Italy DIY Retailing Market Report 2021

Overview

• What you need to know
• Key issues covered in this Report
• Areas covered in this Report
• • Figure 1: Coicop classifications used for the Mintel market size

Executive Summary

• The market
• Consumer spending
  • Figure 2: Italy: consumer spending on DIY products (including VAT), 2016-20
• Market drivers
• Sector size and forecast
• Channels of distribution
• Companies and brands
• Key metrics
• Market shares
  • Figure 3: Italy: leading specialist DIY retailers’ shares of all DIY specialists’ sales, 2020
• Online
• The consumer
• Where they shop for DIY products
  • Figure 4: Italy: where DIY/home improvement products were bought in the last 12 months, March 2021
• COVID-19 related attitudes and behaviours in DIY
  • Figure 5: Italy: COVID-19-related attitudes and behaviours in DIY, March 2021
• Interest in DIY innovations
  • Figure 6: Italy: interest in DIY innovations, March 2021

The Impact of COVID-19 on DIY Retailing

• Short, medium and long term impact on the sector
  • Figure 7: Short, medium and long term impact of COVID-19 on DIY retailing, May 2021
• Opportunities and threats
• Online advances by several years due to COVID-19 restrictions
• Leveraging the power of technology to enhance service
• AR can help customers visualise the products in situ
• Using apps to ride on the convenience trend
• COVID-19 brings a wave of new demand
• New store formats, new opportunities
• Concessions provide opportunities with one-stop shoppers
• Smaller specialists could suffer
• Competition from online and non-specialists is greater than ever
• How long will interest in DIY projects remain elevated?
• How COVID-19 will reshape the industry
• Rapid delivery could be a key differentiator moving forward
• Eco-friendly credentials and sustainability could gain further traction
• Community and localism here to stay
• Discounters could strengthen their position in DIY
• Physical and digital merge providing a feeling of shopping in-store from home
• The impact of COVID-19 on consumer behaviour across Europe
• COVID-19 concerns remain steady
  • Figure 8: Europe: those extremely worried about the risk of being exposed to COVID-19, March 2020-May 2021*
• Impact of COVID on unemployment: worst could be yet to come?
  • Figure 9: Europe: financial impact of COVID-19, March 2021*
• Consumers in Spain and Italy most likely to have cut back on non-essential spending
• Consumers in mainland Europe most concerned about time spent in-store
• Click and collect enhances online capacity
• Contactless payment booms
• Staying closer to home benefits local businesses
• Online shopping grows in popularity
  • Figure 10: Europe: changes to shopping behaviour since the start of the COVID-19 outbreak, May 2021*
• Home and garden products generally not a spending priority but DIY the exception
  • Figure 11: Net balance* of expected spending on selected items in the next month, May 2021**
• Mainland Europeans more pessimistic about home and garden spending than British
  • Figure 12: Europe: expected spending on home and garden products in the next month, May 2021*
• How the crisis is impacting on key consumer segments
• Women are more concerned about the virus
  • Figure 13: Europe: those extremely worried about the risk of being exposed to COVID-19, by gender and age, May 2021*
• Women most likely to be shopping more online in all countries
  • Figure 14: Europe: consumers shopping more online, by gender and age, May 2021*
• Younger age groups keener on click and collect
  • Figure 15: Europe: consumers using click-and-collect more, by gender and age, May 2021*
• Women and older people most likely to limit time in-store
  • Figure 16: Europe: consumers trying to limit the time they spend in-store, by gender and age, May 2021*
• Spanish consumers most likely to be shopping local
  • Figure 17: Europe: consumers shopping more from local businesses, by gender and age, May 2021*
• COVID-19: market context
• France
• Germany
• Italy
• Spain
• UK

Issues and Insights

• How can retailers use the experience of COVID-19 to increase brand loyalty?
• How can specialist retailers differentiate themselves from non-specialist rivals?

The Market – Key Takeaways

• DIY market avoids consumer spending crash affecting much of retail
• DIY specialists’ sales hold up well
• Economic environment set to be tough for next few years
• Record numbers of Italians looking to spend on home improvements

Consumer Spending

• Mintel DIY market size
• • Figure 18: Italy: DIY products – The Mintel market size (including. VAT), 2016-20
• • Figure 19: Italy: Mintel DIY market size: estimated breakdown by product category, 2020
• DIY-related spending categories
• • Figure 20: Italy: consumer spending in detail (including. VAT), 2016-20

Market Drivers

• Home ownership
  • Figure 21: Italy: tenure types: owners vs tenants, % of households, 2010-19
  • Figure 22: Italy: comparison of home ownership levels with other major European countries, 2019
• Consumer spending plans
  • Figure 23: Italy: consumers’ planned spending on housing and home in the next 12 months, Q1 2018-Q2 2021*

Sector Size and Forecast

• • Figure 24: Italy: DIY specialists, sales (excluding VAT), 2016-20
• • Figure 25: France: DIY specialists, forecast sales (excluding. VAT), 2021-25

Inflation

• • Figure 26: Italy: consumer prices* of DIY-related categories, annual % change, 2016-20
  • Figure 27: Italy: consumer prices* of DIY related categories, annual % change, January 2020-March 2021

Channels of Distribution

Companies and Brands – Key Takeaways

• Leroy Merlin has the market covered
• OBI, a distant number two player, looks at opening more stores
• Bricofer Group finances stretched by pandemic
• Online sales boom during pandemic

Leading Players

• ADEO retains a strong grip on the market
• OBI is a distant number two player
• Bricofer Group is leading franchisor
• Brico io consolidates
• Other players
  • Figure 28: Italy: leading specialist DIY retailers: sales, 2016-20
  • Figure 29: Italy: leading specialist DIY retailers: outlet numbers, 2016-20

Market Shares

• • Figure 30: Italy: leading specialist DIY retailers: shares of all DIY specialists’ sales, 2016-20

Online

• Online retailing in Italy
• Shopping online
• Online sales of DIY
• Leading online players
  • Figure 31: Italy: search interest on Google, selected DIY retailers, last 12 months, January 2020-May 2021

The Consumer – Key Takeaways

• Online tutorials offer specialists an opportunity to increase loyalty
• Augmented reality technology can help engage female shoppers
• Remote assistance can add value and broaden reach
• Online-only channel is growing, driven by Amazon

Who Buys DIY/Home Improvement Products?

• • Figure 32: Italy: key demographics of DIY/home improvement products shoppers, March 2021
• Shopping for DIY/home improvement products focused around families
  • Figure 33: Italy: key demographics of DIY/home improvement products shoppers, March 2021

Where They Shop for DIY Products

• Specialists still dominate
• Amazon dominates the online-only channel
  • Figure 34: Italy: where DIY/home improvement products were bought in the last 12 months, March 2021
• Trend data
  • Figure 35: Italy: where DIY/home improvement products were bought in the last 12 months, leading DIY specialists, 2017-21*
• • Figure 36: Italy: where DIY/home improvement products were bought in the last 12 months, leading DIY specialists, 2017-21*
• Most buyers combine store and online shopping
  • Figure 37: Italy: breakdown of buyers of DIY/home improvement products, March 2021
• Leroy Merlin has strong appeal among women
  • Figure 38: Italy: where DIY/home improvement products were bought in the last 12 months, leading specialists, by gender, March 2021
• Amazon also does well with women
  • Figure 39: Italy: where DIY/home improvement products were bought in the last 12 months, leading non-specialists, by gender, March 2021
• Leroy Merlin’s strength lies in its appeal to all age groups
  • Figure 40: Italy: where DIY/home improvement products were bought in the last 12 months, leading specialists, by age, March 2021
• Non-specialists are more popular among younger buyers
  • Figure 41: Italy: where DIY/home improvement products were bought in the last 12 months, leading non-specialists, by age, March 2021
• Leroy Merlin has remarkable appeal with more affluent households
  • Figure 42: Italy: where DIY/home improvement products were bought in the last 12 months, leading specialists, by net monthly household income, March 2021
• Amazon’s appeal to more affluent households is less pronounced
  • Figure 43: Italy: where DIY/home improvement products were bought in the last 12 months, leading non-specialists, by net monthly household income, March 2021

COVID-19 Related Attitudes and Behaviours in DIY

• DIY has been used to kill time
• Italians learn to appreciate their homes more
• Online boost
• Skills boost
  • Figure 44: Italy: COVID-19-related attitudes and behaviours in DIY, March 2021

Interest in DIY Innovations

• Strong interest in online tutorials
• DIY areas in supermarkets could tap into move towards more localised shopping
• Innovation areas will help to explain new products
• Remote video assistance likely to continue after pandemic
  • Figure 45: Italy: interest in DIY innovations, March 2021
• Women most interested in online tutorials
  • Figure 46: Italy: interest in DIY innovations, by gender, March 2021
• Leroy Merlin shoppers most interested in online tutorials
  • Figure 47: Italy: interest in DIY innovations, by where shopped for DIY/home improvement products, March 2021

Appendix – Data Sources and Abbreviations

• Abbreviations
• Data sources