DIYWEEK.net

Average transaction values were down 2.4% "as customers switched purchases between product categories" at Grafton Group-owned Irish retailer Woodie's DIY during the 10 months to October 31, 2012.
Grafton, which owns a number of DIY retail and builders merchant operations in the UK, Ireland and Belgium reported an overall revenue increase of €100m for the year to October 31, 2012. This brought its income to €1.83bn, but the results also revealed its Irish retail turnover decreased by 10.1%.

The unseasonably wet weather over the second quarter was blamed for Woodie's 18% decline in revenue. Bosses at Grafton reported: "The decline in revenue from gardening products ahead of the trend rate in other product categories accounted for an estimated €1 million of the increase in the operating loss in the period.

"The business generated an improvement in gross margin from procurement gain and targeting the source of stock shrinkage that partly offset the impact of lower turnover. It also maintained its competitive price position as the leading retailer of DIY and garden products in the Irish market. New ranges of power and hand tools, timber flooring, floor tiles and lighting introduced last year performed well and product ranges were broadened in a number of categories.

"In a weak consumer market, the business focused on self-help measures that increased the gross margin, maintained tight cost control and improved working capital efficiency."

Grafton said the rate of decline in its retail leg eased in the July to October period to 6.5% from 12.4% during the first half, when "demand for seasonal products was as expected less affected by adverse weather conditions."

In June 2012 an Examiner was appointed to Atlantic Home Care Ltd, a 13-store DIY retail division of Grafton's. Following this, two stores were earmarked for closure (Limerick and Newbridge) and agreement has been reached with all but one of the remaining landlords to reduce store rents to current market levels. The retailer formally exited Examinership in September and Grafton predicted the business would "return to trading profitably."

The group said it was on course to report a full year operating profit "at the higher end of market expectations", adding: "increased operating profit was achieve in the ten months to October, despite difficult markets, through a disciplined focus on self-help measures."