NEWS NEWS IN BRIEF
n The trouble-shooting hardware man returns in this full-length “equel” to How Much for a Little Screw? (Book 1 in the series) to find he has women trouble – with five of them, in fact. It begins when Rhona calls him to see to her swimming pool that stinks to high heaven. But what he’s faced with in her garden of delights is nothing compared with the mess that soon awaits him back at the shop. n ONS retail sales figures revealed that online spending continues to rise. The percentage of online purchases has risen by 8.0% in March 2019 in comparison to March 2018. The sector has witnessed tremendous growth the results report, with online shoppers forecast to reach 220 million by 2025 – however there is still a desire for in-person human interaction. Retailers with omni- channel strategies retain an average of 89% of its customers, according to Teleperformance DIBS. Retailers failing to direct adequate emphasis on customer experience will struggle with retention. n Brits are putting pets’ wellbeing before their own – and that’s music to the ears of pet accessory retailers. The pet care market is buoyant as consumers spend more disposable income on luxury pet accessories and treats. No matter how long politicians fuel uncertainty by arguing over Brexit, the nation’s pets will still need feeding, grooming and caring for, underpinning the strength of the sector. n Crown Paints recently welcomed MP for Rossendale and Darwen Jake Berry and chief secretary to the Treasury, Liz Truss MP, to its UK headquarters in Darwen, Lancashire, to take a tour of the paint manufacturing facility and attend a Q&A session with Crown employees. During the course of the visit, Mr Berry and Ms Truss met with Crown Paints managing director Philip Cefai, marketing director, decorative Europe Liz Hickson, and manufacturing director Ellis Mudd, who accompanied the two MPs on the factory tour.
4 DIY WEEK 26 APRIL 2019
Debenhams CEO plans exit, as shareholder stakes wiped out
Sergio Bucher is reportedly planning to step down from his role at the department store chain within the next few days, following
the appointment
of administrators and the suspension of shares. The de-listing of shares, announced on April 10, was the final act in a tumultuous few weeks for the struggling chain, as House of Fraser and Sports Director owner Mike Ashley said recent events mark “the end of this sorry chapter in Debenhams’ history”.
The 206-year-old retailer
entered into a pre-pack administration deal on Tuesday, April 9, where the business was immediately sold to a newly- incorporated company controlled
outcome - were totally avoidable and represent the complete destruction of shareholder value.” News outlets have quoted a
source close to Sergio Bucher as saying: ““Having stayed on and got the refinancing in place, Sergio thinks now would be the right moment to move on… The upcoming restructuring can then be led by someone offering a fresh start.” Mr Bucher, who took the helm in October 2016, had already been voted off the Debenhams board by Mike Ashley’s Sports Direct
and
by its secured lenders in return for reducing Debenhams’ £600million debt. The move effectively wiped out
all shareholder stakes, including that of Mr Ashley, who owned 29.7% of the department store business and had been involved
in a wrangle with the board over control of the business for some time. He called the pre- pack administration and handling of the business “nothing short of a national scandal”, adding: “Recent events - which have culminated in this disastrous
another major
shareholder, Landmark Group, who opposed his proposed re-election in January.
Several names have been
thrown into the ring as Mr Bucher’s replacement Debenhams’, including Debenhams interim chairman Terry Duddy, and Stefaan Vansteenkiste, managing director of consulting firm Alvarez & Marsal.
Turnaround on track, says Homebase
Home improvement and garden retailer appears on more solid footing, as it delivers 21.8% jump in gross profit and £100million cost savings, as turnaround programme is in full swing, with store closures, rent reductions and re-introduction of concessions and popular ranges. Homebase reported its first
set of results since a CVA was approved last August, revealing that the “business has delivered a much stronger performance” in the last six months of 2018. A management restructure and turnaround programme
Easter Weekend sees sales soar
has stemmed losses and delivered cost savings of around £100million. Operating losses for the six-month period fell 80% year on year, from -£187.3million in the last six months of 2017, to -£33.1million in July-December 2018. Fixed costs were reduced
On Friday and Saturday, all of the rise was due to an increase in activity in high streets (rather than in shopping centres or retail parks), where footfall rose by +19.1% on Good Friday and +8.8% on Easter Saturday. This is really positive news for high streets, as footfall declined by -9.6% and -6.9% on Easter Friday and Saturday last
year
due to the weather. However, the good weather
didn’t bring good news for retail parks
and
The hot and sunny weather has had a hugely positive result for retail destinations this weekend, with an increase in footfall of +6.5% on Friday, +1.2% on Saturday and +8.4% by 12pm on Easter Monday. This is a clear contrast to Easter 2018, when rain and wind battered
the country
resulting in footfall declining by -2.4% on Good Friday, -3% on Easter Saturday and -9.8% by 12pm on Easter Monday.
shopping centres
on Friday and Saturday where footfall declined on both days. Footfall declined by in shopping centres by -11% on Good Friday and -11.8% on Easter Saturday. With continuing good weather on Easter Monday, by 12pm footfall in UK retail destinations was +8.4% higher than in 2018. Once again, it was high streets that benefitted, seeing a rise of +16.3% versus +1.9% in retail parks and a marginal drop of -1.4% in shopping centres. Year on Year % change in Footfall - Easter 2019 (from Easter 2018)
www.diyweek.net
through the closure of 47 stores, which were described as “significantly loss making” and by securing rent reductions on 70 additional branches. Headcount at the retailer’s head office was also cut by 38%. Proposing the CVA last August, Homebase forecast it would need to close around 42 stores, resulting in up to 1,500 redundancies. However, today’s results suggest the final figure is higher.
Meanwhile, in a move to
streamline its distribution network, Homebase closed two of its six distribution centres, in turn; reflecting “the requirements
of a smaller store estate and improved stock management” said the business. Whilst turnover, at £497. million, is still marginally lower than the same six-month period the year before, Homebase is working to improve its customer offer and put back in popular elements of the business that Bunnings stripped out when it took over the estate in 2016. Homebase added that it has laid the foundations to rebuild the business’ digital offer, with early initiatives generating a double- digit increase in traffic to the Homebase website.
Leekes awarded accolade at the Finance Awards
Welsh retailer, Leekes Retail and Leisure Group has been awarded Medium/Large Finance Team of the Year in the second annual Finance Awards Wales.
The family-run independent business was presented with the accolade during a ceremony held at Cardiff’s City Hall on Friday, April 5 and hosted by Timothy Rhys-Evans MBE. Leekes Retails Limited financial director Mike Fowler, who picked up the award on the night, commented: “We were delighted to be shortlisted for such a prestigious award, but to win this award is such a fantastic achievement to the team as a whole.”
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