NEWS Akzo and


Axalta merger off the table


Dutch coatings firm Akzo Nobel has confirmed that it has ended discussions with Axalta. On October 30, Akzo


responded to speculation in the market and confirmed it was in “constructive discussions” regarding a potential merger of the Akzo Nobel Paints and Coatings business with US firm Axalta. Tthe Dulux parent group announced that the two companies had “ended their discussions without agreement”. It has been reported by Reuters that the merger talks were called off when an all- cash offer was made by Japan’s Nippon Paint Holdings Co Ltd to acquire Axalta Coating Systems Ltd today. This has not been confirmed by either of the parties involved.


The announcement follows the


high-profile takeover attempt by US rival PPG Industries during which Akzo rebuffed several offers, much to the dismay of certain shareholders.


Taskers announces restructure of retail offer and distribution centres


Family-run retailer Taskers reveals that its current seven sites will be reduced to four over an 18-month period, in a bid to create “a more efficient and focused business”. Taskers the home store, the Merseyside-based store group, will be closing its two smaller satellite stores at Heswall in the Wirral and Formby on Merseyside. The closures will result in six full time equivalent job losses.


Explaining the decision,


Taskers says the two stores account for only 3% of turnover and “are not considered core business”. Some staff are expected to be redeployed within the business. Taskers will then concentrate on its two main superstores at Aintree and Hunts Cross and its online business which is currently growing at 147% per year.


Its newly-opened Wavertree site near Liverpool city centre


will also close in January and reopen in Spring 2018, selling what the business describes as “a tighter range of products more suitable for its location within the city”. Taskers explained that this


store is situated in an area that is largely occupied by students. Taskers office and


warehousing currently runs from two separate premises, one owned by the company, and one rented.


During 2018, the owned site will be doubled in size and all operations and offices will move to this new larger and improved facility. The rented site will close at the end of the current lease in July 2019. MD John Tasker said of the


restructure: “The moves are due to changes in the market place and local factors such as increased student numbers. “These moves will also allow us to concentrate on key areas of the business, our two


superstores and our growing online business.


“Moving to one warehouse will simplify warehousing transport and online fulfilment and we will also introduce


Sales exceed £750m at The Range


now more than 145 sites across the UK and Ireland.


In October The Range


secured planning permission for a superstore and new headquarters on a former Ministry of Defence (MoD) site in Plymouth. The development could create about 570 jobs. The retailer also opened a 1.2 million sq ft distribution centre in Bristol, creating more than 1,000 jobs, earlier this year.


Turnover has increased to more than £750m at The Range as the discount retailer continues to expand with new store openings.


The company recently


secured planning consent for a superstore and new headquarters in Plymouth, the site of its first outlet. There are


The latest accounts for parent company CDS (Superstores International) Ltd show turnover rose to £761.3m in the year ending 29 January 2017, up from £674.m in 2015/16. Pre-tax profit also increased to £67.5m from £57m the year before.


IKEA reports increase in online sales


IKEA says 15% of its UK sales now take place online, after a year in which internet sales increased by 10%. The homeware company today announced total UK sales of £1.8bn in the year to August 31 2017, up by 5.8% on the same time last year. IKEA UK country retail manager Gillian Drakeford said: “As we celebrate our 30th anniversary this year, we remain committed to the UK and are proud to have achieved another successful year of growth. This is


www.diyweek.net


testament to the talent of our co-workers and our ambition to inspire customers with the best possible experience.” IKEA aims to take 15% of the home furnishings market by 2027 and says that becoming more accessible helped it to increase its share by 0.5% in the past year. During the year it launched a new website and opened new stores in Reading and Sheffield; branches in Exeter and Greenwich are to follow. In total, 57.2m people visited its stores during the year, lifting store sales by 5.7%.


“We have ambitious expansion plans for the UK and are committed to making IKEA more accessible to the many,” said Ms Drakeford.


“As well as opening new stores we are enhancing existing stores. Half way through the year we refurbished all living room departments in preparation for this year’s ‘Make Room for Life’ campaign and we are already


seeing a great response to this. We rebuilt many of our self-serve areas by creating wider aisles so that it’s a safer and more pleasant shopping experience for customers.”


The range opened 16 new outlets during the period as part of its ongoing expansion programme including a store in Limerick, Ireland in August 2016. Expansion has continued into the current financial year with its 145th store recently opened in Llanelli, South Wales. In their report the directors said: “Gross profit increased by 10% as a result of the increase in turnover, achieved by increasing the turnover in existing stores and increasing the number of trading stores but maintaining the level of fixed costs. The group is optimistic about the future given the continued growth and associated economies as well as the strength of the concept.


click and collect for larger items directly from our new warehouse facility which will save on transport and logistics. This is a very exciting time for Taskers.”


Global DIY Market worth €567 billion


In 2016, the DIY/home improvement world market turnover reached €567 billion, an increase of 3.8% compared to last year. North America and Europe combined represent approximately 85% of this market, although their joint population accounts for only 15% of the world population. The DIY markets of these two continents sum €484 billion. North America and Europe reach 57% and 28% of the world market respectively. North America had the highest average DIY expenditure per capita in 2016 with €899. Approximately 82% of the Global DIY market (€467 billion) is concentrated in only eight countries: USA, Germany, Japan, Canada, United Kingdom, France, Australia and Italy. Moreover, the three major DIY countries in Europe (Germany, France and United Kingdom) represent 53% of the continent’s market. The top 10 major DIY retailers worldwide: Home Depot (USA), Lowe’s (USA), ADEO (France), Kingfisher (UK), Menards (USA), Bunnings Building (Australia), OBI (Germany), Bauhaus (Germany), Sears (USA), Canadian Tire (Canada). Home Depot and Lowe’s account for 25% of the global market share.


24 NOVEMBER 2017 DIY WEEK 3


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