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The DIY retail chains in the countries of northern Europe are currently experiencing a period of very good progress overall
The lively state of new-build activity in Sweden, Norway and Finland is having positive knock-on effects. Which are coming not only from the professional segment, but also from the great number of consumers who are renovating their homes. The whole range of products is in demand, both basic building materials and flooring, wallpaper, tiles and bathroom fittings, along with power drills, drivers and saws.
Today’s home-owners are mainly interested in renovating their kitchens and bathrooms, which means that there are long delivery times for such products and a lack of qualified labour into the bargain.
Statistics Norway recently published the retail sales index for the period from August 2005 to August 2006. This reveals that Sweden achieved the greatest increase of 72 per cent, followed by Finland (5.6 per cent), Norway (4.8 per cent) and Denmark (3.7 per cent).
What is more, the DIY sector as a whole can look forward to positive results for this year as well, since interest rates are still low and building activity remains at a high level.
Sweden
There has not been any significant change in the number of traditional chains. However, the major groups are tending to concentrate on trade business.
The more consumer-oriented retailers such as Clas Ohlson, Rusta and K-Rauta are continuously increasing their number of stores. Rusta is proving to be the most expansionist, managing to establish an additional 13 stores between late 2004 and mid-2006, the same number as Cheapy, the discounter line of the Danish DT Group. Jem & Fix, another Danish retail line that is part of the Harald Nyborg group, had eight more stores in mid-2006 than at the end of 2004, and the K-Rauta chain, another foreign retailer, grew its total by three to 15 over the same period. K-Rauta is building a new store at Umea that is due to open in 2007. And Ikea has made a start on the construction of a new outlet at Hapranda in the north of the country.
There are big changes in the paint and wallpaper scene. Färgtema is due to merge with the Spektrum chain in January 2007, which will result in Färgtema becoming the biggest paint and wallpaper specialist in Sweden with a total of 247 stores. It also intends to cooperate on the purchasing side with the Danish company Farvebasen, which has 87 outlets. According to Färgtema CEO Ulf Hennings, the group’s goal is to be able to offer prices in its specialist stores that are as competitive as those of Bauhaus and Hornbach, for instance.
Norway
The DIY sector in Norway is currently producing positive results as well. The number of new homes rose here last year too, and the market is generally following a pattern very similar to Sweden’s.
There is such strong demand for building materials that bottlenecks and long delivery times are being encountered. Huntonit, a manufacturer of painted wall and ceiling panels, now has delivery times of over 12 months, although production is running at full capacity and some business has been sold off to another company.
The Byggmakker stores recorded the greatest interest in number of outlets between late 2004 and mid-June 2006. Their total went up by 40 to 133, accompanied by an increase of approximately 45 000 m² in floorspace.
Finland
Finland also saw an increase in the number of new homes last year, which brought further growth for the companies involved. Both the cooperative groups and the multiples experienced increases in their number of stores. Clas Ohlson of Sweden recorded the greatest number of new openings between late 2004 and mid-2006 with five stores, followed by Starkki (three) and Rautakesko (two). However, Bauhaus achieved the greatest amount of floorspace growth (+19 000 m²) with just one new opening.
Market leader Rautakesko announced sales of € 1.588 bn for the first nine months of the 2006 financial year, or 40 per cent more than the same period in the previous year. This is attributable to the group’s acquisition of the Norwegian Norgro company and the Russian Stroymaster chain.
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Today’s home-owners are mainly interested in renovating their kitchens and bathrooms, which means that there are long delivery times for such products and a lack of qualified labour into the bargain.
Statistics Norway recently published the retail sales index for the period from August 2005 to August 2006. This reveals that Sweden achieved the greatest increase of 72 per cent, followed by Finland (5.6 per cent), Norway (4.8 per cent) and Denmark (3.7 per cent).
What is more, the DIY sector as a whole can look forward to positive results for this year as well, since interest rates are still low and building activity remains at a high level.
Sweden
There has not been any significant change in the number of traditional chains. However, the major groups are tending to concentrate on trade business.
The more consumer-oriented retailers such as Clas Ohlson, Rusta and K-Rauta are continuously increasing their number of stores. Rusta is proving to be the most expansionist, managing to establish an additional 13 stores between late 2004 and mid-2006, the same number as Cheapy, the discounter line of the Danish DT Group. Jem & Fix, another Danish retail line that is part of the Harald Nyborg group, had eight more stores in mid-2006 than at the end of 2004, and the K-Rauta chain, another foreign retailer, grew its total by three to 15 over the same period. K-Rauta is building a new store at Umea that is due to open in 2007. And Ikea has made a start on the construction of a new outlet at Hapranda in the north of the country.
There are big changes in the paint and wallpaper scene. Färgtema is due to merge with the Spektrum chain in January 2007, which will result in Färgtema becoming the biggest paint and wallpaper specialist in Sweden with a total of 247 stores. It also intends to cooperate on the purchasing side with the Danish company Farvebasen, which has 87 outlets. According to Färgtema CEO Ulf Hennings, the group’s goal is to be able to offer prices in its specialist stores that are as competitive as those of Bauhaus and Hornbach, for instance.
Norway
The DIY sector in Norway is currently producing positive results as well. The number of new homes rose here last year too, and the market is generally following a pattern very similar to Sweden’s.
There is such strong demand for building materials that bottlenecks and long delivery times are being encountered. Huntonit, a manufacturer of painted wall and ceiling panels, now has delivery times of over 12 months, although production is running at full capacity and some business has been sold off to another company.
The Byggmakker stores recorded the greatest interest in number of outlets between late 2004 and mid-June 2006. Their total went up by 40 to 133, accompanied by an increase of approximately 45 000 m² in floorspace.
Finland
Finland also saw an increase in the number of new homes last year, which brought further growth for the companies involved. Both the cooperative groups and the multiples experienced increases in their number of stores. Clas Ohlson of Sweden recorded the greatest number of new openings between late 2004 and mid-2006 with five stores, followed by Starkki (three) and Rautakesko (two). However, Bauhaus achieved the greatest amount of floorspace growth (+19 000 m²) with just one new opening.
Market leader Rautakesko announced sales of € 1.588 bn for the first nine months of the 2006 financial year, or 40 per cent more than the same period in the previous year. This is attributable to the group’s acquisition of the Norwegian Norgro company and the Russian Stroymaster chain.
Download:
