EUROPEAN DIY-RETAIL ASSOCIATION. NEWSLETTER Current affairs in the Home Improvement Industry

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1 Having trouble viewing this ? Click here You're receiving this because you requested news from EDRA. Please confirm your continued interest in receiving from us. You may unsubscribe if you no longer wish to receive our s. EUROPEAN DIY-RETAIL ASSOCIATION NEWSLETTER Current affairs in the Home Improvement Industry 28 July 2010 Issue 135 Europe: EDRA is expanding with new administrative assistant EDRA is growing and takes on a new member of staff. In addition to opening a new office in Brussels in September 2010, EDRA has taken on a new Administrative Assistant, Cecilie Beyer, who joined at the end of June Cecilie has been living in Cologne for a year and with her Danish background and international experiences she will be assisting the General Secretary, John Herbert, in the Cologne office. Chile: Sodimac joins EDRA/GHIN EDRA EDRA are pleased to announce that Sodimac, the largest Home Improvement Company in Latin America with 65 Stores in four countries, namely Chile, Peru, Argentina and Colombia, has joined the EDRA Global Home improvement Network (GHIN) bringing the total members of GHIN to six. The other members of GHIN are Bunnings (Australia), Epicentrk (Ukraine), Baucenter (Russia), Stroy Arsenal/Trest SCM (Russia) and Stroymart (Kazakhstan). Russia: EDRA in partnership with BBCG EDRA The fifth international DIY and Household Congress 2011, Russia's leading forum for the DIY industry, will be produced in association with EDRA, the European DIY-Retail Association. The congress will take place at the Hilton Leningradskaya in Moscow on the May BBCG was 1 von :46

2 established in the 1990s and organises conferences focusing on important issues that affect businesses in Russia. BBCG is recognised in Russia and internationally for bringing together leaders of the retail sector. Slovakia: Austrian baumax opens new store EDRA With the opening of a new DIY and garden centre this summer baumax is now operating 15 stores throughout Slovakia in in Banska Bystrica, Bratislava (3), Kosice (2), Martin, Nitra, Poprad, Presov, Prievidza, Trencin, Trnava und Zilina. Russia: 20 new stores in 2010 Since SBR Corporation was founded 15 years ago it has been expanding. In the spring 2010 ten new Metrika home improvement and garden centres opened in north-west Russia, which means that SBR now operates 20 stores within Russia altogether. Another ten Metrika markets are expected to open this year in St. Petersburg and in the Karelian region. UK: Sales slightly down at B&Q B&Q parent company Kingfisher has reported a dip in sales, down 0.8% on a like-for-like (lfl) basis, for the 10 weeks to July 10, Total sales for the period went up 0.3% in constant currencies, according to a trading update released today. Total sales at B&Q were down 3.5% (down 4.3% on a lfl basis), however gross profit was ahead due to a higher gross margin percentage achieved on those sales. Sales at Screwfix declined by 3.6%. Poland: GROUPE ADEO hits 40 stores DIY Week On 4 June in Mikolow (Silesian Province) GROUPE ADEO launched a new Leroy Merlin home improvement and garden centre. GROUPE ADEO now runs a total of 38 Leroy Merlin centres in the Vistula region and two Bricoman stores in Poland. Russia: Kingfisher new Castorama outlet In July 2010 in Shchyolkovo, close to Moscow, Kingfisher commenced the construction of a new large-scale Castorama home 2 von :46

3 improvement centre. The centre comprises a sales area of 12,000 m2 and is expected to open in the spring of next year. Matthew Tyson, CEO of Castorama Russia, stated that Kingfisher Group will expand within the next five years with the opening of at least 20 new stores. Currently, there are 13 Castorama centres in Russia. Serbia: New centre to be launched The French DIY retail group Mr. Bricolage Group now has two stores in Serbia since they started building a new home improvement and garden centre in Novi Sad, the second largest city in Serbia, on 23 June They have realized this project in collaboration with their Bulgarian partner Doverie Brico. This group is expected to establish itself in Serbia with an investment of 40m and three new stores. A new Mr. Bricolage store is scheduled to open at the end of 2010 in Belgrade and more stores are expected in the coming years in Albania, Macedonia and Montenegro. Scotland: Wilkinson comes out with great profit Wilkinson has reported a pre-tax profit of 64.9m, due to strong results, significant increase in own brand products and expansion of stores in Scotland. Home is Wilkinson's biggest single category for own brand sales with an increase in sales of 21%, which amounts to more than 120m. Wilkinson opened 17 new stores and now operates a total of 337 stores. In 2010 Wilkinson launches a new look in celebration of their 80th anniversary. To begin with this will be launched in 80 stores and include new signage, layouts, lighting, flooring, fascias and displays. Turkey: The Tekzen Group is expanding DIY Week With several international locations the Turkish Tekzen Group has opened 12 new DIY markets. This means that they currently have 52 branches in Turkey and plan to open five stores in Rumania. Sweden: Clas Ohlson sales increased in June Compared to last year sales went up this year for Swedish DIY group Clas Ohlson. Sales were reported to have increased by 5% in the month of June. In the United Kingdom the group's 15 stores tripled their sales. 3 von :46

4 DIY Global Russia: Maxidom opens its ninth store On 3 July in the city of Kazan Maxidom launched a new large-scale DIY and garden centre. With this new centre Maxidom is now represented with nine stores in Russia, the others being located in Nizhny Novgorod and in Saint Petersburg (7). UK: Fall in consumer confidence A new survey by market research company Nielsen and the British Retail Consortium (BRC) shows that consumer confidence has dropped two points to 78 on the confidence index. As said by the respondents this is mainly because of the economy with concerns for personal finances such as debt and job security. According to Stephen Robertson, BRC director general, British consumer confidence is below global average, which reflects that consumers are worried about future recovery and the state of the economy. Italy: Punto Brico is growing DIY Week Punto Brico currently has locations in Belluno (Venetian region) and in Costaverde Montenero di Bisaccia (Moline). In the middle of July partner merchants of the Italian cooperation are opening two new DIY home improvement stores. With these openings the group will have a total of 62 stores with a total sales area of 143,000 m2. Germany: Praktiker sales decline Praktiker, a German group of companies, recorded total sales of 1.79 bn in the first six months of 2010, 5.8% less than the same period last year. In the German market the three brands represented there, Praktiker, Max Bahr and Extra Bau+Hobby, achieved sales of 1.31 bn, which is 6.6% down on the previous year (down 7.7% like-for-like). Sales in the company's international business was 3.5% down at m (7.3% like-for-like). US: Drop in retail sales for second consecutive month DIY Global 4 von :46

5 Retail sales fell for the second straight month in June, according to the Commerce Dept. Retail spending dropped 0.5%, following a 1.1% drop in May. However, most of the decline in spending came from a drop in auto sales and low gas prices; excluding these factors, sales would have risen 0.1% in June. Switzerland: Landi launches new stores North American Retail Hardware Association With multiple locations throughout Switzerland, Landi opens four new DIY stores focusing on home, yard and garden. Their range includes among others clothing, garden equipment and furniture, household goods, DIY and agricultural equipment. US: Lowe's Launch Valspar Paint Baumarktmanager Valspar has debuted new paint performance technology with the Valspar Signature Colors with Hi-DEF Advanced Color System paint line. The new formula will be available exclusively at Lowe's, according to a press release, and boasts ultimate hiding formula that covers most old colors in one coat. The "high definition" factor comes into play with the super-saturated pigments for "true-to-chip" accuracy for all of Valspar's colors. North American Retail Hardware Association EDRA Members 5 von :46

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