IKEA to expand presence in Poland
Polish developer Inter IKEA Centre Polska — part of the IKEA group — will soon begin construction on a large shopping center in Lodz, Poland, according to a report in the Warsaw Business Journal.
Called Port Lodz, the 127,000-square-foot shopping center is expected to be completed by the fourth quarter of 2009 and will represent the Swedish retailer’s seventh property in Poland.
The new shopping center — anchored by a 33,000-square-foot IKEA store — will also house more than 270 stores and service shops.
“Port Lodz will be a unique project,” Renata Burejza, public relations and marketing manager at Inter IKEA Centre Polska, told the newspaper. “Unlike the rest of our centers in Poland, it will not be a retail park but rather a more traditional shopping center in which the whole retail space is contained in a single building.”
Lowe’s sees earnings drop on rough housing market
Lowe’s saw earnings drop on a rough housing market, with comparable-store sales taking a hit — although the company’s CEO said he believes impending federal stimulus initiatives could help jumpstart sales in the coming months.
Earnings fell 33.4 percent to $408 million in the quarter, from $613 million last year. Sales were down 0.3 percent to $10.38 billion compared with $10.4 billion last year.
For the full year, earnings were down 9.5 percent to $2.81 billion compared with $3.1 billion last year. But for the year, sales rose 2.9 percent to $48.3 billion from $46.93 billion in 2006.
Comparable-store sales dropped 7.6 percent in the fourth quarter; while for the full year, comparable-store sales were down 5.1 percent from last year.
In a statement, Lowe’s president and CEO Robert Niblock said the fourth quarter fell short of the company’s financial plans, as “we faced an unprecedented decline in housing turnover, falling home prices in many areas and turbulent mortgage markets that impacted both sentiment related to home improvement purchases as well as consumers’ access to capital.”
Niblock went on to say the retailer expected further turbulence in 2008 and predicted sales would remain soft.
“We remain focused on what we can control,” he said, namely customer service initiatives and managing expenses. He also credited interest rate cuts and an impending economic stimulus initiative by the federal government for helping improve the home improvement retail outlook.
“As a result [of those initiatives] many of the headwinds facing the housing market and the home improvement industry should lessen, and consumers’ confidence in investing in and improving their homes should improve,” he predicted.
During the quarter, Lowe’s opened 72 new stores, including two relocations. As of Feb. 1, the retailer operated 1,534 stores in the United States and Canada.
Orgill focuses on expansion at show
Orlando The 2008 Orgill Spring Dealers’ Market, held last week in Orlando, Fla., included news the hardlines distributor was expanding, with a new distribution warehouse opened in Kilgore, Texas, and two more planned for the Pacific Northwest and Midwest, as earlier reported by Home Channel News.
The show also focused on expanding product lines, new dealers, vendor presence — on the show floor and also in the warehouse — and new products.
“We had, I think, 225 new dealer prospects, which is one of the gauges of an event like this for us,” explained Ron Beal, president and CEO of Orgill.
“We’ve got a good representation of dealers from all different parts of the ‘three-legged stool’ there (hardware stores, home centers and pro-dealers),” he added.
Beal said that in light of the tough housing market, he was pleasantly surprised by the show’s turnout.
Orgill also expanded some of its own product lines.
“We’ve redone a lot of our core areas, electrical plumbing, and really have some exciting things going on,” said Beal.
Beal also mentioned a new ‘green’ section that was prominent on the showroom floor. “This is the first time we’ve ever focused on it,” he said. Beal noted that ‘green’ is something Orgill has been hearing its members request more and more, and while the focus on green at the Orlando show wasn’t large, the company plans to expand on it.
“We’re really going to splash green at our Chicago show,” said Beal. “We’re aware of it. It’s real. We’re working on things, and we know it’s an opportunity.”