DIY Retailing - UK - May 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Market size and forecast
Figure 1: Total DIY/hardware specialist sector size (including VAT), 2011-21
Consumer spending on DIY up 4.5%
Figure 2: Growth in consumer spending on DIY products, 2012-17
Changing trends in housing tenure
Figure 3: Housing tenure in England, 2005-16
Companies, brands and innovations
B&Q launches first high-street store
Out-of-town losing out to the High Street
Argos is the leading non-specialist
Online
Figure 4: Estimated online sales of DIY products to consumers (excluding VAT), 2013-16
The consumer
B&Q dominates the sector
Figure 5: Where they shopped for DIY/home improvement products, in-store or online, March 2017
62% have carried out DIY in the past year
Figure 6: Projects undertaken in the past year and who did the work, March 2017
Multi-channel shopping becoming embedded
Figure 7: How they shopped for DIY projects, March 2017
Quality drives DIY decision making
Figure 8: Factors important when shopping for DIY products, March 2017
Over a quarter of under-35s find it embarrassing to ask for advice
Figure 9: Attitudes towards shopping for DIY products, March 2017
What we think
ISSUES AND INSIGHTS
Inspiration or back-to-basics – Diverging strategies from the DIY sheds
The facts
The implications
Opportunities for DIY as renting becomes the new norm
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Sales through specialists increase 2.1%
Consumer spending growth slows to 4.5%
Garden products see strongest growth
Specialists account for 61% of consumer spending
Housing market holds up through 2016
Growing proportion of renters
MARKET SIZE AND FORECAST
Specialists’ sales grow 2.1%
Figure 10: Total DIY/hardware specialist sector size (including VAT), 2011-21
Figure 11: Total DIY/hardware specialist sector size (including VAT), in current and constant prices, 2011-21
MARKET SEGMENTATION
Sheds/big box segment
Figure 12: Shed/big-box specialists’ sector size (including VAT), 2011-21
Figure 13: Shed/big-box specialists’ sector size (including VAT), in current and constant prices, 2011-21
Other DIY/hardware specialists segment
Figure 14: Other DIY/hardware stores segment (including VAT), 2011-21
Figure 15: Other DIY/hardware stores segment (including VAT), in current and constant prices, 2011-21
Forecast methodology
CONSUMER SPENDING ON DIY PRODUCTS
Growth slows to 4.5%
Figure 16: Consumer spending on DIY products, 2012-17
Consumer spending by product category
Figure 17: Consumer spending on DIY products, category breakdown, 2016
Mintel’s market size
CHANNELS OF DISTRIBUTION
Figure 18: DIY products*, estimated channels of distribution, 2016
MARKET DRIVERS
Housing market
Figure 19: Annual number of property transactions with a value of £40,000 or above (non-seasonally adjusted), 2006-16
Monthly housing transactions
Figure 20: Monthly number of property transactions valued at over £40,000 (non-seasonally adjusted), January 2016-March 2017
Inflation
Figure 21: Inflation in key product categories, annual rate of change, 2012-16
Inflation creeps up in early 2017
Figure 22: Consumer price inflation, monthly rate of change for selected product categories, October 2016-March 2017
Falling number of people buying houses on a mortgage
Figure 23: Housing tenure in England, 2005-16
Consumer spending plans
Figure 24: Have or intend to spend any extra money on the home, May 2016-April 2017
Figure 25: Where they spend extra money, by housing tenure, February 2017
KEY PLAYERS – WHAT YOU NEED TO KNOW
All change at the market leaders
Out-of-town losing out to the High Street
Non-food discounters taking the high street share, rather than specialists
Online small and dominated by the market leaders
Advertising 0.7% of sector sales
Improving perception of Wilko
INNOVATION AND LAUNCH ACTIVITY
UK's first comparison website for building and DIY supplies
B&Q getting closer to customers
Figure 26: B&Q, mini format store, Holloway Road, London, March 2017
Virtual reality tool for hands-on DIY training
Robot assistants
Personalised DIY help at home using ‘advice avatars’
'Wickes Hourly'
DIY Ladies Night
SPACE ALLOCATION SUMMARY
Space allocation overview
Figure 27: DIY retailers: in-store/outdoor space allocation estimates, April 2017
Detailed space allocation estimates
Big-box DIY specialists
Figure 28: Bunnings, St Albans, garden and tool hire, April 2017
High street DIY destinations
Out-of-town discount home improvement and garden shopping
Figure 29: DIY retailers: detailed in-store/outdoor space allocation estimates, April 2017
RETAIL PRODUCT MIX
Figure 30: Leading DIY retailers estimated sales by product %, 2016
Figure 31: Leading DIY retailers estimated sales by product, 2016
LEADING SPECIALIST RETAILERS
Superstores dominate
New specialists with a trade focus
High street retailers
Figure 32: Leading DIY specialists, sales 2013/14-2016/17
Figure 33: Leading DIY specialists, outlets, 2013/14-2016/17
Figure 34: Leading DIY specialists, sales per outlet, 2013/14-2016/17
LEADING NON-SPECIALIST RETAILERS
Argos
Amazon catching up
The Range and the discounters growing fast
Figure 35: Leading non-specialists, estimated DIY sales (excluding VAT), 2013/4-2016/7
Supermarkets
Figure 36: Leading supermarkets, estimated DIY sales (excluding VAT), 2013/4-2016/7
MARKET SHARES
Figure 37: Leading retailers estimated trade share of sales, 2013-16
Share of specialists’ sales
Figure 38: Leading DIY retailers, share of all specialists’ sales, 2014-16
Share of all DIY spending
Figure 39: Leading DIY retailers, share of all DIY spending, 2014-16
ONLINE
Industry data
Online sales to consumers
Figure 40: DIY estimated online sales by type of retailer, 2016
Figure 41: Estimated online sales of DIY products to consumers (excluding VAT), 2014-16
Figure 42: Estimated sales of DIY products to consumers, 2014-16
ADVERTISING AND MARKETING ACTIVITY
Little change in total DIY retail advertising spend year-on-year in 2016
Figure 43: Recorded above-the-line, online display and direct mail total advertising expenditure by UK DIY retailers, 2013-16
B&Q is the UK’s biggest DIY retail advertising spender
Figure 44: Leading UK DIY retailers: recorded above-the-line, online display and direct mail total advertising expenditure, 2013-16
Homebase increases its share of total advertising spend in 2016
Figure 45: Big three DIY retailers share of recorded above-the-line, online display and direct mail total advertising expenditure, 2015 and 2016
Half of all advertising expenditure channelled through TV
Figure 46: Recorded above-the-line, online display and direct mail total advertising expenditure by UK DIY retailers by media type, 2013-16
Media types used by the Big Three
Figure 47: Recorded above-the-line, online display and direct mail total advertising expenditure by the UK’s three biggest DIY retailers by media type, 2016
What we’ve seen in 2017
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 48: Attitudes towards and usage of selected brands, March 2017
Key brand metrics
Figure 49: Key metrics for selected brands, March 2017
Brand attitudes: Wilko owns the value position
Figure 50: Attitudes, by brand, March 2017
Brand personality: Wilko is vibrant and fun, B&Q is tired
Figure 51: Brand personality – Macro image, March 2017
A more flattering view of B&Q
Figure 52: Brand personality – Micro image, March 2017
Brand analysis
Wilko – Value for women
Figure 53: User profile of Wilko, March 2017
Screwfix for the affluent, serious DIYer
Figure 54: User profile of Screwfix, March 2017
B&Q the broad mass market player
Figure 55: User profile of B&Q, March 2017
Wickes the destination store for the serious DIYer
Figure 56: User profile of Wickes, March 2017
Homebase – So farewell then
Figure 57: User profile of Homebase, March 2017
KINGFISHER GROUP
What we think
The transformation
Will it work?
Longer term
Company background
Company performance
Figure 58: Kingfisher Group: group financial performance, 2012/13-2016/17
Figure 59: Kingfisher Group: outlet data, 2012/13-2016/17
Retail offering
HOMEBASE – BUNNINGS
What we think
Big changes
A completely new business
Where next?
Background
Company performance
Figure 60: Homebase Ltd: Group financial performance, 2011/12-2015/16
Figure 61: Homebase Ltd: outlet data, 2011/12-2015/16
Retail offering
WICKES/TOOLSTATION/TILE GIANT/TRAVIS PERKINS RETAIL
What we think
Accelerated expansion of new more inspirational Wickes store format
Multichannel enhancements help grow online sales
New tile shopping experience
Convenient one-stop retail destinations for all things DIY
Company background
Company performance
Figure 62: Travis Perkins Retail: consumer division financial performance, 2011/12-2015/16
Figure 63: Travis Perkins Retail: consumer division outlet data, 2011/12-2015/16
Retail offering
THE CONSUMER – WHAT YOU NEED TO KNOW
B&Q dominates the sector
Painting/decorating the most popular DIY project
Use of tradesmen increases with age
Multiple channels used for purchases
Quality is most important when shopping for DIY
Independent reviews aid purchase decisions
WHERE THEY SHOPPED
B&Q dominates the sector
Figure 64: Where they shopped for DIY/home improvement products, March 2017
Online becoming more important
Figure 65: Where they shopped for DIY/home improvement products, in-store or online, March 2017
Online more appealing to younger shoppers
Figure 66: Where they shopped for DIY/home improvement products, by average age and socio-economic group, March 2017
Repertoire analysis
Figure 67: Where they shopped for DIY products in-store, repertoire analysis, March 2017
PROJECTS UNDERTAKEN
43% have done painting/decorating themselves
Figure 68: Projects undertaken in the past year and who did the work, March 2017
DIY the most popular way to carry out home improvement
Figure 69: How they carried out home improvement projects in the past year, March 2017
25-34-year-olds most likely to get help with DIY
Figure 70: Who carried out home improvement projects, 25-44-year-olds, March 2017
Use of tradesmen increases with age
Figure 71: Who carried out home improvement projects, 45+-year-olds, March 2017
Promoting DIY as a social experience
Figure 72: Proportion of DIY shoppers saying they ‘learnt a new skill or technique’ by who carried out the DIY/home improvement project they spent the most on, March 2017
Projects they spent the most on
Figure 73: Project completed in the past year they spent the most money on, March 2017
HOW THEY SHOPPED
Painters/decorators like to visit stores
Figure 74: How they shopped for a painting/decorating project, compared to the average, March 2017
Buyers of window furnishings like to shop around
Figure 75: How they shopped for new curtains/blinds/shutters, compared to the average, March 2017
Stores are essential when shopping for flooring
Figure 76: How they shopped for a tiling, flooring or carpeting project, compared to the average, March 2017
Minor alterations shopping driven by price and availability
Figure 77: How they shopped for carrying out minor interior alterations, compared to the average, March 2017
Shopping around important for garden projects
Figure 78: How they shopped for garden projects, compared to the average, March 2017
Store visits are essential for fitted kitchens and bathrooms
Figure 79: How they shopped for a new fitted kitchen or bathroom, compared to the average, March 2017
CHAID ANALYSIS 
Methodology
Urbanites most likely to visit stores for inspiration
Figure 80: Behaviours while shopping for DIY products – CHAID – Tree output, March 2017
Figure 81: Behaviours while shopping for DIY products – CHAID – Table output, March 2017
IMPORTANT FACTORS WHEN SHOPPING FOR DIY
Quality is most important when shopping for DIY products
Figure 82: Factors important when shopping for DIY products, March 2017
Home-owners place greater emphasis on quality
Figure 83: Top ranking factor for choosing where to shop for DIY products, by housing tenure, March 2017
35-44-year-olds prioritise price
Fragmented priorities of younger shoppers
Figure 84: Main reason for choosing where to shop for DIY products, by age group, March 2017
Younger consumers less concerned by range
Figure 85: Proportion selecting ‘Widest range of products’ as the top-ranking factor influencing where they shopped for DIY, March 2017
Value seekers head to the non-specialists
Figure 86: Those choosing ‘The lowest prices’ as an important factor when choosing where to shop for DIY products, by where they shopped for DIY products in the past year, March 2017
ATTITUDES TOWARDS SHOPPING FOR DIY PRODUCTS
Quality is more important than price
Independent reviews hold weight
Figure 87: Attitudes towards shopping for DIY products, March 2017
A third of 16-24-year-olds are embarrassed to ask for advice
Figure 88: Agreement with selected statements, by age group, March 2017
Interest in services peaks among the young
Figure 89: Interest in services, by age group, March 2017
Non-shed specialists attract the most enthusiastic DIYers
Figure 90: Selected attitudes towards shopping for DIY, by where they shopped for DIY in the past year, March 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast Methodology