Wednesday, September 25, 2013
Home Center Operators Bolstering Remodeling Business
TOKYO (Nikkei)--Major home improvement chains are strengthening their remodeling businesses, hoping to tap demand from customers rushing to beat the consumption tax hike scheduled for next April.
Komeri Co. (8218) in November will establish a subsidiary to oversee remodeling. The home center operator will also increase the number of stores offering remodeling services to 350 this fiscal year from 310 at the end of fiscal 2012.
Next month, Cainz Home will relaunch a promotional campaign featuring interest-free loans for remodeling projects worth at least 998,000 yen. The campaign, which ran successfully in July and August, will run through mid-December. The company is expecting a 50% jump in remodeling-related sales in the year ending February 2014.
In the current fiscal year, industry leader DCM Holdings Co. (3050) has dedicated large floor spaces to home remodeling and furniture at three stores in Hokkaido and Iwate Prefectures through its Homac Corp. unit. Kohnan Shoji Co. (7516) plans to move remodeling sections to more prominent locations in virtually all of its home improvement centers, and is developing private-brand housing products with home furnishings manufacturers.
(The Nikkei, Sept. 25 morning edition)