Author: Mintel Group Ltd.
Last saved by: HTTP server

DIY Retailing: Inc Impact of COVID-19 - Europe - May 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Report Scope
DIY stores
Market size
Figure 1: Coicop classifications used for the Mintel market size, 2019
Financial definitions
Abbreviations
VAT around Europe
Figure 2: VAT rates around Europe, 2013-20
EXECUTIVE SUMMARY – EUROPE – THE MARKET
Mintel DIY market size
Figure 3: Europe:  Spending on DIY products, including VAT, 2013-19
Figure 4: Europe: Spending on DIY products, including VAT, 2018
Figure 5: Europe: Compound annual growth rate in spending on DIY products, 2013-18
Figure 6: Europe: Compound annual growth rate in spending on DIY products in selected countries, 2013-19
Spending on DIY goods per capita
Figure 7: Europe: Spending on DIY products per capita, including VAT, 2013-19
Figure 8: Europe: Spending on DIY products per capita, including VAT, 2018
DIY specialists’ sales
Figure 9: Europe: sales by specialist DIY retailers (excluding VAT), 2015-19
Figure 10: Europe big 5: Specialist DIY retailers, forecast sales (excluding VAT), 2020-24
Market drivers
Consumer confidence
Figure 11: Europe: consumer confidence, December 2015- December 2019 and 2019- Q1 2020
Ageing population – change in median age
Figure 12: Europe: Increase in median age of the population, 2009-19
Home ownership
Figure 13: Europe: Proportion of owner occupiers, 2018
Figure 14: Europe: Change in proportion of owner occupiers, 2009-18
House prices
Figure 15: Europe: Growth in house prices, 2009-19
Online
Figure 16: Europe: DIY product shoppers in-store vs online, March 2020
Figure 17: Europe: Proportion of individuals buying household goods online in the last 12 months, 2019
Figure 18: Europe: Estimated online sales of DIY products, by major country, 2019
Leading retailers
Figure 19: Europe: Leading specialist DIY retailers, sales, 2015-19
Figure 20: Europe: Leading specialist DIY retailers, outlets, 2015-19
Figure 21: Europe: Leading specialist DIY retailers, sales per outlet, 2015-19
Market shares
Figure 22: Europe: Leading specialist DIY retailers’ shares of all DIY spending, 2015-19
What we think
France
Germany
Italy
Spain
UK
EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
The research
Who does DIY?
Figure 23: Europe:  DIY product shoppers in-store vs online, March 2020
Figure 24: Europe:  DIY product shoppers (in-store and online), by gender in each country, March 2020
Figure 25: Europe:  Male DIY product shoppers (in-store and online), by broad age group, March 2020
Shoppers and most used stores
Figure 26: Europe: Most used DIY store by country and proportion of shoppers, march 2020
DIY projects carried out
Figure 27: Europe: DIY projects undertaken in the last 12 months, March 2020
Figure 28: Europe: DIY projects undertaken in the last 12 months, March 2020
Behaviours when planning a DIY project
Figure 29: Europe: behaviours when planning a DIY Project, by country, March 2020
Sources of inspiration for DIY projects
Figure 30: Europe: behaviours when planning a DIY Project, by country, March 2020
EXECUTIVE SUMMARY – EUROPE - INNOVATION AND LAUNCH ACTIVITY
OBI opens new do-it-yourself home décor and furnishings concept store in Cologne
‘Try before you buy’ store concept
Digital shopping assistants to simplify the online DIY buying experience
Making the smart home more understandable and accessible
Toys and beer
Toom experimenting with social media to inspire DIYers
Castorama testing new urban proximity store format
‘Handymen at your service’
Digital DIY voice assistance
THE IMPACT OF COVID-19 ON DIY RETAILING
Short, medium and long-term impact on the sector
Figure 31: Short, medium and long term impact of COVID-19 on DIY retailing, May 2020
Opportunities and threats
Seizing the online opportunity
Moving from ‘Do It for Me’ to ‘Do It Yourself’
Retailers must rise to the challenge of socially-distanced shopping
Adapting services to the ‘new-normal’
Figure 33: B&Q stores offering remote advice in the UK, May 2020
Community, co-operation and ethical considerations come to the fore
Impact on the DIY retailing sector
Leading players will have to adapt to the changes in the market
Figure 34: Europe: Specialist DIY retailers’ sales and forecast sales, 2014-24
Figure 35: Europe: Detailed specialist DIY retailers’ sales and forecast sales, by country, 2018-24
The impact of COVID-19 on consumer behaviour across Europe
Figure 36: Europe: Those extremely worried about the risk of being exposed to COVID-19, March, April and May 2020*
Spending priorities during lockdown
Figure 37: Europe: Changes made to lives as a result of the COVID-19, May 2020*
Spending intentions for home and garden products
Figure 38: Europe: spending intentions for home and garden products in the next month, May 2020*
Figure 39: Europe: Net balance of expected spending* on home and garden products, May 2020**
How the crisis will affect key consumer segments
Older age groups most concerned about becoming infected and changes to lifestyle
Figure 40: Europe: Those extremely worried about the risk of being exposed to COVID-19, by gender and age, May 2020*
Spending on home and garden products will be subdued in the short term
Figure 41: Europe: Net balance of expected spending* on home and garden products, by age, May 2020**
Online shopping growth opportunities
Figure 42: Europe: Proportion of shoppers who increased their online shopping, by age, May 2020*
Online shift is about more than just having an online shop
COVID-19: Market context
France
Germany
Italy
Spain
UK
FRANCE
 OVERVIEW
What you need to know
Key issues covered in this Report
Areas covered in this report
Figure 43: Coicop classifications used for the Mintel market size, 2019
 EXECUTIVE SUMMARY
The market
Consumer spending
Sector size and forecast
Channels of distribution
Figure 44: France: estimated distribution of DIY spending by channel, 2019
Companies and brands
Key metrics
Market shares
Figure 45: France: Leading specialist DIY retailers’ sales as share of all DIY specialists’ sales, 2019
Online
The consumer
Where they shop
Figure 46: France: retailers used to buy DIY goods in the last 12 months, whether in-store or online, March 2020
DIY projects carried out
Figure 47: France: DIY projects undertaken in the last 12 months, March 2020
Behaviours when planning a DIY project
Figure 48: France: behaviours when planning a DIY Project, March 2020
Sources of inspiration for DIY projects
Figure 49: France: where they look for inspiration for DIY projects, March 2020
What we think
 ISSUES AND INSIGHTS
COVID-19 set to have major impact on French DIY retailers’ sales
The increasing importance of online for DIY retailers
The facts
The implications
Smaller stores could help sustain customer interest
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
French economy enters recession
DIY was strong in 2019
Retailers also benefitted from growth in spending
Specialists dominate
 CONSUMER SPENDING
French economy enters recession
Mintel DIY market size
Figure 50: France: DIY products – the Mintel market size (incl. VAT), 2015-19
Figure 51: France: Mintel DIY Market size: breakdown by product type, 2019
DIY-related spending categories
Figure 52: France: Consumer spending in detail (incl. VAT), 2015-19
 MARKET DRIVERS
Home ownership
Figure 53: France: Tenure types: owners vs tenants, % of households, 2010-18
Consumer spending plans
Figure 54: France: Consumers’ planned spending on housing and home, Q1 2017- Q2 2020
 SECTOR SIZE AND FORECAST
DIY had a resilient year in 2019
Forecast problematic
Figure 55: France: DIY specialists, sales (excluding VAT), 2015-19
Figure 56: France: DIY specialists, Forecast sales (excl. VAT), 2020-24
 INFLATION
Figure 57: France: Consumer prices* of DIY-related categories, annual % change, 2015-19
Figure 58: France: Consumer prices* of DIY-related categories, annual % change, January 2019-March 2020
 CHANNELS OF DISTRIBUTION
Figure 59: France: estimated distribution of DIY spending by channel, 2019
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Leroy Merlin outpaces all other players
A concentrating market
Only Leroy Merlin has grown market share
DIY is underdeveloped online
 LEADING PLAYERS
ADEO leads with its Leroy Merlin chain
Kingfisher struggling in France
Les Mousquetaires’ three brands
A refocused Mr Bricolage
Figure 60: France: Leading specialist DIY retailers, sales, 2015-19
Figure 61: France: Leading specialist DIY retailers, outlet numbers, 2015-19
Sales per outlet
Figure 62: France: Leading specialist DIY retailers: sales per outlet, 2015-19
 MARKET SHARES
Figure 63: France: Leading specialist DIY retailers’ sales as share of all DIY specialists’ sales, 2015-19
 ONLINE
Online activity
Shopping online
Figure 64: France: Online purchasing, 2010-19
Online sales of DIY
Leading online players
Leroy Merlin
ManoMano
BricoPrivé
Figure 65: France: Leading retailers’ estimated online sales of DIY, 2018-19
 THE CONSUMER – WHAT YOU NEED TO KNOW
Important note
Men shop more than women
Leroy Merlin leads in-store and online
Softer DIY projects are most common
Friends and family are first port of call for planning
In-store retailers come first for inspiration
 WHERE THEY SHOP FOR DIY
Figure 66: France: retailers used to buy DIY goods in the last 12 months, whether in-store or online, March 2020
Trend data
Figure 67: France: Percentage of shoppers using leading DIY retailers, 2018-20
Figure 68: France: retailers used to buy DIY goods in the last 12 months, whether in-store or online, gender split, March 2020
Customer profiles by retailer used
Figure 69: France: profile of DIY shoppers by retailer used, March 2020
In-store vs online
Figure 70: France: retailers used to buy DIY goods in the past 12 months, in-store vs online, March 2020
 DIY PROJECTS CARRIED OUT
Figure 71: France: DIY projects undertaken in the last 12 months, March 2020
Figure 72: France: DIY Projects undertaken in the last 12 months, Renters vs Owners, March 2020
 BEHAVIOURS WHEN PLANNING A DIY PROJECT
Figure 73: France: behaviours when planning a DIY Project, March 2020
Figure 74: France: behaviours when planning a DIY Project, by gender, March 2020
 SOURCES OF INSPIRATION FOR DIY PROJECTS
In-store comes top
Figure 75: France: where they look for inspiration for DIY projects, March 2020
Figure 76: France: where they look for inspiration for DIY projects, by age and gender, March 2020
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
ITALY
 OVERVIEW
What you need to know
Key issues covered in this Report
Areas covered in this report
Figure 77: Coicop classifications used for the Mintel market size, 2019
 EXECUTIVE SUMMARY
The market
Consumer spending
Figure 78: Italy: consumer spending on DIY products (including VAT), 2015-19
Market drivers
Sector size and forecast
Channels of distribution
Figure 79: Italy: ESTIMATED DISTRIBUTION OF DIY SPENDING BY CHANNEL, 2019
Companies and brands
Key metrics
Market shares
Figure 80: Italy: Leading specialist DIY retailers’ shares of all DIY specialists’ sales, 2019
Online
The consumer
Where they shop
Figure 81: Italy: Where DIY/home improvements products were bought in the last 12 months, March 2020
DIY projects carried out
Figure 82: Italy: DIY projects carried out at home in the last 12 months, March 2020
Behaviours when planning a DIY project
Figure 83: Italy: Behaviours relating to DIY, March 2020
Sources of inspiration for DIY projects
Figure 84: Italy: Sources of inspiration for DIY projects, March 2020
What we think
 ISSUES AND INSIGHTS
COVID-19 set to have major impact on Italian DIY retailers’ sales
How will the distribution of Italian DIY retailing change in the next few years?
The facts
The implications
Will online buying of DIY products take off in 2020?
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Weak economy holding back consumer spending, even before COVID-19
DIY spending growth slows in past two years
High levels of home ownership provide good conditions for DIY demand
Slowing specialists’ sales growth will be exacerbated by COVID-19
Specialists still account for four-fifths of spending on DIY
 CONSUMER SPENDING
Already weak Italian economy set to be devastated by COVID-19
Mintel DIY market size
Figure 85: Italy: DIY products – the Mintel market size (incl. VAT), 2015-19
Figure 86: Italy: Mintel DIY Market size: breakdown by product category, 2019
DIY-related spending categories
Figure 87: Italy: Consumer spending in detail (including VAT), 2015-19
 MARKET DRIVERS
Home ownership
Figure 88: Italy: Tenure types: owners vs tenants, % of households, 2010-18
Figure 89: Italy: comparison of home ownership levels with other major European countries, 2018
Consumer spending plans
Figure 90: Italy: Consumers’ planned spending on housing and home in the next 12 months, Q1 2017- Q1 2020
 SECTOR SIZE AND FORECAST
Slowing growth will be exacerbated by COVID-19
Figure 91: Italy: DIY specialists, sales (excl. VAT), 2015-19
Figure 92: Italy: DIY specialists, forecast sales (excl. VAT), 2020-24
 INFLATION
Figure 93: Italy: Consumer prices* of DIY-related categories, annual % change, 2015-19
Figure 94: Italy: Consumer prices* of DIY related categories, annual % change, January 2019-February 2020
 CHANNELS OF DISTRIBUTION
Specialists still account for four-fifths of spending on DIY
Figure 95: Italy: Estimated distribution of DIY spending, by channel, 2019
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
French-owned Groupe ADEO brands lead the market
Consolidation continues but market remains fragmented
Online share growing but still low
 LEADING PLAYERS
COVID-19 and the leading DIY retailers
Figure 96: Italy: Leading specialist DIY retailers, sales, 2015-19
Figure 97: Italy: Leading specialist DIY retailers, outlet numbers, 2015-19
Sales per outlet
Figure 98: Italy: Leading specialist DIY retailers: sales per outlet, 2015-19
 MARKET SHARES
Figure 99: Italy: Leading specialist DIY retailers: shares of all DIY specialists’ sales, 2015-19
 ONLINE
Online activity
Figure 100: Italy: Household broadband internet penetration vs EU average, 2010-19
Shopping online
Figure 101: Italy: Goods bought online in the past 12 months, 2010-19
Online sales of DIY
Leading online players
Figure 102: Italy: Leading retailers’ estimated online sales of DIY, 2018
 THE CONSUMER – WHAT YOU NEED TO KNOW
Important note
Most shoppers combine in-store and online buying of DIY products
Three-quarters of Italians have done DIY in the past year
Almost half have compared prices online
Female DIY buyers more open to inspiration
 WHERE THEY SHOP FOR DIY
Figure 103: Italy: Where DIY/home improvements products were bought in the last 12 months, March 2020
Trend data
Figure 104: Italy: Where DIY/Home improvement products were bought in the last 12 months, leading DIY specialists, 2017-20***
Figure 105: Italy: Where DIY/Home improvement products were bought in the last 12 months, leading DIY specialists, March 2020
Leroy Merlin attracts higher proportion of women than men
Figure 106: Italy: Where DIY/Home improvement products were bought in the last 12 months, leading DIY specialists, by gender, March 2020
eBay has a male bias.
Figure 107: Italy: Where DIY/Home improvement products were bought in the last 12 months, leading non-specialists, by gender, March 2020
Leroy Merlin customers tend to be from older age groups
Figure 108: Italy: Where DIY/Home improvement products were bought in the past 12 months, leading DIY specialists, by age, March 2020
Hypermarket shoppers are younger
Figure 109: Italy: Where DIY/Home improvement products were bought in the last 12 months, leading non-specialists, by age, March 2020
In-store channel still most popular
Figure 110: Italy: Where DIY/Home improvement products were bought in the last 12 months, in-store buyers vs online buyers, March 2020
Vast majority of buyers combine in-store and online buying
Figure 111: Italy: Analysis of buyers of DIY/Home improvement products, March 2020
Specialists still the most popular type of outlet
Figure 112: Italy: Where DIY/Home improvement products were bought in the last 12 months, by type of retailer, March 2020
Figure 113: Italy: Where DIY/Home improvement products were bought in the last 12 months, by type of retailer, March 2020
Customer profile of DIY retailers
Figure 114: ITALY: Profile of DIY shopper, by retailer used, March 2020
Customer loyalty
Figure 115: Italy: Other retailers Leroy Merlin DIY/home improvement product shoppers have bought from in the last 12 months, March 2020
Figure 116: Italy: Other retailers OBI DIY/home improvement product shoppers have bought from in the last 12 months, March 2020
Figure 117: Italy: Other retailers Amazon DIY/home improvement product shoppers have bought from in the last 12 months, March 2020
 DIY PROJECTS CARRIED OUT
Figure 118: Italy: DIY projects carried out at home in the last 12 months, March 2020
Figure 119: Italy: DIY projects carried out at home in the last 12 months, by tenure, March 2020
Figure 120: Italy: DIY projects carried out at home in the last 12 months, by age, March 2020
Figure 121: Italy: DIY projects carried out at home in the last 12 months, by DIY specialist retailer shopped at for DIY/home improvement products in past 12 months, March 2020
 BEHAVIOURS WHEN PLANNING A DIY PROJECT
Figure 122: Italy: Behaviours relating to DIY, March 2020
Young turn to friends/family, YouTube for help and advice
Figure 123: Italy: Behaviours relating to DIY, by age, March 2020
 SOURCES OF INSPIRATION FOR DIY PROJECTS
Inspiration particularly important to women
Figure 124: Italy: Sources of inspiration for DIY projects, by gender, March 2020
Social media is the biggest influence for under-35s
Figure 125: Italy: Sources of inspiration for DIY projects, by age, March 2020
Figure 126: Italy: retailer shopped at for DIY/home improvement products in the past 12 months, by sources of inspiration for DIY projects, March 2020
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
SPAIN
 OVERVIEW
What you need to know
Key issues covered in this Report
Areas covered in this report
Figure 127: Coicop classifications used for the Mintel market size, 2019
 EXECUTIVE SUMMARY
The market
Consumer spending
Sector size and forecast
Channels of distribution
Figure 128: Spain: estimated distribution of DIY spending by channel, 2019
Companies and brands
Key metrics
Market shares
Figure 129: Spain: Leading specialist DIY retailers’ shares of all DIY specialists’ sales, 2019
Online
The consumer
Where they shop
Figure 130: Spain: retailers used to buy DIY goods in the past 12 months, whether in-store or online, March 2020
DIY projects carried out
Figure 131: Spain: DIY Projects undertaken in the last 12 months, March 2020
Behaviours when planning a DIY project
Figure 132: Spain: behaviours when planning a DIY project, March 2020
Sources of inspiration for DIY projects
Figure 133: Spain: where they look for inspiration, March 2020
What we think
 ISSUES AND INSIGHTS
COVID-19 set to have major impact on Spanish DIY retailers’ sales
The growing importance of online for DIY retailers
The facts
The implications
How can retailers enable more DIYers?
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Heading back to recession?
Growth in DIY spending was slowing
Growth from the middle of the decade has helped DIY retailers
Specialists are the primary channel
Consumer spending
Crash looming
But of limited duration?
Mintel DIY market size
Figure 134: Spain: DIY products – the Mintel market size (incl. VAT), 2015-19
Figure 135: Spain: Mintel DIY Market size: breakdown by product category, 2019
DIY-related spending categories
Figure 136: Spain: Consumer spending in detail (including VAT), 2015-19
 MARKET DRIVERS
Home ownership
Figure 137: Spain: Tenure types: owners vs tenants, % of households 2010-18
Consumer spending plans
Figure 138: Spain: Consumers’ planned spending on housing and home, Q1 2017- Q1 2020
 SECTOR SIZE AND FORECAST
DIY sector has benefitted from economic recovery
Figure 139: Spain: DIY specialists, sales (excl. VAT), 2015-19
Figure 140: Spain: DIY specialists, Forecast sales (excl. VAT), 2020-24
 INFLATION
Figure 141: Spain: Consumer prices* of DIY-related categories, annual % change, 2015-19
Figure 142: Spain: Consumer prices* of DIY related categories, annual % change, January 2019-February 2020
 CHANNELS OF DISTRIBUTION
Figure 143: Spain: estimated spending on DIY products by channels of distribution, 2019
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
The DIY sector is consolidating
No buyer for Kingfisher’s Brico Depôt chain
Smaller players struggling
ADEO growing share as other plateau
Online small but growing
 LEADING PLAYERS
COVID-19
A consolidating market
ADEO extending its lead
No buyer for Kingfisher’s Brico Depôt chain
Bauhaus a minor player
Smaller operations struggling
Figure 144: Spain: Leading specialist DIY retailers, sales, 2015-19
Figure 145: Spain: Leading specialist DIY retailers, outlet numbers, 2015-19
Sales per outlet
Figure 146: Spain: Leading specialist DIY retailers, sales per outlet, 2015-19
 MARKET SHARES
Figure 147: Spain: Leading specialist DIY retailers’ shares of all DIY specialists’ sales, 2015-19
 ONLINE
Online activity
Shopping online
Figure 148: Spain: Online purchasing, 2010-19
Online sales of DIY
Leading online players
 THE CONSUMER – WHAT YOU NEED TO KNOW
Important note
DIY is a popular activity
Over half shop online
Three-quarters improved their home over the last year
Price comparison is a key part of the planning process
Almost half are inspired by DIY stores
 WHERE THEY SHOP FOR DIY
Two-thirds of Spaniards had bought DIY in the last year
Leroy Merlin leads but is challenged by hypermarkets and Amazon
Figure 149: Spain: retailers used to buy DIY goods in the past 12 months, whether in-store or online, March 2020
Figure 150: Spain: retailers used to buy DIY goods in the past 12 months, whether in-store or online, gender split, March 2020
In-store vs online
Figure 151: Spain: retailers used to buy DIY goods in the past 12 months, in-store vs online, March 2020
Figure 152: Spain: profile of DIY buyers by retailer used (in-store and online), March 2020
Leroy Merlin attracts more home-owners than any other retailer
Figure 153: Spain: retailers used to buy DIY goods in the past 12 months, homeowners versus renters, March 2020
 DIY PROJECTS CARRIED OUT
Figure 154: Spain: DIY Projects undertaken in the last 12 months, March 2020
Figure 155: Spain: DIY Projects undertaken in the last 12 months, Renters vs Owners, March 2020
 BEHAVIOURS WHEN PLANNING A DIY PROJECT
Figure 156: Spain: behaviours when planning a DIY Project, March 2020
 SOURCES OF INSPIRATION FOR DIY PROJECTS
Figure 157: Spain: where they look for inspiration, March 2020
Figure 158: Spain: where they look for inspiration, by age and gender, March 2020
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
UK
 OVERVIEW
What you need to know
Key issues covered in this Report
Products covered in this Report
 EXECUTIVE SUMMARY
The Market
Specialist spending falls sharply in 2019, with further trouble ahead
Figure 159: Forecast of total DIY/hardware specialist sector size (including VAT), adjusted for COVID-19, 2014-24
Big-box stores could regain specialist share in the coming years
DIY sheds still account for a third of all spending
Online sales break £2 billion mark
Impact of COVID-19 on DIY
There will be opportunities amid this disruption, but total spending will fall
The type of projects will change, while the appetite for DIY could grow
Online retail will accelerate
Figure 160: Expected impact of COVID-19 on the DIY market, short, medium and long term, April 2020
Companies and brands
Homebase and Wickes recover growth to complement smaller specialists
Non-specialists’ sales grow again
Specialists continue to lose mass-market share
The consumer
B&Q remains the market leader
Figure 161: Where they shopped for DIY products, March 2019 and March 2020
In-store remains the most popular channel of purchase
Figure 162: Where they shopped for DIY products, by in-store versus online, March 2020
Price remains king
Figure 163: Key purchase drivers, March 2020
Three quarters undertook home improvement projects in the past year
Figure 164: Recent home improvement projects, March 2020
The majority of work is undertaken personally
Figure 165: Who carried out the work, March 2018 and March 2020
Online is a great resource when planning a project, but the store remains crucial
Figure 166: Actions when planning a project, March 2020
In-store is key for design inspiration
Figure 167: Source of Inspiration, March 2020
Opportunities for specialists to re-engage younger consumers
Figure 168: Attitudes towards DIY retailing, March 2020
What we think
 THE IMPACT OF COVID-19 ON DIY RETAILING
Short, medium and long-term impact on the industry
Figure 169: Expected impact of COVID-19 on the DIY market, short, medium and long term, April 2020
Short term
Medium term
Long term
Opportunities and Threats
Extended periods inside push home improvement up the agenda
Opportunities in DIY as non-essential spending is redirected to the home…
…but the type of home improvement projects will change
The lockdown will redirect spend…
…alongside the redirection of demand online
Smaller specialists could suffer…
…this could see leading specialists consolidate in 2020
Housing market will slow
 IMPACT ON DIY RETAIL SPECIALISTS
COVID-19 will see double-digit sales loss for specialists in 2020
Figure 170: Forecast of total DIY/hardware specialist sector size (including VAT), adjusted for COVID-19, 2014-24
Shifts in consumer behaviour
A fundamental change in shopping behaviours
A quarter of consumers expect to spend less on the home…
Figure 171: Changes in spending habits on home and gardening products, 16th April-21st May 2020
…while 12% expect to spend more
The sector could be buoyed by redirected spending
Figure 172: Consumers who expect to spend more on sector over the next month, 14th-21st May 2020
How the crisis will impact key consumer segments
Older consumers lead the shift in behaviour
Figure 173: Changes in shopping behaviour, by age, 14th-21st May 2020
Expected spending on the home is driven by younger consumers
Figure 174: Consumers who expect to spend more on the home over the next month, by age, 14th-21st May 2020
And homeowners with a mortgage
but spending among less affluent consumers will drop disproportionately
How a COVID-19 recession will reshape the market
A renewed focus on value
And a shift to repairs and upcycling
But budgeting behaviours will gradually soften
A new confidence and appetite for DIY
DIY shed specialists could regain share after COVID-19
How the shift online will reshape the market
Social media is a crucial platform for engagement…
Figure 175: IKEA Instagram, May 2020
…but DIY specialists must do more in the channel
Greater integration of online and offline offerings
Video conferencing to bring consumers in-store
Figure 176: Dixons Carphone, ShopLive, May 2020
Virtual design services
COVID-19: Market context
 ISSUES AND INSIGHTS
How specialists can re-engage consumers
The facts
The implications
The opportunity for new store propositions
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Specialist spending falls sharply in 2019, with further trouble ahead
Big-box stores could regain specialist share in coming years
Total consumer spending on DIY grows 2.8% in 2019
DIY sheds still account for a third of all spending
Online sales break £2 billion mark
 MARKET SIZE AND FORECAST
Specialist spending falls sharply in 2019
Figure 177: Total DIY/hardware specialist sector size (including VAT), 2014-19
COVID-19 will see specialists suffer further in 2020
Before recovering in 2021
Figure 178: Forecast of total DIY/hardware specialist sector size (including VAT), adjusted for COVID-19, 2014-24
Figure 179: Forecast of total DIY/hardware specialist sector size (including VAT), adjusted for COVID-19, 2014-24
Pre-COVID-19 forecast reveals how the sector could have regained stability
Figure 180: Forecast of total DIY/hardware specialist sector size (including VAT), pre-COVID-19 forecast, 2014-24
Figure 181: Forecast of total DIY/hardware specialist sector size (including VAT), pre-COVID-19 forecast, 2014-24
Forecast methodology
 MARKET SEGMENTATION
Shed specialists lose further market share in 2019…
…but the sector could recover sales growth by 2021
Figure 182: Shed/big-box specialists’ sector size (including VAT), 2014-24
Smaller specialists’ sales fall despite strong growth at the top…
…and they could suffer disproportionately from COVID-19
Figure 183: Other DIY/hardware stores segment (including VAT), 2014-24
This segmentation could change after COVID-19
Figure 184: Estimated segmentation of DIY specialists (including VAT), 2014-24
 CONSUMER SPENDING ON DIY PRODUCTS
Total consumer spending growth contrasts the decline of specialists
Figure 185: Consumer spending on DIY-related products, 2014-19
Tools and equipment spearhead spending, as garden expenditure falls
Figure 186: Category breakdown of consumer spending on DIY-related products, 2016-19
Mintel’s consumer spending market size
 CHANNELS OF DISTRIBUTION
DIY sheds still account for a third of all spending…
…but other specialists drop share to non-specialists…
…as online pureplay consolidates
Figure 187: DIY products, estimated channels of distribution, 2019
 ONLINE
Online sales break £2 billion mark
Figure 188: Estimated online DIY market size (ex VAT), 2016-19
Non-specialists continue to lead online…
Figure 189: Estimated online sales, by leading retailers, 2016-19
…but specialists wrestle back some market share
Figure 190: Estimated share of DIY sales, by specialist and non-specialist DIY retailers, 2016-19
 MARKET DRIVERS
The housing market has stabilised in recent years, but huge uncertainty lies ahead
Figure 191: Quarterly UK residential property transactions, Q1 2015-Q1 2020
A rising proportion of homeowners in England
Figure 192: English households, by tenure, 2012-18
Consumer confidence picked up over the past year
Figure 193: Financial confidence index, January 2017-April 2020
Home improvements pick up in 2019
Figure 194: Trends in home improvement work done in the last 3 months and plan to do in the next 3 months, April 2017-April 2020
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Homebase and Wickes recover growth to complement smaller specialists
Non-specialists’ sales grow again
Specialists continue to lose mass-market share
Wilko and B&Q lead the market as favourite brands
Total advertising spend up 2.8% in 2019
Specialists look to revamp their store offerings
 LEADING SPECIALISTS
New Kingfisher CEO tweaking ONE strategy in light of falling sales
Strong focus on ‘do-it-for-me’ proposition driving Wickes Building Supplies sales
Homebase showing signs of recovery
Figure 195: Leading DIY specialists’ sales, 2015-19
Outlet numbers
Figure 196: Leading DIY specialists’ outlets, 2015-19
Figure 197: Leading DIY specialists’ sales per outlet, 2015-19
Profit and margins
Figure 198: Leading DIY specialists’ operating profit, 2015-19
Figure 199: Leading DIY specialists’ operating profit margin, 2015-19
 LEADING NON-SPECIALISTS
Non-specialists’ sales grow again
Argos maintains J. Sainsbury’s lead…
…but Amazon set to overtake it in 2020
Discounter sales grow across the board
Figure 200: Leading non-specialists’ estimated DIY sales (excluding VAT), 2015-19
 MARKET SHARE
B&Q boosts share despite sales loss…
Figure 201: Leading DIY retailers’ estimated share of all specialists’ sales, 2015-19
…but specialists continue to lose mass-market share
Figure 202: Leading retailers’ estimated share of all DIY spending, 2015-19
 BRAND RESEARCH
Brand map
Figure 203: Attitudes towards and usage of selected brands, April 2020
Key brand metrics
Figure 204: Key metrics for selected brands, April 2020
Brand attitudes: B&Q has great customer service, Wilko offers good value
Figure 205: Attitudes, by brand, April 2020
Brand personality: Wilko is perceived as fun
Figure 206: Brand personality – macro image, April 2020
B&Q perceived as aspirational, Screwfix responsive and cutting edge
Figure 207: Brand personality – micro image, April 2020
Brand analysis
Wilko offers an excellent experience and is highly recommended
Figure 208: User profile of Wilko, April 2020
B&Q has great customer service and is highly trusted
Figure 209: User profile of B&Q, April 2020
Screwfix provides a great online service and is not expensive
Figure 210: User profile of Screwfix, April 2020
Wickes least ‘favourite brand’
Figure 211: User profile of Wickes, April 2020
Homebase overrated and expensive
Figure 212: User profile of Homebase, April 2020
 ADVERTISING AND MARKETING ACTIVITY
Total advertising spend up 2.8% year-on-year in 2019
Figure 213: Recorded above-the-line, online display and direct mail total advertising expenditure by UK DIY retailers, 2016-19
B&Q by far and away the sector’s highest-spending advertiser
Figure 214: Leading UK DIY retailers’ recorded above-the-line, online display and direct mail total advertising expenditure, 2016-19
Majority of advertising spend channelled through TV
Figure 215: Recorded above-the-line, online display and direct mail total advertising expenditure by UK DIY retailers, by media type, 2019
Nielsen Ad Intel coverage
 INNOVATION AND LAUNCH ACTIVITY
Tile Giant launches new store format
Homebase’s more accessible smaller-format high street store concept
Immersive bathroom shopping experience
B&Q launches new kitchen buying experience
Pop-up showroom
Home décor industry disruptor
John Lewis & Partners launches new in-store home interiors advice service
Homebase giving consumers more reasons to visit its stores
 THE CONSUMER – WHAT YOU NEED TO KNOW
B&Q remains the market leader
In-store remains the most popular channel of purchase
Price remains king
Three quarters undertook home improvement projects in the past year
The majority of work is undertaken personally
Online is a great resource when planning a project, but the store remains crucial
In-store is key for design inspiration
Opportunities for specialists to re-engage younger consumers
 WHERE THEY SHOP
77% of consumers bought DIY products in the past year
B&Q extends its share as market leader
Homebase loses further ground
Smaller-format specialists grow
Non-specialists make gains in an increasingly fragmented marketplace
Figure 216: Where they shopped for DIY products, March 2019 and March 2020
Specialists must do more to appeal to women…
Figure 217: Where they shopped for DIY products, by gender, March 2020
…to young consumers…
Figure 218: Where they shopped for DIY products, customer profile, March 2020
…and to those who aren’t homeowners
Figure 219: Where they shopped for DIY products, by homeownership, March 2020
Specialists are missing out on a core source of demand
Figure 220: Where they shopped for DIY products, by duration in current home, March 2020
 IN-STORE VS ONLINE
In-store remains the most popular channel
B&Q leads in both channels…
…but specialists remain underdeveloped online
Figure 221: Where they shopped for DIY products, by in-store versus online, March 2020
Online penetration grew over the past year
Amazon makes the biggest gains
Figure 222: Where they shopped for DIY products online, March 2019 and March 2020
This will change significantly in 2020 amid COVID-19
 KEY PURCHASE DRIVERS
Price remains king
Figure 223: Key purchase drivers, March 2020
Price, convenience and quality are priorities among older shoppers
Younger shoppers value ethics, experience and innovation
Figure 224: Key purchase drivers, customer profile, March 2020
Non-specialist shoppers seek price, while DIY shed shoppers favour experience
Figure 225: Key purchase drivers, by where they shopped net, March 2020
 RECENT HOME IMPROVEMENT PROJECTS
73% of households undertook home improvement projects in the past year
New movers spearhead home improvement projects
Opportunity to target young house movers
Figure 226: Recent home improvement projects, by duration in current home, March 2020
Lighter DIY projects lead activity
Figure 227: Recent home improvement projects, March 2020
Nearly half of consumers undertook two or more projects in the past year
Figure 228: Repertoire of recent home improvement projects, March 2020
These projects will change amid COVID-19 measures
 WHO CARRIED OUT THE WORK
The majority of work is undertaken personally
A quarter hired a professional
Figure 229: Who carried out the work, March 2018 and March 2020
This will change significantly in 2020, which could create a legacy moving forward
 ACTIONS WHEN PLANNING A PROJECT
Online is a great resource when planning a project…
…but the store remains a crucial step
Figure 230: Actions when planning a project, March 2020
Consumers will have to find a new normal under COVID-19…
…which could drive the need for virtual/augmented reality technology
 SOURCE OF INSPIRATION
Consumers still look in-store for design inspiration…
Figure 231: Source of inspiration, March 2020
…but social media is unparalleled among young consumers
Figure 232: Source of inspiration, by age, March 2020
Younger consumers browse multiple sources
Figure 233: Repertoire of source of inspiration, March 2020
 ATTITUDES TOWARDS DIY RETAILING
Growing interest in sustainability…
…and smart technology offers opportunities for growth
Figure 234: Attitudes towards DIY retailing, March 2020
How specialists can re-engage younger shoppers
DIY as a form of detox
Specialists should cater to DIY novices…
…harnessing the one-stop home shop model…
…more temporary home solutions…
…and new store propositions
Figure 235: Attitudes towards DIY retailing, by age, March 2020
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
 APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
ADEO
What we think
New city centre kitchen showroom concept
Simplifying the shopping experience
Expanded services offering in Spain
Curated offering via ‘how to’ tutorials
COVID-19 response: conversational bots and drive-through to cope with expanded online demand
Company background
Company performance
Figure 236: ADEO: Estimated group sales performance, 2015-19
Figure 237: ADEO: Estimated outlet data, 2015-19
Retail offering
Leroy Merlin
Other fascia
BAUHAUS
What we think
Making the shopping process efficient and time-saving
Differentiated product offering
Dynamic in-store pricing frees up staff to spend more time assisting customers
New store openings in Germany and abroad
Gardening pop-up store in high footfall shopping mall
COVID-19 response
Company background
Company performance
Figure 238: Bauhaus: Estimated group sales, 2015-19
Figure 239: Bauhaus: Estimated store data, 2015-19
Retail offering
HOMEBASE
What we think
Soft end-focused concessions and expanded product kitchen and bathroom offer
Small-format stores in high streets targeting renters rather than homeowners
Unique decorative product range
Improving the ecommerce shopping experience has boosted online sales
Response to the COVID-19 pandemic
Company background
Company performance
Figure 240: Homebase: Group financial performance, 2015/16-2018/19
Figure 241: Homebase: outlet data, 2015/16-2018/19
Retail offering
HORNBACH-BAUMARKT
What we think
Convenient urban compact store concept
Drive-in facilities and self-service checkouts making DIY shopping less time-consuming
Enhanced app functions to improve the digital shopping experience
Response to the COVID-19 pandemic
Company background
Company performance
Figure 242: Hornbach-Baumarkt: Group financial performance, 2015/16-2019/20
Figure 243: Hornbach-Baumarkt: Outlet data, 2015/16-2019/20
Retail offering
KINGFISHER GROUP
What we think
Urban proximity store format rollout to make DIY shopping more convenient
Performance of Castorama and Brico Dépôt in France a major disappointment
New group ecommerce director to drive digital capability growth
Refreshed kitchen offering
Response to COVID-19 and a new contactless click-and-collect scheme
Company background
Company performance
Figure 244: Kingfisher Group: Group financial performance, 2015/16-2019/20
Figure 245: Kingfisher Group: outlet data, 2015/16-2019/20
Retail offering
OBI
What we think
Holistic solution provider
Creative in-store concept to draw in customers
Digital shopping assistants to simplify the online DIY buying experience
Innovative outdoor workshop and concept store to empower and inspire customers
Response to COVID-19
Company background
Company performance
Figure 246: OBI: Group financial performance, 2015-19
Figure 247: OBI: Outlet data, 2015-19
Retail offering
TRAVIS PERKINS (WICKES BUILDING SUPPLIES LTD, TOOLSTATION AND TILE GIANT)
What we think
Service-enabled ‘do-it-for-me’ proposition driving Wickes Building Supplies sales
Convenient multichannel proposition for trade customers and serious DIYers
Converts branches to click-and-collect hubs during COVID-19 crisis
Company background
Company performance
Figure 248: Wickes Building Supplies Ltd, Toolstation and Tile Giant: Financial performance, 2015-19
Figure 249: Wickes Building Supplies Ltd, Toolstation and Tile Giant: outlet data, 2015-19
Retail offering

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.