greenery, which emulates the healing power of nature”. This sense of ‘bringing the outside in’, was a theme which continuously resurfaced during the annual Global Colour Meeting.


24 AUGUST 2018 DIY WEEK 5


Street. The London outlet was one of 31 stores earmarked for


closure under a CVA


announced in June but property specialist CBRE was brought in to negotiate revised terms with landlords, so that HOF can remain in occupation. Sports Direct head of elevation Michael Murray, who has been tasked with taking the sports brand upmarket, explained: “We said we would keep as many stores open as possible, and in less than a week we have saved the biggest... Oxford Street was meant to close in January and now it’s safe, which is great news for all parties. Everyone must remember it was a bust business and we need landlords, councils and brands to pull together to save HOF on the high street.”


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