AUSTRALIAN HARDWARE JOURNAL
| JUNE 2017
associates worldwide. It also has a promi-
nent market position in architectural
paint in North America, South America,
China, Australia and the UK.
In industrial coatings, the combined
company is a global market leader in
packaging coatings, coil coatings, gen-
eral industrial coatings and industrial
In May Sherwin-Williams filed a Cur-
rent Report on Form 8-K containing unau-
dited 2016 pro forma financial statements
reflecting the acquisition of Valspar.
Sherwin-Williams expect to achieve
$320 million of annual run-rate syner-
gies in the areas of sourcing, SG&A and
process and efficiency savings, within
three years. The company also expects this
transaction to be immediately accretive to
earnings (excluding one-time costs) and
to meaningfully increase the company's
operating cash flow.
financial results for the second quarter
ended June 30, 2017 on July 20.
David Haydon to be new
David Haydon is now head of Homebase
in Great Britain. This has been announced
by the Australian DIY chain Bunnings,
which took over Homebase last year and
wants to gradually convert its stores to the
Mr Haydon joined the business in late
June, with responsibility for running the
Homebase business. Joining the Bun-
nings UK and Ireland leadership team,
he will report to Managing Director PJ
Davis. He will also sit on the company's
With over 25 years experience working
with retailers in the UK and Australia, Mr
Haydon joins from Officeworks, a part of
Bunning's parent company Wesfarmers
Group, where he has worked for over four
years as a member of the leadership team.
Prior to Officeworks, he was Commer-
cial andMarketing Director for Kingfisher
Plc's international businesses, overseeing
commercial and marketing strategies for
high-growth markets including China,
Poland, Russia and Turkey.
His experience also includes time at
B&Q as both Director of Trading and
Director of Commercial Strategy, and in
other large retail organisations including
Wickes and Superdrug.
Surging online sales growth
The rate of online sales is surging ahead
of expectations and will account for more
than a third of multi-channel retailers’
sales by 2018, according to new research
by the Commonwealth Bank.
The study of retail channels to market
also shows only one in five merchants use
third party sites to attract customers and
this is likely to increase as they ready for
the local arrival of Amazon.
The latest CommBank Retail Insights
Report reveals online transactions have
increased by 61 per cent for multi-channel
retailers since August 2015, when the bi-
annual study was first taken, and now
account for 29 per cent of all industry sales
by volume. Multi-channel retailers predict
this figure will rise to 35 per cent over the
next 12 months.
Retailers maintain a bullish out-
look for online sales and yet may be
underestimating future growth, as they
have previously, according to National
Manager, Retail Industry, Commonwealth
Bank, Jerry Macey.
“They forecasted 24 per cent growth
during 2016 compared to actual growth
of 32 per cent. Many retailers are realis-
ing the benefits of a true multi-channel
strategy to drive traffic both online and
in-store. And to maintain their growth,
retailers continue to adjust their strategies
to adapt to changing market conditions
such as the pending arrival of Amazon,”
Mr Macey said.
“We are seeing the more conventional
digital marketing and sales channels like
email and mobile apps drop off consider-
ably, as retailers focus on those channels
that are not only the most profitable, but
can actually improve customer engage-
ment, convenience and foster loyalty.”
“Only a fraction of retailers are lev-
eraging third party sites as a sales chan-
nel currently, and we expect that may
change as Amazon’s platform rolls out
in Australia. Our research shows that 11
per cent of retailers see Amazon’s entry
as an opportunity and of these busi-
nesses, the vast majority (68 per cent)
see the potential for new sales channels,”
While a company owned website
remains the primary online sales channel
for most retailers, 22 per cent are using
third party websites to sell products and
only seven per cent of Australian retail-
ers are using third party sites as their sole
sales channel, he also pointed out.
A further jump in online sales is expected in the next 12 months, according to the Commonwealth Bank.