DIY Retailing - Germany - May 2017

OVERVIEW
What you need to know
Areas covered in this report
EXECUTIVE SUMMARY
The market
Market size
Figure 1: Germany: DIY products – Mintel market size (incl. VAT), 2012-17
Figure 2: Germany: consumer prices of DIY-related categories, annual % change, November 2015-April 2017
Consumer confidence
Figure 3: Germany: consumer confidence: January 2016-March 2017
Channels of distribution
Figure 4: Germany: estimated channels of distribution for DIY spending, 2016
Sector size and forecast
Figure 5: Germany: annual growth in sales through the DIY/hardware stores, 2011-16
Leading specialists
Key metrics
Market shares
Figure 6: Germany: leading specialist DIY retailers: shares of all DIY specialists’ sales, 2016
Online
The consumer
Where they shop
Figure 7: Germany: retailers used to buy DIY goods in the last 12 months, either in-store or online, March 2017
Participation in DIY activities
Figure 8: Germany: DIY jobs completed in the last 12 months, March 2017
Attitudes to DIY
Figure 9: Germany: attitudes to DIY, March 2017
What we think
ISSUES AND INSIGHTS
Are specialists missing out on DIY ‘top-up’ shopping?
The facts
The implications
Opportunities to appeal to the young
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
A strong economy leads to growth in consumer spending
Inflation low through 2016 but increasing in 2017
Sales through specialists have been weak
MARKET SIZE AND KEY DRIVERS
A strong economic performance
Consumer spending on DIY grows steadily
Figure 10: Germany: DIY products – Mintel market size (incl. VAT), 2012-17
Figure 11: Germany: Mintel DIY market size: breakdown by product, 2016
DIY-related spending categories
Figure 12: Germany: consumer spending in detail (incl.VAT), 2012-16
Inflation
Figure 13: Germany: consumer prices of DIY-related categories, annual % change, 2012-16
Figure 14: Germany: consumer prices of DIY-related categories, annual % change, November 2015-April 2017
Market drivers
Housing market
Figure 15: Germany: annual rate of change in house prices, 2008-16
Figure 16: Germany: tenure types: owners vs tenants, 2010-15
Consumer confidence
Figure 17: Germany: consumer confidence, January 2016-March 2017
CHANNELS OF DISTRIBUTION
Specialists dominate
Figure 18: Germany: estimated channels of distribution for DIY spending, 2016
SECTOR SIZE AND FORECAST
Sales through specialists have been weak
Figure 19: Germany: DIY specialists’ sales (excl. VAT), 2011-16
Figure 20: Germany: DIY specialists’ sales, forecasts, excl VAT, 2017-21
Figure 21: Germany: DIY specialists’ sales relative to all spending on DIY products*, 2011-16
LEADING SPECIALISTS – WHAT YOU NEED TO KNOW
OBI leads
But Bauhaus is catching up
Online accounts for just 5.2% of spending on DIY
LEADING SPECIALISTS
OBI is the market leader
Bauhaus is catching up
Hornbach trials urban stores
Screwfix puts expansion on pause
Figure 22: Germany: leading specialist DIY retailers, sales, 2012-16
Figure 23: Germany: leading specialist DIY retailers, outlet numbers, 2012-16
Figure 24: Germany: leading specialist DIY retailers, sales per outlet, 2012-16
MARKET SHARES
Consolidation in the top ten
Lacking a dominant player
Bauhaus could become the market leader in 2018
Figure 25: Germany: leading specialist DIY retailers: shares of all DIY specialists’ sales, 2012-16
ONLINE
Online activity and device usage
Shopping online
Figure 26: Germany: percentage purchasing online, 2011-16
Online sales
Figure 27: Germany: online sales of DIY products (Incl.VAT), 2014-16
Leading online DIY retailers
Figure 28: Germany: leading store-based DIY specialists: online presence, 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Amazon as popular as OBI
Appeal of specialists skewed towards homeowners
Over three-quarters have done DIY
In-store advice is highly valued
Young and affluent want to improve their skills
WHERE THEY SHOP
Amazon matches OBI
Figure 29: Germany: retailers used to buy DIY goods in the last 12 months, in-store and online, March 2017
OBI dominates in-store
Figure 30: Germany: retailers used to buy DIY goods in the last 12 months, in-store, March 2017
Online dominated by non-specialists
Figure 31: Germany: retailers used to buy DIY goods in the last 12 months, online, March 2017
DIY carried out by the affluent young
Figure 32: Germany: profile of those who had bought DIY goods, whether in-store or online, by type of retailer used, March 2017
Appeal of specialists skewed towards homeowners
Figure 33: Germany: percentage point difference in usage of DIY stores between homeowners and renters, March 2017
PARTICIPATION IN DIY ACTIVITIES
Over three-quarters have done DIY
Figure 34: Germany: DIY jobs completed in the last 12 months without a tradesman, March 2017
Germans prefer to do it themselves
Figure 35: Germany: DIY jobs completed in the last 12 months, March 2017
Over three-quarters have carried out DIY tasks
Figure 36: Germany: who completed DIY jobs in the last 12 months, March 2017
Bringing people together to develop skills
Figure 37: Germany: who completed DIY jobs in the last 12 months, by age group, March 2017
ATTITUDES TO DIY
In-store advice is valued
Figure 38: Germany: attitudes to DIY, March 2017
Opportunities to learn appeal to the young and affluent
Figure 39: Germany: profile of those who agreed with various attitude statements to DIY, March 2017
Over half find DIY enjoyable
Figure 40: Germany: attitudes of those who have carried out DIY projects in the last 12 months (excluding those using a tradesman), March 2017
Hagebau shoppers rate in-store advice
Figure 41: Germany: agreement with the statement “Advice from in-store staff is useful for DIY projects”, by where they shopped for DIY products in the last 12 months, March 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
BAUHAUS
What we think
A German business with an international footprint
Giving customers a helping hand
Company background
Company performance
Figure 42: Bauhaus: estimated group sales performance*, 2012-16
Figure 43: Bauhaus: outlet data, 2012-16
Retail offering
HAGEBAU
What we think
Moving into the city
Shop facelifts and enhanced features
Company background
Company performance
Figure 44: Hagebau: group sales performance, 2012-16
Figure 45: Hagebau: Outlet data, 2012-16
Retail offering
HORNBACH BAUMARKT
What we think
Experimenting with new mini-format urban store concept
Project-oriented solutions service expanded
Rolling out online shop to more countries
Company background
Company performance
Figure 46: Hornbach Baumarkt: group financial performance, 2012/13-2016/17
Figure 47: Hornbach Baumarkt: outlet data, 2012/13-2016/17
Retail offering
KINGFISHER GROUP
What we think
The transformation
Will it work?
Longer term
Company background
Company performance
Figure 48: Kingfisher Group: group financial performance, 2012/13-2016/17
Figure 49: Kingfisher Group: outlet data, 2012/13-2016/17
Retail offering
OBI
What we think
Enhanced in-store experience
Expansion of customised home improvement and garden project solutions
Company background
Company performance
Figure 50: OBI: estimated group sales performance, 2012-16
Figure 51: OBI: outlet data, 2012-16
Retail offering
TOOM BAUMARKT
What we think
Inspirational shopping environment
Accelerating digital presence
A less environmentally-damaging DIY brand
Company background
Company performance
Figure 52: toom Baumarkt/B1 Discount/Gartenliebe: group sales performance, 2012-16
Figure 53: toom Baumarkt/B1 Discount Baumarkt/Gartenliebe: estimated outlet data, 2012-16
Retail offering