DIY Retailing - UK - May 2014

INTRODUCTION
A bounce back, but one dependent on the housing market
Consumer questions
More data, better content
Defining DIY
Definitions
Specialists sector
Financial definitions
VAT
Exchange rates
Sales per store, sales per sq m
Abbreviations
EXECUTIVE SUMMARY
The sector: 2014 set to be another robust year
Figure 1: Total DIY/hardware specialists’ sector size (incl. VAT), 2008-18
Companies, brands and innovations
Market shares: major players lose share
Figure 2: Leading DIY generalist and specialist retailers’ shares of spending on DIY, 2013
Innovations
Online: Sector sales surge in 2013
Figure 3: Share of online sales by DIY specialists, 2013 (est)
The consumer
Where they shop: 80% have bought in the last year
Figure 4: The consumer: DIY retailers used in the past 12 months, in-store and online, March 2014
DIY products bought: Decoration and garden top the list
Figure 5: The consumer: DIY/home improvement products bought in past 12 months, March 2014
Plans for the year ahead: 82% plan to improve their home
Figure 6: The consumer: Plans for the year ahead, March 2014
Preferred stores: Specialists versus non-specialists
Figure 7: The consumer: Type of stores preferred for DIY, March 2014
Figure 8: The consumer: Reasons for DIY store preference – specialists, March 2014
Figure 9: The consumer: Reasons for DIY store preference – non-specialists, March 2014
Attitudes towards doing DIY: Renters keen to do DIY
Figure 10: The consumer: Attitudes to DIY, March 2014
What we think
ISSUES AND INSIGHTS
Targeting old and young at the same time
The facts
The implications
Integrating online and in-store: the lessons from Screwfix
The facts
The implications
The growing role of renters
The facts
The implications
DIY is recovering but will remain below its peak
The facts
The implications
TREND APPLICATION
Trend: Minimize Me
Trend: Return to the Experts
Mintel futures: Access Anything, Anywhere
MARKET ENVIRONMENT
Key points
Surging housing market
Figure 11: Annual % change in number of completed residential property transactions and retail sales through DIY specialists, monthly, January 2012-March 2014
Figure 12: Number of completed residential property transactions per month, January 2007-March 2014
Consumer confidence and spending power: positive signs
Figure 13: Consumer confidence levels, May 2013-April 2014
Figure 14: Annual % change in average weekly earnings versus annual % change in consumer prices, January 2010-February 2014
Seasonality
Figure 15: DIY specialists sector sales, monthly, January 2012-March 2014
Ageing: A long-term threat?
Figure 16: Composition of UK population by age group, 2008, 2013 and 2018
Inflation in DIY categories
Figure 17: Consumer prices index: annual % change, DIY categories, annual, 2009-13
Figure 18: Consumer prices index: annual % change, DIY categories, monthly, March 2013-March 2014
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
CONSUMER SPENDING ON DIY PRODUCTS
Key points
Mintel market size: 2014 expected to be another strong year
Figure 19: DIY products – market size (incl. VAT), 2009-14
Breakdown by category
Figure 20: DIY products market size breakdown, 2013
Spending breakdown, 2009-14
Figure 21: Consumer spending in detail (incl. VAT), 2009-14
Mintel’s market size
SECTOR SIZE AND FORECAST
Key points
Segmenting the sector
Sector set for another year of 5% growth
Figure 22: Total DIY/hardware specialists’ sector size (incl. VAT), 2008-18
Figure 23: Total DIY/hardware specialists’ sector size (incl. VAT), in current and constant prices, 2008-18
Segment: ‘Sheds’ format underperforming
Figure 24: Sales and forecast: DIY ‘sheds’/big-box segment (incl. VAT), 2008-18
Figure 25: Sales and forecast: DIY ‘sheds’/big-box segment (incl. VAT), in current and constant prices, 2008-18
Segment: Other DIY and hardware stores outperforming
Figure 26: Sales and forecast: Other DIY/hardware stores segment (incl. VAT), 2008-18
Figure 27: Sales and forecast: Other DIY/hardware stores segment (incl. VAT), in current and constant prices, 2008-18
Mintel’s forecast methodology
The fan chart
CHANNELS OF DISTRIBUTION
Key points
DIY specialist take nearly half the market
Figure 28: Distribution of spending on DIY products, 2013
Figure 29: Distribution of spending on DIY products, in % and £ terms (incl. VAT), 2012 and 2013
SPACE ALLOCATION SUMMARY
Key points
Figure 30: DIY retailers: Summary space allocation data, April 2014
Figure 31: Detail space allocation estimates, April 2014
RETAIL PRODUCT MIX
Figure 32: Homebase, B&Q sales mix, 2013
Figure 33: Leading DIY retailers, estimated sales by product, 2013
Figure 34: Leading DIY retailers, broad space allocation, April 2013
Figure 35: Leading DIY retailers, estimated sales density by product, 2013
LEADING SPECIALIST RETAILERS
Key points
Some notes on the sector
Market-leaders underperform
Niche retailers perform more strongly
Figure 36: Leading DIY specialists: annual net revenues, 2009-13
Store numbers and annual sales per outlet
Figure 37: Leading DIY specialists: outlet numbers, 2009-13
Figure 38: Leading DIY specialists: annual sales per outlet, 2009-13
Sales area and sales densities
Figure 39: Selected leading DIY specialists: total sales area, 2009-13
Figure 40: Selected leading DIY specialists: annual sales per sq m, 2009-13
Operating profits and margins
Figure 41: Selected leading DIY specialists: operating profits, 2009-13
Figure 42: Selected leading DIY specialists: operating margins, 2009-13
Measuring range and positioning
Sales mix at B&Q and Homebase
Figure 43: Estimated sales mix at B&Q, 2013/14
Figure 44: Sales mix at Homebase, 2013/14
The wallpaper index
Figure 45: Major DIY retailers: Number of SKUs versus average product price in wallpaper, April 2014
Total number of SKUs
Figure 46: Total number of SKUs – B&Q, Homebase and Wickes, 2013/14
LEADING NON-SPECIALIST RETAILERS
Key points
Leading non-specialists: Key metrics
Market shares
Figure 47: Leading non-specialist retailers: Estimated shares of spending on DIY, 2013
Shopper numbers
Figure 48: The consumer: DIY retailers used in the past 12 months, whether online or in-store, March 2014
Product range
Figure 49: Major DIY retailers: Number of SKUs versus average product price in wallpaper, April 2014
Wilkinsons
Figure 50: Wilkinsons: Own-brand and branded paint ranges, December 2013
Argos
Figure 51: Argos.co.uk: Number of products in DIY, lighting and gardening, April 2014
Amazon
Figure 52: Amazon.co.uk: DIY and tools homepage, April 2014
Figure 53: Amazon.co.uk: Number of products in DIY, lighting and gardening, April 2014
eBay
Figure 54: eBay.co.uk: Number of products in DIY, lighting and gardening, April 2014
Figure 55: eBay.co.uk: Home and Garden homepage, April 2014
The grocery retailers
Figure 56: Tesco.com/direct, Direct.asda.com and Sainsburys.co.uk: Number of products in selected DIY categories, May 2014
Others
MARKET SHARES
Key points
Underperformance at the top
Figure 57: Leading DIY retailers’ market shares, 2012 and 2013
Market share and sector share
Share of the market: Generalists are prominent
Figure 58: Leading DIY generalist and specialist retailers’ shares of spending on DIY, 2012 and 2013
Share of the specialists sector: highly concentrated
Figure 59: Leading DIY specialist retailers’ shares of specialists sector sales, 2011-13
About our market shares
ONLINE
Key points
Definitions
Online sales and market shares in the DIY specialists sector
Figure 60: Online sales by DIY specialists (incl. VAT), 2012-14
Figure 61: Share of online sales by DIY specialists, 2013 (est)
Online DIY product sales and market shares
Figure 62: Estimated online DIY product sales (incl. VAT), 2012-14
Figure 63: Shares of online DIY sales, by retailer/sub-sector, 2013 (est)
Figure 64: Estimated percentage of sales online, selected major DIY specialists, 2013
Website visitor numbers
Figure 65: Visitor data – home furnishings retailers, March 2014
Figure 66: Total unique visitors, per month, selected websites, May 2011-April 2014
WHO’S INNOVATING?
Key points
Tool trade-in initiatives
‘Fashion-forward’ stores from B&Q
Customers home designs brought to life in-store with 4D technology
Mobile app designed to drive shoppers’ in-store
Innovative installation service
Grocery tie-up
BRAND COMMUNICATION AND PROMOTION
Key points
Adspend continues to fall
Figure 67: Total main media adspend in the UK DIY retailing sector, 2010-13
B&Q is the leading advertiser
Figure 68: Main media adspend by leading DIY retailers, 2010-13
Figure 69: Share of main media adspend in the UK DIY retailing sector, by retailer, 2013
Spending relative to turnover
Figure 70: Leading DIY retailers’ advertising spend as % of turnover, 2010-13
80% of all adspend channelled through the TV and press
Figure 71: Main media adspend, by media type, 2012 and 2013
Figure 72: Leading DIY retailers Share of adspend by media type, 2012 and 2013
What we have seen in 2014
BRAND RESEARCH
Brand map
Figure 73: Attitudes towards and usage of brands in the DIY retailing sector, February 2014
Correspondence analysis
Brand attitudes
Figure 74: Attitudes, by DIY retailing brand, February 2014
Brand personality
Figure 75: DIY retailing brand personality – macro image, February 2014
Figure 76: DIY retailing brand personality – micro image, February 2014
Brand experience
Figure 77: DIY retailing brand usage, February 2014
Figure 78: Satisfaction with various DIY retailing brands, February 2014
Figure 79: Consideration of DIY retailing brands, February 2014
Figure 80: Consumer perceptions of current DIY retailing brand performance, February 2014
Brand recommendation
Figure 81: Recommendation of selected DIY retailing brands, February 2014
CUSTOMER PROFILE COMPARISON
Key points
Gender
Figure 82: UK DIY retailers:  Customer profile by Gender, March 2014
Age
Figure 83: UK DIY retailers:  Customer profile, by Age, March 2014
Region
Figure 84: UK DIY retailers:  Customer profile by Region, March 2014
Location
Figure 85: UK DIY retailers:  Customer profile by type of location, March 2014
Socio-economic group
Figure 86: UK DIY retailers:  Customer profile by socio-economic group, March 2014
Housing tenure
Figure 87: UK DIY retailers:  Customer profile by housing tenure, March 2014
Financial situation
Figure 88: UK DIY retailers:  Customer profile by financial situation, March 2014
THE CONSUMER – WHO SHOPS WHERE
Key points
Where people buy DIY goods
Figure 89: DIY retailers used in last 12 months, March 2014
Customer profiles
Figure 90: Profile of DIY shoppers, both online and off-line, March 2014
Figure 91: Profile of DIY shoppers by home tenure and age, March 2014
Figure 92: Profile of online DIY shoppers by age and socio-economic group, March 2014
Regional differences
Figure 93: Regional retailer profiles, March 2014
THE CONSUMER – DIY/HOME PRODUCTS BOUGHT
Key points
Figure 94: DIY/home improvement products bought in the past 12 months, March 2014
Figure 95: Profiles of buyers of DIY/Home products, March 2014
Figure 96: Where buyers of DIY/Home goods had shopped in the last 12 months, March 2014
THE CONSUMER – DIY PLANS
Key points
Spending intentions in context
Figure 97: What consumers would spend money left over on, March 2014
Figure 98: What consumers would spend money left over on: change from low point in the downturn to March 2014
Current spending plans
Figure 99: Plans for the year ahead, March 2014
DIY or Do it for me
Profile of those planning any home improvement:
Figure 100: Profile of those planning any home improvement work, March 2014
DIY
Figure 101: Profile of those planning to do home improvement work themselves, March 2014
Do it for me
Figure 102: Profile of those planning to pay someone else to do home improvement work, March 2014
DIY plans and retailers used
Figure 103: Correlation of DIY planned and shops used, March 2014
THE CONSUMER – PREFERRED STORES
Key points
Preferred type of store
Figure 104: Type of stores preferred for DIY, March 2014
Figure 105: Profile by age and property tenure of store preferences, March 2014
Why? – qualities looked for in a DIY store
Figure 106: Reasons for DIY store preference – shoppers at specialists, March 2014
Figure 107: Reasons for DIY store preference – shoppers at non-specialists, March 2014
THE CONSUMER – ATTITUDES TOWARDS DOING DIY
Key points
Figure 108: Attitudes towards DIY, March 2014
Figure 109: Proportions of renters and owners who have bought DIY goods, March 2014
Figure 110: Attitudes to DIY by outlets DIY goods bought from, March 2014
CLAS OHLSON
What we think
Company background
Company performance
Figure 111: Clas Ohlson: Group financial performance, 2008/09-2012/13
Figure 112: Clas Ohlson: Outlet data, 2008/09-2012/13
Retail offering
HOMEBASE
What we think
Company background
Company performance
Figure 113: Home Retail Group: Group financial performance, 2008/09-2013/14
Figure 114: Home Retail Group: Outlet data, 2008/09-2012/13
KINGFISHER GROUP
What we think
Company background
Company performance
Figure 116: Kingfisher Group: Breakdown of sales, number of stores and total sales area, by country, 2013/14
Figure 117: Kingfisher Group: Group financial performance, 2009/10-2013/14
Figure 118: Kingfisher Group: Outlet data, 2009/10-2013/14
Retail offering
Sales mix
Figure 119: B&Q (UK) and Castorama (France): Sales breakdown, by category, 2013/14
Trade revenues
Figure 120: Kingfisher UK and France, trade’s proportion of retail sales, 2012/13
Own brand
Figure 121: B&Q (UK) and Castorama (France): Own-brands’ proportion of sales, 2013/14 (est)
WICKES/TRAVIS PERKINS RETAIL
What we think
Company background
Company performance
Figure 122: Travis Perkins Retail: Group financial performance, 2008/09-2012/13
Figure 123: Travis Perkins Retail: Outlet data, 2008/09-2012/13
Retail offering
APPENDIX – BRAND RESEARCH
Figure 124: Brand usage, February 2014
Figure 125: Brand commitment, February 2014
Figure 126: Brand commitment, February 2014
Figure 127: Brand diversity, February 2014
Figure 128: Brand satisfaction, February 2014
Figure 129: Brand recommendation, February 2014
Figure 130: Brand attitude, February 2014
Figure 131: Brand image – macro image, February 2014
Figure 132: Brand image – micro image, February 2014
APPENDIX – THE CONSUMER – WHERE THEY BOUGHT
Figure 133: DIY retailers used in the past 12 months, March 2014
Figure 134: Most popular DIY retailers used in the past 12 months – Any, by demographics, March 2014
Figure 135: Next most popular DIY retailers used in the past 12 months – Any, by demographics, March 2014
Figure 136: Other DIY retailers used in the past 12 months – Any, by demographics, March 2014
Figure 137: Most popular DIY retailers used in the past 12 months – In-store, by demographics, March 2014
Figure 138: Next most popular DIY retailers used in the past 12 months – In-store, by demographics, March 2014
Figure 139: Other DIY retailers used in the past 12 months – In-store, by demographics, March 2014
Figure 140: Most popular DIY retailers used in the past 12 months – Online, by demographics, March 2014
Figure 141: Next most popular DIY retailers used in the past 12 months – Online, by demographics, March 2014
Figure 142: Other DIY retailers used in the past 12 months – Online, by demographics, March 2014
APPENDIX – THE CONSUMER – PRODUCTS BOUGHT
Figure 143: DIY/home improvement products bought in past 12 months, by most popular DIY retailers used in the past 12 months – Any, March 2014
Figure 144: DIY/home improvement products bought in past 12 months, by next most popular DIY retailers used in the past 12 months – Any, March 2014
Figure 145: DIY/home improvement products bought in past 12 months, by other DIY retailers used in the past 12 months – Any, March 2014
Figure 146: Most popular DIY/home improvement products bought in past 12 months, by demographics, March 2014
Figure 147: Next most popular DIY/home improvement products bought in past 12 months, by demographics, March 2014
Figure 148: Other DIY/home improvement products bought in past 12 months, by demographics, March 2014
APPENDIX – THE CONSUMER – DIY PLANS
Figure 149: Most popular plans for the year ahead – Any, by demographics, March 2014
Figure 150: Next most popular plans for the year ahead – Any, by demographics, March 2014
Figure 151: Most popular plans for the year ahead – Expect to do it myself, by demographics, March 2014
Figure 152: Next most popular plans for the year ahead – Expect to do it myself, by demographics, March 2014
Figure 153: Most popular plans for the year ahead – Expect to pay someone to do it, by demographics, March 2014
Figure 154: Next most popular plans for the year ahead – Expect to pay someone to do it, by demographics, March 2014
Figure 155: Plans for the year ahead, by most popular DIY retailers used in the past 12 months – Any, March 2014
Figure 156: Plans for the year ahead, by next most popular DIY retailers used in the past 12 months – Any, March 2014
Figure 157: Plans for the year ahead, by other DIY retailers used in the past 12 months – Any, March 2014
APPENDIX – THE CONSUMER – PREFERRED STORES
Figure 158: Type of stores preferred for DIY, by demographics, March 2014
Figure 159: Reasons for DIY store preference, by demographics, March 2014
Figure 160: Reasons for DIY store preference, by most popular DIY retailers used in the past 12 months – Any, March 2014
Figure 161: Reasons for DIY store preference, by next most popular DIY retailers used in the past 12 months – Any, March 2014
Figure 162: Reasons for DIY store preference, by other DIY retailers used in the past 12 months – Any, March 2014
Figure 163: Reasons for DIY store preference, by most popular DIY retailers used in the past 12 months – In-store, March 2014
Figure 164: Reasons for DIY store preference, by next most popular DIY retailers used in the past 12 months – In-store, March 2014
Figure 165: Reasons for DIY store preference, by other DIY retailers used in the past 12 months – In-store, March 2014
Figure 166: Reasons for DIY store preference, by most popular DIY retailers used in the past 12 months – Online, March 2014
Figure 167: Reasons for DIY store preference, by next most popular DIY retailers used in the past 12 months – Online, March 2014
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS DOING DIY
Figure 168: Most popular attitudes to DIY, by demographics, March 2014
Figure 169: Next most popular attitudes to DIY, by demographics, March 2014
Figure 170: Attitudes towards DIY, by most popular DIY retailers used in the past 12 months – Any, March 2014
Figure 171: Attitudes to DIY, by next most popular DIY retailers used in the past 12 months – Any, March 2014
Figure 172: Attitudes to DIY, by other DIY retailers used in the past 12 months – Any, March 2014
Figure 173: Attitudes to DIY, by most popular DIY/home improvement products bought in past 12 months, March 2014
Figure 174: Attitudes to DIY, by next most popular DIY/home improvement products bought in past 12 months, March 2014
Figure 175: Attitudes to DIY, by other DIY/home improvement products bought in past 12 months, March 2014
Figure 176: Attitudes to DIY, by type of stores preferred for DIY, March 2014