News from EDRA/GHIN

European DIY Retail Association
Global Home Improvement Network

Current Affairs in the Home Improvement Industry
29th March 2023 â— Issue 443


Registrations for the 9th Global DIY-Summit are still open. 

Join us from the 14-16th of June for the best networking event in the industry.

With a top programme from thought-leaders, experts and disruptors in the industry, over 1,000 executive managers from over 50 countries will taking part in three days of knowledge sharing and learning.

Do not miss your chance to register and reserve your place for the 9th Global DIY-Summit!


Europe: Kingfisher plc Publish Full Year Results to 31 January 2023. week Kingfisher plc published their Full Year Results to 31 January 2023.

The results demonstrated FY performance in line with Kingfisher expectations & guidance, against strong prior year comparatives. Total sales were -0.7% in constant currency and LFL -2.1%, with a 3-year Like For Like of +15.6%. 

Sales at Kingfisher outperformed home improvement industry growth, with 3-year total sales Compound annual growth rate of +5.9% vs market Compound annual growth rate of +4.9%

Moreover, total e-commerce sales decreased 9.1%, demonstrating the trend that physical stores are still vital. E-commerce sales penetration reached 16.3%. 

Part of the report also shared that Kingfisher’s banners in France and Mr. Bricolage Group are working towards establishing a procurement joint venture. The joint venture, which could be in place by H2 this year ahead of commercial negotiations for FY 24/25, will aim to strengthen relationships with common national and international suppliers and deliver additional value and new business opportunities for these suppliers.

Thierry Garnier, Chief Executive Officer, shared: “Across all our markets, sales have remained resilient in both DIY and DIFM/trade channels, with like-for-like sales 15.6% ahead of pre-pandemic levels. We have maintained a sharp focus on pricing to deliver value to our customers during this challenging period for household finances, while at the same time managing our cost inflation pressures effectively. Strong supply chain management has ensured good product availability and a firm grip on our inventories."

Watch the CEO Video here



Russia: Leroy Merlin to Transfer Ownership of Russian Business to Management. DIY retailer Leroy Merlin, which employs 45,000 people in Russia, intends to hand over ownership of operations in the country to local management, its parent company ADEO said on Friday.

"We are starting the transfer process and have to submit the project to the relevant authorities in Russia," ADEO's head said.

"In concrete terms, our local management will initiate discussions that may last several months," he added.
Russia's Deputy Industry and Trade Minister Viktor Yevtukhov described Leroy Merlin's decision to transfer assets to local management as "civilised" and "reasonable".

As the transaction is subject to Russian authorities' approval, financial details were not immediately available and it was not possible to say whether the retailer would keep operating under the Leroy Merlin brand, a spokeswoman said.

Western companies from McDonald's and Starbucks to Deutsche Bank and Shell have stepped back from Russia, under pressure from customers and their governments to inflict an economic price on Moscow for waging war on its neighbour.



Europe: HORNBACH Holding AG & Co. KGaA Publish Factbook Trading Statement 2022/23. Holding AG & Co. KGaA published their Factbook Trading Statement 2022/23 demonstrating an increase in consolidated net sales in the financial year 2022/23 (March 1, 2022 to February 28, 2023) by 6.6% to EUR 6,263 million. The Factbook also shared that HORNBACH enjoyed organic growth above the German home improvement sector. 

Regarding e-commerce, HORNBACH Baumarkt AG has online penetration at ~14% of sales (incl. click & collect) in FY 2022/23, with 48% of HORNBACH customers using the online shop to prepare in-store purchases. 

The Factbook also shared that Hornbach see a huge potential to gain market share from other segments by addressing trade professionals, offering “do-it-for-me” services & creating specialized store formats. 

Erich Harsch, CEO of the HORNBACH Baumarkt AG, shared: “We believe that do-it-yourself will play an important role in helping people to make their homes more sustainable, notably when it comes to energy efficient renovations. In challenging times people tend to turn to DIY simply to save money. Based on our broad and deep product range and stringent price leadership we are the retailer of choice for customers.”



UK: Wickes Publish Annual Report 2022., the UK home improvement retailer with revenues split between our three customer segments - Local trade, Do-it-for-me and DIY retail, also published their Annual Report for 2022 for the 52 week period to 31 December 2022. 

The report demonstrated Like for Like sales up 3.5% in FY2022, and 22.8% on a three-year basis. Total year-on-year revenue growth of 1.8% to a record £1,562.4m & further market share gains in Core (Local Trade & DIY), and a strong recovery in delivered DIFM sales. 

David Wood, Chief Executive, commented: “This was a period in which we achieved record sales and made further market share gains. While profit declined, the outcome is still significantly ahead of the pre-Covid period. Our performance was underpinned by our balanced business model, digital leadership and ability to offer the best value and service across Trade, DIFM and DIY. This has been achieved due to the expertise and dedication of our 8,100 colleagues, and I would like to thank each of them for their support over the last 12 months."



Global DIY Webinar Series: Private Label – Why? and How? week the Global DIY Webinar series continued with a webinar on the growth of private label in the home improvement industry. 

Industry icon Jim Inglis and Francisco Torres, Executive Vice-President of Merchandising and Marketing at Sodimac, took the virtual stage to discuss Sodimac's use of private labels. 

If you were not able to join us live you can watch the webinar on demand here:



Messe Frankfurt: Impressive comeback of ISH 2023.

The ISH made an impressive return as a mega industry event. The international sanitary, heating and air-conditioning technology industry made the most of the five days of the fair from 13 to 17 March for intensive networking, to experience innovations and to advance business. 153,734 visitors from 154 countries were more than satisfied and, after a four-year break due to the pandemic, seized the opportunity to find out about the status quo and the future of the heating transition in the building sector and sustainable water supply.

Wolfgang Marzin, Chairman of the Board of Management of Messe Frankfurt: "ISH more than fulfilled the expectations of our customers and came at just the right time to meet the challenges of our time such as climate protection and security of supply. The industry presented tangible solutions for the current political requirements, so that the installing trade, as the strongest visitor group, also benefited."

ISH 2023 is complemented by the Digital Extension, which is open until 30 April 2023. Here, among other content, recordings of the lectures from the supporting programme are available on-demand. The ISH Digital Extension recorded 106.932 contacts by the end of the fair.

The next ISH will take place from 17 - 21 March 2025.



Germany: DIY stores in Germany Grow by 7.8 Per Cent in 2022. and home improvement stores in Germany increased their total turnover by 7.8 per cent in 2022, with a volume of EUR 21.92 bn. On an adjusted basis, sales grew by 7.2 per cent. Due to inflation of 6.9 per cent on an annual average, real growth was 0.9 per cent.

These figures were announced by the German industry association BHB.

Franz-Peter Tepaß, a member of the board at OBI and spokesman for the BHB board, emphasised: "In real terms, we grew slightly better than inflation." He also pointed out that the average annual growth from 2019 to 2022 was above the inflation rates of these years and amounted to 4.0 per cent.

According to Tepaß, the first two months of 2023 had been "in line with expectations". "We are at the level of last year," he said. March, on the other hand, was extremely difficult to evaluate because of the poor and variable weather, he said. For 2023 as a whole, he expected sales growth above the inflation rate.



UK: Screwfix Acquires Assets of Connect Distribution Services Limited., the UK’s leading omnichannel trade retailer and part of Kingfisher plc, today announces it has acquired the stock, intellectual property, contracts and fixed assets of Connect Distribution Services out of administration, for a cash consideration of £3 million, following the appointment of Alvarez & Marsal as administrators.

Connect Distribution Services Limited is the leading retailer of appliance spares, accessories and consumables to both tradespeople and consumers through digital and telephone channels.

John Mewett, Screwfix CEO, said: I’m very pleased to be able to secure the future of the business of Connect Distribution Services and its brands for its customers, engineers and colleagues. The business’ popular ecommerce platforms have significant growth potential and they play an important role in helping tradespeople and consumers keep products in use for longer, supporting our sustainability agenda. As an entrepreneurial and customer-focused family business with a 50-year history, the culture is a great fit for Screwfix and we look forward to welcoming our new colleagues.”



Sweden: The forecast Center: Construction Investments will fall by 13 percent this year. to the Prognoscentre's new economic report for the construction market, total construction investments this year are expected to amount to 362 billion, a decrease of 13 percent compared to 2022. The last year's inflation and rapid interest rate increases put a halt to housing construction, where starts are expected to fall by 36 percent in 2023. The market for private and public premises are also affected but to a much milder extent. 

The decline is primarily driven by the sharp slowdown in the housing market, which also reduces household demand for renovations. At the same time, construction activity is kept up by continued large public investment needs as well as the needs for renovations and remodeling initiated by professional property owners. With the exception of newly produced housing - which thus comes to a halt - other construction is in line with expected development in terms of the economic shift, writes the Forecast Centre.

A natural slowdown in renovation activity among Swedish households was expected after the pandemic, but is now reinforced by the households' increasingly strained financial situation. In 2023, consumer-initiated renovations will fall by 5 percent. During 2024 and 2025, growth is expected again, even if the investment levels then remain below the record quotations of the pandemic years.



Shoptalk Europe: Europe’s Greatest Retail Show! Ticket offer for EDRA/GHIN Members.

Shoptalk Europe will take place this 9-11 May, Fira Gran Via in Barcelona.
Shoptalk Europe is the #1 platform for fueling conversations around the future of retail. 3,500+ decision makers from retailers, brands and retail innovators are expected, with 1 in 3 attendees being C-Level or VP-level. The audience will span 55+ countries for three days of business-critical connections, conversations and insights.
Just a few speakers include: 

  • Carolin Leiner, VP Tech Enterprise Architecture of Transformation, UX & Organisational Development, Hornbach Baumarkt AG
  • Sharla Halvorson, Head of Sustainability, Ingka Centres (Ingka Group)
  • Parag Parekh, Chief Digital Officer, IKEA Retail (Ingka Group)
  • Tom Betts, Global Data Director, Kingfisher plc

The Hosted Retailers & Brands Programme: 
EDRA/GHIN members could also be eligible for a free ticket and travel reimbursement to join our Hosted Programme. Join the likes of B&Q, Brico Depot, Leroy Merlin, Ikea, Hettich, OBI, Manomano, Hornbach, Tikkurila, Neakaisa, Karcher and more.
The Hosted Retailers & Brands Programme entitles qualified executives to a free ticket and €650 towards travel and hotel expenses. This is in exchange for taking up to a maximum of 8, 15-minute double opt-in meetings with a select group of solution providers. Double opt-in means we only schedule meetings where both parties agree to meet. You can find more information via the link above, and executives can register for this here.
The registration deadline for the Hosted Meetings Programme is 6 April So please be quick to sign up!
Further information:
More details on speakers can be found here.
More details on the agenda can be found here.
Register for the Hosted Programme here.



B&Q launches advice service for customers on how to improve energy efficiency.

Homeowners interested in buying and fitting solar panels on their roofs could now do so by popping into their local B&Q store as the DIY giant announced it is offering them for the first time.

The retailer has teamed up with clean energy solutions provider Egg to offer bespoke solar panels and battery storage, becoming the latest big name to push into the green home energy market.

The offering is part of B&Q's new Energy Saving Service, which advises customers on how they can improve their homes' energy efficiency. Customers can book an appointment with a B&Q advisor to go through a range of available data from their property, including its age, construction, EPC rating and current energy usage.

B&Q will then assess the suitability of the customer's home for different ways to potentially reduce energy use - from solar panels to loft insulation or switching to a more efficient boiler.



What is climate change? A really simple guide.

Left unchecked, humans and nature will experience catastrophic warming, with worsening droughts, rising sea levels and mass extinction of species.

The world faces a huge challenge, but there are potential solutions.

Climate is the average weather in a place over many years. Climate change is a shift in those average conditions.
The rapid climate change we are now seeing is caused by humans using oil, gas and coal for their homes, factories and transport.

When these fossil fuels burn, they release greenhouse gases - mostly carbon dioxide (CO2). These gases trap the Sun's heat and cause the planet's temperature to rise.

The world is now about 1.1C warmer than it was in the 19th Century - and the amount of CO2 in the atmosphere has risen by 50%.



3e-Gruppe Install Solar Panels on the Roof of their Headquarters.

On the roof of the central warehouse of 3e Handels- und Dienstleistungs AG in Wels, a 500 kWp photovoltaic system has recently been put into operation.

With this sustainable investment, the entire electricity demand of the 3e central unit can now be covered, the surplus energy is fed into the grid.



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