Description
Stay ahead of the curve and secure future growth for your business with Mintel’s UK DIY Retailing Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the UK DIY retail market including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.
Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.
Key Questions Answered in this Report
- How has the cost of living crisis impacted DIY retailing?
- What is the future of DIY retailer’s online channel?
- How can DIY specialist return to growth amidst the cost of living crisis?
- How are DIY retailers innovating?
- What is driving consumer behaviour during this time of uncertainty?
- How has the cost of living crisis impacted consumer home improvement projects?
DIY Retail Market – Current Landscape
The cost-of-living crisis has impacted consumer spending in 2022, and the DIY retail market saw a 10.9% decline in sales as consumers either postponed DIY projects or focused on smaller-ticket projects like painting and minor updates around the home.
After a few bumper years for the DIY industry, helped in part by consumers spending more time at home due to pandemic restrictions, total DIY spending fell in 2022, highlighting the dual impact of rising prices and consumers returning to the workplace.
DIY Retailing Market Trends and Opportunities
Online retailers remain popular
Online spending in the DIY sector continues to slowly increase, and nearly two-thirds of consumers used the online channel to purchase DIY products in the past year. Despite being a non-specialist retailer, Amazon was the most popular choice for consumers. This highlights that consumers are shopping around seeking the greatest value for their money. Retailers are focusing on enhancing their online offering to create a seamless shopping experience both in-store and online.
Flexible finance options can encourage big-ticket projects
As previously mentioned, consumers are focusing on smaller-ticket projects due to economic concerns. DIY retailers have the opportunity to ease this strain as they can further enable alternative payment options for its shoppers. This will further drive sales online as these flexible payment options are a digital-first operation. Offering buy now, pay later options will make consumers feel more comfortable taking on more expensive projects.
More About This Report
This Report is designed to give an overview of the UK DIY and home improvement market. This includes forecasts covering future developments, in-depth consumer analysis using our own data, and a look at the key players in the market, including Homebase, B&Q, Wilko, Screwfix, Wickes, and more.
We provide two market sizes in this report. The first covers the specialist DIY/hardware store market, and the second covers total consumer spending on all DIY products, including materials, furniture, furnishings, carpets, appliances, tools and equipment, and gardening products.
Additional Features Included with Your Purchase
- Interactive Data Book: This gives you unlimited access to a consumer confidence tracker that is segmented into 25 different demographic categories.
- Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as Word and Excel.
- Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trend pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.
Purchase our full UK DIY Retailing Market Report 2023 to discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.
Expert Analysis from an Industry Specialist
This report, written by Bridget McCusker, a leading research analyst, delivers in-depth commentary and analysis to highlight current trends in the DIY retail market and add expert context to the numbers.
The cost of living crisis has impacted the DIY market as we see consumers taking on smaller home improvement projects with lower spend. We see DIY retailers addressing the uncertainty brought on by rising inflation by enhancing their value propositions for its shoppers. The DIY market is perfectly situated to address the growing concerns of shoppers as many are seeking out greater value for money whether that is in terms of convenience, personal missions or price.
Bridget McCusker
Research Analyst
Table of Contents
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Overview
- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
- The five-year outlook for DIY retailing
- Figure 1: Category outlook, 2023-28
- The market
- Market size and forecast
- Figure 2: Market forecast for total DIY/hardware specialist retail sector, 2018-28
- Total DIY spending falls after bumper years
- Figure 3: Category breakdown of consumer spending on DIY-related products, 2017-23
- Online spending on DIY products surpasses £4 billion
- Figure 4: Estimated online DIY market size (ex VAT), 2019-2023
- Companies and brands
- Discounters and supermarkets offer consumers convenience
- Figure 5: DIY products, estimated channels of distribution, 2023
- The consumer
- More than four fifths of consumers have purchased home improvement products in the past year
- Figure 6: Where they shopped for DIY products, 2020, 2021, 2022 and 2023
- Online up six percentage points from the year prior
- Figure 7: Where they shopped for DIY products, in-store and online, 2020-23
- Smaller-ticket categories lead engagement
- Figure 8: Recent home improvements, 2023
- Convenience and price drive DIY missions for consumers
- Figure 9: Most important factors for shopping at DIY retailer, 2023
- Three quarters of consumers are likely to carry out home improvement projects themselves
- Figure 10: Attitudes towards DIY during the Cost of living crisis, 2023
- Sustainable initiatives peak with younger consumers
- Figure 11: Consumer attitudes towards DIY retailing, 2023
- The five-year outlook for DIY retailing
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Issues and Insights
- Needs for the home shift amidst the cost of living crisis
- Retailers need to highlight values over price
- How have DIY retailers responded?
- Social media a source of inspiration for consumers
- Flexible financing options have the ability to allow bigger-ticket projects to occur
- DIY can enhance sustainable values
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Market Size and Performance
- DIY specialists rebound from 2022
- Figure 12: DIY Specialist Retailer sales, 2019-23
- Figure 13: DIY Specialist retailer sales(including VAT), at current and constant prices, 2018-28
- Consumer confidence impacts DIY specialists
- Smaller-ticket spending leads the way
- Spending on the home takes precedence
- DIY specialists rebound from 2022
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Market Forecast
- 2023 sees softer growth compared to pandemic years
- Figure 14: Category outlook Retail Sales for DIY sector, 2023-28
- Some will continue to spend on the home
- Impact of the cost of living crisis
- Figure 15: Market forecast for total DIY/hardware specialist retail sector, 2018-28
- Learnings from the last income squeeze
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- Figure 16: Total DIY/hardware specialists’ retail sector size (incl. VAT), in current and constant prices, 2008-18
- Forecast methodology
- 2023 sees softer growth compared to pandemic years
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Market Segmentation
- Big-box specialists see a decline of 9%
- Amidst economic uncertainty retailers must support customers and communicate their value
- Figure 17: Shed/big-box specialists’ sector size (inc. VAT), 2020-23
- Smaller specialists feel the impacts of the cost of living crisis
- Figure 18: Other DIY/hardware stores’ sector size (including VAT), 2017-23
- Figure 19: Estimated segmentation of DIY specialists (including VAT), 2017-23
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Consumer Spending on DIY Products
- Growth overall
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- Figure 20: Consumer Spending on DIY-related products, 2017-23
- Furniture and furnishings see an uptick in consumer spending
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- Figure 21: Category breakdown of consumer spending on DIY-related products, 2017-23
- Mintel’s consumer spending market size
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Online
- Online market surpasses £4 billion mark
- Figure 22: Estimated online DIY market size (ex VAT), 2019-2023
- DIY Specialists strengthen their online offerings
- B&Q sees online growth down
- Screwfix enhances its online proposition despite a slip in sales
- Wickes utilises social media to deliver sales
- Pre-pandemic ways impact ManoMano
- Non-specialist pure players strengthen their place in the market
- Figure 23: Estimated share of DIY sales, by specialist and non-specialist DIY retailers, 2018-23
- Online market surpasses £4 billion mark
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Market Drivers
- Inflation will continue to eat into consumer spending power over the course of 2023
- Further interest rates increases will hit mortgage-holders
- 58% of mortgage holders are worried about their finances for the upcoming year
- Figure 24: Mortgage rates forecast for the UK by quarter, 2006-23
- Consumers seek to improve rather than move
- Figure 25: House Prices in the UK, 2019-23
- Private renting continues to dominate homeownership options
- Figure 26: English housing tenure, 2017-18-2021-22
- High inflation and rising interest rates will compound the impact of the slowing recovery
- Consumer spending power will be curbed
- Unemployment remains relatively low
- Consumers’ financial wellbeing has fallen from the highs of 2021…
- Figure 27: Household financial wellbeing index, 2016-23
- …and most people are feeling the effects of price rises
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Market Share
- Big-box DIY specialists continues to lead
- Online pure players offer ease of purchasing for consumers
- Discounters gain from consumers need for value-for-money
- Supermarkets strengthens its one-stop shopping experience
- Figure 28: Top 10 leading retailers’ estimated share of all DIY spending, 2021/22-2022/23
- Figure 29: DIY products, estimated channels of distribution, 2023
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Leading Specialists
- Waning consumer demand for DIY drives down Kingfisher sales 4.7% year-on-year
- Wickes post record sales on back of strong demand for do-it-for-me
- Toolstation blame challenging macroeconomic conditions for slowdown in sales
- Topps Tiles posts second consecutive year of record sales
- Figure 30: Leading DIY specialists’ sales, 2018-22
- Store openings and operating cost inflation drag down operating profitability
- Figure 31: Leading DIY specialists’ operating profit, 2018-22
- Figure 32: Leading specialists’ operating margin, 2018-22
- B&Q plans to open 50 smaller-format stores
- More than 90% of the population now live within 20 minutes of a Screwfix store
- Toolstation store expansion slows
- Topps Tiles store closure programme now complete and new ‘Clearance’ concept trial
- Wickes store refresh programme
- More Brewers Decorator Centres open
- Homebase open concessions inside Tesco supermarkets
- Tile Giant stores closed after calling in administrators
- Figure 33: Leading DIY specialists’ outlets, 2018-23
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Leading Non-Specialists
- Online-only non-specialists’ DIY sales soften as COVID-19 influences wane
- Rising focus on value for money boosts discounters’ DIY sales
- Combining several ‘shopping missions’ under one roof bolsters supermarkets DIY appeal
- Figure 34: Leading non-specialists’ estimated DIY sales (excl. VAT), 2018-22
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Launch Activity and Innovation
- Meeting online shoppers’ expectations for faster and eco-friendlier order fulfilment
- Speedier click-and-collect
- Eco-friendly DIY home delivery service
- Figure 35: Brewers decorator centre e-bike delivery service in London, 2023
- Compelling propositions in an inflationary environment
- More choice and flexibility when it comes payment
- One-stop-shop for eco-focused and cost-conscious DIYers
- Sharp rise in energy prices heightens focus on energy efficiency
- Figure 36: Wickes’ Energy efficient home hub, 2023
- Wickes launch new free of charge design service to refresh kitchens on a budget
- Figure 37: Wickes launches free design service for its ‘Lifestyle Kitchens’ range, 2023
- Robert Dyas launch loyalty scheme to help shoppers navigate the cost-of-living crisis
- Streamlining the online DIY buying process
- Wickes launch shoppable video platform
- A first-of-its kind interactive digital decorating service
- Figure 38: Lick Colours tool, 2023
- 3D and virtual reality visualisation tools to aid planning and design of rooms
- Home improvement online services marketplace
- Connecting do-it-for-me DIYers with tradespeople
- Figure 39: Plane and Simple marketplace, 2023
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Advertising and Marketing Activity
- Total sector advertising expenditure down 31% in 2022
- Figure 40: Total above-the-line, online display and direct mail advertising expenditure by UK DIY retailers, including online DIY stores, 2019-23*
- B&Q still the sector’s highest-spending advertiser
- Figure 41: Leading UK DIY retailers’, including online DIY stores, recorded above-the-line, online display and direct mail total advertising expenditure, 2019-23
- 52% of sector advertising expenditure channelled through TV
- Figure 42: Total above-the-line, online display and direct mail advertising expenditure by UK DIY retailers, including online DIY stores, by media type, 2022
- Key campaigns
- B&Q pushes its value proposition amid cost-of-living crisis
- Wickes and Homebase unveil new radio advertising partnerships
- Jewson ‘Hard Hat Your Skin’ campaign
- Toolstation ‘Everyday Great Value’ campaign
- Screwfix ‘Unbeatable Value’ and Screwfix Sprint campaign
- Nielsen Ad Intel coverage
- Total sector advertising expenditure down 31% in 2022
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Brand Research
- What you need to know
-
- Figure 43: Attitudes towards and usage of selected brands, 2023
- Key brand metrics
- Figure 44: Key metrics for selected brands, 2023
- Brand attitudes: B&Q offers great shopper service
- Figure 45: Attitudes, by brand, 2023
- Brand personality: B&Q fun and ethically minded
- Figure 46: Brand personality – macro image, 2023
- Homebase overrated, Screwfix is responsive and cutting edged, B&Q reliable
- Figure 47: Brand personality – micro image, 2023
- Brand analysis
- B&Q is trustworthy, accessible and offers great online service
- Wilko offers a good value for money and is considered fun
- Screwfix is highly recommended and reliable
- Wickes seeks to improve accessibility and customer service
- Homebase is overrated and expensive but stylish
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Where They Shop
- More than four fifths of consumers have purchased home improvement products in the past year
- Figure 48: Where they shopped for DIY/home improvement products, Broad categories, 2021,2022 and 2023
- Non-specialists experience a nine percentage point increase
- Non-specialists continue to offer an attractive alternative
- B&Q continues to be a shopper favourite
- Figure 49: Where they shopped for DIY products, 2020, 2021, 2022 and 2023
- More than four fifths of consumers have purchased home improvement products in the past year
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In-store vs Online
- Both channels for purchasing grew
- Shopping online becomes more popular after pandemic years
- Figure 50: Where they shopped for DIY products, in-store and online, 2020-23
- Physical DIY retailers continue to improve their online offering
- Figure 51: Where they shopped for DIY products, in-store and online, 2023
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Recent Home Improvements
- Smaller-ticket projects continue to lead engagement
- … while bigger-ticket projects softened in demand
- Figure 52: Recent home improvements, 2023
- Home ownership shapes home improvements
- Smaller-ticket home improvements lead in engagement with women
- Figure 53: Recent home improvements by home ownership, 2023
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Reasons for Shopping at DIY retailers
- Consumers seek convenience when it comes to home improvement
- But price remains at the forefront of consumers’ minds
- Figure 54: Most important factors for shopping at DIY retailer, 2023
- Priorities vary across different demographics…
- Older DIY shoppers want convenience and choice
- Figure 55: DIY retailing purchase drivers, by age and annual household income, 2023
- Proximity, choice and price lead in shopper’s decisions for going to a DIY retailer
- Figure 56: Turf Analysis, DIY retailing, April 2023
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Concerns over Cost of Living Crisis
- Three quarters of consumers are likely to carry out home improvement projects themselves
- Figure 57: Cost of living crisis attitudes, 2023
- DIY remains popular amidst economic uncertainty
- Many are willing to spend on projects that align with their values
- Spending on the home is a priority for those over 65+
- Figure 58: Consumers who have prioritised spending on the home over other areas by age group, 2023
- Three quarters of consumers are likely to carry out home improvement projects themselves
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Attitudes towards DIY
- DIY demand remains strong
- Home improvement is important to many, but time-consuming
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- Figure 59: Consumer sentiments on DIY/home improvement projects, 2023
- Retailers can offer expertise to consumers
- Younger consumers are interested in home improvement workshops
- Figure 60: Retailer opportunities for DIY market, 2023
- Social media is an important source of inspiration for younger consumers
- Figure 61: Use of social media as inspiration for DIY Shoppers based on age and gender, 2023
- Sustainable alternatives to purchasing DIY products
- Renting tools grows amongst consumers
- Two thirds consumers are interested in money-off vouchers for their old tools
- Figure 62: Sustainable measures for DIY/home improvement projects, based on age groups, 2023
- Owning their home drives DIY interest
- Figure 63: Consumer segmentation analysis by age and gender, 2023
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
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Appendix – Forecast Methodology
- Market forecast and prediction intervals
- Figure 64: DIY retail sales on total DIY/Hardware specialist sector, 2023-28
- Market drivers and assumptions
- Forecast methodology
- Market forecast and prediction intervals
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
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*databooks not available with UK B2B Industry reports.
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