#bunningsuk

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Bunnings UK: 'the least-bad outcome is exit', says JP Morgan

JPMorgan has released a report that found the cost of Bunnings pulling out of the UK and Ireland would be less than the cost of persevering. JPMorgan estimated the net present value of exiting would be around $1.1 billion (£631 million) while the cost of staying would be $1.52 billion (£863.4 million).

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5 February 2018 | Wesfarmers

Significant Items Expected in 2018 half-year Results

Following a review of the performance and strategic plans for Bunnings United Kingdom and Ireland (BUKI), Wesfarmers Limited advises of a number of significant items that are expected to be included in the Group’s 2018 half-year (HY2018) financial results, subject to completion of Ernst & Young’s review of the financial statements.

Full press release here...

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David Haydon to run Homebase. Picture: LinkedIn

Bunnings hires former Kingfisher director to run Homebase

Retail Week UK | 17 May 2017.  Bunnings has appointed Australian retailer Officeworks chief operating officer David Haydon as trading and commercial director for Homebase.

Bunnings, whose parent company Wesfarmers acquired Homebase in February 2016, has charged Haydon with running the Homebase business while its new owner continues to open pilot Bunnings stores in the UK.

Haydon joins the UK DIY retailer from Officeworks, which is also owned by Wesfarmers, where he has acted as chief operating officer for over four years.

Prior to Officeworks Haydon held senior roles at Wickes, B&Q and Kingfisher, where he culminated as international commercial director.

Haydon will take the helm of Homebase at the end of June, reporting into Bunnings UK managing director PJ Davis. He will also sit on the company’s steering committee.

Davis said: “It has been an exciting start to 2017 as we continue to deliver phase one of our strategy.

“As the pilot activity accelerates, it is still important that we remain focused on delivering a strong performance across Homebase and I’m delighted David has agreed to take up this important role with the business. He will be a great addition to the team.”

Haydon said: “I’m looking forward to joining the team at this exciting time.

“Working together to create something special in what is the dynamic UK home improvement market will be a both a challenge, and a great deal of fun.”

Homebase sales

Homebase sales, which reached £245m in the 12 weeks to March 26, have been impacted by the process of clearing old ranges and introducing Bunnings’ “always low prices” proposition.

In its maiden half year to December 31, Bunnings made a pre-tax loss of £28m in the UK and sales of £612m. Restructuring costs accounted for £13m of its pre-tax loss.

Bunnings’ UK debut

Bunnings commenced its assault on the UK DIY scene by converting some of the 265 Homebase stores it acquired.

The business’s first two UK Bunnings stores were converted from two Homebase units in St Albans and its next two stores, due to open in Hemel Hempstead and Milton Keynes by June, are also transformations of former Homebase sites.

However, for its fifth UK store, the DIY giant will shutter the Homebase in Folkestone in July and move to a new site, previously occupied by its biggest UK rival B&Q.

Source: Retail Week UK

Stay profitable and speak soon, Ray

Ray Quek HCN.NEWS | Hardware Channel News

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