UKregion AnnualReport2015 Nobia2015 Operations Sustainability Financialstatements CorporategovernanceandtheNobiashare POSITION AND MARKET TREND NobiaisaleadingplayerintheUKkitchen marketandoperatesinallmarketsegments.Nobiahasownstoresthrough Magnet,ofwhichthemajorityaretargeted atbothconsumersandbuilders.Onthe projectmarket,Nobiasupplieskitchens tocompanieswithinpropertydevelopmentandresidentialconstructionmainly viaCommodoreandCIEbutalsoMagnet, andsuppliessocialhousingviaRixonway. NobiaalsosupplieskitchenstoUKDIy andbuildingmaterialschainsviaGower andInteriorSolutions. DemandintheUKkitchenmarketgrew forthethirdyearinarowduring2015, althoughvolumesremainedatalower levelthantheywerebeforetheextensive contractionofthemarketfollowingthe financialcrisis.Competitionwasfierceand growthmainlyincreasedinthelow-price segments.Consumerdemandandsalesto privately-financednewbuildsincreased, whileinvestmentinsocialhousingrenovationsubsidedasaresultofreducedpublic financialaid. BRANDS AND OPERATIONS Magnetisanationwidekitchenchain thattargetsUKconsumersandprofessionalbuilders.MagnetistheUK’slargest kitchenbrand,offeringsupply-onlyand fully-installedkitchensolutionsinthemidpricesegment,withafullserviceproposition.Attheendof2014,thecorerange ofrigidkitchenswasexpandedtoinclude anofferingofready-to-assemblekitchens, SimplyMagnet.Afullrangeofkitchen productsiskeptinstockforbuilders,while arangeofdoors,windowsandaccompanyingjoineryproductsisalsooffered. Gower and Interior Solutionsmanufactureandsupplyready-to-assemble kitchenstoretailersoperatingintheUK buildingmaterialstradeandtoDIychains. Alongsidekitchenproducts,retailersare providedwithfullcategorymanagement service,whichentailsservicewithin-store displays,productdevelopmentandstaff training. Rixonwayisaleadingsupplierofkitchen solutionsforsocialhousingintheUK.The kitchensareintheeconomysegmentand areprimarilysoldtoconstructioncompaniesandpurchasingorganisations,butalso viaalargenumberofbuilders’merchant stores. Commodore and CIEsellkitchensto companiesactiveinprivatedevelopment andresidentialconstruction,primarily inLondonandSouthEastEngland.The kitchensolutionssoldbyCommodoreare self-manufacturedandpositionedinthe mid-pricesegment,whileCIEisakitchen retailerintheluxurysegment. OWNKITCHENSSTORES SALESPERPRODUCT,% SALESCHANNELS,% 206 Kitchenfurnishings,suchas cabinetsandworktops,69 Otherkitchen equipment,installation andservice,19 Joineryproducts,12 KitchenspecialistRetail,30 KitchenspecialistTrade,27 Builders’merchants/ DIychains,29 Project,14 7storeswereopenedduringtheyear and9closed. 19
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