Spain 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: Spain: trends in annual consumer spending on DIY and all items, 2016-20
• Sector size and forecast
• Channels of distribution
• Companies and brands
• Key metrics
• Market shares
  • Figure 3: Spain: leading specialist DIY retailers’ shares of all DIY specialists’ sales, 2020
• Online
• The consumer
• Where they shop for DIY products
  • Figure 4: Spain: retailers used to purchase DIY products in the last 12 months, March 2021
• COVID-19 related attitudes and behaviours in DIY
  • Figure 5: Spain: COVID-19-related attitudes and behaviours in DIY, March 2021
• Interest in DIY innovations
  • Figure 6: Spain: 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

• COVID-19 brings online shopping boom
• Lockdown brings renewed interest in home improvement and doing it yourself

The Market – Key Takeaways

• The economy was hit hard by the pandemic
• DIY market grew 10% in 2020
• Specialist DIY retailers decline, but much less than the retail sector as a whole
• Most spending still goes through the big sheds
• The housing market is shifting

Consumer Spending

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

Market Drivers

• Home ownership
  • Figure 21: Spain: tenure types: owners vs tenants, % of households 2011-19
• Consumer spending plans
  • Figure 22: Spain: consumers’ planned spending on housing and home, Q1 2018-Q2 2021

Sector Size and Forecast

• Specialist DIY retailers sales decline, but much less than total retail sector
  • Figure 23: Spain: DIY specialists, sales (excluding VAT), 2016-20
• • Figure 24: Spain: DIY specialists, forecast sales (excluding VAT), 2021-25

Inflation

• • Figure 25: Spain: consumer prices* of DIY-related categories, annual % change, 2015-20
• • Figure 26: Spain: consumer prices* of DIY related categories, annual % change, January 2020-March 2021

Channels of Distribution

Companies and Brands – Key Takeaways

• Digital sales push helps Leroy Merlin maintain market leadership
• Strong recovery in the second-half prompts Kingfisher about-turn
• COVID-19 pandemic accelerates demise of Bricor stores
• DIY specialists’ sector sales increasingly concentrated
• Leading DIY specialists’ aggregate share falls on back of COVID restrictions
• Online DIY sales accelerate

Leading Players

• Mixed fortunes for sector’s leading specialists
• Leroy Merlin triples online sales growth
• Kingfisher’s Iberia exit U-turn
• Bauhaus tapping into tool rental opportunity
• ManoMano sales accelerate 120%
• Out-of-town location helps lift Brico Centro sales 35%
• Bricoking bets on virtual store to drive sales during COVID-19 lockdown
• Continuous losses force ECI to downsize Bricor brand
  • Figure 27: Spain: leading specialist DIY retailers: sales, 2016-20
• Leroy Merlin €67 million branch redesign and store expansion
• Bricomart opens its 29th store
• Last remaining Bricor store to close in September 2021
  • Figure 28: Spain: leading specialist DIY retailers: outlet numbers, 2016-20

Market Shares

• Leading brands tighten their grip on sector sales in 2020…
  • Figure 29: Spain: leading specialist DIY retailers’ estimated shares of all DIY specialists’ sales, 2016-20
• …but their share of all DIY spending falls as a result of restrictions
  • Figure 30: Spain: leading retailers’ estimated share of all DIY spending, 2016-20

Online

• Online retailing in Spain
• Shopping online
• Online sales of DIY
• Leading online players

The Consumer – Key Takeaways

• 82% of consumers bought DIY products in the last year
• Older consumers fuelling the switch to buying DIY products online
• Leroy Merlin the most popular destination to purchase DIY
• Amazon the most popular online destination for DIY purchases
• Consumers put an emphasis on home improvement during COVID-19 pandemic
• Women interested in smartphone-enabled DIY innovations to assist shopping experience

Who Shops for DIY Products

• Purchasing slightly higher among men than women, but females aged 16-34 are the single biggest buyers
  • Figure 31: Spain: DIY/home improvement products shoppers, by gender and age, March 2021
• Homeowners and more affluent consumers the biggest purchasers of DIY and home improvement products
  • Figure 32: Spain: DIY/home improvement products shoppers, by net monthly household income and housing situation, March 2021
• Stores remain paramount in purchasing process, albeit with reduced popularity
  • Figure 33: Spain: channels used to purchase DIY products in the past year, by age group, March 2021
• Significant shift in more at risk older consumers purchasing DIY and home improvement products online
  • Figure 34: Spain: channels used to purchase DIY products in the past year, by gender and age, March 2021

Where They Shop for DIY Products

• Leroy Merlin by far the most popular DIY destination
  • Figure 35: Spain: retailers used to purchase DIY products in the last 12 months, March 2021
• Amazon ideally positioned to capitalise on shift to shopping online
  • Figure 36: Spain: retailers used to purchase DIY products in the last 12 months, in-store or online, March 2021
• Trend data
  • Figure 37: Spain: where DIY/home improvement products were bought in the last 12 months, leading specialists and non-specialists, 2017-21*

COVID-19 Related Attitudes and Behaviours in DIY

• Extended periods at home spark heightened appreciation of living space
• Consumers find time to carry out home improvement projects by themselves
• COVID-19 outbreak drives online buying and one-stop shopping to minimise the risk of contagion
  • Figure 38: Spain: COVID-19-related attitudes and behaviours in DIY, March 2021

Interest in DIY Innovations

• Strong appetite for online how-to tutorials
• Specialist DIY outlet areas in supermarkets
• Technology to aid the in-store shopping experience
• Assistance to help overcome the pitfalls of online shopping
  • Figure 39: Spain: interest in DIY innovations, March 2021
• Women interested in smartphone-enabled DIY shopping innovations
• Men keen on in-store DIY concessions
  • Figure 40: Spain: interest in DIY innovations, by gender, March 2021

Appendix – Data Sources and Abbreviations

• Abbreviations
• Data sources