HINEWS - DREAMS OF WHITE KITCHENS THE MARKET DESIGN & MARKETING QUARTZ & CORIAN BENCHTOPS - Hardware News Network
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HI NEWS Vol. 3 No. 13 NATBUILD/IHG: BUNNINGS RESULTS DULUX RESULTS IHG’S DEFENCE FY2017/18 Q1 FY2016/17 DREAMS OF WHITE KITCHENS THE MARKET ~ DESIGN & MARKETING QUARTZ & CORIAN BENCHTOPS
contents KITCHEN SPECIAL Kitchen markets 2018 New home builds will have limited growth, and the renovation market will be under pressure. RBA could raise rates in Q4. What to expect in 2018. 40: click to view Dreams of white kitchens White kitchens had a major influence on the market in 2017. The trend will likely fade by the end of 2018. The new kitchen is more modest, less “kitchen-y”, and closely integrates with the surrounding rooms. 51: click to view Solid surfaces DuPont pioneered the field with Corian in the 1960s. Now it is reviving as a kitchen benchtop surface choice. 64: click to view Engineered quartz Surfaces such as Caesarstone continue to gain market share, and could be set to replace more of the granite market in 2018. 71: click to view Wesfarmers/Bunnings 2017/18 Q1 Bunnings in Australia continues to grow strongly under Michael Schneider’s skilled leadership. Bunnings in the UK and Ireland is working hard to improve in 2018. Can it put its kitchen woes behind it? 31: click to view DuluxGroup 2016/17 full year DuluxGroup surged ahead in the past financial year. Good growth in its core paints business was complemented with growth in Selleys/Parchem, and B&D has proved its worth. But the company faces challenges in the medium term. 35: click to view
contents - II IHG delivers its defence Housing market Metcash’s hardware entities, along with individual downturn respondents, have filed defence statements in the There are two views: the building pending court case brought by National Building industry sees this as a medium-term Suppliers, alleging a data breach. HNN takes a broad downturn, and the real estate/home look at some of the general issues involved, and owner market sees it as more short term. provides examples of Factoring in RBA intervention, HNN the defence document agrees with the building industry. contents. 28 12 COMMENT Silicosis should be a disease no one contracts in this Wow, what a year. Looking ahead to decade. Instead, 2018, we will see Metcash’s Independent its incidence is on Hardware Group make a branding the rise. One major decision, the resolution of the Natbuild source is working data breach court case, HBT will have with engineered some surprising news (we think), and quartz using dry processes instead of wet, and working we’ll find out if Bunnings can make the 7 without respiratory protection. The industry 79 cut in the UK. must move swiftly to educate, and to rid Australia of this dreadful, terminal disease. Home Improvement News is a publication of people............................................................................9 Net Percent Pty Ltd. © 2017 Net Percent Pty Ltd big box update............................................................16 Betty Tanddo indie update................................................................21 Publisher betty@hnn.bz supplier update..........................................................24 0411 031 832 usa update..................................................................85 Scott Lewis editor-at-large europe update............................................................89 scott@hnn.bz news............................................................................90
comment Wow. 2017. That was some year. Looking ahead to 2018, what can we expect? Probably the first issue that will get resolved, one that has been hanging around for much of 2017, is what Metcash will decide to do with the two major hardware brands in its Independent Hardware Group (IHG), Home Timber & Hardware Group (HTH) and Mitre 10. Further down the road with that same company, we’re going to see more developments in the legal case it has with National Build- ing Suppliers (Natbuild). HNN will certainly be showing up for those court dates to report on what is happening for our readers. Hardware & Building Traders (HBT) will — if the rumours are true — see some interesting changes early in 2018. HBT continues to expand rapidly. HNN thinks 2018 will see the group undergo another surge in growth. The 2018 HBT National Conference, to be held in Adelaide in May, is something we think both suppliers and retailers really will not want to miss. With Bunnings, we’ll find out a little later in the year whether its 6 operations in the UK and Ireland will manage to get back closer to even. We’ll also get to see what Bunnings in Australia will do with online retail, as it should be launching online sometime before the end of February 2018. Overarching online will be what happens with retail in Australia now that Amazon has a physical presence here. HNN is pretty sure we are in for some surprises, though much of 2018 will be a year of consolidation and expansion for Amazon, and its real impact won’t be felt until Christmas 2019. HNN itself is going to see some large changes in 2018. Some of those are about new ways to deliver content, and some new con- tent we will be providing to the home improvement industry. Much of HNN’s focus, however, will be on helping many in the industry with their marketing. There are a lot of very good prod- ucts out there, many of them involving technology in their pro- duction, or that deliver technology direct to tradies, which simply do not have the market presence they deserve. We hope we can help some of these second, third and fourth tier companies gain the market traction they need to take on more of the incumbent market leaders. It is traditional, of course, for publishers to say “thank you” to those who support them. HNN really means our “thank you”. In the second half of 2017, the distribution of HI News went over an average of 100,000 per issue. We’re very grateful to everyone who reads us, as well as to the advertisers who have supported us hnn.bz
throughout the year. You have all given us a great incentive to keep trying to do better. We really hope we can live up to your expectations in 2018. Happy Holidays Looking back, 2017 has for HNN largely been a year that was all about people. Even though we’ve been involved in writing and publishing about the home improvement indus- try for over 20 years, this year all the team felt as though we have only now begun to understand how deeply many people think and feel about this industry. While the commercial bonds count for a lot, we were reminded of just how deep the community bonds are as well. Whether it was discussing how retail stores are nurtured into life with people like Chris Moorfoot, Julie Murphy and Ian Cornwell, or getting deep into the origins of HBT with Lawrie Peck, there is a lot that goes on beneath a seemingly casual way of doing business. It made us all feel very fortunate to be involved in this part of the retail industry, which is so closely connected with helping families build a real home for themselves here in Australia. While we continue to believe in tough reporting, deep research, and moving from opinion to analysis, we were reminded that in the end what we do is largely in the service of this community. 7 We hope you all have an enjoyable time over the holidays, and we look forward to seeing you in the New Year. hnn.bz
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people Carl Sandeman, Imex Lasers If you spend as much name: time investigating hard- • Carl Sandeman ware stores as the team at HNN does, you will role: soon become acquaint- • National sales ed with the familiar, manager high-visibility, bright company: green custom stands of • Imex Lasers Imex Lasers. Something like nine out of ten hard- products: ware stores that we’ve • Laser levels visited, big and small, stock the attractively online: 9 • imexlasers.com. designed laser products of Imex. au To find out how the email: company is doing, and • info@ its view of the laser level imexlasers.com. market as it continues au to develop, HNN caught up with Carl Sandeman, Imex’s national sales manager. Those very visible displays are a significant part of the company’s strategy, which is very focused on helping retailers. “Imex operates as a true partner to retailers,” Carl tells us. “The company does not do any direct warranties, full back-up service and tools with selling. We value the loyalty of our retailers. We cutting edge technology and features,” Carl reciprocate with great product displays and states, with some emphasis. point of sale material to assist retailers in every It’s a claim that is backed up with considerable way possible.” evidence. The company’s UK office has recently One of the great points of difference that Imex reported on two model LX3DG lasers that came offers is the accuracy and reliability of all its back to the office with quite serious damage, products. “There has been an explosion of cheap including broken lighthouses. Yet both lasers DIY laser levels onto the market,” Carl explains, were still, the company says, projecting accurate “especially small line and dot lasers. These are lines. That’s quite an achievement. typically deficient in accuracy, unable to be calibrated and either have faint lines or thicker Experience Class 3 lines — and no warranties.” That’s not what Imex is about. “Imex is a brand The first construction laser was launched in for serious professional tradesman, supplying 1968 by Spectra Physics. This consisted of a sim- all lasers with calibration certificates, long ple laser that had to be levelled by the use of the hnn.bz
people traditional bubble level. The plasma tube, which and mainstream. The units themselves have contained the helium and neon gasses which become smaller, cheaper, more task-diverse and were “lased” to produce the laser would last user-friendly.” for up to 300 hours of operation. The rig cost Perhaps most importantly, it’s become much USD8,000 — equivalent in today’s US dollars of easier for tradies to buy lasers through the over USD56,000. retailers they trust. The next development Spectra made was to The contemporary brands in the industry — add a motor to rotate the laser beam, which such as Imex — have used the extensive network meant the level standard could be available to of tool and hardware stores as the main channel multiple workers building the interior fittings to market. This has greatly increased the aware- to a room. Next, the first self-levelling laser ness and changed the dynamics of the laser level was developed, again by Spectra, in 1973. By the space. late 1970s there was general acknowledgement One of the big changes that is still ongoing, of just how useful the lasers were, with some it that tradies are finding lasers so useful and sources stating they increased productivity by cost-effective, that many own at least two dif- 30% to 40%. ferent types. The commercial development of the diode la- Because of the multiplicity of tasks where ser in the mid-1990s changed the laser industry lasers are a big help, and productivity gains that dramatically. These used semiconductor materi- have become very significant, it is now almost als similar to those used in light emitting diodes a necessity for professional tradesman to have (the familiar LED lights). Much less expensive more than one laser. A plumber might have a to produce than gas-based lasers, and offering rotating laser and a pipe laser. A builder might 10 a much longer operating period, these began to use a line laser for internal work, and a rotating fundamentally change the laser level industry. laser for external set-out and levelling. The effect was to produce lasers that lasted for Imex has worked hard to enable retailers 30,000 hours of operation instead of 300, and to take advantage of these trends. “Imex has cost half the price of gas-based lasers. increased its range to cater for this demand,” According to the Imex Imex has a very long history with the build- Carl explains. “It’s a trend we see continuing for blog: “Two LX3DG‘s ing industry in general. “The Imex team has an some time into the future.” recently came back into extensive background in the construction in- Imex UK office a bit bat- tered and bruised from dustry, specifically in steel fabrication construc- Design advantage some harsh use! Both of tion,” Carl says. “We have been around laser the LX3D’s are both still levelling equipment since its inception around Understanding the market, and reacting to working and projecting 30 years ago.” demand in a timely manner is one part of the accurate lines in spite The Imex brand was started as a niche market Imex strategy, but another major part is to con- of being dropped and lighthouses broken.” measuring equipment supplier, International tinue to be at the leading edge design. Measuring Equipment. It sold specialist tapes, measuring poles, and laser distance measurers to a number of specific markets such as the window furnishing, forestry, petroleum and winery market. In the early days, while laser levels brought efficiency and better quality work within range of the average tradie, they still had problems The original laser levels were expensive, cum- bersome, difficult to calibrate and dominated by two or three major brands. They were sold almost exclusively through a small number of specialist laser suppliers and repairers. That changed, however, and Imex was a big part of that change. “In the last 15 years the laser market has changed dramatically in terms of diversity of use, channel to market, range of products and accessibility for all trades,” Carl tells us. “Lasers have become more popular hnn.bz
people 11 Imex is well-known for its In particular, Imex has innovated the power is working well for the company. “We’ve seen an colourful, well-designed supply, moving to long run Lithium-ion batteries, increase in warranty registrations and enqui- displays. with USB port quick charging, something which ries.” is relatively new to the laser industry. The next For retailers, Imex offers extensive back-up rotating laser range for 2018 will include this to their in-store activities. This includes staff technology. training, and the company is always happy That’s just the beginning of what Imex has to hear from retailers. “We welcome retailers planned for 2018. “The range will also have contacting us when the consumer is actually standard millimetre reading detectors manufac- in their store. That let’s us run through the tured in Germany, which replace the usual up customer’s requirements, so that we can help or down direction arrows on current detectors,” the retailer find the correct tool for their use,” Carl says. “With a dual pick-up for either red Carl says. beam or green beam rotating lasers, these will The company also encourages retailers to increase efficiency and accuracy.” engage with customers digitally. “A strong It’s a development Imex is very proud of. “This website, a good social media presence, and an will become the benchmark in exterior laser lev- online store are becoming essential for retailers elling,” Carl tells us. There is also a new machine to remain relevant,” Carl says. “Imex supports control receiver, the MR240, which is suitable these with content and back-up.” for smaller excavators. “We have a number of For retailers who want to take their laser level updates planned for the line laser range next sales to the “next level”, the company offers the year, along with some additional ancillary lasers Imex Measurement in-store solution. and hand tool items.” This is a “store within a store” that provides great results. It offers a true customer experi- Retailer focus ence, including a training area. With over 20 of these throughout the country, Imex is currently The company also works hard to deliver sales looking to expand this program. incentives direct to tradies. An example is its “Summer Tradie Deal”. “For December and January, Imex is utilising a Cashback for their Summer Tradie Deal with all rotating and pipe lasers sold eligible for this,” Carl explains. This hnn.bz
statistics Housing market: the new downturn It’s only natural niture and other goods that, to some extent, to complete their new in this those involved in the homes, after all. But it update: building industry come turns out not to add to slightly overrate the that much. Spending •start The text housing contribution building on furnishing and market seems makes to the Austra- household equipment convinced there lian economy. One of accounts for less than will be a down- the Reserve Bank of half the share of GDP turn, but it will Australia’s (RBA) assis- that housing construc- be short-lived tant governors, Luci tion does, not all of it to Ellis, spoke on the sub- furnish new homes. • However, with ject of “Where is the historically low Growth Going to Come interest rates, it 12 is likely the RBA From?” in mid-Novem- ber 2017. These are will intervene in some of her comments third of fourth quarter of 2018 on Australia’s building industry: • A target of 2.0% Residential build- interest rates by ing work remains at March 2019 is a high level -– faster likely than would be needed • As capital exits to house our growing housing for other population –- but it is investments, no longer adding ma- growth in home terially to growth. You improvement re- could argue that there tail revenue will are important spillover be constrained effects from housing. People need to buy fur- Above, Chart 1, RBA-set interest rates. Top, Chart 2, Business investment as share of GDP. hnn.bz
stats Housing construction on the asset value of any real direct shock to tial dwelling prices The quarters when contributed about 0.3 their houses to borrow the economy, betrays a according to the ABS building commence- percentage points to more, making up for desire to stimulate at price index, as well as ments have reached annual GDP growth slow growth in wages, almost any cost. dwelling completions, a peak, followed by a over recent years. So while others have The marked decline represented as the decline, are shown by any spillover via fur- “cashed in” on assets. in business investment number of dwellings. the dark grey bars. nishings must be even The story of what since 2012 shown in smaller. This sector is has been going on is Chart 2, meanwhile, not where we will find partly told by the two shows that the stim- an ‘engine of growth’ to graphs marked as ulus is not having a pull us all along. Chart 1 and Chart 2. direct effect there. It is That said, the Chart 1 shows the level an economy just barely housing construction of the overnight cash eking by, a portrait fur- industry and the real rate determined by the ther fleshed out when estate market that has RBA. It’s likely that we consider the low supported it has played to Australian econo- growth in wages. an important part in mists and others of 15 the economy, simply years ago, this would Housing through redistribution be a little shocking. of wealth. Families The very low levels of Chart 3 shows the have been able to rely interest rates, absent movement in residen- 13 Above, Chart 3, shows the ABS dwelling price index, along with the ABS completed dwellings, by number. Top,Chart 4, shows RBA estimates of changes in house prices.. hnn.bz
stats Housing completions and prices decline slowly. experienced a decline in One reason why the the second half of calen- second version is more dar 2015, then picked up likely to come true is from late 2015 through to down to the role the RBA early 2017, and have been has to play. As several flat since then. commentators have For the two previous pointed out, the hous- peak events, we could ing market has almost say that the peak is held the RBA’s ability Subscribe somewhat market to alter interest rates predictive, or taken to hostage since June 2015, be market predictive, when the interest rate and just as housing first moved down to the commencements start to taper off, so do house 2.0% level. It seems quite likely to HNN that one Don’t miss out! prices, as market de- mand decreases. of the RBA’s goals would be along the lines of We’ll email you the In the most recent peak, however, while lifting the interest rate back up above 2.0% over summary and link there is a decline in house prices in Sydney the coming 18 months. If the real estate mar- every fortnight 14 immediately before the peak, after the peak, ket remains depressed through to June quarter FREE strong price growth 2018, then recovers in the starts up again, until the September quarter 2018, most recent, September an interest rate rise in quarter. Melbourne also shows strong price the final quarter of 2018 is very likely, followed by Click to subscribe growth. more rises in the subse- What is going on here? quent quarter. One interpretation What will that mean might be that we are for the home improve- or go to: http://goo.gl/lHPt57 HI seeing the two ends of ment industry? As the building industry HNN has suggested in coming to quite differ- the past, we are likely ent conclusions about looking at a period when what happens next. On capital will be exiting the the real estate/home housing industry, with buyer end of the market, households diversifying the sentiment may be more into other invest- that while there could ments. Overall construc- be a lull in house price tion activity will remain rises, as demand re- flat in housing, while mains strong, prices will infrastructure spending continue to rise. At the will be boosted for the other end of the market, next two years at least. construction and house That means that retail builders, the sentiment revenue growth will be WEEKLY is more balanced toward constrained, as it is at the downside. Construc- present, and probably tion activity may remain favour the consumer at the same level over over the trade side of the the next 18 months, but business. demand will moderate, hnn.bz
The NEW construction laser range from Imex; a quantum leap in laser level innovation, with multiple ground breaking features. It’s time to level a whole new world…. • 9 Ah lithium-ion batteries with up to 48hr run time • USB port fast charge batteries • Digital Detectors in mm increments standard on all models • High wind alert auto reset Available at leading tool and hardware stores nationwide www.imexlasers.com.au
big box update More Bunnings stores are green-lit Bunnings has sub- in this mitted development update: applications for stores in Ballarat (VIC) and •start Woolloongabba (QLD). Moretext approvals for Bunnings It has received ap- stores provals for stores in Clyde North (VIC) and • Change of plan Majura Park Shopping for Balmain site Centre (ACT). • Bunnings moves on from SA site Ballarat store extended • Sunshine and 16 Devonport stores Bunnings has lodged open a planning applica- • Mernda and tion for a 17,000sqm Bairnsdale stores premises on the corner sold of the Glenelg High- • Bunnings grows way and Cherry Flat its New Zealand Road in Ballarat (VIC). store network Should the application be given the green light, construction is set to begin in the first quarter of 2018. In a statement, Bun- nings general manager – property Andrew Marks said the new store would be in addition to the existing Creswick Road prem- ises. The announcement comes after the open- The proposed ing of the huge Dela- Woolloongabba combe Town Centre, (QLD) store. Top, driven by lead tenants artist’s impression, Woolworths, Kmart middle, plan view, and Ballarat’s second and bottom, map and orientation of movie theatre, Showbiz the store. Cinemas. The proposed Bun- nings site which sits across from the Dela- continues next page hnn.bz
big box update Bunnings green-lit (cont.) combe Town Centre has been touted as a future bulky goods The 16,600-square-metre DIY warehouse will anchor stage retail premises since the development of the Ballarat West one of developer MAB Corporation’s 38-hectare project, Precinct Structure Plan, which was approved in 2012. which is set to include showrooms, a petrol station, a child- Delacombe Town Centre landlord Steven Troon said he care centre, food and beverage outlets and leisure facili- was excited to see a retailer like Bunnings building across ties in addition to 65 industrial lots ranging in size from 1000 the road. He said the shopping centre was already experi- to 3000sqm each. encing increasinggrowth, with Kmart’s auto service store Ian Parry, development manager at MAB Corp, said the to open in the new year as well as a Groove Train chain previous owners had held preliminary discussions with restaurant. Bunnings – the deal got over the line when Bunnings se- cured a permit for the new warehouse. Getting to Gabba The nearest existing Bunnings is four kilometres away, a store about half the size of the proposed new warehouse. Bunnings is expected to open a store at Woolloongabba, Mr Parry told The Australian Financial Review it would be late next year or in 2019, after lodging a development appli- the first Bunnings to open in a MAB Corp business park and cation. would act as a catalyst for the next phase of the develop- The news has split the local community, according to the ment of the rapidly growing Clyde North area. Courier Mail, with many in support but others upset about Infrastructure works at Element Park are set to commence an estimated 1058 extra car trips on Saturdays and the im- in early 2018 and cease in early 2019, prior to the completion pact on smaller retailers. of the Bunnings Warehouse. The development application outlined plans for a 17 17,000sqm, two-storey building covering 88% of the site, Majura Park confirmation which borders Ipswich Road and Henry Street. Bunnings believes high public transport use would mean the 399 Canberra Airport has confirmed that Bunnings will be planned car parks would be sufficient. opening a new store at the Majura Park Shopping Precinct Gabba Business Association president Suzanne Bosanquet next year. It will occupy the 13,500sqm previously occupied said while it might have an impact on medium-sized traders, by Masters to the north of the precinct, with parking for 350 the new store would be a great thing. She said: cars. The store is expected to open in mid-2018. This will bring people to the area. That part of the Gabba Bunnings said a site of this size allowed it to increase the really needs activation. At the moment people are having to range of products on offer to the local community. drive out to Cannon Hill or Tarragindi to go to a Bunnings, Canberra Airport managing director Stephen Byron said but now they will come here. the Airport looked forward to welcoming Bunnings Ware- Particularly after Mitre 10 closed at West End, something house to Majura Park. He said: like this is really needed. The arrival of Bunnings, coupled with the recent opening Finlayson’s Timber and Hardware director Michael Fin- of AutoBarn and Dan Murphy at the shopping centre, are layson said while they took nothing for granted, their busi- fantastic additions to our customer experience and breadth ness was much more trade based and they were confident of of offer. fending off any competition. He said: No decision had been made about the future of the nearby We will just focus on improving our trade offer. We have Fyshwick store but Bunnings said it would keep team mem- knowledge of the industry nobody else has,. bers and the community informed. goo.gl/Xb9azv Element Park business park goo.gl/ikoTHW goo.gl/vsWxSk Bunnings is set to open a large-format store in Clyde North goo.gl/9ppDZS in Melbourne’s south-east in 2019 after taking up a 3.77-hect- are site within the $150 million Element Park business and retail park. hnn.bz
big box update Change of plan for Bunnings Balmain outlet Bunnings has lodged alternative to visiting a new development the larger Bunnings”. application for a He said: three-storey outlet The site (has) a histo- at 2-8 Parsons Street, ry of commercial uses Rozelle (NSW), oppo- and is surrounded by site the heritage-listed retail and wholesale White Bay Power and light industrial Station. If approved, businesses. We remain the $11.8 million devel- committed to bringing opment would involve jobs and investment to demolition of a disused the local community. warehouse to make Bunnings withdrew way for two levels similar plans for the of retail on top of 74 same site in February ground level car parks. after the council raised A map of the proposed site at 2-8 Parsons Street, Rozelle NSW 2039 This is a revised 11 objections includ- proposal after earlier ing traffic impacts on to be “quite minor” due cil to subdivide the site ly found the develop- versions met with the Victoria Road and to the “small format” into three two-storey ment plans did not obstacles with Inner Robert Street inter- store — roughly buildings. Proprietor assess noise impacts 18 West Council. Bun- section, which had not one-fifth the size of Grant Crowle said he on nearby homes, nings said the revised been measured in the an average Bunnings was in the process of failed to use correct proposal included application. warehouse looking for alternative flood analysis model- “significant improve- An updated traffic In addition to in- sites should the busi- ling, and lacked waste ments” to streetscape assessment predicted creased traffic, there ness have to relocate. management plans. and heritage including 40% of vehicles would was also community In submissions to To view the plans, go “heritage interpreta- access the site from concern about impacts the new plans, traf- to Inner West Council’s tion” and landscaping. Victoria Road, which on the existing nearby fic impacts remain development applica- Bunnings general currently carried independent hardware the primary sticking tion site for the former manager – property 80,000 cars per day, retailers. point with residents, Leichhardt council Andrew Marks previ- while 30% would fun- However in a recent with some saying any area and search: ously told the Inner nel through Mansfield development, the land- increase in vehicles D/2017/631. West Courier the small and Mullens Streets. lord of The Hardware would “exacerbate goo.gl/T8XAUw format store would The report, however, Store has lodged plans peak hour bottlenecks”. offer a “convenient predicted the increase with Inner West Coun- The council previous- Bunnings switches up site in SA Bunnings plans to of the area was a “great income. were a few individuals would be a better fit. open a new two-storey opportunity missed”. Panorama Clapham who didn’t want it, like In a brief statement, store on South Rd, Ed- He said: Community Group any situation, but I Bunnings general man- wardstown (SA) after First of all, it’s $50 spokesman Neil Baron think overall if we look ager of property An- pulling out of building million in capital that said there was strong at Bunnings … it’s not drew Marks thanked a store in Panorama hasn’t happened in community support an evil, illegal entity we members of the com- following objections Mitcham. The site is for a Bunnings store in should be shunning, it’s munity who supported over its design. The a pigsty … We missed the area on the former something we should the proposal. proposed store is out on the economic TAFE site. He said: embrace. We will now be ex- located 2km from the impact of jobs while People thought it was A group of residents ploring other develop- Panorama site. the centre was being going to go through complained the large ment opportunities for Mitcham Mayor created, we miss out and they didn’t have hardware store would the site. Glenn Spear told on 170 ongoing jobs for to vocally support the be inappropriate for goo.gl/7bLY7h Adelaide Now that our people and we miss issue…The community the area and that medi- Bunnings pulling out out on significant rate was supportive. There um-density housing hnn.bz
big box update First Bunning store re-opens Bunnings Mernda and Bairnsdale sold Private developer RCL Group has sold a yet- to-be-built Bunnings in Melbourne’s north- ern suburbs for around $25 million. The 15,000sqm hardware store on Plenty Road in the outer growth-area suburb of Mernda has been pre-leased to Bunnings, and is expected to open midway through 2018. A Bunnings in Bairnsdale, in Victoria’s East Gippsland district, has also sold in an off-market transaction for $12.42 million. The smaller 8,558sqm store was purchased by a Melbourne-based syndicate on a yield of 5.66%. Sunshine Bunnings pers will become com- According to The Advo- The vendor, based on the Mornington Pen- Warehouse, the first fortable at alternative cate, he held the crowd insula, made a profit of $4.213 million, a gain Bunnings store to be stores. We’re surround- in the palm of his hand of 51.33% from the $8.207 million purchase built in Australia, has ed by Bunnings stores as he spoke about price in 2013, said Burgess Rawson’s Graeme reopened after a $13 around here. what drives people and Watson. 19 million refurbishment. But with the project life in general. The Bunnings Mernda site is part of larger The newly renovat- now complete, Mr Mr Sheedy regaled 8.5 hectare comprehensive development ed warehouse has Caruana said the store people with typical zone, in one of Melbourne’s fastest-growing 50 additional staff is now a source of “Sheedy wisdoms” but new communities. members and a new great pride. at almost 70, it was his The site has capacity for big box retail undercover timber We had a staff open- passion for life and outlets, fast food and medium to high-densi- yard, large landscape ing for the store before genuine connection ty housing, according to RCL chief executive and green life nurs- we had the public with all ages which David Wightman. ery, trade sales drive one and 700 people struck a real chord. goo.gl/g2Cg6g thru, state-of-the-art attended, which just Devonport complex kitchen division and shows how much this manager Felicity air conditioning. place means to the Powell said the store is Store manager Matt organisation. It was the seventh Bunnings Caruana said he was definitely all worth warehouse in Tasma- delighted with the it. As Australia’s first nia and represented a results of the 16-week Bunnings store, it’s $19 million investment project. While pleased important that it’s kept in the city. She said with the end result, Mr in line with modern Bunnings opened two Caruana said the proj- standards so it stays North-West warehous- ect was difficult from around for many more es because the public a logistical standpoint. years to come. wanted one in Devon- He told Star Weekly: *Motivational” port. We have 110 team Devonport opening goo.gl/sWKaZP members here who had The recent opening of goo.gl/LrG4kz to be placed in other Bunnings Devonport stores while the works resembled more of a were being undertaken. motivational seminar On top of that, there’s with AFL legend Kevin also the risk that shop- Sheedy at the helm. hnn.bz
big box update Bunnings expands store network in New Zealand 20 The Bunnings Hamilton South store is for sale Bunnings’ new trade always wanted to have like Bunnings to have Bunnings New Zea- the property has a centre in Hastings, a strong presence here, the confidence to invest land general manager net lettable area of Hawke’s Bay, New so this is exciting for us in Hastings is fantas- Jacqui Coombes said 11,645sqm on a 3.1ha Zealand is seen as … It’s a great oppor- tic. the new smaller for- site. It incorporates evidence of the region’s tunity, especially on Over the last two mat store was expect-a 1796sqm garden booming economy. our trade side we deal years 200 commercial ed to open in early centre, a 5187sqm main After investing more with everything from and industrial building 2018. She said: warehouse, a 2224sqm than NZD4 million orchardists, farmer to approvals have been We can confirm we timber trade sales area, into the trade centre builders. granted in Hastings, have received draft and a 1939sqm timber on Heretaunga Street, This trade centre is worth about NZD100 resource consent for trade yard. It is also Bunnings commer- the big box retailer’s million. Another a new Bunnings store fully leased for 12 years cial manager (NZ) eighth in New Zea- positive for the local in Rangiora and are to Bunnings. Des Bickerton said land and the second economy has been the currently reviewing theJason Seymour of Hastings’ thriving premises in Hastings, release of industrial conditions. Colliers International building industry and alongside a Bunnings land in Omahu and The Rangiora store said Hamilton is expe- the “booming” wider Warehouse on Market Irongate. will become the sev- riencing strong growth Hawke’s Bay economy Street. It is 3000sqm enth store in the South as a result of New were major reasons and includes an under- Rangiora Island. Bunnings Zealand’s economic behind the move. He cover drive-through development currently has about success. told the New Zealand area and 25 parking 53 stores across New Construction of the Herald: spaces. A Bunnings Ware- Zealand. Waikato Expressway, We used to be The trade centre was house is also set due to be completed in Benchmark Building officially opened by to open in central Hamilton South late 2020, is expected Supplies and we had a former All Blacks Taine Rangiora, New Zealand store for sale to cut travel times to really strong presence Randell and Jeff Wil- next year. The big box Auckland significant- here, then obviously son. Mr Randell said: retailer has applied The Bunnings Hamil- ly, making Hamilton when Bunnings came For Hawke’s Bay, for approval to open a ton South store for sale much more accessible. along and took over certainly the last few store in the old Count- is being marketed as a https://goo.gl/TfWeAj our Benchmark stores years have been fan- down supermarket on long-term investment https://goo.gl/bf6qjs and rebranded them, tastic and to have an the corner of Queen property. https://goo.gl/iVmQ9c we really realised we’ve international company and Victoria Streets. Completed in 2016, hnn.bz
indie update Bundaberg HTH closes due to insurance in this The Bundaberg News the commu- update: Mail reports that a nity newspa- Home Timber & Hard- per as saying: •start ware Group store has Trying textHTH Dipper’s Moree, NSW cel- been forced to close, to sell a ebrates turning mainly because it can- property and 5, even as family, not obtain insurance business, community against flooding. which was mourn loss of Cooper’s Hardware highly sale- Anthony ‘Dipper’ has been in business able before Diprose for a reported 25 years. because it It suffered during had insurance cover, gation efforts in Bund- Bunnings have made • Porter’s Mitre 10 21 in Mackay,QLD, the floods that swept is not saleable now aberg. In particular, he his business less viable. through Bundaberg, because no one is going sees the establishment While his own busi- will complete Queensland in 2011 and to buy a business that of the East Bundaberg ness will cease, Mr Coo- transition to Sapphire stores 2013, but managed to isn’t insured. It has levee as crucial to the per is reported as being in January 2018 recover from those two reduced our ability to town’s future. enthusiastic about the events. Now, however, talk to banks, borrow, Mr Cooper also future of Bundaberg • Cooper’s HTH in the store finds it can- all the things you need believes that the itself, praising in par- Bundaberg, QLD, not obtain the neces- to do and put a massive entry of Masters Home ticular the $16 million has shut down sary insurance, and amount of pressure Improvement into the CBD Revitalisation as store cannot has little choice but to on us. market (even though Project. obtain flood close down. Mr Cooper is report- he runs an HTH-ban- goo.gl/3ru69A insurance Store owner Stephen ed as being a strong nered store) and the Cooper is reported by supporter of flood miti- ongoing expansion of Porter’s M10 moves to Sapphire In April 2017 which has sub- is expected to product ranges, each unique store. the well-known sequently been be completed by and a higher Independent Porter fami- closed. The stores mid-January 2018, level of amenity. Hardware Group/ ly of Mackay, re-opened under but the results are Included in the Mitre 10 also uses Queensland, the Porter’s Mitre already evident in changes will be the program to moved to buy 10 banner in early the stores, accord- showrooms for encourage store most of the equal- June 2017. ing to the Mackay the Principal DIY/ owners to range ly well-known Since then, Daily Mercury trade kitchens. specific products, Woodman family’s Porter’s has been newspaper. The Sapphire the “core range”. Mitre 10 stores. busy, and is now The Mercury program now Metcash quotes This included the most of the way quotes the man- has 28 converted an average retail stores in Sarina, through convert- aging director of stores across Aus- sales of uplift of Marian, Proser- ing its Mackay Porter’s, Gavan tralia. It introduc- more than 15% for pine and Cannon- store to become Porter Snr, as es a standardised converted stores. vale, but not the part of the Mitre saying that the way of presenting goo.gl/6ssrM5 store on Nebo 10 Sapphire pro- new stores will products, which Road, Mackay, gram. That work include wider is customised to hnn.bz
indie update Joy, sadness as Dipper’s HTH Moree turns 5 The day of 1 November Speaking to the Moree 2017 was greeted with joy Champion newspaper, Ms tinged with some sadness Diprose reflected on the at Dipper’s Home Timber hard work that had made & Hardware in Moree, the store possible. NSW. It was a joyful oc- When Dipper and I casion because it marked embarked on this business the five year anniversary we knew the early years of when Anthony ‘Dipper’ would be hard work – long Diprose and wife Rebecca hours and steep learning first opened their store. It curves – and they were, was also somewhat sad as particularly with a young Mr Diprose passed away family. recently, in September But we knew that for all 2017. that hard work we were The store did not take building a brand and a long after opening to fantastic local business become one of the stars that could withstand any in the HTH fleet. Just challenges – and one that 22 two years after opening, would eventually afford us in 2014, the store won the more family time, and, of prestigious Home Timber course, give Dipper more & Hardware National time on the golf course! Store of the Year award Ms Diprose is deter- for stores larger than 1000 mined to continue run- square metres. Recently, ning the store. The Moree Dipper’s found out it had Champion reports that won yet another award, she has long been involved the 2017 Northern NSW in its management, and Home Timber & Hardware has the benefit of a strong Store of the Year, again support team at the store. in the over 1000 square goo.gl/MCH6ZN metres category. hnn.bz
John Ioakim independent with a strong brand and no forced promotional stock eating up The Lakes H Hardware - LAKES ENTRANCE, VIC floor space and our bottom dollar. How did you come into the hardware business? I was the store manager of this store under the previous owners when it was How is business today? a bannered store. In 2016 the owners called me looking to sell. My wife, We opened in July 2016 and 12 months on business is good. We’ve had Leanne and I spent many a night around the kitchen table running figures growth and we have strong customer base. Our trade business makes up and swapping ideas for the store. We decided to go for it but we wanted to 75% of the business, I look after that and Leanne is the face of our retail be truly independent and in control of our stock. side. It’s come along way from our first official order that BGC sent to our house and I borrowed a trailer to be able to deliver it to site. What made you decide on branding your new store H Hardware? We had a few recommendations to join the HBT Buying Group and when that What would you say to someone considering transitioning stacked up we had a chat with Steve Fatileh who showed us the branding to H Hardware? for H Hardware. It looked great, the colours are eye catching and it really If you want to have control of your business, your stock, your promotions stands out. The clincher for us was that the store was ours, we could be and a stand out brand,then H Hardware is a no brainer. For more information and membership application call 1300 305 719
big box update supplier update Koala Nails now part of Brighton Best Brighton Best In- in this ternational (BBI) has update: closed its acquisition of NSW-based fastener •start supplier, Koala Nails. text James Hardie makes European In a correspondence acquisition to its distributors, BBI president Jun Xu • Tool brands go said that “combining under Crescent the strength of BBI’s name worldwide distribution • Smart factory network and sourcing initiative from abilities, with the … 24 Stanley Black & knowledge of the Koa- Decker la Nails team, will bring tunities for Koala’s ples, pneumatic air undisclosed amount. It • Hillman’s fasten- tremendous value and current companies nailers and staplers, manufactures task-spe- er business got benefit to customers.” and potential for much nylon nail-it plugs and cific PPE gloves. bigger Patricia Palladino, larger reach for future mickey pins, split drive Founded in Cincin- director at Koala Nails customers”. anchors, tie wire and nati, Ohio (USA) and • Brighton Best concurred, and said Koala Nails began hammer drive alloy headquartered in buys Koala Nails that “adding the Koala operations in 1981. Its anchors. Taiwan, Brighton Best • Big River Group range of products to product line includes Ironclad Performance is a global supplier of focuses on trade BBI’s offering makes collated screws, loose Wear, a US-based industrial and con- supply sense and will provide screws, framing nails, supplier of hand safety struction fasteners. long term strength coil nails, collated solutions has also been goo.gl/GJ7vJS and growth oppor- brads, collated sta- acquired by BBI for an Hillman buys specialty fastener maker US-based Hillman will also maintain a erational capabil- Group has purchased distribution centre ities will expand Texas fastener man- in Cincinnati, Ohio, our presence in ufacturer, Hargis where Hillman is strategically im- Industries which does based. Hillman CEO portant commer- business as ST Fasten- Greg Gluchowski said cial and industrial ing Systems (STFS). It in a statement: markets. has become part of the We are excited to have Hillman expects Founded in 1964, company in a deal in STFS join the Hillman STFS’s portfolio to fit Hillman sees itself as which financial details family. Bruce is a great well with its own fas- a provider of complete were not disclosed. addition to the Hillman tener offerings. STFS hardware solutions. It STFS’s headquarters leadership team and products are sold to is Greater Cincinnati’s will remain in Texas we look forward to the metal building fabrica- 12th-largest private and industry veteran contributions that he tors, hardware whole- company with 2016 Bruce Crouch will and his team will bring salers and building revenue of USD814.83 continue to lead it as to Hillman. STFS’s products distributors million. a part of Hillman. It product lines and op- in the US. goo.gl/bvZeMm hnn.bz
supplier update European growth plan for James Hardie James Hardie Indus- the United States but generating organic tries has entered into wasn’t able to develop growth. The US an agreement to ac- enough momentum. still represented quire German-based XI Mr Gries said: the biggest oppor- (DL) Holdings GmbH We just haven’t gotten tunities for the and its subsidiaries the traction that we company, but the which includes Ferma- wanted. We were just Fermacell acquisi- cell, one of Europe’s not a big enough influ- tion gave it a much largest fibre gypsum encer in the market, better platform board manufacturers. So it opted to buy Fer- to build a bigger James Hardie CEO macell when it came European business. Louis Gries said the on to the market in a Before this deal, Fermacell acquisition competitive sales pro- the North Amer- is about accelerating in cess. The acquisition ican operations Europe where demand is expected to close in represented about is rising. He also said the fourth quarter of 80% of the compa- the group isn’t likely to James Hardie’s 2018 ny’s business. Fermacell is one of Europe’s largest producers of gypsum board pursue any other big fiscal year. We think what acquisitions for the Mr Gries said Fer- Fermacell does is Hardie has in the US Mr Gries also said the next five years after macell had more than give us that regional market, but similar to company was “pretty spending $720 million 70% market share in capability and regional those in the Australian happy” with the con- 25 to purchase Ferma- the fibre gypsum board influence that will be market. He said: tinued momentum of cell. Mr Gries told The category in Germa- important to launch a Fermacell will diver- its Australian business Australian Financial ny and was the best much higher-growth sify our geographic, in building products at Review. springboard to capi- fibre cement strategy in product and end-mar- a time when property This is an unusual talise on economies in Europe. ket portfolio, comple- markets in Sydney step for us. We’re an or- western Europe, which Mr Gries said Fer- menting our strong and Melbourne were ganic growth company. were starting to show macell has good positions in North slowing. James Hardie had more signs of life. growth opportunities America and Austral- goo.gl/EyHJnQ been exporting into He said the company in Europe, not as big asia… goo.gl/V9ypBm western Europe from would now focus on as those that James Hand tool brands consolidate Lufkin, Wiss, Nich- will now include all nior director of brand but from several other products from which olson, and H.K. Porter Lufkin measuring management at Apex, respected hand tool to choose, all under the tools will come togeth- tapes, rules and wheels; said: brands in the Apex Tool Crescent name. er under the Crescent Wiss snips, scissors, The Crescent brand Group portfolio. This goo.gl/t7izZV brand, according to the shears, knives and has been trusted by expansion will give Apex Tool Group. trade tools; Nicholson professional trades- our customers a wider The company has files and saws; and H.K. people for well over 100 selection of quality a new brand iden- Porter cutters. The years. We tity program for its main Crescent brand are build- Crescent brand which will continue to cover ing on this involves a different adjustable wrenches trust by logo, colour palette, and other hand tools. expand- and tagline – “Trusted Supporting brand ing the by the Trades” – along logos, product design, Crescent with an expanded colours, packaging, offering product offering of websites, and other to include over 2,600 products forms of identification products across the five brand will migrate to the new not only names. brand identity in early from The Crescent lineup 2018. Curt Weber, se- Crescent, hnn.bz
supplier update Stanley to build “Smart Factory” Stanley Black & Deck- is refers to manufac- er will open an Ad- turing technologies, vanced Manufacturing including cyber tech- Center of Excellence nology, the Internet of as part of its Global Things, cloud comput- Industry 4.0 “Smart ing, robotics, artificial Factory” initiative. intelligence and 3-D Called “Manufactory printing. 4.0,” named after the The company has original Stanley Bolt also made a three-year Manufactory founded commitment to part- in 1843, the 23,000sqft nering with Techstars, centre will develop its and is announcing the Hartford, Connecticut (USA) has been chosen the location for Stanley Black & Decker’s work in automation launch of the Stan- Advanced Manufacturing Center of Excellence and data exchange. ley+Techstars Additive Manufactory 4.0 will Manufacturing Accel- in the program’s first new technologies to those involved in rapid serve as the epicentre erator. The mentor- year. Companies will market. prototyping, rapid for the latest technolo- ship-driven, entrepre- co-locate with Manu- Additive manufactur- manufacturing and gies and processes with neurial accelerator factory 4.0 and have ing refers to 3-D print- free form fabrication, respect to Industry 4.0, program will identify access to mentoring ing and the collection among others. according to Don Allan, 10 startups in the ad- and resources to grow of technologies that goo.gl/4UQ4wU 26 CFO for Stanley Black ditive manufacturing their ideas into viable are used throughout goo.gl/Jd7Jzb & Decker. Industry 4.0 space to participate businesses, and bring the process, including Big River positioned for trade Building materials tions have increased tionally. Previously the civil and infrastructure company’s parent company, Big River the company’s sales MaxiWall brand was pipeline, together with name, Big River Indus- Group is experiencing and distribution only available in South Big River’s geographic tries (BRI) earlier this a period of growth in outlets to 13 locations Australia. Mr Bindon diversity, means we are year. its share price follow- in the major popula- said: poised to continue this goo.gl/nfaiSP ing the acquisition of tion centres. Big River Solid outlooks in the success in 2018. four timber businesses. managing director Jim detached housing and The acquisitions The acquisitions reflect Bindon told the Daily commercial construc- come on top of the Big River’s plan to Examiner: tion markets and a company’s listing on better supply the trade These new businesses sizeable increase in the the ASX under the segment of the build- increase the group’s ing and construction exposure to detached industry in Australia. housing and the alter- In March 2017 Big Riv- ation and additions er acquired Adelaide market, to better bal- Timber & Building ance activities in other Supplies (ATBS), a sup- sectors. They were key plier to the SA market. purchases within our In April, Sabdia Mitre continued diversifica- 10 in Brisbane was tion strategy across acquired, followed by states and construction Midcoast Timbers on segments. the Gold Coast in Sep- The acquisition of tember, and Ern Smith ATBS allowed Big River Timber and Hardware to launch MaxiWall, a in Hume (ACT) due to new, cost-competitive complete in December. autoclaved aerated These latest acquisi- concrete product, na- Big River has launched MaxiWall nationally. It is an autoclaved aerated concrete product. hnn.bz
27 DIGiTAL 76,100 70,800 135,500 125,000 Digital is like the Ocean: it connects to everything. What makes HI News unique is that we know what our readers like. We know, because we analyse the downloads every week. That’s also why we can guarantee our advertisers the sort of audience they need. We can put an exact number on engagement. And, because our costs are so much lower, so are our ad prices. As low as just 20% of equivalent print prices. Come on in. The surf’s fine. Contact Betty Tanddo HNN. The home improvement industry digital experts. betty@hnn.bz or hnn.bz 0411 431 832
tech/security IHG responds to Natbuild allegations In the matter of the alleged breach of National of the breach itself — that much harm had been Building Suppliers’ (Natbuild) TradeNET mem- done by downloading the document. bers-only information database by employees Equally, if HNN had downloaded a “hot tips” of Metcash’s Independent Hardware Group document that revealed Beyonce was about (IHG) in September/October 2017, those employ- to have triplets, given HNN’s interest in actual ees have now lodged their defence statements, news, it would not be likely we would benefit along with defence statements by Metcash and from that information, or, simply by knowing it, its various commercial entities. do much harm. Reporting on the matter of the defence state- A slightly trickier area might be downloading ments contrasted with the Statement of Claim a document that the website’s owner would by Natbuild is difficult. It is impossible to offerconsider confidential, but which, as it is not • The respondents an opinion about a matter before the Court, and, adequately marked as confidential, the intruder in the Natbuild in the absence of any opinion, the usefulness of might not recognise as confidential. For exam- breach case 28 have filed their the reporting itself is diminished. Such opinions ple, a spreadsheet listing the circulations of a would, of course, be disrespectful to the Court. publisher’s magazines could be confidential, or defences What does seem possible (and remains it could just be a record of information readily • One key con- properly respectful of the Court) is to broadly available to the public. sideration is characterise some elements of the defence that Of course, what might also be taken into ac- whether the is being presented, and to provide some exam- count would be whether the employees of HNN documents that ples of what the Statement of Claim alleges, and were previously acquainted with the type of were allegedly how the defence documents respond. information they were handling. If, for exam- accessed were For cases like this one, at this stage much of ple, we produced our own circulation spread- actually confiden- the focus is on ascertaining how much, if any, sheets, and all of those were regarded as highly tial or not damage might actually been done by the activi- confidential, then it could be assumed that we ties that may or may not have taken place. That knew the third-party ones accessed were also will likely relate to whether any compensation confidential. is due, and, if so, what the amount of that com- Or could it be assumed? It is a very interesting pensation should be. legal point. For example, should the very nature of making illegitimate access to documents alert Admission and denial the intruder that they were likely to encounter confidential material? HNN must caution our readers that it is very In a very, very broad sense, these examples easy to rush to judgement. What is being judged hint at the content of some defence documents here is not “everyday conduct”, but rather legal presented by Metcash and its employees. matters, which must strive to be exact and fair. Again, while we really encourage readers to Most of us would, in our everyday way, assume follow this case, as we’re sure the Court’s ruling that if you breached the security of a website will have much to teach us all, this is a very and downloaded documents, those documents technical area. HNN really does not have an would presumably to be “protected” in some opinion, but we remain eager to learn. way. Yet, if we take an entirely hypothetical case, Examples where a news organisation like HNN breached a website’s security (as unlikely as that is), and In the following examples, HNN will be per- then downloaded from that site a news article sisting in its policy of not naming individuals, that was available to the public, it would be using codes instead. A1 refers to the person who difficult to show — apart from the illegal nature was allegedly responsible for the breach itself, hnn.bz
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