Slowdown in consumption begins to bite

The DIY and garden stores operated by Baywa recorded sales of € 347 mio for the first three quarters of 2008, which amounts to nearly 2 per cent less than the same period last year. The company attributes this development to the continuing slowdown in consumption, and closures in the course of location streamlining. The aggregate building segment actually achieved sales of approx. € 1.35 bn, or an increase of 5.7 per cent. Apparently the growth here came from the builders’ merchant side, and chiefly from the area of repairs and renovations. By contrast, new-build activity remained weak. Altogether the Baywa group of companies generated sales of approx. € 1 bn in the builders’ merchant division, which amounts to an increase of 8.6 per cent.