Once the bubble pops and appreciation is a thing of the past (as it is here in the UK), home renovation dries up real fast. Why put $$$ (or £££) into a place that you know won't get a return on investment?
B&Q is getting hammered. And Home Depot will be too. I know some builders in Phoenix get all of the supplies for building a home at Home Depot (wood, etc) so it's not just improvement but actual home building too that'll kill HD
LONDON (Reuters) - Kingfisher, Europe's largest home improvement retailer, saw no let-up in the recent poor performance of its B&Q chain during the fourth quarter, the company said on Thursday.
For the 13 weeks to January 28, like-for-like sales at B&Q fell 9 percent compared with an 8.4 percent drop in the third quarter and a 7 percent drop in the first half.
Analysts were expecting a decline of 7 to 9 percent and are not anticipating a recovery at B&Q until well into the 2006/7 financial year.
"The UK home improvement market remains depressed and price competitive," said Chief Executive Gerry Murphy.
The DIY sector has been struggling to boost sales in a weak housing market and Kingfisher is suffering after opening too many big stores during the market's boom years.
February 16, 2006
Posted by blogger at 2/16/2006