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Byggmax laments sales downturn due to hot summer

Byggmax Group is transforming Skånska Byggvaror  to a "garden living" assortment.

Byggmax Group is transforming Skånska Byggvaror to a "garden living" assortment.

A marked downturn in sales has been reported by the Swedish Byggmax Group for the third quarter. Compared with the previous year, net sales from July to September declined by 5.5 per cent to SEK 1.7127 bn. Like-for-like sales were down by 12.6 per cent.

The Skånska Byggvaror distribution channel is chiefly responsible for the substantial downturn, losing 33.3 per cent of sales. According to the company, the main reason was the transformation of this channel to a "garden living" assortment. Sales by the Byggmax channel were down 1.6 per cent compared with the same quarter in 2017, business generally having been adversely affected by the hot summer, according to the quarterly report. The Byggmax management is assuming a decline of sales of between 4 and 6 per cent for the DIY market in the Nordic region as a whole. Apart from Sweden, the group operates in Norway, Finland and Denmark.

After the first nine months of 2018, group sales are 6.0 per cent below the corresponding level for the previous year at SEK 4.1093 bn. Like-for-like sales are down by 12.6 per cent. During this period, too, the Byggmax stores fared better at -2.4 per cent than Skånska Byggvaror at -29.0 per cent.

A faster rate of expansion of the Byggmax distribution channel is expected to improve the situation. So far this year 15 new stores have opened and the number should rise to 18 by the end of the year. Of these, six are in the smaller format for smaller cities. The garden concept has been implemented in eleven stores. Both formats are expected to form part of the portfolio in future.

|19 October 2018


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