IS DIY-TV HI OVER? NEWS REJECT ACCEPT Vol
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IS DIY-TV HI OVER? NEWS REJECT ACCEPT Vol. 2 No. 9 DULUXGROUP H1 2015/16 RESULTS BUNNINGS MAKES MOVE IN ALBURY • THE GOOD GUYS CONSIDER AN IPO • POCO MAY BUY INTO MASTERS SITES • MITRE 10 SCORES KELLYS IN WODONGA • BEAUMONT TILES OPENS NEW DC contents IS DIY TV OVER? After poor ratings for “Reno Rum- ble”, mediocre ratings of “House Rules”, and lower ratings for the past two seasons of “The Block”, is “reality” DIY TV done and over? 19: click to view DuluxGroup H1 DuluxGroup returns average to good results. Forecast is for a stron- ger H2. However, is enough attention being paid to the changing economy? 37: click to view Big Box Update Retail Update Bunnings to set up store in The Good Guys considers IPO; Albury; POCO looks at JB HiFi considers buying The Masters’ sites. Good Guys 3 9 Indie Update Europe Update ...................................13 Beaumont Tiles opens new DC; Mitre 10 adds Kellys US Update ..........................................15 Wodonga. 6 Products .............................................42 Supplier Update Seeking Opportunities .......................47 Mike Kane of Boral calms fears over housing prices; Valspar earnings dip. 8 hnn.bz big box update Albury set to approve new Bunnings store Bunnings to open in this in Homeplus update: Chadstone Newmark Capital has signed up Bun- POCO may bid nings in a 10-year on Masters’ Harvey Norman Centre deal to be part of its sites Chadstone Homeplus Homemaker Centre in Melbourne. The big Metcash in- box retailer will open a terested in large-format 7600sqm Masters’ sites, store at the centre, located about 500 me- 3 as well as HTH tres from Chadstone Group Shopping Centre. Bunnings will share space in the Homeplus Brett Blundy Centre with other looks to buy major retailers such as into Masters Barbeques Galore, The Bunnings new Good Guys, Snooze, store location Freedom, JB Hi-Fi, E&S Bunnings to Trading and Adriatic open larger Furniture. store in Albury Newmark was found- Bunnings has lodged The replacement Albury Council ed by former Haw- a development appli- warehouse will be over has been supporting thorn football star Bunnings to cation for a $27 million 18,000sqm with room the Bunnings team Chris Langford and open new replacement store in for more than 400 with information Simon Morris who pre- viously headed Pen- store in Chad- Albury. carparks. and assistance for its The big box retailer Bunnings recently investigations into the insula Development stone opened its existing purchased the site proposed purchase of Group. The Homeplus store in Young Street including the Kim- the new site for several Centre, bought for $55 million in 2011, was the Bunnings in 2003 before an ex- berly Clark factory months. We are very pansion six years later. which closed last year. pleased that Bunnings start-up syndicator’s launches pilot The plans are for new Bunnings general has seen fit to invest in first single-asset fund. stores in UK store on the corner of manager of its prop- the expansion of their Its value is likely to the Riverina Highway erty division, Andrew presence in AlburyÉ soar above $80 million and Drome Street. It Marks, said the rede- Bunnings is also after the deal with Bunnings will be located next velopment was a show building a 6900sqm Bunnings. brands enter door to the Harvey of faith in the Albury store on the eastern Industry sources UK market Norman Centre. Bun- market. edge of Yarrawonga suggest rents for a nings’ trade centre in Acting Albury mayor which is expected to large retailer such as Romet Road, Wodonga David Thurley wel- open later this year. Bunnings were likely will transfer across to comed the announce- goo.gl/3xwc7O to be between $280- Albury as part of the ment from Bunnings. $320 per square metre. move. He said: goo.gl/ExQ26v hnn.bz big box update Metcash also seeks Masters The DataRoom column in The Australian has revealed that Metcash may be interested in both Masters and Home Timber and Hard- ware. Apparently, the Mitre 10 owner has been sounding out Woolworths about a potential acquisition of the stock within the hardware operation of Masters. It has always been thought that it was only HTH that was of interest to Metcash, but it is now believed the group also expressed an interest in understanding what stock Masters has and at what price. HTH is more attractive to buyers than the loss-making Masters and is known to have strong synergies with the Metcash Mitre 10 operation. Citi is working on the process on behalf of Woolworths and is expected to have now comprised a short list of bidders for the second POCO in race for round of the contest. goo.gl/DXwZQ0 Masters’ sites Home furnishing and pany wanted to open POCO will tap into it expanded its store Blundy bid 4 hardware store, POCO 45 Australian POCO that value seeking con- network over the next Australian business- is now in contention stores in two years and sumer that wants rel- five years. man Brett Blundy to takeover the sites as many as 100 outlets atively good furniture, Mr Urquhart said may be buying into set to be vacated by within five years. cheap white goods but POCO could follow in Woolworths’ hard- Masters. Complete with its still good quality. Masters’ footsteps and ware operations, ac- POCO is a South distinctive yellow and Dr Mortimer said it fail because it wasn’t cording to DataRoom African-owned red colour scheme, was a very different focused on doing one in The Australian. warehouse retailer POCO first opened its offering to Masters, thing and doing it well. Apparently, he has that stocks discount doors in Australia in which meant POCO POCO stretches itself made a tilt at parts of furniture, hardware, 2012 and now operates would have a better across a number of the Masters hardware white goods, bedding six store across the chance of standing up different markets and portfolio and poten- and other low cost country, including to Bunnings. Mr Urquhart doesn’t tially also Home Tim- household items such outlets in Blacktown What Masters did believe it’s what con- ber and Hardware. as soft furnishings and and Casula in NSW. was try to emulate sumers want. Mr Blundy founded some electrical goods. Queensland Univer- Bunnings but in a high Mr Urquhart also BB Retail Capital in It houses brands like, sity of Technology end air conditioned said POCO had to 1980 and built up his TEAC and Breville. retail expert Dr Gary store. That inferred to tread wisely if it fortune by growing Its South African, Mortimer told The the shopper it would wanted to expand the a single record store German-listed parent New Daily that POCO be high price. They number of stores in called Disco Duck company, Steinhoff represented the same didn’t understand their Australia at such a into a 238-store strong International, also threat to Bunnings market. People would rapid rate. Sanity Entertainment owns Freedom Furni- that discount German go to buy hardware There will be a period Group, encompass- ture, Snooze and Bay supermarket Aldi but also see cushions of loss therefore they ing HMV and Virgin Leather Republic. posed to Coles and and throw rugs. have to be very careful. Entertainment. It was Fairfax Media re- Woolworths. He said: goo.gl/UgZX3y If they run out of divested in 2009. ported that POCO was The POCO model Retail analyst and money, they run out of BB Retail Capital planning to move into tends to be an Aldi or managing director of time and if you run out may be working with 20 vacated Masters to a lesser extent a Marketing Focus, Bar- of time, you’re run out JB Hi-Fi and Steinhoff sites around Australia. Costco-style one. Fairly ry Urquhart, doesn’t of business. International, the Prior to that, trade good quality, but low see POCO becoming goo.gl/ajiqLH majority shareholder publication Channel price. Not a signifi- a major competitor in of the listed Freedom News reported that a cantly large range or a the big box market, Furniture. Steinhoff Internation- lot of branded prod- and said it would lose goo.gl/4nFssB al source said the com- ucts. a lot of profit while hnn.bz big box update Bunnings is likely to open stores that are markedly different from the Hombase format they will replace Bunnings brands Bunnings launches hit UK stores 5 Tactix, CraftRight, Saxon, Morgan, Ulti- UK pilot stores mate Storage, Flexi Storage, Move Master, Over the next six nings team in the then furniture concession. on any public timeta- Jumbuck, Marquee months, Bunnings will McEwans takeover. This process is likely ble, with the two or and Smart Storemas- establish pilot stores Once its pilot stores to see an adjustment three pilot stores to ter are all Bunnings in two or three of the are established, other to the sales base to be be operating by year’s brands that have been 260 Homebase sites in stores will be in the used for the acqui- end, simply to test the stocked at Homebase the UK, according to new model. This sition, which will be model and work out stores, according to John Durie writing in means, among other stated with ongoing where to make adjust- InsightDIY. The Australian. things, that everyday starting sales of ments. The first containers The big box retailer is low prices instead of around $2.4 billion as The UK demograph- arrived at UK ports three months into the the high-low strategy against the previous ics are vastly different, from China and the process of transferring which has been the stated sales of around with some 18,000 peo- stock has now been its operating style into hardware mainstay in $3 billion.