It's already happened here in the UK with B&Q (they're the Home Depot of the UK) - with results.
When your bubble bursts, no more contractors stocking up on supplies. No more DIY'ers buying equipement to refurb for a quick flip. No more no more.
Stores will close. People will get layed off. Items will be discontinued. And their stocks will plummet.
Take it to the bank, Banker.
Kingfisher paints dismal picture of B&Q's prospects
Analysts warned forecasts for this year looked vulnerable after the group said the home improvement market had deteriorated since the start of the year.
Gerry Murphy, the chief executive, said a "dramatic downturn" in the UK do-it-yourself market, which was the weakest in 10 years, was behind the collapse in profits at B&Q.
In the 12 months to 28 January, retail profit at B&Q fell 52 per cent to £208.5m.
Analysts at CSFB, the company's broker, said: "We believe the UK business has not yet bottomed out and talk of a recovery is very premature."
March 22, 2006
Posted by blogger at 3/22/2006