Cashbuild lifted by new stores


Cashbuild lifted by new stores

Published Date: 2019-04-12 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Cashbuild lifted by new stores

Third-quarter growth at the building materials retailer was driven entirely by the new stores opened or acquired since the start of its 2018 financial year.

Cashbuild has opened or acquired 32 new stores over the past couple of years. And its entirely due to them that the building material retailer managed to grow third-quarter sales in an environment that remains tough.

In an operational update, it reported a 3% rise in revenue for the three months to end-March from a year earlier. Revenue from the 286 stores in had before 1 July 2017 was flat, with growth coming from the Cashbuild and P&L outlets it's opened since then. Financial year to date, revenue is also 3% higher due to the new stores.

Transactions through its tills during the third quarter increased by 1% from the comparative period, with the new stores ringing up 3% more sales and its existing stores reporting a 2% decline. It raised prices by 3% from a year earlier and said its gross profit margin was at a similar level to December's.

During the period, it closed one Cashbuild DIY store and one of the P&L Hardware stores it acquired as their leases expired. It now has 318 stores in total.

Its shares closed 0.6% higher at R259 yesterday.

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