Global Hardware Market Updates


Global Hardware Market Updates

Each month we will bring you news from global hardware groups.

This month sees Mitre 10 New Zealand announce two new appointments to their executive team, a substantial increase in the DYI projects in the UK, never before seen sales in Byggmax (Sweden), and much more…. 

Mitre 10’s CX gets a Boost

Mitre 10 has announced two new appointments to its executive leadership team (ELT).

Andrea Scown, formerly GM retail operations and an existing ELT member, has been promoted to chief customer experience officer, and award-winning people leader Anna Campbell has been appointed chief People & Capability officer. Both bring exceptionally strong leadership skills and a talent for inspiring teams.

Searches for garden DIY projects increase by 1241% due to lockdown

Stats from Rare Consulting show that between May 4th-11th, 74% of the UK population took part in some sort of home management and DIY activity. Using Google Search Trends data, Dickies have found that the search intent for DIY information has risen dramatically over the past 2-3 months.

The largest increase in searches is for garden DIY Projects, demonstrating a huge average increase of 1241% year on year of garden DIY phrases being searched for on Google. Painting and decorating follows closely, with the phrase “how to paint a room” having 179% more searches in April 2020 when compared to April 2019.


UK: Kingfisher Bounce Back in Q2 2020 

Kingfisher PLC has recently announced its 2019/20 year end financial results, and its Q1 and Q2 2020/2021 summary.

Sales for 2019/20 were down 0.8% in constant currency, and like for like (LFL) sales down 1.5% with growth at Screwfix and in Poland and Romania offset by weaker sales at B&Q, and in France, Russia and Iberia. However, there were Improved LFL sales trend in all retail banners in Q4 19/20; LFL were up 1.7% Commenting on the figures, Thierry Garnier, Chief Executive Officer, said: “Throughout the Covid-19 crisis, our priorities have been clear – to provide support to the communities in which we operate, to look after our colleagues as a responsible employer, to serve our customers as a retailer of essential goods, and to protect our business for the long term.”

NRHA Data Reveals Covid-19’s Home Improvement Impact  

To understand how COVID-19, shelter-in-place restrictions and customers’ new expectations for safe, reliable home improvement shopping were impacting the industry, the North American Retail Hardware Association (NRHA) recently deployed the COVID-19 Business Impact Survey. In total, nearly 300 independent home improvement operators representing roughly 1,500 storefronts participated in the survey, shedding light on the obstacles and opportunities the pandemic has brought to the industry.

Nearly 72 percent of hardware retailers say sales have risen at their businesses amid COVID-19 compared to the same period in 2019. On average, retailers say sales have risen about 17 percent.


National Hardware Show cancels September 2020 Event. Virtual Show to be announced later in the year.

Over the last few months, the National Hardware Show (NHS) has been closely monitoring the COVID-19 pandemic and its impact on members of the global hardware and home improvement community.

Originally slated to open its doors in May, the show was postponed to September. However, as the team continue to make the safety of everyone at NHS their top concern, and looking at the continued impact of COVID-19, NHS has made the difficult decision to cancel the 2020 event. Instead of an in-person experience, NHS plans to host a virtual trade show dedicated to providing education and support that recognises and addresses the direct and essential needs of the hardware industry, later in the year

China International Hardware Show 2020 (CIHS 2020) postponed

In view of the continuous spread of COVID-19 throughout the world and the latest epidemic prevention requirements in China and the Government of Shanghai, the China National Hardware Association and Koelnmesse have prudently decided to postpone the China International Hardware Show 2020 (CIHS 2020) from August 7 – 9, 2020 to October 8 – 10, 2021. The event will still be held at the Shanghai New International Expo Center (SNIEC).

Co-hosted by the China National Hardware Association and Koelnmesse, CIHS has been held for 19 continuous editions and become the largest international professional hardware show in the Asia-Pacific region.

Cainz Opens First “Style Factory” Shop in Tokyo Area

Cainz will open two Style Factory shops in the Tokyo metropolitan area this summer.

These metro concept stores will offer a place in which customers can find tips to express their own styles in daily life, hence their characterisation as “Lifestyle DIY Shops”. A wide range of selected products will be available, through a variety of services such as household products that make housework fun, DIY supplies to add a twist in the home and design-conscious interior products that create space to spend time with pets.

The floor layout of these stores will not be based on functional categories as in usual stores, but on solution categories such as “& Pet”, “SMALL SPACE”, “Good Sleep”, “Easy Yoga” and “CREATIVE.


Arckland Sakamoto Acquires LIXIL Viva 

Arckland Sakamoto, a regional DIY chain in Japan, recently announced that it will make LIXIL Viva a wholly owned subsidiary of its company.

The integration, based on a spirit of equality, will result in a transition to a holding structure by the end of fiscal 2021. The holding company targets sales of JPY 500 billion and operating income of JPY 40 billion (operating margin: 8%) in 10 years.

In FY2020, LIXIL Viva posted sales of JPY 196.9 billion and Arckland posted sales of JPY 112.7 billion, therefore posting combined sales of JPY 309.6 billion, beating out Nafco, the fifth largest company in the Japanese DIY sector.

Following the integration there will be a total 138 stores – 38 Arckland stores and 100 LIXIL Viva stores. The two companies have little area overlap and are complementary, with the aim to become a leading company in the industry as a national market, rather than a regional chain.

Industry sees IPM ESSEN as an essential communication platform.

“Personal contact cannot be replaced by digital communication”, the advisory board of IPM ESSEN agreed in its first meeting after the Corona break. The crisis has made it clearer than ever how important exchange within the green industry is in order to stay up to date and to drive the business forward.

The next IPM ESSEN from 26th to 29th January 2021 at Messe Essen offers all this. In addition to an extensive range of exhibits in the fields of plants, technology, floristry and garden features, a top-class supporting programme with trend shows, workshops, forums and competitions will accompany the world’s leading fair for horticulture.

Oliver P. Kuhrt, Managing Director of Messe Essen: “The health and well-being of our guests is our top priority. The hygiene concept is well thought-out and tested. Experience has shown that trade fairs with appropriate measures work perfectly. The thoroughly positive feedback makes us look confidently towards IPM ESSEN 2021”.


Messe Frankfurt celebrates its 780th anniversary

On 11 July 1240, Emperor Frederick II granted trade fair rights to Frankfurt am Main, marking the birth of Messe Frankfurt.

As soon as Messe Frankfurt celebrates its 780-year anniversary, it will be getting straight back to business: following a global lockdown lasting multiple months, Messe Frankfurt is once again holding trade fairs. Smaller events are already underway on the Frankfurt exhibition grounds, and trade fairs will be joining them soon: Nordstil will be leading the way in Hamburg in September, followed by the Frankfurt Book Fair in October.

Replacement dates have also been planned in 2020 for many of the Group’s postponed events worldwide.

Wolfgang Marzin, President and Chief Executive Officer of Messe Frankfurt, stated “The trade fair landscape will change as a result of the coronavirus crisis, and topics such as digitalisation, safety and security will have a key role to play. Yet the trade fair industry’s most important success factor remains personal encounters – something that Messe Frankfurt’s platforms have been making possible for 780 years now.”

Byggmax Achieves Highest Quarterly Sales and Profit in their History

The second quarter 2020 was the best in Byggmax’s history. Sales increased 39%, scale effects were very strong, and the EBITA margin doubled to 14%.

In the second quarter, strategic growth initiatives continued to deliver at or above expectations. E-commerce sales increased by 62%, supported by a larger assortment and last year’s investments in an improved site and more delivery options. “Order online, pick up in store” is emerging as a preferred consumer alternative and a natural strength for Byggmax with their 167 stores. In the second quarter, Byggmax collect@store service was used for 14% of orders, an increase from 4% last year.

25% Plus for DIY store in May

DIY stores in France made an enormous jump in sales in May, despite stores only gradually opening again from 11 May. Sales went up by 24.52 per cent compared to May 2019 after they had lain at 50 and 60 per cent below the respective previous year’s values in March and April. Mathieu Pivain, president of the DIY association FMB, who has published figures from the Banque de France, stated that the “excellent results proves the robustness of the DIY market in France, and confirms the enthusiasm of the French for DIY”.

Triple-digit growth in online retailing. 

During the height of the Covid-19 crisis in Spain, online retailing in the DIY sector witnessed growth rates of 300 to 400%.

Proximity commerce is also doing well as a result of the pandemic, said César Navarro, the official responsible for the business department at the Spanish manufacturer’s association AFEB. 

A recent survey on how companies have handled the pandemic was present at the AFEB Members’ Assembly. The survey found that 65% of respondents said that they had opted for shorter working hours during the crisis, however, for 80% this is now no longer the case. 77% of manufacturers had experienced interruptions to the supply chain. Digitalisation had accelerated for 97%, while 85% are considering selling via the Internet.

GfK Research finds Gardening Grows 79% in May

According to GfK, sales of gardening products increased by 79% in value in May, driving the recovery of the DIY Superstores channel.

In March and April, the sector experienced a sharp slowdown, with a trend of -48% and of -19% compared to the same period in 2019. However, Italians appear to have rediscovered the pleasure of taking care of their gardens and the market has now experienced record growth.

More generally, focusing on DIY Stores channel only, the GfK data shows a strong recovery for the entire DIY sector in May, with overall sales growth of + 43.5%.

The very positive results for May also allowed recovery following the losses recorded during the eight weeks of lockdown: in fact, since the beginning of the year, the Gardening sector shows an overall growth of + 9.1% in value compared to 2019.


Hardware Forum Italy Postponed to 2021

The organisers of the Italian Hardware Show have acknowledged the impossibility to hold the event previously scheduled for the 22 and 23 of September in Milan. This is following the Prime Ministerial Decree of 14/07 with the extension of the state of emergency and the ban on holding of trade fairs and congresses.

Considering the needs of manufacturers and operators in the entire supply chain, and at a time when all those involved are called to make concrete economic commitments, the organisers believe that postponing the event until 2021 is the best solution.

The next edition of the Hardware Forum Italy is due to take place in September 2021 with exact dates to be confirmed.

Builders Set to Expand

Builders is set to expand into East Africa with its first store in the region’s largest commercial hub, Nairobi, Kenya.

The store, covering almost 10,000 m2 of trading and dispatch space and garden centre, will bring a wide range of high-quality DIY, home improvement and building materials products and services to the Waterfront Karen from the end of August 2020.

Kenya will join Botswana, Mozambique and Zambia as regions outside the retailer’s stronghold of South Africa for continued growth.


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