Author: Mintel Group Ltd.
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DIY Retailing - UK - February 2011

INTRODUCTION
What is a DIY store?
Financial definitions
Abbreviations
ISSUES IN THE MARKET
Why has the DIY market been so weak in recent years?
Are there any chances of a recovery?
But aren’t people spending more time at home and going on holiday less?
So what happened to the trend to “Do it for me”
So surely the ageing population is bad news for the DIY sector?
The superstores have seemingly had it all their own way – isn’t it time there was more DIY on the high street?
In a mature market the battle over the next few years will be for market share. So what will attract customers?
FUTURE OPPORTUNITIES
 TREND: RESILIENCE
 TREND: GREEN TECHNOLOGY
EXECUTIVE SUMMARY
Boom and bust
Figure 1: DIY retailers sales, 2005-15
Market sizes
Negative factors
The economy
The housing market
Double whammy
Falling interest
The recession is not all bad news
Ageing population
Where people buy DIY
Figure 2: Profile of DIY store customers, December 2010
Plans for 2011
Figure 3: Profile of those with or without home improvement plans, December 2010
Consumer attitudes
Consumer typologies
Figure 4: Profile of customer typologies, December 2010
Leading players
Figure 5: DIY retailers share of sales of all DIY retailers, 2010
Where next?
What sort of recovery?
Stores
BROADER MARKET ENVIRONMENT
Key points
The economy
Figure 6: GDP, PDI, consumer expenditure and savings, at current prices, 2005-15
Figure 7: GDP, PDI, consumer expenditure and savings, at constant 2010 prices, 2005-15
Implications for retail sales
Consumer confidence
Figure 8: Gfk NOP consumer confidence index, 1997-2010 (Dec)
The population time bomb
Figure 9: Trends and projections in the UK population (‘000s), by age group, 2005, 2010 and  2015
Figure 10: UK population aged 15 to 64, 2005-15
The housing market
House prices
Figure 11: UK house prices, 1991-2010
Figure 12: UK house prices, 2006-10
Affordability – more so than a couple of years ago
Figure 13: First time buyers affordability index, 1983-2010 (Q3)
Housing transactions
Figure 14: Property transactions, 1977-2010 (Q3)
COMPETITIVE CONTEXT
Key points
Total consumer spending
Housing turnover holds back demand
Figure 15: UK: Consumer spending, 2006-10
DIY-related categories
Figure 16: UK: Main DIY product categories recent performance, 2010
Figure 17: UK: Consumer spending on DIY-related categories, 2006-10
The DIY market size
Figure 18: UK: DIY market size estimate, 2006-10
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
You can do it centres
Customisation
Smaller stores
SECTOR SIZE AND FORECAST
Key points
The future
Short term
Medium term
Forecast methodology
Figure 19: DIY retailers sales, 2005-15
The forecast
Figure 20: Sales by DIY retailers, 2005-15
Figure 21: DIY retailers sales as % all retail sales, 2005-15
RETAILER COMPETITOR ANALYSIS
Key points
Internet
Online specialists
Figure 22: Visits to DIY retailing sites, September-November, 2010
Leading retailers
Figure 23: DIY retailers, leading players, 2010
Trade sales
Figure 24: Leading DIY retailers: Estimated trade share of sales, 2010
Market shares
Figure 25: DIY retailers share of sales of all DIY retailers, 2010
ADVERTISING AND PROMOTION
Key points
Figure 26: Leading DIY retailers advertising expenditure, 2007-09
Figure 27: DIY retailers: Advertising channels used, 2009
Figure 28: DIY retailers: Advertising channel used, 2009
BRAND ELEMENTS
Brand map
Figure 29: Attitudes towards and visitation of DIY retail stores, January 2011
Brand attitudes
Figure 30: Attitudes, by DIY retail store, January 2011
Brand personality
Figure 31: DIY retail store personality – macro image, January 2011
Figure 32: DIY retail store personality – micro image, January 2011
Correspondence analysis
Brand experience
Figure 33: DIY retail store visitation, January 2011
Figure 34: Satisfaction with various DIY retail stores, January 2011
Figure 35: Consideration of DIY retail stores, January 2011
Figure 36: Consumer perceptions of current DIY retail store performance, January 2011
Figure 37: DIY retail store recommendation – Net Promoter Score, December 2010
Brand index
Figure 38: DIY retail store brand index, January 2011
Target group analysis
Figure 40: Target groups, January 2011
Group One – The Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – The Individualists
WHO DOES DIY AND WHERE DO CONSUMERS SHOP?
Key points
DIY losing popularity
Figure 42: Home decorating or other DIY work in the last 12 months, 2005-10
Figure 43: Trends in agreement with DIY and home, GB, 2005-09
Figure 44: Profile of attitudes to DIY and the home, 2010
Where do people buy DIY?
Figure 45: Where people shop for DIY, December 2010
Figure 46: Profile of DIY store customers, December 2010
Outlets used
Key points
Figure 47: Repertoire of DIY retailers bought from in last 12 months, December 2010
Figure 48: DIY retailers bought from in last 12 months, by repertoire of DIY retailers bought from in last 12 months, December 2010
Figure 49: Profile of shoppers, by number of outlets used, December 2010
THE CONSUMER – PLANS FOR 2011
Key points
Figure 50: DIY plans for 2011, December 2010
Figure 51: Profile of those with or without home improvement plans, December 2010
DIY plans and DIY retailers used
DIY retailers bought from in last 12 months by DIY plans for 2011
Figure 52: DIY retailers bought from in last 12 months, by DIY plans for 2011, December 2010
CONSUMER ATTITUDES TO DIY
Key points
Attitudes to DIY retailers
Figure 53: Attitudes to DIY retailers, December 2010
DIY and the recession
Figure 54: Attitudes to DIY and the recession, December 2010
Getting advice
Figure 55: Attitudes to getting advice, December 2010
Attitudes to the retailers
Figure 56: Attitudes to stores and staff, December 2010
Eco-friendly products
Attitudes by retailer used
Figure 57: DIY retailers bought from in last 12 months, by most popular attitudes to DIY retailer, December 2010
Figure 58: DIY retailers bought from in last 12 months, by next most popular attitudes to DIY retailer, December 2010
Retailer used by attitudes
Figure 59: Attitudes to DIY retailer, by most popular DIY retailers bought from in last 12 months, December 2010
Consumer typologies
Figure 60: Mintel DIY consumer typologies, December 2010
Figure 61: Profile of consumer typologies, December 2010
Retailers used by each typology
Figure 62: DIY retailers bought from in last 12 months, by target groups, December 2010
FOCUS GROUP
Figure 63: Focus Group: Sales as share of DIY retailers’ sales in the UK, 2005-09
Strategic evaluation
Recent history
Financial performance
Figure 64: Focus Group: Group financial performance, 2005/06-2009/10
Store portfolio
Figure 65: Focus Group: Outlet data, 2005/06-2009/10
Figure 66: Focus: Consumer profile – demographics, 2010
Figure 67: Focus: Consumer profile – location, 2010
Figure 68: Focus: Consumer profile – ACORN group, 2010
Retail offering
e-commerce and home shopping
Figure 69: Focus DIY: Profile of online shoppers, three-month average to November 2010
HOMEBASE LTD
Figure 70: Homebase Ltd: Sales as share of DIY retailers’ sales in UK, 2005-10
Strategic evaluation
Recent history
Financial performance
Figure 71: Homebase Ltd: Group financial performance, 2005/06-2009/10
Store portfolio
Figure 72: Homebase Ltd: Outlet data, 2005/06-2009/10
Figure 73: Homebase sales area, February 2010
Consumer profile
Figure 74: Homebase: Consumer profile – Demographics, 2010
Figure 75: Homebase: Consumer profile – Regional representation, 2010
Figure 76: Homebase: Consumer profile – ACORN grouping, 2010
Retail offering
Figure 77: Homebase: Sales mix, 2009/10
Showroom
Installation
Argos
e-commerce and home shopping
Figure 78: Homebase: Online customer profile, 2010
KINGFISHER GROUP
Figure 79: Kingfisher Group: Sales as share of DIY retailers’ sales in Europe, 2005-10
Strategic evaluation
History
Financial performance
Figure 80: Kingfisher Group: Group financial performance, 2005/06-2010/11
Figure 81: B&Q: Sales as share of DIY retailers’ sales in UK, 2005-10
Store portfolio
Figure 82: Kingfisher Group: Outlet data, 2006-10
Consumer profile
Figure 83: B&Q: Consumer Profile – Demographics, 2010
Figure 84: B&Q: Consumer profile – Regional representation, 2010
Figure 85: B&Q: Consumer profile – ACORN grouping, 2010
Retail offering
Figure 86: B&Q, Castorama, sales mix, 2010
Operations
Figure 87: Proportion of own brand sales, 2010
Trade
Figure 88: Kingfisher UK and France, proportion of trade sales, 2010
e-commerce and home shopping
Figure 89: B&Q(UK) profile of internet customers
WICKES (INCLUDING TILE GIANT)
Figure 90: Wickes: Sales as share of DIY retailers’ sales in UK, 2005-09
Strategic evaluation
Recent history
Financial performance
Figure 91: Wickes: Financial performance, 2005-10
Store portfolio
Figure 92: Wickes: Outlet data, 2005-10
Consumer profile
Figure 93: Wickes: Consumer profile – demographics, 2010
Figure 94: Wickes: Consumer profile – location, 2010
Figure 95: Wickes: Consumer profile – ACORN group, 2010
Retail offering
e-commerce and home shopping
Figure 96: Wickes: Profile of online shoppers, three-month average to November 2010
APPENDIX – BROADER MARKET ENVIRONMENT
Population
Figure 97: Europe top 5: Population breakdown, by age group, 2005
Figure 98: Europe top 5: Population breakdown, by age group, 2010
Figure 99: Europe top 5: Population breakdown, by age group, 2015
Figure 100: Europe top 5: Population breakdown, by age group, 2020
 HOME OWNERSHIP
Figure 101: Europe top 5: Rate of home ownership, 2005-09
 GDP
Figure 102: Europe top 5: GDP (in current prices), 2000-Q3 2010
Figure 103: Europe top 5: GDP growth rates (in constant prices), 2000-Q3 2010
Consumer spending
Figure 104: Europe top 5: Consumer spending (in current prices), 2001-Q3 2010
Figure 105: Europe top 5: Consumer spending growth rates (in constant prices), 2001-Q3 2010
Consumer prices
Figure 106: Europe top 5: Consumer prices, 2001-10
Unemployment
Figure 107: Europe top 5: Average rate of unemployment, 2001-Q3 2010
Interest rates
Figure 108: UK and Eurozone: Interest rates, 2004-Q4 2010
Consumer confidence
Figure 109: Europe top 5: Consumer confidence, March 2009-December 2010
APPENDIX – WHO DOES DIY AND WHERE DO CONSUMERS SHOP?
Figure 110: Agreement with statements on DIY and home, by demographics, GB, 2009
Figure 111: Agreement with statements on DIY and home, by demographics, GB, 2009
Figure 112: DIY retailers bought from in last 12 months, December 2010
Figure 113: Most popular DIY retailers bought from in last 12 months, by demographics, December 2010
Figure 114: Next most popular DIY retailers bought from in last 12 months, by demographics, December 2010
Figure 115: Other DIY retailers bought from in last 12 months, by demographics, December 2010
Figure 116: Repertoire of DIY retailers bought from in last 12 months, by demographics, December 2010
APPENDIX – THE CONSUMER – PLANS FOR 2011
Figure 117: DIY plans for 2011, by demographics, December 2010
Figure 118: DIY retailers bought from in last 12 months, by DIY plans for 2011, December 2010
Figure 119: DIY plans for 2011, by most popular DIY retailers bought from in last 12 months, December 2010
Figure 120: DIY plans for 2011, by next most popular DIY retailers bought from in last 12 months, December 2010
Figure 121: DIY plans for 2011, by other DIY retailers bought from in last 12 months, December 2010
APPENDIX – CONSUMER ATTITUDES TO DIY
Figure 122: Most popular attitudes to DIY retailer, by demographics, December 2010
Figure 123: Next most popular attitudes to DIY retailer, by demographics, December 2010
Figure 124: DIY retailers bought from in last 12 months, by most popular attitudes to DIY retailer, December 2010
Figure 125: DIY retailers bought from in last 12 months, by next most popular attitudes to DIY retailer, December 2010
Figure 126: Attitudes to DIY retailer, by most popular DIY retailers bought from in last 12 months, December 2010
Figure 127: Attitudes to DIY retailer, by next most popular DIY retailers bought from in last 12 months, December 2010
Figure 128: Attitudes to DIY retailer, by other DIY retailers bought from in last 12 months, December 2010
Cluster analysis
Figure 129: Attitudes to DIY retailer, by target groups, December 2010
Figure 130: Target groups, by demographics, December 2010

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