Cashbuild only growing through new stores

The South African home improvement and building materials retail group Cashbuild increased its sales in the first six months of the current fiscal 2017/2018 (July to December 2017) by 4.5 per cent to ZAR 5.405 bn (EUR 371 mio). Of this sum, ZAR 4.271 bn (EUR 293 mio) was attributable to the Cashbuild chain, a rise of 3.2 per cent compared with the same period in the previous year. The builders' merchants in the P&L Hardware distribution channel recorded sales of ZAR 583 mio (EUR 40 mio), equivalent to growth of 16.5 per cent. A sales volume of ZAR 321 mio (EUR 22 mio) was achieved in Namibia, Swaziland and Lesotho, while activities in Botswana, Malawi and Zambia yielded a further ZAR 229 mio (EUR 15 mio). The company has reported that the overall increase in sales is due solely to the addition of 39 stores to the branch network compared with July 2016. In the second half of 2017, ten new Cashbuild stores and twelve P&L outlets were opened. As of the end of the year, the company operated 317 stores, including eight stores in DIY format and 58 under the P&L Hardware brand.