COLOGNE, Germany ― The International Hardware Fair planned in Cologne from March 1 to 4, 2020 has been postponed. Koelnmesse, the show’s organizer, is responding to the increasingly acute global situation around the recent occurrence of the coronavirus.

The show, ordinarily held every two years, drew 47,000 visitors in 2018 from 143 countries to visit 2,770 vendors. Show organizers are planning to remount the event from February 21 to 24, 2021 in addition to holding the show already scheduled for 2022.

As the virus spreads across Europe, travel there is becoming increasingly problematic. The concern began impacting specific companies, which started to withdraw from the show over the previous week. These include some German firms such as power tool maker Metabo, fastener company Fischer and packaging company Rose Plastic, which all cited concerns for their staff due to higher exposure risks.

German abrasives manufacturer Klingspor pulled out, saying, in a press release, “The reason for this decision is the potentially considerable health risks for employees and business partners in connection with the coronavirus SARS-CoV-2, which has been appearing worldwide since the beginning of the year, especially in view of the fact that the fair is expected to attract numerous exhibitors and visitors from regions affected by the virus.”

Considering these current developments and the high share of Asian exhibitors at the show itself, the management team at Koelnmesse were forced to reassess the situation.

Home Depot turns in solid year end, forecasts stronger growth in 2020

ATLANTA ― The world’s largest home improvement retailer saw sales dip slightly in the fourth quarter, but net sales for the year showed improvement over 2018.

Sales for the fourth quarter of fiscal 2019 were $25.8 billion, down 2.7 percent, due in part to an extra week of operations in the previous year compared to fiscal 2019. The extra week added about $1.7 billion of sales to the fourth quarter of fiscal 2018. Net earnings showed a healthy gain, however, reaching $2.5 billion, up 5.8 percent over Q4 2018.

Comparable sales for the fourth quarter increased 5.2 percent, with U.S. comps up 5.3 percent. The Canadian business reported positive comps in the quarter as well. Sales of “big-ticket items,” defined as products and services over $1,000, represent about 20 percent of Home Depot’s U.S. volume and those sales were up by double digits in the quarter. Big-ticket categories include appliances, vinyl plank flooring and Home Depot’s installation services business.

Online sales continued to be strong for the retailer. Excluding the extra week last year, online sales grew 20.8 percent in the quarter, and 21.4 percent for the year, all part of Home Depot’s interconnected retail strategy.

Sales for fiscal 2019 were $110.2 billion, up 1.9 percent over fiscal 2018. Net earnings reached $11.2 billion, up 1.1 percent. Comparable sales for fiscal 2019 increased 3.5 percent, and comps in the U.S. increased 3.8 percent.

Home Depot is now two years into a multi-year investment program, One Home Depot, during which time the retailer says it has grown sales by more $9 billion.

For 2020, the company anticipates total sales growth of 3.5 to four percent, with comp sales growth of between 3.5 and four percent. Home Depot also expects to open six new stores in fiscal 2020.

MOORESVILLE, N.C. — Lowe’s Cos. has reported net earnings of $509 million for the fourth quarter ended January 31. The results included pre-tax operating costs and charges of $185 million and represent a swing from the net loss of $824 million in the fourth quarter of 2018.

Those charges were from the company’s previously disclosed strategic review of its Canadian operations and closure of its Mexico business. The result of some closures in Canada and the complete exit from Mexico, where Lowe’s had 13 stores, resulted in charges related to inventory liquidation, accelerated depreciation and amortization, severance and other costs.

Sales for the fourth quarter reached $16 billion, up 2.4 percent from $15.6 billion in Q4 2018, and comparable sales increased 2.5 percent. Comp sales for the U.S. business increased 2.6 percent in the quarter. The business in Canada posted comp sales that were “slightly negative in local currency,” said Marvin Ellison, Lowe’s president and CEO, a call to analysts.

During the quarter, Lowe’s closed 28 stores in Canada, with another six due for closure by the end of February.

In fact, growth in the quarter came directly from the company’s domestic stores. “Our sales growth was driven almost entirely by our U.S. bricks-and-mortar stores, supported by our investments in technology, store environment and the pro business,” said Ellison.

For the year, Lowe’s saw net sales increase to $72.15 billion, up 1.2 percent from $71.31 billion in the prior year, and net income of $4.28 billion, up 85 percent from $2.31 billion.

Lowe’s guidance for 2020 includes total sales growth of 2.5 to three percent and comp sales growth of three to 3.5 percent.

SPECIAL REPORT ― Home improvement banners can vary in their market dominance according to the provinces they are in. And even the national brands can face different levels of market penetration and acceptance, based on their region.

In British Columbia, which itself makes up almost 12 percent of retail sales in this industry, Home Depot Canada is the market leader. It represents 22.4 percent of the B.C. market, followed by Lowe’s Canada through its various banners at 13.3 percent. Home Hardware and Canadian Tire are close behind with 12 percent each.

Alberta follows close behind British Columbia in terms of market share, also just shy of 12 percent. In this province, the leader is again Home Depot, with 22.4 percent of retail sales, followed by Lowe’s Canada with 16 percent. In Saskatchewan, the independents hold sway. The Sexton Group has 15.1 percent of the market, while Federated Co-operatives, based in Saskatoon, represents 14.8 percent. Home Hardware comes in third with 13.3 percent.

Manitoba sees a mix of corporate and independent stores battling for supremacy. Home Depot has 14.5 percent of the market, with Home Hardware at 13.8 percent. These are followed by Lowe’s Canada, which represents 11.1 percent of the market, while TIMBER MART is close behind with almost 10 percent.

Ontario is Canada’s largest market, representing more than one-third of all hardware and home improvement sales in the country. Home Depot has dominance there, as this province is its home base in Canada and the scene of the greatest expansion in its early years in this country. Canadian Tire and Home Hardware trail behind, both with slightly more than 16 percent of the market.

Quebec is an important market that accounts for more than one-fifth of home improvement sales in Canada. Lowe’s, through its acquisition of RONA, is the clear leader there. With 26 percent of the market, that’s well ahead of the volume of the next dealers, Canadian Tire and BMR Group, with 16 and 12 percent, respectively.

Things shift as we move east. Home Hardware holds dominance in New Brunswick with more than a quarter of the market, followed closely by Kent Building Supplies with almost 23 percent. Canadian Tire has 15 percent of the market and Castle is next with 10 percent. Home Hardware is well ahead in Nova Scotia, accounting for almost 30 percent of the market there. They’re followed by Canadian Tire with 16.3 percent and Kent with a little more than 13 percent. In Prince Edward Island, Kent has the lead with 31 percent, followed by Home Hardware with 24.2 percent, Home Depot with almost 14 percent and Castle with 11 percent.

Newfoundland and Labrador is another region dominated by independents: Home Hardware has 28.3 percent of the market there, followed by Castle with more than 22 percent.

(Source: the 2019 Hardlines Market Share Report, which breaks out the market shares for all retail banners in the industry by province. The full report is available here!)