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INDUSTRY NEWS FROM KBB REVIEW
INSTALLERS ARE TOP INFLUENCERS FOR CONSUMERS WHEN BUYING A BATHROOM
New research from Trend-Monitor has highlighted the influence installers have on consumers and the bathroom buying process.
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Talking about the influence tradesmen have on bathroom projects at the recent Bathroom Manufacturers Association industry conference, Jane Blakeborough, research director at Trend-Monitor, said: “Our [consumer] research shows that this year, very much so, the fitter influenced the research stage, the purchase stage, and the choice of retailer.
“Ultimately, the fitter has the most influence throughout the whole process. When asked ‘who had the most influence over the products you bought?’, consumers said it came down to their fitter. Obviously, there are other influences, but if consumers were to nominate one, it was the bathroom fitter.”
These findings come as the demand for installers and fitters is at its highest in years. Yet, despite demand, there is still a long way to go when it comes to attracting new installers to the profession. The British Institute of Kitchen, Bedroom and Bathroom Installation (BiKBBI) launched its apprenticeship programme last October in partnership with leading Apprenticeship Training Agency (ATA) The Apprenticeship Management Group.
Damian Walters, BiKBBI chief executive, said: “The entire industry now needs to help us kick the programme on by opening up more apprenticeship vacancies. We know that installers are crying out for talent to help meet unprecedented levels of demand for high-quality KBB installation. Our apprenticeship programme provides all of the answers to this call with a fit-forpurpose apprenticeship in the Level 2 Fitted Interiors programme, a package of support to help with recruitment, and a growing pool of enthusiastic candidates. The job now is to spread the word about all that is on offer.”
HOWDENS NEVER-ENDING GROWTH CONTINUES AS MORE RECORDS SMASHED
In its half-year results, Howdens has revealed that it’s not just back to pre-covid levels, it’s gone 40% beyond them.
Howden Joinery Group posted a total revenue of £913.1 million, which is 16.3% ahead of last year and 39.9% ahead of pre-Covid levels in 2019.
The group’s pre-tax profit of £145.0m is up 21.6% on 2021 and 85.7% on 2019, with profits outpacing revenue growth. UK revenue is 16.4% (£889.3m) up on last year and 13.5% ahead on a same depot (LFL) basis.
Howdens has continued to invest in strategic initiatives, bringing forward investment in projects into 2022 with capital expenditure (capex) guidance for the current year increased by £20m to £130m. The company opened 10 new depots and revamped 34 older depots in the UK, with seven new depots in France and one in the Republic of Ireland.
Andrew Livingston, Howdens chief executive said: “Howdens delivered a strong financial performance in the first half, well ahead of preCovid levels in 2019, as we continued to manage effectively ongoing inflationary and supply chain pressures. “Our sector leading service and well-established and focused growth strategy ensured we continued to outperform the market. Our kitchen and joinery markets are large and attractive, and we are prioritising investment in future growth through execution of our strategic initiatives.
“Howdens has good momentum going into the second half of the year which includes our all-important peak trading period. We will continue to manage inflationary pressures according to market conditions to achieve the right balance between pricing and volume. We are confident in our resilient business model while recognising that we will be trading against record revenue comparatives. While watchful of market conditions and consumer sentiment, the group remains on track with its outlook for the full year.”
Howdens launched 19 new kitchen ranges in the first half of 2022, which it says has more emphasis on higher priced kitchen ranges. The business operates with 788 UK depots, 42 in France and Belgium and one in Republic of Ireland.
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Blum, the fittings specialist from Hoechst, Austria has recorded an 11.6% increase in turnover for the 2021/2022 financial year ending June 30, 2022.
The increase represents a growth in turnover of €266 million (£225m) on the previous year, as the company posted €2.64 billion (£2.24b) turnover. Presenting at a press conference for staff, stakeholders, and media, the managing director of parent company Julius Blum GmbH, Philipp Blum, said: “Consumers were again drawn to the homing and home improvement trend which remained strong during the last year. The demand for fittings has stabilised at a high level.
“The last business year has again proved to be a challenge due to the ongoing Covid pandemic and the war in Ukraine. This makes the 11.2% increase in turnover all the more pleasing. This year’s increase in turnover is partly due to a growth in sales volume and partly due to the price adjustments we had to make because of the dramatic rise in costs,” Blum explained.
Philipp Blum, Managing Director, Blum
The fittings specialist has seen a continued increase in turnover in western Europe, particularly in countries such as Italy, Germany and the UK. The political situation in eastern Europe, however, has had a “subduing effect” on markets in that region. “We are shocked by Russia’s war of aggression on Ukraine which has inflicted untold suffering on many people since it was launched in February,” said Blum.
“The war in the middle of Europe is shattering peace on the European continent and shaking the foundations of stability. Although our colleagues in our Ukrainian subsidiary are as well as can be expected, their health and well-being are a constant concern.”
In addition to the pressures in markets closer to home, Blum’s operations in China have also had an effect globally. The lockdown in Shanghai and other Chinese cities in the spring of 2022 has created new challenges in international transport routes. Said Blum: “Disruption is being caused by the war in Ukraine and the worldwide shortage of freight containers, heavy goods vehicles, and drivers. The supply chain is still under severe pressure.
“We’re pleased that we’ve been able to greatly reduce lead times for many product groups by increasing production capacity and recruiting new members of staff over the past few months.” In the past financial year, Blum investments worldwide totalled €339 million (£287m).
NEW MAGNET STORE FORMAT TO INCLUDE WORKING KITCHENS AND DESIGN STUDIOS
Magnet is to roll out a new ‘immersive’ store format that will include functional spaces and interactive areas that it says reflect how people want to shop and be inspired.
The new format Magnet stores, due to open in early autumn this year, are said to put design excellence at the heart of the experience and will include fully functional kitchen areas that will allow store staff to demonstrate key kitchen appliances, such as instant boiling hot water taps and steam ovens.
The new stores will also have self-contained design studios where customers can enjoy the design process. There will also be ‘styles and materials’ areas where they can make mood boards and experiment with how their kitchen will look at different times of the day. The first three new format stores will be in South Wimbledon, Sale (Manchester) and Stockton. The programme will start with Stockton, but Magnet is also planning to refurbish many of its 194 stores this year, with more planned for 2023. Stockton will be the first store to feature a fully working kitchen area.
Magnet says that all of the timber used in the kitchen cabinets comes from sustainable sources and all of the showrooms are powered by renewable energy.
The investment follows the best ever winter trading period for Magnet parent company Nobia Holdings UK, which reported turnover of £417.3 million – up from £394m in 2021.
Commenting on the move, Nobia Holdings UK chief executive Dan Carr said: “We’ve been around since 1918 and we’re still going strong, making us the UK’s longest-standing kitchen specialist, with 196 stores in the UK and over a century of happy customers under our belt.
“Our new store format is part of our wider commercial strategy which will focus on design and sustainability and has a clear focus on inspiring better living through purposeful design.
“We’re proud to launch our first store with the new format and look forward rolling this out to our existing and new stores in the future.”
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Mereway Kitchens has unveiled a new visual identity with its new rebranding campaign.
The first since its origin in 1986, the kitchen manufacturer’s campaign has a new website with increased interactive functionalities and optimised retailer and Premuim Partner pages, a new range of POS materials, reskimmed liveries, and a storytelling video.
The new look for Mereway is said to “embodying the brand values of beauty, craftsmanship and conscious design.” The collections have been curated into two new brochures — Mereway Kitchens and Mereway In-Frame, designed to make the selection process more experiential for consumers and showcasing designs easier for retailers.
The namesake brochure combines contemporary and modern classics. The Q-Line collection sits alongside woodgrain shakers kitchens. In-Frame Kitchens highlights the brand’s premium range which can be personalised with a selected colour palette of hand painted finishes. Mark Mills, managing director of Mereway said: “We’re excited that after years of brand development, we are able to present this complete refresh. It’s our privilege to work with so many great retailers who share our ethos of quality, care and creativity and are proud to endorse Mereway.” The rebranding follows Mereway’s move to launch its affordable Aura Kitchens brand back in March.
ROMAN FLIES THE FLAG FOR BRITAIN AT MALAYSIAN EXHIBITION
British bathroom manufacturer Roman has attended the Archidex exhibition in Malaysia to showcase its Made in Britain products.
The exhibition takes place from June 30 – July 2 2022, at the Kuala Lumpur Convention Centre. It is an annual trade event for the South East Asian architecture, interior design and building community. Roman will be on stand 2M201.
Roman, who specialises in delivering custom-made bathroom solutions in the UK and International markets, says that it will be presenting its ‘shower products, bespoke capability and vast experience.’
Archidex was the ‘perfect platform to showcase Roman’s full range of capabilities’, said Roman.
HÄFELE UK STUDIO PARTNER AWARDS ANNOUNCED
The winners of the Häfele UK Studio Partner Awards were announced at its sixth annual event at the Cutty Sark, London, on 23 June 2022.
The awards are a chance to celebrate the achievements of Häfele UK retailers and designers in various categories for customer service, design, showroom, digital media and Studio Partner of the year.
This year’s new category is the Best Functional Space Design category, where a designer has ‘demonstrated ingenious space-saving solutions to meet a customer’s challenge.’
As a way to show appreciation for the Häfele UK staff is the, Häfele Representative of the Year, voted by Häfele customers. The winner Kathryn Emsley was said to always go above and beyond for her client and is a rep that retailers genuinely look forward to seeing.
Full list of winners can be found here.
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HAVE THE NATIONWIDE RAIL STRIKES AFFECTED THE KBB INDUSTRY?
The biggest train strikes in over 30 years have caused mass disruption across the country and, although resilient KBB retailers report that the rail chaos had little effect on business, the action has raised concerns it could further dampen consumer confidence. In an anonymous poll, members of the kbbreview100, our trusted group of independent KBB retailers suggested that, though the strikes had not taken a direct toll on their business, the disruption could hurt consumer confidence. “The strikes form part of the general perception that the country is in a mess,” the retailer said. “On this basis, they will contribute to a fall-off in consumer confidence.”
Another retailer agreed saying that, while business wasn’t affected this week, the fallout of the rail strikes – which could continue throughout the year – could have a serious knock-on effect on the future. “It’s another pressure adding to the current economic situation,” they said. “I think it will add to an already increasing problem.”
While the poll revealed no KBB retailers were forced to close their showrooms or directly lost work due to clients either missing or cancelling appointments, 12% reported a drop in footfall which they linked directly to the strikes.
The majority of the retailers said that their staff do not rely on public transport, while 25% of those polled said that under a half of their staff use trains or buses to commute.
Many retailers rely on cars to get to the showroom, especially those who have destination showrooms out of town. However, some say they cannot rely on public transport in normal circumstances due to poor train links, so they are forced to commute via car.
2020 Fusion Live Kitchen design category winner: Aurore Guy, Les Simmone
COMPUSOFT + 2020 ANNOUNCES WINNERS OF GLOBAL INSPIRATION CONTEST
KBB design software specialist, Compusoft + 2020, has revealed the winners of its Global Inspiration Contest for kitchen, bathroom and office designers. This year’s competition, which was open to all users of 2020 Design Live, 2020 Fusion Live, 2020 Office, Winner and Innoplus platforms across North America and Europe, received over 850 submissions across twelve categories.
Designers were judged on their creative, functional and aesthetic design skills by a panel of guest judges including kbbreview editor Rebecca Nottingham, Business of Furniture editor Rob Kirkbride, NKBA director of member relationships Alan Dove and President of ESPRITMEUBLE Gaëtan Ménard.
“We are so proud of all of our talented designers who entered the Global Inspiration Contest this year,” said Karen Curtis, director of marketing and communications at Compusoft + 2020. “A big congratulations to the winners who truly went above and beyond and made an impression on our judges as well as their peers.”
Each winner will receive Amazon gift cards varying between $500 and $1,000 (awarded in the winners’ country currency).
Full list of winners can be found here.
