Cashbuild targets new stores
Building materials retailer upbeat on recovery in retail market but is braced for ‘extremely challenging’ conditions
Building materials retailer Cashbuild is taking a bet on the recovery of the retail market and will stick to its expansion strategy by adding another 20 stores in its 2019 financial year. The new stores, 10 each for Cashbuild and recent acquisition P&L Hardware, will ignite Cashbuild’s growth prospects in a gloomy retail environment that hit the retailer’s earnings and profit in the year ended June 30. In a depressed market and amid deteriorating financial performance, new stores boost Cashbuild’s revenue. "Revenue for the stores that were in existence since July 2016 remained at similar levels to last year, with the 42 new stores opened since then largely responsible for the 5% increase [in revenue in the 2018 financial year]," Cashbuild CEO Werner de Jager said on Tuesday.
The group, which sells directly to cash-paying customers, is also suffering the effects of a slowdown in home-building activity for middle-to lower-income consumers. The continuation of the store rollout i...