Page 51 - HW December 2020

global eyes
Home Depot returns as the “HD” in HD Supply
13 YEARS AFTER divesting itself of its formerly unwanted division, Home Depot has entered into a definitive agreement to re-acquire HD Supply Holdings, distributor of maintenance, repair and operations (MRO) products.
“The MRO customer is highly valued by The Home Depot, and
this acquisition will position the company to accelerate sales growth
by better serving both existing and new customers in a highly fragmented $55 billion marketplace,” says Craig Menear, Chairman and CEO of Home Depot.
“HD Supply complements our existing MRO business with a robust product offering and value-added service capabilities, an experienced salesforce that enhances the strong team we have in place, as well as an extensive, MRO-specific distribution network throughout the US and Canada.”
“The Board and I believe the strategic acquisition by The Home Depot,
Inc. will create significant benefits
for our customers, associates, and shareholders,” says Joe DeAngelo,
Chairman and CEO of HD Supply.
“We look forward to working together
to deliver the safest, most dependable and innovative customer experience to the living space maintenance professional.”
HD Supply, ironically, now seems the perfect fit but, noting that the “HD” originally stood for Home Depot, the division was in fact offloaded by Home Depot to a private equity consortium 11 years ago for US$8.5billion...
Indeed, Bloomberg recently said this of HD Supply “returning to base” so to speak: “The professional-contractor supply business that was seen as a distraction in 2007 is now viewed
as a strategic priority and a growth opportunity.”
These days, HD Supply can boast
44 distribution centres across 25 US states and two Canadian provinces and offers some 200,000 SKUs to its 300,000 customers.
The acquisition is expected to be completed by end January 2021 and is subject to applicable regulatory approval and customary closing conditions.
www.homedepot.com
Bunnings ANZ
smashes YTD sales
On 12 November, Wesfarmers issued a largely positive trading update for its FY2021 year to 31 October 2020 ahead of its Annual General Meeting.
Wesfarmers Managing Director Rob Scott said that the trading performance across the Group had been “pleasing, with the businesses responding well to a period of significant uncertainty and disruption.”
The update also talked of “significant demand growth” for Bunnings, Officeworks and Catch following up on their strong FY2020 second half results.
Indeed, Bunnings ANZ’s sales for year to date (to end October) were +25.2% and comparable sales +30.9% (note however that the comp sales number “excludes stores impacted by government-mandated temporary closures in Melbourne and Auckland).
Says Wesfarmers: “Bunnings’ strong sales growth has continued in both consumer and commercial segments.
“Consumer sales remained particularly strong as customers spent more time undertaking projects around the home.
“Excluding metropolitan Melbourne stores, total sales growth of 29.3% was recorded for the year to date.
“Good progress has been made
on Bunnings’ digital agenda, with
online sales penetration excluding metropolitan Melbourne of 1.5% during the year to date, and digital engagement with both consumer and trade customers continuing to increase.”
Wesfarmers’ Industrial & Safety arm, Blackwoods, also benefited from sales growth to major customers and strong demand for safety and hygiene products although demand from oil & gas and general manufacturing customers had been “weaker”.
www.wesfarmers.com.au
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DECEMBER 2020/JANUARY 2021 | NZHJ 49