Description
Providing the most comprehensive and up-to-date information and analysis of the UK DIY Retailing market, including the behaviours, preferences and habits of the consumer.
Thanks to the lockdowns and stay at home orders due to the COVID-19 pandemic throughout 2020 and into 2021, 74% of consumers turned to home improvements as a way of passing the time. The DIY sector was among the best performing non-essential retail sectors, seeing spending growth rise by 14.9%, with total expenditure rising by 16.5%.
This huge increase in DIY and home improvement activity has longer lasting implications for the industry even after the pandemic ends. 60% of consumers are now more confident in undertaking DIY projects on their own, with this newfound confidence potentially offering new marketing opportunities to boost engagement.
However, there was also a sharp growth for non-specialists, especially among online suppliers such as Amazon. Specialists will need to be proactive going forwards, building more robust multi-channel platforms for both online and in-store purchasing. They will also have to find ways of extending their main USP of in-store expertise into the online space.
Read on to discover more details or take a look at all of our UK Retail market research.
Quickly understand
- The impact of COVID-19 on DIY retailing.
- How this disruption will change demand in the short, medium and long term and the retailing landscape.
- Opportunities for DIY specialists amid this disruption and extended periods inside.
- The future of the purchasing journey for the home and the growing role of online-only retailers.
- How specialists can harness the changes of the past year and longer-lasting implications.
Covered in this report
Brands: Kingfisher (B&Q, Screwfix), Amazon, Wilko, Screwfix, Argos, Homebase, Dunelm, IKEA, B&M Bargains, Poundland, ManoMano, Travis Perkins Retail (Wickes, Toolstation), Tile Giant, eBay, Shop Direct, Aldi, The Range, Lidl, Robert Dyas, TJ Morris (Home Bargains), Dobbies, Topps Tiles.
Expert analysis from a specialist in the field
Written by Marco Amasanti, a leading analyst in the Food & Drink sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
The DIY market saw double-digit growth, both in total expenditure (16.5%) and at specialists (14.9%), amid disruption in 2020. Ultimately, it proved one of the best-performing non-essential retail markets, as it was elevated by extended periods inside and the rise in flexible living. The changes of the past year will undoubtedly have longer-lasting implications, while, after years of decline, this landscape has offered a springboard for big-box DIY specialists to recover ground moving forwards.
Marco Amasanti
Retail Analyst
Table of Contents
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Overview
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- Key issues covered in this Report
- COVID-19: market context
- Economic and other assumptions
- Products covered in this Report
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Executive Summary
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- Disruption sees sharp growth across DIY retailers
- Figure 1: Short, medium and long-term impact of COVID-19 on DIY retailing, 13 May 2021
- The market
- Market size and forecast
- Figure 2: Total DIY/hardware specialist sector size (including VAT), 2015-25 (prepared on 14 May 2021)
- Disruption sees big-box DIY specialists regain ground
- Double-digit growth in both DIY specialist and total DIY expenditure
- Huge online growth sees gains at Amazon and leading DIY specialists
- Companies and brands
- DIY specialists’ mixed performance during COVID-19 crisis
- One-stop shopping and online fuel non-specialists’ DIY sales
- COVID-19 pandemic focuses attention on ecommerce innovation
- The consumer
- COVID-19 has seen a fundamental shift in shopping behaviours
- Figure 3: Changes to shopping behaviour, 29 April-6 May 2021
- DIY specialists narrowly top spending
- Figure 4: Where they shopped for DIY products, March 2021
- Online growth; but in-store remains paramount
- Figure 5: Where they shopped for DIY products, in-store and online, March 2021
- Structure of projects remains largely consistent despite huge upheaval
- Figure 6: Recent home improvements, March 2021
- COVID-19 opens a wave of new demand
- Figure 7: COVID-19 and home improvements, March 2021
- Extended periods inside bring the home under the spotlight
- Figure 8: COVID-19 and DIY attitudes, March 2021
- Two thirds of consumers still see room for improvement
- Figure 9: Interest in innovations, March 2021
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Issues and Insights
- The short-term impact from COVID-19
- Disruption changes the retailing landscape
- The long-term impact from COVID-19
- A springboard for specialists to boost engagement
- How specialists can better cater to younger and female consumers
- The opportunity for fashion-forward, trend-driven items
- The short-term impact from COVID-19
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The Market – Key Takeaways
- Double-digit growth in both specialist and total DIY expenditure
- Disruption sees big-box DIY specialists regain ground
- Huge online growth sees gains at Amazon and leading specialists
- Double-digit growth in both specialist and total DIY expenditure
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Market Size and Forecast
- Disruption sees sharp growth across DIY retailers
- Figure 10: Short, medium and long-term impact of COVID-19 on DIY retailing, 13 May 2021
- COVID-19 fallout triggers double-digit growth
- Consumers turn to DIY amid extended periods inside…
- …and the rise of flexible living
- The turn to specialists amid newfound confidence
- Polarised demand
- Continued growth moving forwards
- Longer-lasting implications of the recent landscape shift
- The need to boost engagement with younger and female consumers
- Recovery of bigger-ticket projects
- Ongoing polarisation
- Figure 11: Consumer spending on total DIY/hardware specialist sector size (including VAT), 2015-25 (prepared on 14 May 2021)
- Figure 12: Consumer spending on total DIY/hardware specialist sector size (including VAT), 2015-25 (prepared on 14 May 2021)
- Market drivers and assumptions
- Figure 13: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared 15 December 2020)
- Learnings from the last recession
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- Figure 14: DIY specialists’ sales (including VAT), 2007-12
- Forecast methodology
- Disruption sees sharp growth across DIY retailers
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Market Segmentation
- A year of unprecedented growth for big-box…
- The need to capitalise on this moving forwards
- Figure 15: Shed/big-box specialists’ sector size (including VAT), 2015-20
- …while disruption returns growth for smaller specialists
- Figure 16: Other DIY/hardware stores segment (including VAT), 2015-20
- Disruption sees big-box retailers claw back some share
- Figure 17: Estimated segmentation of DIY specialists (including VAT), 2015-20
- A year of unprecedented growth for big-box…
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Consumer Spending on DIY Products
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- Significant growth in total DIY expenditure
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- Figure 18: Consumer spending on DIY-related products, 2015-20
- Tools and equipment were at the forefront of this expenditure…
- …as higher-ticket furniture slips
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- Figure 19: Category breakdown of consumer spending on DIY-related products, 2015-20
- Mintel’s consumer spending market size
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Channels of Distribution
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- DIY superstores recover ground amid disruption
- Online pureplay sees greatest gains
- Grocers, discounters, generalists and garden centres gain in-store…
- …as others lose out
- Figure 20: DIY products, estimated channels of distribution, 2020
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Online
- DIY among the biggest movers online in 2020
- Expenditure online nearly doubles
- Figure 21: Estimated online DIY market size (ex VAT), 2016-20
- Sales grow across the board
- Amazon doubles sales growth
- Homebase growth supported by a new website
- ManoMano triples sales growth as it carves out a niche
- Figure 22: Estimated online sales, by leading retailers, 2016-20
- Figure 23: Estimated share of DIY sales, by specialist and non-specialist DIY retailers, 2016-20
- DIY among the biggest movers online in 2020
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Market Drivers
- The impact of the 2021 lockdown
- House moves fall by 56.8% in April 2020…
- …before picking up sharply
- Figure 24: Monthly UK residential property transactions, January 2018-March 2021
- Increasing numbers of homeowners
- Figure 25: England housing tenure, 2015-19
- Low inflation encourages greater uptake amid uncertainty
- Figure 26: Annual rate of inflation, CPI, furniture, household textiles & tools and equipment, July 2020-March 2021
- Fluctuating spending and plans reveal the polarisation of demand
- Figure 27: Trends in home improvement work done in the last three months and plan to do in the next three months, January 2018-April 2021
- The impact of the 2021 lockdown
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Companies and Brands – Key Takeaways
- DIY specialists’ mixed performance during COVID-19 crisis
- One-stop shopping and online fuel non-specialists’ DIY sales
- Leading brands’ share of sector sales and consumer spend on DIY products shrinks
- COVID-19 pandemic focuses attention on ecommerce innovation
- Sector advertising expenditure falls 47.2% year-on-year in 2020
- Kingfisher-owned B&Q and Screwfix the standout brands
- DIY specialists’ mixed performance during COVID-19 crisis
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Market Share
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- Leading brands’ share of all DIY specialists’ sales falls in 2020
- Figure 28: Leading DIY retailers’ estimated share of all specialists’ sales, 2016-20
- Amazon the biggest market share gainer of consumer spending on DIY in 2020
- Figure 29: Leading retailers’ estimated share of all DIY spending, 2016-20
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Leading Specialists
- B&Q revenue boosted by strong sales of building and joinery products
- Screwfix online sales up 165% as it switches to ‘online-first’ approach at the onset of the COVID-19 crisis
- Tile Giant sold after a challenging 12 months
- Toolstation’s pivot to digital trading drives revenue growth during COVID-19 pandemic
- Showroom closures and reduced demand for big installation projects hit Do-It-For-Me sales at Wickes
- Homebase back from the brink of collapse and now up for sale
- Topps Tiles launches recovery strategy after 2020 revenue slump
- C Brewer & Sons’ sales impacted by store closures and subdued trade activity
- eCommerce growth offset dampened store sales at Robert Dyas
- Figure 30: Leading DIY specialists’ sales, 2016-20
- B&Q trying new store formats as click-and-collect sales grow
- Screwfix plans to increase the total number of outlets to over 900
- Tile Giant shutters more stores as profits tumble
- Toolstation to open 60 new stores in 2020 and plans another 60 new branches in 2021
- Wickes unveils new digitally led store concept in Cardiff
- Homebase targets urban consumers with high street store format
- Topps Tiles anticipates further store closures
- C Brewer & Sons expands store network through acquisitions
- Robert Dyas rolls out more one-stop shopping stores
- Figure 31: Leading DIY specialists’ outlets, 2016-20
- Sales per outlet
- Figure 32: Leading DIY specialists’ estimated sales per outlet, 2016-20
- Trading disruption from COVID-19 pandemic impacts profitability
- Figure 33: Leading DIY specialists’ operating profit, 2016-20
- COVID-19-related costs hit operating profit margins
- Figure 34: Leading DIY specialists’ operating profit margin, 2016-20
- B&Q revenue boosted by strong sales of building and joinery products
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Leading Non-specialists
- Online and one-stop shopping behaviour drive non-specialists’ DIY sales
- Amazon now the second most popular destination for DIY/home improvement purchases
- Discounters benefit from surge in home improvement activity during COVID-19 pandemic
- Increased demand for home and furniture products drives Argos’ sales growth
- Supermarkets’ one-stop grocery and DIY shopping convenience
- Figure 35: Leading non-specialists’ estimated DIY sales (excluding VAT), 2016-20
- Online and one-stop shopping behaviour drive non-specialists’ DIY sales
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Launch Activity and Innovation
- 90-minute DIY home delivery service
- DIY shopping anytime, anywhere
- Inspirational online DIY experiences
- Virtual DIY design service for housebound customers
- Amazon introduces augmented reality home décor feature to visualise products in situ
- Tapping into new opportunities created by the COVID-19 pandemic
- Aldi flexes its DIY muscles with budget-priced Workshop Essentials range
- ‘Green shopping aisle’ for environmentally friendly DIYers
- New DIY stores and retail concepts
- 90-minute DIY home delivery service
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Advertising and Marketing Activity
- Total advertising expenditure slumps 47.2% year-on-year in 2020
- Figure 36: Recorded above-the-line, online display and direct mail total advertising expenditure by UK DIY retailers, 2017-20
- The big three led by B&Q account for 98% of total sector advertising spend
- Figure 37: Leading UK DIY retailers’ recorded above-the-line, online display and direct mail total advertising expenditure, 2017-20
- TV accounts for the biggest share of sector advertising expenditure
- Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure by UK DIY retailers, by media type, 2020
- Campaign highlights
- B&Q’s new brand building campaign to reflect the role it has played in transforming homes for the past 50 years
- Wickes taps into influencer marketing with TikTok campaign
- Homebase launches major TV gardening campaign starring Gary the tortoise
- Screwfix Black Friday push and innovative cafés campaign to target on-the-go tradespeople
- Nielsen Ad Intel coverage
- Total advertising expenditure slumps 47.2% year-on-year in 2020
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Brand Research
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- What you need to know
- Brand map
- Figure 39: Attitudes towards and usage of selected brands, March 2021
- Key brand metrics
- Figure 40: Key metrics for selected brands, March 2021
- Brand attitudes: Screwfix provides a great online service and Wilko offers good value
- Figure 41: Attitudes, by brand, March 2021
- Brand personality: B&Q accessible
- Figure 42: Brand personality – Macro image, March 2021
- Homebase stylish, B&Q aspirational, Screwfix cutting edge and responsive
- Figure 43: Brand personality – Micro image, March 2021
- Brand analysis
- B&Q trustworthy and accessible
- Figure 44: User profile of B&Q, March 2021
- Screwfix an excellent experience and highly recommended
- Figure 45: User profile of Screwfix, March 2021
- Wilko good value for money, but basic and lacking style and aspirational appeal
- Figure 46: User profile of Wilko, March 2021
- Wickes less trustworthy and perceived as somewhat boring
- Figure 47: User profile of Wickes, March 2021
- Homebase stylish, but expensive
- Figure 48: User profile of Homebase, March 2021
- Reading word clouds
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The Consumer – Key Takeaways
- Extended periods inside open new avenues to market
- A new crossroads for leading DIY specialists
- Younger consumers are crucial in recent activity and future innovation
- The opportunity for fashion-forward, trend-driven items
- Extended periods inside open new avenues to market
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Impact of COVID-19 on Consumer Behaviour
- Anxiety eases slightly following third lockdown spike
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- Figure 49: Extremely worried about exposure to COVID-19/coronavirus, 4 March-6 May 2021
- A fundamental change in shopping behaviours
- Older consumers lead the shift in behaviour
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- Figure 50: Changes in shopping behaviour, by age, 29 April-6 May 2021
- The sector is buoyed by redirected spending
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- Figure 51: Spending, by sector, 29 April-6 May 2021
- Anxiety eases slightly following third lockdown spike
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Where They Shop
- 76% of consumers bought DIY products in the past year
- DIY specialists narrowly top spending
- B&Q remains the standout…
- …but Amazon and grocers see the greatest gains amid disruption
- Figure 52: Where they shopped for DIY products, 2019-21
- Non-specialists benefit from mass appeal…
- …but a number of demographic differences remain
- Figure 53: Where they shopped for DIY products, by age and socio-economic group, March 2021
- Two thirds shop from more than one retailer
- Figure 54: Repertoire analysis of where they shopped for DIY products, March 2021
- 76% of consumers bought DIY products in the past year
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In-store vs Online
- Online growth; but in-store remains paramount
- B&Q stands unmatched for in-store purchasing
- Figure 55: Where they shopped for DIY products in-store, March 2020 and 2021
- Widespread gains across ecommerce
- A new opportunity for online-only DIY specialists
- Figure 56: Where they shopped for DIY products online, March 2020 and 2021
- Online growth; but in-store remains paramount
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Recent Home Improvement Projects
- Structure of projects remains largely consistent despite huge upheaval…
- Figure 57: Recent home improvements, March 2020 and 2021
- …although this varies across demographics
- Figure 58: Recent home improvements, by age and socio-economic group, March 2021
- 47% of consumers undertook two or more projects in the past year
- Figure 59: Repertoire analysis of recent home improvements, March 2021
- Structure of projects remains largely consistent despite huge upheaval…
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COVID-19 and Home Improvements
- COVID-19 opens a wave of new demand
- Figure 60: COVID-19 and home improvements, March 2021
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- Figure 61: COVID-19 and home improvements, by age, March 2021
- Transient consumers represent an untapped market for specialists
- The opportunity for fashion-forward, ‘lifestyle brands’ in home improvement
- Extended periods indoors also see newer sustainable behaviours
- Offering new opportunities for specialists in-store
- COVID-19 opens a wave of new demand
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COVID-19 and DIY Attitudes
- Extended periods inside bring the home under the spotlight
- Elevating the home, and particularly DIY, over other sectors
- This spotlight has extended beyond the home’s four walls
- Figure 62: COVID-19 and DIY attitudes, March 2021
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- Figure 63: COVID-19 and DIY attitudes, by age and socio-economic group, March 2021
- COVID-19 changes how consumers shop for DIY
- Longer-lasting implications from these changes
- A mismatch between sentiment and activities among genders…
- …reveals how specialists must better cater to the female market
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- Figure 64: Agreement with COVID-19 and DIY attitudes, by gender, March 2021
- Extended periods inside bring the home under the spotlight
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Interest in Innovations
- Two thirds of consumers see room for improvement
- Online innovations hold the greater appeal…
- …as housebound consumers look for guidance and assurance
- Calls for technology which bridges the gap between stores and housebound consumers…
- …but these could also prove key to stores’ fightback in the coming year…
- Integrating online to streamline the in-store shopping experience
- Demand for multi-mission experiences in-store
- …and prove an important outlet for newer markets
- Figure 65: Interest in innovations, March 2021
- Younger consumers spearhead dynamism
- Offering specialists a means to consolidate on recent growth in coming years
- Figure 66: Interest in innovations, by age, March 2021
- Two thirds of consumers see room for improvement
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Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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Appendix – Market Size and Forecast
- Forecast methodology
- Forecast methodology
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