Author: Mintel Group Ltd.
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DIY Retailing - UK - May 2016

OVERVIEW
What you need to know
Areas covered in this Report
EXECUTIVE SUMMARY
The market
Specialists sector sales decline in 2015
Figure 1: Total DIY/hardware specialist sector size (incl. VAT), 2010-20
Consumer spending slows, but remains positive
Figure 2: DIY products market size breakdown, 2015
Online
Figure 3: Share of DIY spending via the internet, 2013-15
Companies, brands and innovations
Market shares
Figure 4: Leading DIY retailers’ market shares, 2014 and 2015
B&Q still the most trusted DIY retailer
Figure 5: Attitudes towards and usage of selected brands, February 2016
Augmented reality set to transform the DIY experience
The consumer
75% have bought DIY products in the past year
Figure 6: Where they shop for DIY/home improvement products, March 2016
Non-specialists are more popular for online purchases
Figure 7: Retailer used for DIY/home improvement purchases in the past 12 months, by online or in-store, March 2016
DIY consumers like to shop around
Figure 8: Number of DIY retailers or types of DIY retailer used in the past 12 months, March 2016
Consumers happy with product quality but less so with staff knowledge
Figure 9: Overall satisfaction with the DIY stores, March 2016
Paint/wallpaper the most popular purchases
Figure 10: What DIY/home improvement products they bought, March 2016
Young consumers more likely to buy to help
Figure 11: Why they bought DIY/home improvement products, March 2016
Getting what you pay for
Figure 12: Attitudes towards shopping for DIY/home improvement products, March 2016
What we think
ISSUES AND INSIGHTS
Are the sheds struggling to cater for generation rent?
The facts
The implications
What will be the impact of Bunnings?
The facts
The implications
Can One Kingfisher really work?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Consumer spending slows, but remains positive
Specialist sector sales go into decline
Channels of distribution
Flat prices limit growth of the market
Housing transactions plateau in 2015
A generation of renters
MARKET DRIVERS
Housing market
Figure 13: Residential housing transactions in the UK, 2006-15
Figure 14: Seasonally adjusted UK residential monthly property transactions, January 2015-February 2016
Generation rent
Figure 15: Housing status of 25-34-year-olds, 2003/04-2014/15
Figure 16: Percentage renting privately, by age, 2003/04-2014/15
Inflation of DIY products
Figure 17: Consumer prices inflation, annual rate of change, 2011-15
Figure 18: Consumer prices inflation, monthly rate of change, January-March 2016
Consumer spending plans
Figure 19: Consumers spending money on their home in the past three months or next three months, January 2015-February 2016
Weather
Sunshine
Figure 20: Actual and average sunshine, by month, January 2015-March 2016
Figure 21: Sunshine index (difference from the monthly average) compared to monthly DIY sales, January 2015-March 2016
Rainfall
Figure 22: Actual and average rainfall, by month, January 2015-March 2016
Figure 23: Rainfall index (difference from the monthly average) compared to monthly DIY sales, January 2015-March 2016
Easter weather
SECTOR SIZE AND FORECAST
Total sector size and forecast
Figure 24: Total DIY/hardware specialist sector size (incl. VAT), 2010-20
Figure 25: Total DIY/hardware specialists’ sector size (incl. VAT), in current and constant prices, 2010-20
Sheds/big box segment
Figure 26: Sheds/big-box specialists’ sector size (incl. VAT), 2010-20
Figure 27: Sheds/big box sector size (incl. VAT), in current and constant prices, 2010-20
Other DIY/hardware stores segment
Figure 28: Other DIY/hardware stores segment (incl. VAT), 2010-20
Figure 29: Other DIY/hardware store segment size (incl. VAT), in current and constant prices, 2010-20
Forecast methodology
CONSUMER SPENDING ON DIY PRODUCTS
Growth in spending slows in 2015
Figure 30: DIY products – Market size (incl. VAT), 2011-16
Consumer spending by category
Figure 31: DIY products market size breakdown, 2015
Spending breakdown
Figure 32: Consumer spending on DIY, market segmentation (incl. VAT), 2011-16
Mintel’s market size
KEY PLAYERS – WHAT YOU NEED TO KNOW
Specialists – Superstores
High street stores and non-specialists
Online
INNOVATION AND LAUNCH ACTIVITY
Augmented reality transforming the DIY shopping experience
Interactive video to boost loyalty scheme engagement
Made in space
A ‘store of solutions’
Hardware store combines shopping with dining
Online DIY marketplace to challenge B&Q and Homebase
SPACE ALLOCATION SUMMARY
Space allocation overview
Figure 33: DIY retailers: Summary of in-store space allocation, April 2016
Detailed space allocation
Big shed DIY specialists
Figure 34: Homebase, Harrow: Habitat concession, April 2016
Figure 35: B&Q Warehouse, Cricklewood, Valspar paint matching service
Conveniently located DIY and home improvement essentials emporiums
Wilko and Poundland
Figure 36: Detailed space allocation estimates, April 2016
RETAIL PRODUCT MIX
Figure 37: Leading DIY retailers: Estimated sales, by product, 2015
Figure 38: Leading DIY retailers, estimated sales density, by product category, 2015
CHANNELS OF DISTRIBUTION
Figure 39: DIY products*, estimated channels of distribution, 2015
LEADING SPECIALIST RETAILERS
Sales and profits
Figure 40: Leading DIY specialists’ sales, 2011/12-2015/16
Figure 41: Leading DIY specialists’ operating profits, 2011/12-2015/16
Figure 42: Leading DIY specialists’ operating margins, 2011/12-2015/16
Stores
Figure 43: Leading DIY specialists’ outlet numbers, 2011/12-2015/16
Figure 44: Leading DIY specialists’ sales per outlet, 2011/12-2015/16
Sales area
Figure 45: Leading DIY specialists’ sales area, 2011/12-2015/16
Figure 46: Leading DIY specialists’ sales per square metre, 2011/12-2015/16
LEADING NON-SPECIALIST RETAILERS
Leading pureplayers
Non-specialist sales
Figure 47: Non-specialist retailers’ sales in DIY and gardening products, 2011/12-2015/16
Food retailers
Figure 48: Estimated DIY sales of leading superstore operators, 2012-15
MARKET SHARES
Trade
Figure 49: Leading DIY retailers, estimated trade share of sales, 2013-15
Share of DIY retailers’ sales
Figure 50: Leading DIY retailers, share of sales of specialists’ sales, 2013-15
Share of all DIY spending
Figure 51: Leading retailers of DIY products, share of spending on DIY, 2013-15
ONLINE
Figure 52: Where people bought DIY goods in the last 12 months, March 2016
Leading specialists
Non-specialists
Internet pureplayers
Other sources
Trade sales
Online sales estimates
Figure 53: Online DIY sales to consumers, 2013-15
Specialists
Figure 54: Online share of specialists’ sales, 2011-15
All online sales
Figure 55: Share of online sales, by type of retailer, 2015
Figure 56: Estimated online sales of DIY products to consumers, 2013-15
Leading DIY retailers online
Figure 57: Leading online retailers of DIY goods to consumers, 2013-15
ADVERTISING AND MARKETING ACTIVITY
DIY retailers continue to cut back on advertising spend
Figure 58: Total main media advertising spend in the UK DIY retailing sector, 2012-15
B&Q remains the UK’s biggest advertiser
Figure 59: Main media advertising spend by leading DIY retailers, 2012-15
Share of advertising spend
Figure 60: Share of total main media advertising spend in the UK DIY retailing sector, by retailer, 2014 and 2015
Television is the favoured media type
Figure 61: Main media advertising spend, by media type, 2012-15
Figure 62: Main media advertising spend in the UK DIY retailing sector, by media type, 2012-15
 CAMPAIGN HIGHLIGHTS
What we have seen in 2016
A note on adspend
BRAND RESEARCH
Brand map
Figure 63: Attitudes towards and usage of selected brands, February 2016
Key brand metrics
Figure 64: Key metrics for selected brands, February 2016
Brand attitudes: Wickes for value, but B&Q is worth paying more for
Figure 65: Attitudes, by DIY retailer brand, February 2016
Brand personality: Homebase is unethical and exclusive, but Wickes is fun
Figure 66: Brand personality – Macro image, February 2016
B&Q is disappointing, but Homebase is cutting edge
Figure 67: Brand personality – Micro image, February 2016
Brand analysis
Wilko – The store of choice for women
Figure 68: User profile of Wilko, February 2016
B&Q middle of the range for everything
Figure 69: User profile of B&Q, February 2016
Screwfix a male preserve for the serious DIYer
Figure 70: User profile of Screwfix, February 2016
Wickes the superstore for the serious DIYer
Figure 71: User profile of Wickes, February 2016
Homebase’s swansong
Figure 72: User profile of Homebase, February 2016
KINGFISHER GROUP
What we think
Justifying the structure
Good chances of success
Moving cautiously
Where next?
Company background
One Kingfisher – Ranges
One Kingfisher: Stores and online
Systems
Management
History
Company performance
Figure 73: Kingfisher Group: Group financial performance, 2011/12-2015/16
Figure 74: Kingfisher Group: Outlet data, 2011/12-2015/16
Retail offering
HOMEBASE – BUNNINGS
What we think
All change
Adopting a warehouse format
Mainly branded
New format
Pilot stores
Doubts
Will it work?
Company background
Company performance
Figure 75: Homebase Ltd: Group financial performance, 2011/12-2015/16
Figure 76: Homebase Ltd: Outlet data, 2011/12-2015/16
Retail offering
WICKES/TOOLSTATION/TILE GIANT/TRAVIS PERKINS RETAIL
What we think
Wickes’ performance improves on the back of new-look stores with broader appeal
Excess space initiative driving footfall to Wickes’ biggest stores
Toolstation rapid store expansion
One-hour click-and-collect
Augmented reality tool transforms the online Tile Giant buying experience
Background
Company performance
Figure 77: Travis Perkins Retail: Consumer division financial performance, 2010/11-2014/15
Figure 78: Travis Perkins Retail: Consumer division outlet data, 2010/11-2014/15
Retail offering
CLAS OHLSON
What we think
Performance
Strategy
International expansion
Implementing new IT platform
Where next?
Background
Company performance
Figure 79: Clas Ohlson: Group financial performance, 2010/11-2015/16
Figure 80: Clas Ohlson: Outlet data, 2010/11-2015/16
Retail offering
THE CONSUMER – WHAT YOU NEED TO KNOW
75% have bought DIY products in the past year
Renters prefer non-specialists
Non-specialists are more popular for online purchases
DIY consumers like to shop around
Consumers happy with product quality but less so with staff knowledge
B&Q impresses with its range but struggles on price
Homebase struggles on range and staff knowledge
More than half purchase paint/wallpaper
You get what you pay for
Online tutorials the go-to for DIYers of all ages
WHERE THEY SHOP
B&Q most popular for DIY purchases
Specialists only slightly more popular than non-specialists
Figure 81: Where they shop for DIY/home improvement products, March 2016
Non-specialists are more popular for DIY shopping online
Figure 82: Retailer used for DIY/home improvement purchases in the past 12 months, by online or in-store, March 2016
Homeowners most likely to purchase DIY from specialists
Figure 83: Where they shopped for DIY/home improvement products in the past 12 months, by housing tenure, March 2016
Figure 84: Where they shopped for DIY/home improvement products in the past 12 months, by housing tenure, March 2016
Lack of loyalty in DIY sector
Figure 85: Number of DIY retailers or types of DIY retailer used in the past 12 months, March 2016
Screwfix positioned as a ‘top-up’ DIY shopping location
Figure 86: Number of DIY retailers or types of DIY retailer used in the past 12 months, by retailer shopped at, March 2016
Shopper profiles
Figure 87: Where they shopped, by age and socio-economic group, March 2016
Younger and more affluent customers shop online
Figure 88: Where they shopped, by age and socio-economic group, online and offline specialists and non-specialists, March 2016
Where they spend the most
Figure 89: Where they spent the most money on DIY products in-store in the past 12 months, March 2016
CUSTOMER SATISFACTION
Lack of satisfaction with customer service
Figure 90: Overall satisfaction with DIY stores, March 2016
Satisfaction by profile
Figure 91: Satisfaction with DIY retailers, be age and affluence, March 2016
Renters less satisfied than homeowners
Figure 92: Satisfaction with the DIY retailer used the most, by housing tenure, March 2016
Key driver analysis
Product quality and range are the main drivers of satisfaction
Back to the experts
Figure 93: Key drivers of overall satisfaction with DIY retailer most spent at, March 2016
Figure 94: Overall satisfaction with DIY retailer most spent at – Key driver output, March 2016
SATISFACTION BY RETAILER
B&Q stands out for its range of products
Figure 95: Satisfaction of customers of B&Q, March 2016
Nectar card satisfies Homebase customers
Figure 96: Satisfaction of customers of Homebase, March 2016
Non-specialists favoured for lower prices
Figure 97: Satisfaction of customers who bought DIY products from non-specialist retailers, March 2016
WHAT THEY BOUGHT
More than half purchase paint/wallpaper
Figure 98: What DIY/home improvement products they bought, March 2016
Renters are more likely to buy soft furnishings and furniture
Figure 99: What DIY/home improvement products they buy, by housing tenure, March 2016
Scots favour flooring and lighting
Figure 100: What DIY/home improvement products they buy, by region, March 2016
Yorkshire and northern England shop more for outdoor
Figure 101: What DIY/home improvement products they buy, by region, March 2016
Flooring and plumbing supplies drive sales in the Midlands
Figure 102: What DIY/home improvement products they buy, by region, March 2016
London and the South East least likely to buy DIY products
Figure 103: What DIY/home improvement products they buy, by region, March 2016
Wales and the South West prefer decorating their homes
Figure 104: What DIY/home improvement products they buy, by region, March 2016
Age and affluence affect purchases
Figure 105: What they bought, by customer profile, March 2016
WHY THEY BOUGHT
Variations in why consumers shop for DIY products
Figure 106: Why they bought DIY/home improvement products, March 2016
Women renovate while men help out and repair
Figure 107: Why they bought DIY/home improvement products, March 2016
Urbanites help each other out
Figure 108: Why they bought DIY/home improvement products, March 2016
The young give a helping hand
Figure 109: Why they bought DIY/home improvement products, by age and socio-economic group, March 2016
ATTITUDES TOWARDS DIY
Product quality is important
Figure 110: Attitudes towards shopping for DIY/home improvement products, March 2016
Specialist shoppers value in-store advice
Figure 111: Agreement with the statement ‘Advice from staff in-store is valuable when buying DIY products’, by where they shopped (any), March 2016
Time-pressed renters find DIY warehouses too big
Figure 112: Attitudes towards shopping for DIY/home improvement products, by housing tenure, March 2016
Technology is a valuable source of information
Figure 113: Selected attitudes towards shopping for DIY/home improvement products, by age, March 2016
Over half of under-35s interested in renting DIY products
Figure 114: Interest in renting DIY tools or equipment, by age, March 2016
Time pressures hold back under-35s
Figure 115: Selected attitudes towards shopping for DIY/home improvement products, by age, March 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Financial definitions
Sales per store, sales per square metre
Exchange rates
Consumer Research Methodology
The consumer: Key driver analysis
Figure 116: Overall satisfaction with DIY retailer most spent at – Key driver output, February 2016
Figure 117: Satisfaction with DIY retailer most spent at, February 2016
Forecast methodology
Abbreviations

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