DIY Retailing - Italy - May 2017

OVERVIEW
What you need to know
Areas covered in this report
EXECUTIVE SUMMARY
The market
The economy
Market size
Figure 1: Italy: spending on DIY products, 2012-17
Inflation
Figure 2: Italy: consumer prices of DIY-related categories, annual % change, January 2015-March 2017
The housing market
Figure 3: Italy: consumers’ planned spending on housing and home, Q4 2013-Q1 2017
Consumer confidence
Figure 4: Italy: consumer confidence, 2007-17
Channels of distribution
Figure 5: Italy: estimated distribution of spending on DIY and related goods, 2016
Sector sales and forecast
Figure 6: Italy: sales by specialist DIY retailers, 2011-17
Leading specialists
Key metrics
Market shares
Figure 7: Italy: leading DIY specialists’ share of all DIY specialists’ sales, 2016
Online
Figure 8: Italy: percentage purchasing online, 2009-16
The consumer
Where they shop
Figure 9: Italy: DIY retailers bought from in the last 12 months, by in-store or online, March 2017
Participation in DIY activities
Figure 10: Italy: DIY jobs completed in the last 12 months, March 2017
Attitudes to DIY
Figure 11: Italy: attitudes to DIY, March 2017
What we think
ISSUES AND INSIGHTS
What chances of an upturn in DIY demand?
The facts
The implications
A sector ripe for rationalisation
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Weak economy
Some positive signs
Consumer confidence weakening
Small DIY market
Specialists take three-quarters of DIY spending
MARKET SIZE AND KEY DRIVERS
A weak recovery
Mintel DIY market size
Figure 12: Italy: DIY products – The Mintel market size (incl. VAT), 2012-17
Figure 13: Italy: Mintel DIY market size: breakdown by product, 2016
DIY-related spending categories
Figure 14: Italy: consumer spending in detail (incl. VAT), 2012-16
Inflation
Figure 15: Italy: consumer prices of DIY-related categories, annual % change, 2012-16
Figure 16: Italy: consumer prices of DIY-related categories, annual % change, January 2015-March 17
Market drivers
Housing market may have bottomed out
Figure 17: Italy: house price index (2010 = 100), Q1 2014-Q4 2016
Home ownership among the highest in Europe
Figure 18: Italy: tenure types: owners vs tenants, 2007-15
Consumer confidence
Figure 19: Italy: consumer confidence, 2007-17
Consumer spending plans
Figure 20: Italy: consumers’ planned spending on housing and home, Q4 2013-Q1 2017
CHANNELS OF DISTRIBUTION
Specialists dominate
Garden centres – Major competitors in the gardening area
Supermarkets and other stores less important
Figure 21: Italy: estimated distribution of spending on DIY and related goods, 2016
SECTOR SIZE AND FORECAST
Lacklustre prospects
Figure 22: Italy: DIY specialists’ sales (excl. VAT), 2011-16
Figure 23: Italy: DIY specialists’ sales, forecasts, excl VAT, 2017-21
LEADING SPECIALISTS – WHAT YOU NEED TO KNOW
ADEO the market leader by far
Fragmented chain
Scope for rationalisation
Online
LEADING SPECIALISTS
ADEO the clear leader, followed by OBI
Smaller groups
Figure 24: Italy: leading specialist DIY retailers, sales, 2014-16
Figure 25: Italy: leading specialist DIY retailers, outlet numbers, 2014-16
Figure 26: Italy: leading specialist DIY retailers, sales per outlet, 2014-16
MARKET SHARES
Highly fragmented market
Figure 27: Italy: leading DIY retailers, market shares, 2014-16
ONLINE
Online activity
Shopping online
Figure 28: Italy: percentage purchasing online in the last 12 months, 2009-16
Online sales
Leading online players
Figure 29: Italy: leading store-based DIY specialists, online presence, 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Specialists dominant
Small groups
Amazon is the online leader…
…but mainly attracts those doing minor tasks
DIY is popular with younger, more affluent groups
In-store advice valued
WHERE THEY SHOP
In-store dominant
Online widely used, but not so often
Figure 30: Italy: Retailers used to buy DIY goods in the last 12 months, in-store and online, March 2017
Figure 31: Italy: profile of those who had bought DIY goods, whether in-store or online, by type of retailer used, March 2017
PARTICIPATION IN DIY ACTIVITIES
Figure 32: Italy: DIY jobs completed in the last 12 months, March 2017
DIY or do it with some help
Figure 33: Italy: profile of those who complete jobs themselves and those who complete them with help, March 2017
Use of tradesmen
Figure 34: Italy: proportion of DIY jobs completed by tradesmen in the last 12 months, March 2017
DIY jobs completed by retailers used
Figure 35: Italy: DIY jobs done by retailers bought from, March 2017
ATTITUDES TO DIY
DIY is popular
Figure 36: Italy: attitudes to DIY, March 2017
Figure 37: Italy: profile of those agreeing with attitude statements to DIY, March 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
ADEO
What we think
A portfolio of brands expanding internationally
Vision 2025
Smaller city centre stores
Attracting younger and less confident DIYersff
Digital and online
Company background
Company performance
Figure 38: ADEO: group sales performance, 2012-16
Figure 39: ADEO: retail formats, 2017
Figure 40: ADEO: outlet data (main European countries), 2012-16
Retail offering
Leroy Merlin
Other fascia
OBI
What we think
Enhanced in-store experience
Expansion of customised home improvement and garden project solutions
Company background
Company performance
Figure 41: OBI: estimated group sales performance, 2012-16
Figure 42: OBI: outlet data, 2012-16
Retail offering