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HI
NEWS
IS DIY-TV
OVER?
REJECT ACCEPT
Vol. 2 No. 9
DULUXGROUP H1
2015/16 RESULTS
BUNNINGS MAKES MOVE IN ALBURY • THE GOOD
GUYS CONSIDER AN IPO • POCO MAY BUY INTO
MASTERS SITES • MITRE 10 SCORES KELLYS IN
WODONGA • BEAUMONT TILES OPENS NEW DC
contents
IS DIY TV OVER?
After poor ratings for “Reno Rum-
ble”, mediocre ratings of “House
Rules”, and lower ratings for the past
two seasons of “The Block”, is “reality”
DIY TV done and over?
19: click to view
DuluxGroup H1
DuluxGroup returns average to
good results. Forecast is for a stron-
ger H2. However, is enough attention
being paid to the changing economy?
37: click to view
Big Box Update Retail Update
Bunnings to set up store in The Good Guys considers IPO;
Albury; POCO looks at JB HiFi considers buying The
3 9
Masters’ sites. Good Guys
Indie Update Europe Update....................................13
Beaumont Tiles opens new
DC; Mitre 10 adds Kellys US Update...........................................15
6
Wodonga.
Products..............................................42
Seeking Opportunities........................47
Supplier Update
Mike Kane of Boral calms
fears over housing prices;
8
Valspar earnings dip.
hnn.bz
big box update
Albury set to approve
new Bunnings store
Bunnings to open
in this in Homeplus
update: Chadstone
Newmark Capital
has signed up Bun-
POCO may bid nings in a 10-year
on Masters’ Harvey N deal to be part of its
orman Ce
sites ntre Chadstone Homeplus
Homemaker Centre
in Melbourne. The big
Metcash in- box retailer will open a
terested in large-format 7600sqm
Masters’ sites, store at the centre,
located about 500 me-
as well as HTH
3 tres from Chadstone
Group Shopping Centre.
Bunnings will share
space in the Homeplus
Brett Blundy Centre with other
looks to buy major retailers such as
into Masters Bunnings new
Barbeques Galore, The
Good Guys, Snooze,
store location Freedom, JB Hi-Fi, E&S
Bunnings to Trading and Adriatic
open larger Furniture.
Newmark was found-
store in Albury
Bunnings has lodged The replacement Albury Council ed by former Haw-
a development appli- warehouse will be over has been supporting thorn football star
Bunnings to cation for a $27 million 18,000sqm with room the Bunnings team Chris Langford and
open new replacement store in for more than 400 with information Simon Morris who pre-
viously headed Pen-
store in Chad- Albury. carparks. and assistance for its
insula Development
The big box retailer Bunnings recently investigations into the
stone opened its existing purchased the site proposed purchase of Group. The Homeplus
store in Young Street including the Kim- the new site for several Centre, bought for $55
million in 2011, was the
Bunnings in 2003 before an ex- berly Clark factory months. We are very
start-up syndicator’s
pansion six years later. which closed last year. pleased that Bunnings
launches pilot The plans are for new Bunnings general has seen fit to invest in first single-asset fund.
stores in UK store on the corner of manager of its prop- the expansion of their Its value is likely to
the Riverina Highway erty division, Andrew presence in AlburyÉ soar above $80 million
and Drome Street. It Marks, said the rede- Bunnings is also after the deal with
Bunnings Bunnings.
will be located next velopment was a show building a 6900sqm
brands enter door to the Harvey of faith in the Albury store on the eastern Industry sources
UK market Norman Centre. Bun- market. edge of Yarrawonga suggest rents for a
nings’ trade centre in Acting Albury mayor which is expected to large retailer such as
Romet Road, Wodonga David Thurley wel- open later this year. Bunnings were likely
will transfer across to comed the announce- goo.gl/3xwc7O to be between $280-
Albury as part of the ment from Bunnings. $320 per square metre.
move. He said: goo.gl/ExQ26v
hnn.bz
big box
update
Metcash also seeks Masters
The DataRoom column in The Australian
has revealed that Metcash may be interested
in both Masters and Home Timber and Hard-
ware. Apparently, the Mitre 10 owner has been
sounding out Woolworths about a potential
acquisition of the stock within the hardware
operation of Masters.
It has always been thought that it was only
HTH that was of interest to Metcash, but it
is now believed the group also expressed an
interest in understanding what stock Masters
has and at what price.
HTH is more attractive to buyers than the
loss-making Masters and is known to have
strong synergies with the Metcash Mitre 10
operation.
Citi is working on the process on behalf
POCO in race for
of Woolworths and is expected to have now
comprised a short list of bidders for the second
round of the contest.
goo.gl/DXwZQ0
Masters’ sites
Home furnishing and pany wanted to open POCO will tap into it expanded its store Blundy bid
4 hardware store, POCO 45 Australian POCO that value seeking con- network over the next Australian business-
is now in contention stores in two years and sumer that wants rel- five years. man Brett Blundy
to takeover the sites as many as 100 outlets atively good furniture, Mr Urquhart said may be buying into
set to be vacated by within five years. cheap white goods but POCO could follow in Woolworths’ hard-
Masters. Complete with its still good quality. Masters’ footsteps and ware operations, ac-
POCO is a South distinctive yellow and Dr Mortimer said it fail because it wasn’t cording to DataRoom
African-owned red colour scheme, was a very different focused on doing one in The Australian.
warehouse retailer POCO first opened its offering to Masters, thing and doing it well. Apparently, he has
that stocks discount doors in Australia in which meant POCO POCO stretches itself made a tilt at parts of
furniture, hardware, 2012 and now operates would have a better across a number of the Masters hardware
white goods, bedding six store across the chance of standing up different markets and portfolio and poten-
and other low cost country, including to Bunnings. Mr Urquhart doesn’t tially also Home Tim-
household items such outlets in Blacktown What Masters did believe it’s what con- ber and Hardware.
as soft furnishings and and Casula in NSW. was try to emulate sumers want. Mr Blundy founded
some electrical goods. Queensland Univer- Bunnings but in a high Mr Urquhart also BB Retail Capital in
It houses brands like, sity of Technology end air conditioned said POCO had to 1980 and built up his
TEAC and Breville. retail expert Dr Gary store. That inferred to tread wisely if it fortune by growing
Its South African, Mortimer told The the shopper it would wanted to expand the a single record store
German-listed parent New Daily that POCO be high price. They number of stores in called Disco Duck
company, Steinhoff represented the same didn’t understand their Australia at such a into a 238-store strong
International, also threat to Bunnings market. People would rapid rate. Sanity Entertainment
owns Freedom Furni- that discount German go to buy hardware There will be a period Group, encompass-
ture, Snooze and Bay supermarket Aldi but also see cushions of loss therefore they ing HMV and Virgin
Leather Republic. posed to Coles and and throw rugs. have to be very careful. Entertainment. It was
Fairfax Media re- Woolworths. He said: goo.gl/UgZX3y If they run out of divested in 2009.
ported that POCO was The POCO model Retail analyst and money, they run out of BB Retail Capital
planning to move into tends to be an Aldi or managing director of time and if you run out may be working with
20 vacated Masters to a lesser extent a Marketing Focus, Bar- of time, you’re run out JB Hi-Fi and Steinhoff
sites around Australia. Costco-style one. Fairly ry Urquhart, doesn’t of business. International, the
Prior to that, trade good quality, but low see POCO becoming goo.gl/ajiqLH majority shareholder
publication Channel price. Not a signifi- a major competitor in of the listed Freedom
News reported that a cantly large range or a the big box market, Furniture.
Steinhoff Internation- lot of branded prod- and said it would lose goo.gl/4nFssB
al source said the com- ucts. a lot of profit while
hnn.bz
big box
update
Bunnings is likely
to open stores
that are markedly
different from the
Hombase format
they will replace
Bunnings launches Bunnings brands
hit UK stores
UK pilot stores
5 Tactix, CraftRight,
Saxon, Morgan, Ulti-
mate Storage, Flexi
Storage, Move Master,
Over the next six nings team in the then furniture concession. on any public timeta- Jumbuck, Marquee
months, Bunnings will McEwans takeover. This process is likely ble, with the two or and Smart Storemas-
establish pilot stores Once its pilot stores to see an adjustment three pilot stores to ter are all Bunnings
in two or three of the are established, other to the sales base to be be operating by year’s brands that have been
260 Homebase sites in stores will be in the used for the acqui- end, simply to test the stocked at Homebase
the UK, according to new model. This sition, which will be model and work out stores, according to
John Durie writing in means, among other stated with ongoing where to make adjust- InsightDIY.
The Australian. things, that everyday starting sales of ments. The first containers
The big box retailer is low prices instead of around $2.4 billion as The UK demograph- arrived at UK ports
three months into the the high-low strategy against the previous ics are vastly different, from China and the
process of transferring which has been the stated sales of around with some 18,000 peo- stock has now been
its operating style into hardware mainstay in $3 billion. The lower ple per square kilome- allocated out to the
the UK. Bunnings’ UK the UK for a long time. sales base will mea- tre against just 400 in Homebase stores. In
operations is being led That’s a big change sure the stores minus a large Australian city. many cases, stock is
by veteran executive for the stores, which Argos and the furni- This means delivery is displayed in either
PJ Davis with some will continue to run as ture concession. cheaper and explains cardboard dump-
ongoing help from his Homebase stores but The process to be why catalogue shop- stacks or dressed quar-
boss John Gillam. without the myriad undertaken now is ping has been more ter pallet displays in
Michael Schneider is concessions that now equipping Homebase popular and why on- space that Homebase
in charge of the Aus- populate them. with the expertise line shopping is more previously refused to
tralian and New Zea- Bunnings is in the needed to operate as prevalent. use, as they focused on
land operations and process of undoing a standalone retailer, When the rollout clinical, neat and tidy
the plan is to keep the the contracts Home- with adjustments to starts it won’t be displays.
operations separate. base had with these distribution centres Bunnings running a Space is also being
The Bunnings team concession operators. and the addition of a Homebase store but created as the new
in the UK has the job Among these is Argos, property team to han- a replacement store, team begin the on-go-
of exporting much the the catalogue based re- dle ongoing lease and with Homebase re- ing clearance of home-
same way that back tailer owned by former purchase decisions. placed by a Bunnings. wares that don’t fit the
in 1993 when Mr Davis parent company Home The actual Bunnings goo.gl/958O5R Bunnings model.
was part of the Bun- Retail Group, and a rollout will not be set goo.gl/Xse85p
hnn.bz
indie update
Beaumont Tiles
million a year to $100
million over the next
five years.
The opening of
opens new DC
Rochedale is a whole
new chapter for Beau-
monts in Queensland
and it demonstrates
our deep commitment
to the state and to
in this grow with it through
update: employment and infra-
structure investment.
We’ve designed the
Beaumont Tiles facility to suit our
opens a new unique needs for stock
distribution holding and to vastly
improve our heavy-ve-
centre in Bris- hicle and customer
bane’s south traffic management.
Beaumont Tiles has Rochedale Motorway tor, Bob Beaumont, This means customers
opened one of the Estate (1 Brickworks said Queensland is a can get what they
Mitre 10 gains largest distribution Place). The facility vibrant renovating want, when they want
the Kellys centres in the south- is 60% larger than market with par- it and we can maintain
6 Wodonga ern hemisphere at Beaumont’s previous ticular growth in market leading price
Rochedale in Bris- site at Archerfield and the south east, the
store, a major bane’s south. it allows the retailer to western corridor and
points.
Rochedale takes
regional retail- The state-of-the- run 16 hours a day. north Queensland in Beaumont’s national
er art 13,287sqm head The Rochdale facility line with population distribution centre
office and warehouse is part of a $20 million growth and construc- holdings to 50,000sqm
facility employs 75 dollar investment tion activity. across Sydney,
Mitre 10 people and will service in Queensland by He said the compa- Melbourne, Brisbane
launches Beaumont’s growing Beaumont Tiles. The ny has increased its and Adelaide with
network of 28 stores retailer also launched national footprint by
drive-through its new high-end 25% in Queensland
the same footprint
in Queensland and again in its 106-store
garden centre northern NSW. 730sqm design studio in the last five years network.
in New Beaumont Tiles has in Fortitude Valley. and expects turnover goo.gl/ZKAKZP
Zealand a 19-year lease on the Managing direc- to increase from $60
Ace CEO Mitre 10 adds Wodonga store
Venhuizen Kellys Wodonga Managing director
has officially become Adrian Kelly said the
talks compe-
part of Mitre 10 group company had almost
tition and an after starting out in come a full circle. He
ageing Wodonga (VIC) in 2007 told The Border Mail:
membership selling rural supplies. We’ve been looking
The store’s re-badging to developing into a
follows the closure Mitre 10 for a number
of the Mann Mitre 10 of years. Customer
business after its sale demand and market
to Bunnings. demand for an alter-
Kellys moved three native to Bunnings
years ago to the Mel- helped clarify the
bourne Road location decision for us.
into a building, which goo.gl/SynTCc
ironically, was a Mitre
10 store up until 2010.
hnn.bz
indie
update
Ace Hardware CEO Mitre 10 drive-
John Venhuizen through store
about past success
when everything
that lies in front of
us is still challenging.
Q: Is there anything
your competitors
are doing that you
admire or seek to
emulate?
A: Lots. We learn
from our competitors
regularly, both in our
industry and outside.
Look at Home Depot
and Lowe’s — they’re
clearly competitors
Ace Hardware CEO our competitors. We
of ours. And yet
John Venhuizen spoke hate losing any of
I’ll tell you, they’re
with HBSDealer at the them, but on balance,
great retailers. Look
co-op’s recent conven- the score has worked
at their numbers.
tion. Here are some out pretty well in Mitre 10 New Zealand has opened a drive-
They’re both on very
highlights. our favour. I would through garden and landscape centre in Dune-
impressive runs.
Q: What can you say say in the last four din right beside its MEGA store. The stand-
Q: Last year was sup-
7 about new member years, we have had
posedly the year of
alone centre boasts a large range of garden
acquisition and 280 more stores come products and tools, giving local landscapers
the light bulb. How
turnover? You have to Ace, and we’ve lost and outdoor DIYers a dedicated space to source
did that go?
mentioned in the 130. their supplies.
A: We sold a few light
past that Ace had an Q: What are Ace’s Store owner and Mitre 10 chairman Martin
bulbs. Let me put it
issue with its ageing biggest threats at the Dippie said it is completely self-contained and
into perspective for
population. Are your moment? has an exciting range of features. He said:
you here. It’s proba-
members getting A: There’s a lot to be The garden and landscaping centre has its
bly more like the de-
younger? afraid of. I usually own entrance, checkouts and cafe and is staffed
cade of the light bulb.
A: Not dramatical- go to the three Cs: by a dedicated team who have a wealth of
We can hardly keep
ly, though we have we operate in a very experience in landscaping, horticulture and
up, and in fact, some
made good progress competitive environ- gardening.
of our suppliers can
in that regard. We’ve ment. All retailers do; By expanding our existing garden centre into
hardly keep up. Every
got a number of ini- hardware retailers the new building we’ve been able to greatly
retailer is selling a lot
tiatives for the next significantly do. increase our product offering, catering for
more LEDs. In gener-
generation, one of We have some very everyone from casual DIYers to professional
al, I think we were up
which is called Pro- strong, well-funded landscapers.
350% in light bulbs.
gressive Ace Leaders, enemies. Never take Features of the new centre include a shed
So that includes all of
where we try to get them lightly. village, glasshouse displays, a bigger range of
them.
the sons and daugh- Second is, it’s a very plants and professional gardening tools, and a
It is an incredibly
ters of owners who capital-intensive drive-through bulk product area with express
important category
are up and coming in business. Brick-and- parking.
to our stores for
business together … mortar retailing is goo.gl/3QoOmp
the next five to 10
And the second is struggling.
years. And that’s just
new investors. New Third, the world and
consumer. Now we’re
blood coming in the business just
making a major push
tends to be signifi- seems to get more
into LED for stores
cantly younger than complex. Not easier.
and businesses. We’ll
our owner base. Between competi-
be pounding that
Third, member tion, the capital it
drum pretty hard for
turnover. We lose takes to be good, and
a long time.
some stores to our just the complexity
goo.gl/jSa5XU
competitors; we get of business, you can’t
a lot of stores from get too pride-filled
hnn.bz
supplier update
Boral chief addresses housing
struction. Mr Kane growth meant Boral
told the Macquarie and the industry were
Australia conference being stretched to
in Sydney recently: capacity.
The question the When you look at
headlines try and give this transition from
out is there’s going to the resources side to
be a collapse in the the housing side to the
in this Australian housing infrastructure side,
update: market but there’s re- it’s not like one starts
ally no reason to think and the other stops or
Boral CEO, there’s going to be a there’s gaps in be-
collapse imminently. tween. There is a lot of
Mike Kane, I think it’s reasonable overlap and there will
says housing to assume that we’re continue to be overlap.
fears overdone going to continue to And frankly if there
see decent demand for is not a reasonable
the next two years. slide back in housing,
Silent, elec- And then it will slowly there’s just not enough
tric EGO OPE come back to trend materials to do it all.
Boral chief execu- The building mate- with the exception Our industry in partic-
company tive Mike Kane has rials company said possibly of NSW which ular would be impact-
8 appoints Noisy dismissed fears of a it continues to be will continue to bound ed if the perfect storm
Beast for crash in Australia’s quizzed on the real along. hits and all demand
residential housing estate market by Mr Kane said the stays at historically
marketing
market while warning investors and said boom in infrastruc- high numbers.
productivity will be it is seeing strong ture work combined goo.gl/FcRtbV
Valspar earn- hit unless the industri- underlying conditions with ongoing orders
ings down as it al relations watchdog continuing to support from the resources
is reinstated. new building con- sector and housing
proceeds with
Sherwin- EGO appoints Noisy Beast Valspar earnings decline
Williams Chervon Australia industry’s first 56-Volt Valspar, in the midst of a merger with rival
Sherwin-Williams, said earnings in its latest
merger has appointed Noisy Lithium Ion battery.
quarter fell amid restructuring costs and
Beast to promote the Chervon business
EGO outdoor power director Barry Crow- lower paint sales.
equipment range. hurst said: In its second quarter, Valspar said merg-
Adam Hilton, manag- We have enormous er-related costs totalled USD18 million. The
ing director of Noisy ambitions for the EGO Sherwin-Williams deal is still on track to
Beast said: Brand in Australia and close by the end of next year’s March quar-
We’re incredibly fired New Zealand and we ter, the company said.
up to be working with feel that Noisy Beast is In addition to merger costs, lower paint
EGO. Their technology absolutely best placed volumes dragged down first-quarter earn-
is ground breaking, to help us achieve ings. Total volume slipped 1% as a 6% decline
and the opportunities them. in paint volume offset a 2% increase in the
for growth are enor- Noisy Beast is a larger coatings segment.
mous Ð we’re looking full-service communi- Overall for the quarter, Valspar reported a
forward to helping cations agency “with a profit of USD80 million, down from USD90.3
them achieve a huge difference” employing million, from the previous corresponding
surge in market share. over 50 people in Mel- period. Sales fell 2.1% to USD1.06 billion.
EGO has been in the bourne, Sydney, Lon- Excluding merger and restructuring costs,
Australian market for don and China. Noisy among other items, earnings per share rose
18 months. Its entire Beast represents many to USD1.22 from USD1.11.
line up is cordless, and leading brands. goo.gl/1NixYW
all powered by the goo.gl/Q4cZ5T
hnn.bz
retail update
The Good Guys
beats path to IPO
in this
update:
Andrew Muir
JB HiFi thinks (l), owner and
about buying chairman of The
The Good Good Guys, with
Guys one of the team
members at the
Private equity company
thinks about
buying The
9 Good Guys Fairfax Media re- rate of about 2%. managers. and offer shares to
ports The Good Guys The company ex- Mr Muir has bought investors in September
The Good has moved a step pects to earn around back about 35 stores or October.
closer to listing on the $85 million before over the past few Sources said Mr Muir
Guys think share market. The ap- interest, tax, deprecia- years and now owns had been trying to sell
about an IPO pliances retailer said tion and amortisation 44 stores. He flagged The Good Guys for five
it would “consider any on a proforma basis in the buy-back of the years, but potential
alternative ownership the 12 months ending remaining 56 joint buyers were deterred
Super Retail
proposals that emerge” June 30, 2016. The venture stores last Oc- by his high asking
Group revs up but, in the meantime, Good Guys is forecast- tober, and expects to price, which was origi-
Ray’s is pushing ahead with ing EBITDA between complete this process nally about $1.5 billion,
its plan to list on the $100 million and $110 by the end of June, in the chain’s compli-
ASX. million in 2017, accord- time for an IPO. cated joint venture
Beacon It is aiming to lift ing to sources close to However market structure, and lack
Lighting sales earnings by between the company. sources believe Mr of centralised buying
down 18% and 29% in its The 2016 proforma Muir is more inter- and merchandising
first year as a public earnings and the 2017 ested in a trade sale systems.
company if owner and forecast assume that than an IPO because Over the past few
Harvey chairman Andrew all 100 The Good Guys it would enable the years the compa-
Norman signs Muir proceeds with stores are wholly Muir family to exit the ny has invested in
plans for an initial owned by the compa- business cleanly and e-commerce, merchan-
up to new public offering. ny and that margins fully crystallise value. dise planning and
delivery It is understood that will improve and costs Other sources said inventory systems,
service for the 2015 financial will fall under a cen- that the IPO plan was centralising ordering
year, The Good Guys tralised management “serious” and “there’s and replacing more
generated just under structure. a good chance an IPO than 90 order books
$80 million of earn- At the moment, 56 of will go ahead.” for company-owned
ings before interest, the 100 stores are joint The Good Guys and franchised stores
tax, depreciation and ventures between the hopes to issue a pro- with a single buying
amortisation (EBIT- Muir family’s private spectus in August or function.
DA), while turnover company, Muir Electri- September, once it has goo.gl/LXjtEKgoo.gl/
is about $2 billion, cal Company Pty Ltd, a full set of June 30 ZKAKZP
growing at an annual and individual store consolidated accounts,
hnn.bz
retail
update
JB HiFi’s Home
format includes
sales of kitchen
appliances and
whitegoods.
JB HiFi looks at buying
10
The Good Guys
JB Hi-Fi chief appliances in the half- while The Good Guys ed to Fairfax Media watchdog about the
executive Richard year to December, with is more attractive to that Steinhoff may be potential tie-up. He
Murray confirmed in another 15 expected the “mums and dads” using The Good Guys told Fairfax Media:
a report in the Finan- over the rest of the making weekend pur- sale process to garner I’m not worried at all.
cial Review’s Street financial year. chases. intelligence on the I’d have zero objections
Talk column that the ChannelNews sug- The big challenge $4.6 billion Australian to JB Hi-Fi buying The
consumer electronics gested that JB Hi-Fi for potential buyers appliances market Good Guys — I wonder
retailer was in early may offer the Muir is conducting due as part of its POCO if they’d have zero
talks to buy The Good family a combination diligence on a compa- expansion strategy. objections to me.
Guys. of cash and shares ny with 57 different (Read more about The Australian ap-
Industry observers to avoid triggering owners. POCO in “Big box up- pliances market could
believe Mr Murray has a large capital gains The deal, if it hap- date” in this edition. eventually become a
had his eye on The tax liability. But other pens and things are Harvey Norman two-player market, he
Good Guys for years sources suggested to at a very preliminary chairman Gerry said, citing the demise
because it is an ideal Fairfax Media Mr Muir phase, would trans- Harvey also indicated of chains such as
fit for his company would rather exit the form Mr Murray’s he may be interested, Retravision, Clive An-
as it expands into the sector entirely and business at a time although it is under- thonys, Clive Peeters,
higher-margin home not be exposed to the when retailers and stood the company did Brashs and Rick Hart.
appliance sector. sharemarket. their suppliers are not submit an indic- Mr Harvey also dis-
So far, JB Hi-Fi’s There are obvious consolidating globally. ative offer when first missed the potential
foray into whitegoods synergies between JB Hi-Fi is just one of round bids were due. threat from Steinhoff,
and small appliances combining the a number of interested goo.gl/eOuduS saying POCO’s offer
has been through an companies, which parties which have differed significantly
Harvey Norman
internal expansion are both focused on made non-binding to Harvey Norman. He
“not concerned”
of its “Home” format the discount market indicative bids for said:
stores. in their respective The Good Guys. Other If Mr Harvey was I don’t think Harvey
It operates 194 stores product categories, potential bidders are worried about two of Norman would see it
across Australia and consumer electronics believed to include his biggest competi- as opposition — it’s a
New Zealand, of and appliances. Steinhoff Internation- tors joining forces he different sort of store
which 56 sell home JB Hi-Fi has an edgi- al, private equity firms wasn’t admitting it, altogether.
appliances. A further er brand and many of Bain Capital, TPG and saying he would not goo.gl/pUkVc6
22 existing JB Hi-Fi its stores are based in KKR. raise any objections
stores added small large shopping centres One source suggest- to the competitionhnn.bz
retail Sales decline at Beacon
The value of Beacon after the retail group
update
Lighting shares took said it had experienced
a hit after the retailer a positive start to the
warned recent sales second half of the
have fallen short of financial year in com-
expectations. Beacon parative sales. It has
shares dropped 34 a network of 91 stores
cents, or 21.3%, to $1.26. and achieved a 22%
The earlier timing of increase in first half
the Easter break this profit to $11.1 million.
year — a key home Beacon said it is
renovation period — expecting to achieve
took a toll on sales, earnings before inter-
along with weak est, tax, depreciation
consumer confidence, and amortisation
tough competition and (EBITDA) in the 2016
reduced advertising, full year of between
the company said. $28.2 million to $29.2
Sales during the past million, compared to
10 weeks had not met $27.4 million in the
management’s expec- previous year.
Super Retail Grp
tations. goo.gl/CGmJUn
Subdued sales come
Private equity runs ruler
to revamp Ray’s
over The Good Guys
The DataRoom column in The Australian
reports that global private equity firm Black-
Super Retail Group pete in a market worth This underlines the stone has emerged as a potential suitor for
plans to turn Ray’s about $2.2 billion and importance of imple- The Good Guys, and remains in the contest
Outdoors into a currently dominated menting the trans- to buy the Masters and the Home Timber
and Hardware businesses from Woolworths.
11 shopping destination by outdoor brands formation of Ray’s
The buyout group may be among a number
for campers, hikers such as Kathmandu, Outdoors to RAYS
and adventurers. Patagonia and Paddy promptly. of global private equity names circling the
After a strategic Pallin. The new Ray’s consumer electronics retailer that is being
review lasting several After successfully business is so different sold through Bank of America Merrill Lynch.
months, Super Retail testing the concept from the old Ray’s Out- The company is up for sale in a dual-track
has finally signed off in five of its 55 Ray’s door business, and so process; a float of the family-owned busi-
on a new concept that Outdoors stores, Super it’s like starting again ness on the Australian Securities Exchange
is expected to return Retail said it would and essentially we are also remains a strong possibility. Based on
Ray’s Outdoors to now accelerate its total going to focus initially, forecast EBITDA between $100 million and
profitability and boost revamp of the Ray’s predominantly on the $110 million, the company could have an
earnings from its Outdoor retail group. Melbourne market — enterprise value between $800 million and
leisure division by $8 The store footprint and then we will build $900 million.
million a year. will be cut from 55 to from there and really Despite private equity interest, most
Super Retail chief 17, with other Ray’s launch the new brand observers believe the successful buyer will
executive Peter Birtles Outdoors outlets to properly. come form the same industry.
believes Ray’s can be either closed or Super Retail expects Sources continue to point to JB Hi-Fi,
become a leader in the rebranded under the to book restructuring which is in search of opportunities for ex-
outdoor adventure company’s other retail costs and write-downs pansion. Harvey Norman has also expressed
market by providing arms, such as Rebel of $43 million this year interest, as has South Africa’s Steinhoff,
engaging and inspiring Sports, Super Cheap and $16 million next owner of Freedom Furniture, Snooze, POCO
“solutions” for custom- Auto, BCF and Ama- year. The one-off costs, and Bay Leather Republic in Australia.
ers in camping, hiking, rt. The chain will be which include $28.5 The Australian Competition & Consumer
paddling and adven- known as RAYS. million in cash costs Commission is preparing to examine a pos-
ture travel activities. Mr Birtles said while and $14.5 million in sible takeover of The Good Guys by JB Hi-Fi
The new concept the new concept stores non-cash charges and after posting a notice on its public register,
stores have a wider had performed well, writedowns, will dent signalling a review. It has classed its interest
range of outdoor heritage stores contin- bottom-line profits, in the possible tie-up of the two consumer
clothing and footwear, ued to disappoint and but the restructuring electronics retailers as “monitoring”. The
camping equipment, Ray’s was expected to is expected to boost ACCC said:
sleeping bags, travel post losses this year. earnings before inter- A public review will be commenced in due
gear such as back- He told the Macquarie est and tax by $13 mil- course once the parties provide a submis-
packs and accessories Securities investment lion once completed. sion.
and tents. It will com- conference recently: goo.gl/dMTm17 goo.gl/pRTnPthnn.bz
retail
update
Harvey Norman
delivery service
Harvey Norman has teamed up with Aussie
logistics start-up Shippit to make deliveries
more efficient for online shoppers.
Enabled by Shippit’s proprietary technology
and smarts, which connects online retailers to
traditional courier companies, Harvey Norman
is the first major retailer to offer a three-hour
12 delivery option in major cities across Australia.
Available for small appliances, consumer
electronics and other small goods, the partner-
ship allows customers to select a three-hour
delivery window between 7am-10pm weekdays.
The delivery option has been integrated into
the payment screen and costs are determined
by the time of the day customers would like
their products to arrive. Customers can also
track their parcel online in real time through
SMS and email alerts and have the option to
reschedule or reroute the delivery after the
purchase has been made.
Harvey Norman chief digital officer Gary
Wheelhouse told news.com.au:
Click and collect made it easier for customers
to buy online and then come in store to pick up
the product, but we still saw delivery as one of
our major challenges. Customers would often
have to wait for the next business day to receive
their goods and that just wasn’t convenient.
Mr Wheelhouse said the option was now
available to customers to use.
At the moment we only offer the service in
capital cities, but if we see demands we will
expand to our other stores across the country.
Joint-chief executive of Shippit, Rob
Hango-Zada said his company was excited to
help solve an issue for Harvey Norman.
We worked with the retail giant to co-develop
a ship-from-store dispatch process that literally
strips hours of wasted time from the whole
shipping process for store staff.
goo.gl/TX3ZXWhnn.bz
europe update
Kingfisher gains
in sales
uct offer across the the opening of 10 new
in this business, improving stores.
update: its ecommerce capa- Kingfisher”s five-year
bilities and driving plan includes a shift
efficiencies. In this in focus to Screwfix
Strong start for quarter, the five-year stores, at the expense
Grafton plan included the of its B&Q business.
installation of a united goo.gl/B1xXBx
IT platform in all B&Q
Travis Perkins International
outlets, which was
growth
gets good done ahead of sched-
Sales growth at King-
results from ule. Ms. Laury said:
fisher was also driven
We have made a
repair buyers solid start to the by a strong perfor-
year, trading in line mance in Poland in the
13 No DIY for UK’s with expectations. In first quarter of this
addition, I am pleased year. The Polish stores
“Generation Total sales at King- 40 out of the planned
delivered 15% growth,
fisher grew 5.1% to 65. with the early progress
Rent” Kingfisher added we are making on our with like-for-like sales
GBP2.72 billion in the up a healthy 11%.
three months to April that the closure of operational milestones
They benefited from
Kingfisher gets 30, its fiscal first quar- 15% of surplus space for this year, the first
supportive market
at B&Q remained on year of our ambitious
gains on like- ter. This result is in
five-year plan. conditions and well-re-
line with expectations. track and it plans to
for-like sales The group reported close an additional 10 She also said the firm ceived new ranges.
would return GBP600 The property market
a 3.6% increase in stores.
million to sharehold- in France, which has
comparable (like-for- On a constant cur-
ers over the next three been under pressure,
like) sales in the first rency basis, like-for-
years through share drove more modest
quarter. like sales at B&Q also
buybacks. growth for Kingfisher
Sales in the UK — grew 3.6%, because
goo.gl/n6yvoa where total sales were
Kingfisher’s largest sales of indoor prod-
up 2.2%. Same-store
market which ac- ucts jumped as a result Screwfix revenue sales only rose by 0.2%,
counts for almost of colder weather. up 16% In the French market,
half of its income Items such as wallpa-
Busy tradesmen and sales at its Castorama
— increased by 1.3% per, paintbrushes and
women across the UK DIY chain were up
to GBP1.25 billion, fires sold particularly
helped Screwfix enjoy 0.2%, although same-
although like-for-like well, the company
a 16.2% rise in like-for- store sales were down
sales were 6.2% higher. said.
like sales over the last 0.9%, while trade-fo-
However sales at Chief executive Vero-
three months as more cused Brico Depot
Kingfisher’s B&Q DIY nique Laury unveiled a
households ditch DIY recorded sales growth
chain in the UK and “transformation” strat-
in favour of hired help. of 4.5% and a 1.5% in
Ireland dropped 4.2% egy in January that it
The Screwfix busi- same-store sales.
to GBP951 million, as hopes will boost annu-
ness delivered a 23.5% Sales increases in the
it continued to shrink al profits by GBP500
increase in sales to UK and Poland offset a
store numbers. A total million after investing
GBP301 million on the 4.5% decline in Russia
of 10 B&Q outlets were GBP800 million over a
back of an expanded and a 3.2% drop in
closed in the quarter, five-year period.
range of hand tools Spain.
bringing the total The plan involves
and switches and sock- goo.gl/fCFdAS
number of closures to unifying the prod-
ets on offer, as well ashnn.bz
europe Travis Perkins lifts on
better repair retail
update Builders’ merchant Carter said:
Strong start
Travis Perkins has All of our businesses
reported encouraging demonstrated good
sales growth in the growth in the first
first quarter of the quarter of 2016, driven
for Grafton
year, driven by improv- by the recovery in the
ing conditions in the RMI market and by the
repairs, maintenance investments we have
and improvements made to improve our
Concerns that UK at the unit was 11.1% where it owns strings
(RMI) markets. customer propositions
voters will opt to leave higher. In the UK, the of builder merchants
Total sales at the as part of our five-year
the European Union corresponding figures and plumbing outlets.
group, whose brands plan.
in the Brexit referen- at its merchanting In Ireland, it owns
include Travis Perkins, He added that
dum are beginning to business were 4.8% the Woodies DIY and
PTS, Keyline, CPS, the business would
weigh on the housing and 9% respectively. Atlantic Homecare
Toolstation, Bench- continue to focus
market there, accord- Merchanting sales chains, as well as
marx and Wickes, on modernisations,
ing to Gavin Slark, declined 5.2% in Heiton Buckley and
increased 5%. improving its Wickes
chief executive of Irish Belgium due to a weak Chadwicks outlets.
The company said brand and restructur-
builders merchanting economy, the impact Retailing sales
like-for-like sales were ing its plumbing and
group Grafton. of the Brussels terror- increased 2.1% on a
up 4.2% from the same heating division.
But the company ist attacks in March like-for-like basis as
quarter last year, and Wickes’ transforma-
said that despite the and sale of a readymix increased Irish em-
that overall trading tion has seen the DIY
concerns, it has had a business last year. ployment and dispos-
was in line with expec- retailer introduce one-
strong performance in Grafton made its first able incomes helped
tations. More spe- hour click and collect
the first four months foray into the Dutch Woodie’s DIY stores.
cifically, like-for-like during its latest full-
of 2016. Group rev- market last year, Looking ahead, Mr
sales per division were year, as well as a new
enue for the period buying tool distributor Slark signalled he’s
up: 4.7% in general store format. It will
rose 13.2% to GBP790 Isero. The subsidiary comfortable with ana-
merchanting, 2.2% in compete directly with
million, helped by delivered 4.7% like-for- lysts operating profit
plumbing and heating, Bunnings’ rebranded
acquisitions. like merchanting sales estimates for this
14 Like-for-like revenue growth in the report- year of about GBP147
2.1% in contracts and Homebase stores.
7.3% in consumer. Overall, trading was
at its Irish merchant- ing period. million, which would
The company”s Tile in line with expecta-
ing business climbed goo.gl/EKuktU represent almost
Giant and Toolstation tions, and the group
10.9% in the first four Grafton generates 16%growth on last
brands, which it ac- said is targeting earn-
months of the year, about 75% of its year”s result.
quired in 2007 and 2012 ings growth of around
while total revenue business in the UK, goo.gl/surDKN
respectively, also grew 10% in 2016.
their market share. goo.gl/KW4gmK
“Generation rent” don’t DIY Chief executive John
Britain’s young tenancy agreements. Mr Elliott said: buyer is now almost of dwellings rented
adults are no longer Although [overall] DIY Any further increas- 31, compared with privately has more
putting up shelves, spending has grown es in the average age 27 in the early 1990s. than doubled from
hanging wallpaper or by 42% in real terms of first-time buyers Some forecasts say 2.13 million in 2001 to
retiling bathrooms, since 1996, an increase could impede the DIY the average age of 4.74 million in 2015,
according to figures in the proportion of sector”s future growth such buyers could while over the same
that reveal DIY is in people renting in the by narrowing the be above 40 within a period the number
steep decline among UK could impact the window in which most decade. of owner-occupied
the so-called “genera- sector’s growth in the people undertake DIY The young adults properties has fallen
tion rent” who cannot future. tasks during their who do clamber onto slightly.
afford to buy and fix- Its figures, based lives. the property ladder Separately, figures
up their own home. on spending trends The figures coincid- are stretching them- from standards body
Credit card provider among millions of ed with a report from selves with ever-lon- the National House
MBNA said spending credit card customers, lender Halifax that ger mortgages, said Building Council show
by the under-30s on showed under-30s’ showed the average Halifax. It said 26% of falling house com-
DIY had fallen by a spending on DIY had age at which people first-time buyers were pletions. In the first
third since the mid- decreased by 32% buy their first home taking out 35-year three months of 2016,
90s. Mark Elliott of since 1996, to an aver- was still rising, with mortgages — up from 28,398 new homes
MBNA said: age of GBP108 a year. buyers having to take 16% in 2007. were registered in the
Generation rent At the same time on longer mortgages Figures on tenure private sector, a 7%
is usually barred 45- to 60-year-olds to manage finances. in England and Wales decrease on the 30,560
from making home had increased their Research issued by issued by the Office a year ago.
improvements by spending to an aver- Halifax reveals that for National Statistics goo.gl/9TQhNL
clauses in their age of GBP240 a year. the typical first-time show that the numberhnn.bz
usa update
Home Depot Q1
home is an investment
and not an expense,
you spend differently
in your home and you
can see that in our
in this big-ticket categories.
Research Home
update: Depot has conducted
on the next 10 years
Lowe’s Q1 indicates millennials
remain a driver of
housing-related spend-
The Home ing. Ms Tome said:
Depot’s Q1 What our research
tells us is that basically
this is a delayed cycle
Ace Hardware that the millennial
Q1 generation has many
of the same desires
15 that generations prior
Lowe’s US home improve- the first quarter of roofing, sheds and to them have. We are
Canada builds ment chain The Home fiscal 2016 were USD1.8 windows. seeing as household
its brand Depot reported an in- billion, or USD1.44 per The big box retailer’s formation goes up,
crease in first quarter diluted share, com- online business grew roughly a third or so
comparable (same- pared with net earn- 21.5% in the most of those formations
Lowe’s serves store) store sales and ings of USD1.6 billion, recent quarter. are happening with
up Porch raised its full-year or USD1.21 per diluted With USD4.7 billion millennials at that age
earnings guidance. share, over the pcp. of revenue in 2015, group. It appears there
The management For the first quarter Home Depot is one of is about a six-year
team attributed of fiscal 2016, diluted the 10 largest e-com- delayed cycle here, but
better-than-expect- earnings per share merce businesses in our research indicates
ed results to market increased 19% from the United States. that in many ways,
share gains, produc- the pcp. The underlying they will act the same
tivity improvements Home Depot now strength of the hous- as previous genera-
and a strengthening expects fiscal 2016 ing market is helping tions.
housing market. sales growth of ap- to drive increased The average age
Home Depot said proximately 6.3% and store traffic. Home De- of new homebuyers
its 2016 first-quarter comp sales will be up pot’s CFO Carol Tome last year was 33 years
sales totalled USD22.8 approximately 4.9%. said people continue old. So that is a proof
billion, up 9% from Ted Decker, execu- to spend more on their point. At some point,
USD20.9 billion for tive vice-president homes. they want to own a
the previous corre- — merchandising said We’ve seen home home too.
sponding period (pcp), that during the first equity values increase Ms Tome also point-
and better than the quarter, transactions 94% since 2011. How is ed to productivity
USD22.3 billion ana- for tickets under that possible? Because improvements under-
lysts expected. USD50 were up 2.7%. home prices are up to way, including a new
Comparable store Transactions for tick- 25% and people have software project called
sales for the first quar- ets over USD900 were been continuing to pay Project Sync that’s
ter were up 6.5% from up 9.5% in the first down their mortgages. aimed at optimising
last year, and comp quarter. The drivers So there is a wealth the company’s supply
sales for its US stores behind the increase effect that’s occurring chain.
increased by 7.4%. in big-ticket purchas- with homeowners. goo.gl/LNyv3t
Net earnings for es were appliances, If you feel like yourhnn.bz
usa
update
Lowe’s Q1: Same-store up Lowe’s Canada seeks
to build brand
Lowe’s Canada is focused on becoming the
top choice of shoppers following its takeover
of Rona. Chief executive Sylvain Prud’hom-
me told the Globe and Mail:
We believe we can become the No. 1 choice
for home improvement retail in Canada.
The CAD3.2 billion transaction will create a
chain with 539 stores, with over CAD6 billion
in annual revenues and 28,000 employees.
Lowe’s, which launched its first stores in
Canada in 2007, had only 43 big box out-
lets compared with 496 Rona stores under
different banners and in different sizes. But
neither Lowe’s nor Rona was as familiar a
name in Canada as the No. 3 player, Home
Hardware, according to industry observers.
Now, as Lowe’s Canada takes over the larg-
For the first quarter, million for the quar- 6%, including the 53rd er Rona, it believes it can finally bolster its
Lowe’s said total sales ter, up from USD673 week. Lowe’s also ex- brand awareness along with its business.
were USD15.2 billion, million and a 31.4% pects comparable store Michael McLarney, president of industry
up 7.8% from USD14.1 increase from the pre- sales to rise 4%. publication Hardlines, said Home Hardware
billion during the same vious corresponding CEO Robert Niblock has enjoyed stronger consumer awareness
quarter last year. period (pcp). reiterated Home than either Lowe’s or Rona, partly because
Comparable store Diluted earnings per Depot’s belief that of its catchy advertising slogans over the
16 sales climbed 7.3%, share increased 40% to millennials represent years. He said:
topping analysts’ 4.3% USD0.98 from USD0.70 a “great opportunity” Home Depot may have the biggest sales but
prediction. And US over the pcp. since they have been Home Hardware still has the biggest brand
same-store sales at Based on this per- renting for so long but awareness.
Lowe’s rose 7.5%, edg- formance, the home have said in recent Lowe’s has set aside capital required to
ing out Home Depot improvement retailer surveys that they wish upgrade Rona’s less mature e-commerce
for the first time in a lifted its guidance for to own their own home network, Mr Prud’homme said.
decade. the year. For 2016, total one day. goo.gl/hFdbIA
Lowe’s posted net sales are expected to goo.gl/v9TjPi
earnings of USD884 increase approximately
Lowe’s offers services through Porch and ATGStores.com
chelle Newbery said: The Porch Retail customers.
ATGStores.com is Solution implementa- By offering the Porch
committed to ad- tion to ATGStores.com Retail Solution on
dressing consumers’ points to the expan- ATGStores.com, we
home improvement sion of the existing believe customers will
needs from concept to Lowe’s and Porch part- find the additional
completion. With the nership, which brings support they need to
Porch.com is provid- tomers in 25 markets Porch Retail Solution, Porch services into all complete all of their
ing installation and across the US. It allows we are delivering a Lowe’s US stores and home improvement
assembly services to homeowners to book more robust service includes advertising projects.
Lowe’s ATGStores.com home improvement experience that makes on Lowes.com. Jay Lowe’s acquired
through the Porch assembly and instal- online shopping and Rebello, vice president ATGStores.com as an
Retail Solution. Porch lation as an add-on to home improvement of emerging business independent, wholly
is a home services their product selec- stress-free. at Lowe’s said: owned subsidiary in
platform that con- tion such as lighting, All Porch profession- Our partnership with 2011.
nects homeowners to furniture and plumb- als who complete jobs Porch is a valuable goo.gl/kepKgg
home improvement ing. These services booked through ATG- asset and anoth-
professionals. can now be added to Stores.com are local to er way we provide
The Porch Retail the cart at the online customers’ geographic personalised care and
Solution is available checkout. ATGStores. area and backed by solutions to both our
to ATGStores.com cus- com president Mi- Porch’s guarantee. DIY and professionalhnn.bz
usa
update
Ace Hardware Q1 2016
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Ace Hardware Cor- of 2015. Nevertheless, Retail revenues from
poration posted first all four of our pillars Ace Retail Holdings
quarter 2016 revenues of growth are ahead (company-owned
of USD1.2 billion, an of plan including Ace stores) were USD50.6 or go to:
http://goo.gl/lHPt57
HI
increase of USD50.7 Hardware Domestic, million in the first
million or 4.3% from Ace Hardware Inter- quarter of 2016. This
the first quarter of national Holdings, Ace was an increase of
2015. Retail Holdings and USD4.3 million, or
However net income Ace Wholesale Hold- 9.3%, from the first
was USD26.1 million ings. quarter of 2015. Same-
for the first quarter A 2.2% increase in store-sales increased
of 2016, a decrease of same-store-sales has 4.4% compared to the
USD3.8 million from been reported by the first quarter of 2015.
the first quarter of approximately 3,000 Ace added 24 new
2015. The compa- Ace retailers who domestic stores in
ny said this was a share daily, retail sales the first quarter of
planned reduction data. This was primar- 2016 and cancelled 33
due to the timing of ily the result of a 2.9% stores. This brought
promotions. John increase in average the company’s total
Venhuizen, president transaction size. domestic store count
WEEKLY
and CEO said: Increases were noted to 4,302 at the end of
Our first quarter was across categories such the first quarter of
marked by modest rev- as outdoor living, with 2016, an increase of 50
enue growth compared electrical and tools stores from the first
to the 10% increase showing the largest quarter of 2015.
in the first quarter gains. goo.gl/cnstVlhnn.bz
19
Is Aussie DIY TV
Over?
Does the rapid crash and burn of Channel
Nine’s former hit DIY TV series “Reno Rum-
ble”, plus the slow ratings on the most recent
season of Channel Seven’s “House Rules”,
indicate that the Australian audience’s love of
DIY TV has run its course? If that is the case,
what marketing alternatives can the home
improvement industry look to in the future?hnn.bz
History
To understand what is going on with TV and home im-
provement, it’s a good idea to look at the development of DIY
TV, its influences, and how new cultural and technological
influences changed its appeal.
Origins: Boston
If you were looking for the “point of origin” for modern
DIY/renovation TV, you would likely pick a little show that de-
buted on a public TV station in the US city of Boston in 1979.
“This Old House”, as its humble name declared, was about
fixing up the older house so as to make it a little bit more Signs of trouble
• Channel Nine’s “Reno Rumble”
liveable. Boston had a lot of old houses, and it also had a lot of DIY TV show, produced by the
families that really couldn’t afford to hire people to fix them same team as “The Block”, deliv-
up. The show proved popular as a result -- so popular that it ers dismal ratings in its second
season, and is shifted to a non-
was picked up by the national Public Broadcasting System
prime time slot.
(PBS) in the US the next year, and broadcast nationally. • Channel Seven’s “House Rules”
The show went on to win 18 Emmy awards. It was acquired in its fourth season has ratings
slightly below those of the third
by Time-Warner (then Time Inc.) in 2001. Today it has evolved season, and far below those of
into what is described as a “multi-faceted lifestyle brand”, in- the second season.
cluding a monthly magazine, ongoing TV series, and websites. • The mid-season audience rat-
ings for “The Block” fell by 37%
The BBC does one better between Season 4 and Season 10.
Not to be outdone, pubic broadcasting in the UK through Season 11 recovers only 15% of
that drop.
the BBC also developed some variants on the “home fixit”
Long term problems
show. One of the most influential and entertaining of these • Reality TV in general losing
20
was the show “Changing Rooms”, which ran from 1996 to relevance and dwindling in
2004, and sparked a number of syndicated versions in the US popularity.
• Relevance of “The Block” to av-
and Australia. erage DIY/Renovation projects
“Changing Rooms” had a crucial influence on the DIY TV decreasing.
• Competition from multiple
that was eventually to develop in Australia. What made the
US-based renovation TV shows,
show so interesting was that it wasn’t just about how to fix available daily.
up rooms to make them look better; it was as much about • Increased consumption of
social interactions as well. The premise was that two fami- online-only DIY and drama
content.
lies, who knew each other, would agree to fix up one room in The Future
the other family’s house. Each family would be assigned an • Online will dominate home
interior designer to help them out, and they would be given a improvement marketing by 2019.
• If Season 12 of “The Block” fails
set budget, which eventually reached GBP750 (about GBP1175
to revive its ratings, this will
or $2400 in today’s money). accelerate that trend.
It was a show that appealed to the British love for mo-
ments of social awkwardness. Sometimes both families loved
each other’s efforts, but sometimes there were disappoint-
ments, and consequent embarrassment and recriminations.
Australia
Australia has had its share of “regular” DIY TV, with Chan-
nel Seven’s long-running and high-rating “Better Homes and
Gardens” the standard bearer for this category, backed-up
these days by Channel Ten’s “Living Room”. However, the
real power shows, Channel Nine’s “The Block” and Channel
Seven’s “House Rules” have each drawn more from “Changing
Rooms” than they have from “This Old House”.You can also read
