NEWS
The Garden Centre Association (GCA) has announced that the location of its 2020 annual conference is to be Bristol (January 26-29, 2020). The GCA’s annual event will be held at the Mercure Bristol, Grand Hotel from January 26 until 29. With catering and food sales continuing to offer major add-on profit opportunities for garden centres, garden trade show Glee (10 – 12 September, NEC Birmingham), will be offering retailers extensive inspiration at the newly introduced Taste Village. This will provide food and catering suppliers - particularly smaller brands, niche suppliers and start-ups - with the opportunity to participate and exhibit as part of a larger group. One Below, the new discount retail venture launched by Poundworld founder, Chris Edwards and his son, will be opening yet more stores later this week, with a view to reaching their target of 100 outlets across the UK. Chris Edwards (senior) launched Poundworld from a market stall in Wakefield in the 1970s before selling the business to US private equity conglomerate, TPG Capital in 2014. The new owners moved away from the £1 strategy, selling some items for as much as £5 and, subsequently the business collapsed last summer, making thousands of people redundant. Ikea launched an exhibit exploring the importance of sustainable growing, looking at the contrast of the hyper-natural and hyper-tech – and showcasing exclusive prototypes of a new collaborative range with Tom Dixon set to debut in 2021. The garden, entitled ‘Gardening will Save the World’ will explore how alternative, local and more sustainable ways of growing food is essential in the current climate. It will demonstrate how people can contribute to the movement of growing at home, and make a difference to reducing food waste, as well as broadcasting the beauty and functional importance of horticulture, through both traditional knowledge and the latest in growing innovation.
4 DIY WEEK 24 MAY 2019 NEWS IN BRIEF B&M continues upward revenue growth
UK variety goods value retailer, B&M, has announced its preliminary results for the 52 weeks to 30 March 2019. The results show group revenues increased by 17.1% to £3,486.3m, compared to 2018 which was £2,976.3m. B&M has seen revenue growth of 8.7%, including Like-for-Like revenue growth of 0.7% for the year, including 5.8% in the fourth quarter, unadjusted for Easter timing. Group profit before tax increased by 8.7% to £249.4m for the 52 week period, an upward figure from last year’s £229.3m, however results showed diluted earnings per share 20.5p compared to 2018’s 18.6p. The figures showed an adjusted
EBITDA growth of 13.5% to £297.0m (2018: £261.7m), with
new B&M stores have opened in the period and at least a further 50 new stores are planned for this financial year, benefiting from plentiful availability of attractive new store opportunities. B&M have also announced a
a 45bps increase in margin to 10.6% of revenue. B&M have said to be making Important progress clearing out slow-moving inventory in both Germany and France with “more work to be done” to implement the direct sourcing model in those markets. Although high street spending
is seeing a decline, discount and value stores like B&M are seeing an increase in revenue and the opportunity for further growth. 44
Online sales see marginal increase
In the three months to March 2019, figures from the Office for National Statistics showed in its retail sales index that the quantity bought in retail sales increased by 1.6% when compared with Q4 in 2018, following sustained growth throughout the first three months of the year. However figures show that all
store types except department stores and household goods stores increased in the quantity bought, and shows food stores and non-store retailing being the largest contributors to this growth. Year-on-year growth in the
quantity bought increased by 6.7% in March 2019, the highest
since October 2016, with a range of stores noting that the milder weather this year helped boost sales in comparison with the “Beast from the East” impacting sales in March 2018. Online sales as a proportion of
all retailing increased to 18.6% in March 2019, from the 18.1% reported last month. Online retail sales saw sales growth of just 5.2% year-on-year (YoY) in April, according to the latest IMRG Capgemini eRetail Sales Index. The group said this compares “poorly” to the strong performance seen in April of last year (+12.5%), but continued an ongoing trend of subdued growth seen since the start of 2019.
During the first quarter of this year, the Index recorded average sales growth of 7.5%, which is the lowest quarterly growth since Q1 2015 (+6%). Comparatively, the same quarter last year delivered growth of 14.5%. Vice
president at
RichRelevance, Raj Badarinath commented: “It is not a surprise to see online sales growing year on year in the UK. With increased competition from Amazon, DNVB brands and more, and traditional retail footfalls declining, savvy retailers having been investing in greater amounts in online technologies for personalization and commerce.”
Brits said to be spending £31billion on DIY projects
Home improvement has proved more costly than thought, according to a recent study by construction supplier Burton Roofing. By analysing monthly housing data from the Office of National Statistics and talking to 1,000 UK homeowners, the investigation found that the average UK household will spend £1,150.24 every year on their DIY attempts. This equates to a total of more than £31billion (£31,229,016,000) estimated to be spent on putting up shelves, refitting kitchens and hanging picture frames every year. Londoners are revealed
to be the most hands-on when it comes to their home improvements, spending £2,626
Leeds - £956.80 Sheffield - £956.80 Birmingham - £712.40 Cardiff - £629.20 Newcastle - £603.20 Edinburgh - £603.20 Glasgow - £603.20 Belfast £462.80 Paul Hattee, managing
every year on their DIY attempts. On the other hand, Belfast came out as the most content with their surroundings, spending just £462.80 a year on home alterations. London - £2,626.00 Southampton - £1,960.40 Bristol - £1,606.80 Norwich - £1,570.40 Liverpool - £1,326.00 Manchester - £1,326.00 Nottingham - £1,310.40
director at Burton Roofing, commented on the findings: “Whilst it is heartening to see so many people trying their hands at DIY, it is important to keep in mind the importance of properly planning out a project, however big or small. As our competition has highlighted, there are a number of ways a DIY project can get out of hand, with the possibility of damage to property as well as injury to those involved.”
new 1m sq ft distribution centre is under construction in Bedford, “this is to support UK store expansion needs for foreseeable future”, which the company has said will be on schedule for January 2020 commissioning, with rental and commissioning costs of £12m being incurred in FY20 before operational efficiencies are realised in FY21. Chief executive of B&M,
Simon Arora, said: “B&M has again delivered strong results against the challenging backdrop of continued structural change in our industry, rising costs and
uncertain times for consumers, demonstrating that its value credentials remain as resonant as ever with customers, whether they need a bargain or just enjoy one.
“We have made important
progress in establishing platforms for further long term expansion in both Germany and France although there is much work to be done to implement the disruptive, value-led B&M model in these large new markets. We enter the new financial year
with renewed trading momentum particularly in the UK, a high quality new store expansion programme in place, and investing in our new infrastructure to support future growth. I’m confident B&M is well-positioned to deliver further strong progress in the current year and beyond.”
Waste compliance an important issue for BHETA members
BHETA members logged on to a webinar set up by BHETA associate member, Wastepack, to provide updates on the latest government consultations on Defra’s Resource and Waste Strategy, launched at the end of 2018. Strategies of particular importance to BHETA members is the Reforming the UK Packaging Producer Responsibility System consultation. The proposals have significant potential financial implications to BHETA members as follows: that companies finance full net recovery of costs of packaging recycling, increasing contributions from a current value £0.15 billion up to a projected figure in the range of £0.5 to £2.0 billion these costs could be passed solely to the brand owner/ importer or seller/importer. This could significantly increase the burden for members towards these increased costs companies financing packaging recycling, with more cost for small producers not currently obligated in future – keeping in line with EU, if not exceeding. There would also be extra penalties on lower recycled content of packaging Wastepack provides a range
of compliance services and can also take on members’ legal obligations in this area in order to avoid issues of non-compliance and possible prosecution.
www.diyweek.net
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