Cashbuild suffers damage to 36 stores

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Cashbuild suffers damage to 36 stores

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Published Date: 2021-07-15 | Source: INCE|Community | Author: The Finance Ghost

Cashbuild suffers damage to 36 stores

As at December 2020, Cashbuild operated 258 Cashbuild stores and 58 P&L Hardware stores. The looting has damaged and shut down 32 Cashbuild and 4 P&L Hardware stores.

That's 12% of the Cashbuild footprint and 7% of the P&L Hardware footprint.

The announcement isn't entirely clear, but I interpret it to say that a further 33 stores were closed as a precautionary measure. This is obviously temporary.

Cashbuild intends to rebuild, restock and restore the affected stores. Of course, there's no indication of timelines at this stage.

In a truly macabre thought, Cashbuild does have a mitigating factor for its sales. A lot of rebuilding needs to take place by people who would otherwise not have been customers.

The net impact on sales is going to be an interesting one to estimate. I can't believe I'm even writing this sentence, but Cashbuild is probably the most defensive retailer of them all against looting and widespread destruction.

Ugh.

It seems I'm not the only one who had this thought, with the share price closing 2% higher yesterday vs. last week Friday before the chaos began.





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