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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

wood coatings.

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.

Sherwin-Williams

will

announce

financial results for the second quarter

ended June 30, 2017 on July 20.

David Haydon to be new

Homebase boss

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

Bunnings concept.

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

steering committee.

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.

Source:

www.diyinternational .com

Surging online sales growth

outpaces expectations

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,”

he said.

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.

NEWS

A further jump in online sales is expected in the next 12 months, according to the Commonwealth Bank.