DIY Multiples Market Report - UK 2012-1016 AnalysisAMA ResearchMay 16, 2012 92 Pages - SKU: AJLA3914824 |
Additional Information
The UK DIY multiples market was worth just over £7bn in 2011, illustrating a static market over the last three years.Following the economic decline in 2008, falling house prices, low consumer confidence and a low level of house moves particularly affected ‘big ticket’ items such as kitchen and bathroom installations during 2008 and 2009. Lower levels of equity withdrawal following tighter mortgage restrictions, which funded a large proportion of major home improvement projects prior to the economic downturn also impacted on the market.
The market took a slight upturn in 2010, supported by both new work and RMI in the domestic sector, with slightly higher sales of big ticket items. However, the economic situation, high inflation and living costs continue to influence the market, impacting on high value home improvement projects in particular, with lower levels of sales in 2011 and early 2012.
Consumers have been saving or repaying debts and mortgages rather than undertaking major DIY projects. Consequently there has been a focus on essential or smaller scale DIY tasks and jobs in 2011, rather than higher value, large scale home improvement projects. Following the growth of GSI (Get Someone In), more consumers are now undertaking lighter DIY tasks themselves in order to save money. The DIY multiples have responded with project guides and DIY classes. The trend towards ‘grow your own’ and ‘improve, don’t move’ has supported sales in some sectors of the garden and leisure market, along with the home furnishings and decorating sectors.
Performance has varied significantly between product sectors, with some such as Lighting & Electrical, garden leisure, horticulture and wallcoverings performing relatively well, while others such as kitchens and bathrooms have been weak.
The market for DIY and Home Improvement products has become increasingly competitive, with greater competition from rival retailers such as grocery multiples and High Street stores. The increased prominence of other retailers selling home and DIY products, particularly the grocery multiples, such as Asda and Tesco with their huge buying power and store numbers are driving the level of price competition.
The grocery multiples are continuing to expand into the DIY and home furnishings sectors, with Asda and Tesco increasing their range of products in these sectors during the last year. These Multiples are capable of competing on price with the DIY sector, therefore an extensive store network, wider product ranges and the ability to offer value for money is likely to become increasingly important in order to compete effectively.
The performance of the DIY sector in the short term is largely dependent on the economic rate of recovery and the influence this has on consumer confidence and spending. The economic situation remains uncertain and consumers are likely to remain cautious until there are signs of sustained recovery along with an avoidance of significant interest rate rises.
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