DIY Retailing - Italy - May 2016

OVERVIEW
What you need to know
Areas covered in this report
EXECUTIVE SUMMARY
The market
Spending and inflation
Figure 1: Italy: Total consumer expenditure and spend on DIY-related categories (incl. VAT), 2010-15
Figure 2: Italy: Consumer Prices * of DIY related categories, Annual % change, 2010-15
Sector size and forecast
Leading players
Key metrics
Market shares
Figure 3: Italy: Leading DIY retailers market share of total DIY retailers’ sales (excl. VAT), 2014 and 2015
Online
The consumer
Where they shop
Figure 4: Italy: The consumer: Retailers used for DIY purchases in the past 12 months, by in-store or online, March 2016
What they buy
Figure 5: Italy: The consumer: DIY products purchased in the past 12 months, March 2016
Factors influencing choice of retailer
Figure 6: Italy: The consumer: Important factors when deciding where to buy DIY/home improvement goods, March 2016
What we think
ISSUES AND INSIGHTS
Specialists’ online offer must improve to fend off pureplay competition
The facts
The implications
Housing tenure ownership fuelling a shift in DIY spending habits from heavy to soft end
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Consumer DIY spend strongest in softer-end product sectors
Very slow pick-up in DIY specialists’ retail sales
Softer-end DIY specialists to gain from shift in housing tenure status
SPENDING AND INFLATION
Mintel DIY market size
Figure 7: Italy: DIY products – the Mintel market size (incl. VAT), 2010-15
Figure 8: Italy: Mintel DIY Market size: Breakdown by product, 2015
DIY-related spending categories
Figure 9: Italy: Consumer spending on DIY-related categories in detail (incl. VAT), 2010-15
Inflation
Figure 10: Italy: Consumer Prices * of DIY related categories, Annual % change, 2011-15
Figure 11: Italy: Consumer prices * of DIY related categories, annual % change, September 2014 – March 2016
SECTOR SIZE AND FORECAST
Specialist retail sales slowly recovering
Figure 12: Italy: Distribution of population by tenure status, 2010-14
Figure 13: Italy: DIY retailers’ sales (excl. VAT), 2010-15
Figure 14: Italy: DIY retailers’ sales, Forecasts, excl VAT, 2016-20
LEADING PLAYERS – WHAT YOU NEED TO KNOW
New store formats from market leaders
Sector’s smaller players look for strength in numbers
Leading specialists increase their combined market share marginally
Internet-only retailers
LEADING PLAYERS
Groupe Adeo transforming the home improvement experience with new store concepts
Self’s new ‘construction wholesale price departments’
Brico OK franchisee’s convenient DIY retail proposition
Signs of consolidation
Figure 15: Italy: Leading DIY retailers, net revenues, 2013-15
Figure 16: Italy: Leading DIY retailers, outlet numbers, 2013-15
Sales per outlet
Figure 17: Italy: Leading DIY retailers, Estimated sales per outlet, 2013-15
MARKET SHARES
Figure 18: Italy: Leading specialist DIY retailers: Estimated shares of all DIY retailers sales, 2011-15
ONLINE
Online activity
Figure 19: Italy: Online purchasing, 2010-15
Online DIY sales
Leading online players
THE CONSUMER – WHAT YOU NEED TO KNOW
Leroy Merlin dominates
Tools and softer end lines bought most
Price and product quality influence choice of store
WHERE THEY SHOP
Adeo formats ahead of the rest
Figure 20: Italy: The consumer: Retailers used for DIY purchases in the past 12 months, whether in-store or online, March 2016
Online-only retailers gaining share
Figure 21: Italy: The consumer: Retailers used for DIY purchases in the past 12 months, whether in-store or online, March 2015 and March 2016
Specialists need to rise to the online challenge
Figure 22: Italy: The consumer: Retailers used for DIY purchases in the past 12 months, by in-store or online, March 2016
Consumer profile by retailer
Figure 23: Italy: Customer profile by where they shopped for DIY products, March 2016
WHAT THEY BUY
Tools and softer end items are main purchases
Figure 24: Italy: The consumer: DIY products purchased in the past 12 months, March 2016
Female shoppers important target for decorating materials
Figure 25: Italy: The consumer: DIY products purchased in the past 12 months, by gender, March 2016
Figure 26: Italy: The consumer: DIY products purchased in the past 12 months, by age, March 2016
Hard end/soft end split by retailer
Figure 27: Italy: DIY products: What they buy by where they shop, March 2016
FACTORS INFLUENCING CHOICE OF RETAILER
Price and quality are key to drawing in customers
Figure 28: Italy: The consumer: Important factors when deciding where to buy DIY/home improvement goods, March 2016
Figure 29: Italy: The consumer: Important factors when deciding where to buy DIY/home improvement goods, March 2016
Younger shoppers most concerned about price
Figure 30: Italy: The consumer: Profile of those that ranked each factor first, March 2016
Key factors by where they shop
Figure 31: Italy: The consumer: Those that ranked each factor first by where they had shopped, March 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
ADEO
What we think
A diverse, international business
Digitally on the ball
Expanding softer end
Looking for growth by enabling and educating consumers
Company background
Company performance
Figure 32: Adeo: Group sales performance, 2011-15
Figure 33: Adeo: Retail formats, 2016
Figure 34: Adeo: Outlet data (main European countries), 2011-15
Retail offering
Leroy Merlin
Other fascia
OBI
What we think
bauMax
Where next?
Online
Outlook
Company background
Company performance
Figure 35: OBI: Group financial performance, 2010-15
Figure 36: OBI: Outlet data, 2010-15
Figure 37: OBI: Sales per outlet, sales per sq m, 2010-15
Retail offering