2022
9
UK DIY Retailing Market Report 2022
2022-06-15T04:05:32+01:00
OX1104603
2195
152142
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Report
en_GB
“DIY was again one of the best-performing non-essential retail markets amid continued disruption in the past year. However, the coming year will be much less certain, as demand slows with…

UK DIY Retailing Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK DIY Retailing Market Report identifies consumers’ attitudes towards DIY, the impact of the cost-of-living crisis and future innovations to continue participation in the home improvement market. This report covers the DIY market size, market forecast, market segmentation and industry trends for the DIY market in the UK.

 

Current Market Landscape 

In what is becoming a growing rarity across retail, in-store purchases topped online sales as the most popular means of purchasing DIY products in the past 12 months. This speaks to the nature of products in the UK DIY market, particularly bigger-ticket items, many of which require in-person assurance. However, it also indicates the success of many specialists in providing compelling reasons to visit in-store over online and non-specialist stores (supermarkets and discounters).

 

Market Share and Key Industry Trends

There is great uncertainty ahead as the DIY industry faces a near-perfect storm due to inflation, supply chain issues and the ongoing Ukraine conflict. These pressures have already seen price rises, lengthening lead times, reduced product availability and labour shortages. These pressures are not set to ease, as the home improvement market is set to slow in demand due to a shift in expenditure priority as consumers are more likely to spend on other previously suppressed areas, such as travel, clothing and entertainment, in addition to greater scrutiny on household finances.

  • 73% of UK consumers purchased their DIY products in-store.
  • 58% of UK DIYers have painted/decorated in the last 12 months.
  • 31% of UK adults would be interested in how-to workshops when shopping at a DIY in-store retailer.
  • 55% of UK consumers agree that they look for ways to improve their homes more now than they did before the pandemic.

 

Future Market Trends in the DIY Market

Nonetheless, there remain a lot of opportunities for home and garden improvement specialists to grow their UK DIY market share, with the newfound appetite and confidence in do-it-yourself serving as a springboard to re-engage key demographics such as younger and female consumers.

Perhaps most significantly, the renewed need for value will offer a wealth of opportunities in credit, loyalty schemes, own-brand ranges and more circular business models. The DIY industry can also innovate by marketing their products as being cost-effective, when compared to employing tradesmen, and in the potential cost savings associated with certain product lines through greater energy efficiency.

Read on to discover more details or take a look at all of our UK Retail Market Research.

 

Understand Quickly

  • How does the pandemic continue to impact DIY retailing?
  • What longer-lasting implications has this disruption had on the consumer base and retailing landscape?
  • How will inflation, supply chain disruption and the developing conflict in Ukraine impact the DIY market?
  • How can DIY specialists help consumers with the rising cost of living?
  • How can DIY specialists consolidate on recent market share gains?
  • How are DIY retailers innovating?

 

Covered in this Report

Product Types: Materials, appliances, tools and equipment for the home and garden, furniture, furnishings, carpets, garden plants and flowers, and household appliances.

Brands:  Homebase, Wicks, ManoMano, Kingfisher (Screwfix, B&Q), Amazon, eBay, The Very Group, Sainsbury’s (Argos), Toolstation, Wilko, B&M, C Brewers & Son, Topps Tiles, Robert Dyas, Tile Giant,

 

Expert Analysis from a Specialist in the Field

This report, written by Marco Amasanti, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

DIY was again one of the best-performing non-essential retail markets amid continued disruption in the past year. However, the coming year will be much less certain, as demand slows with less time indoors and a near-perfect storm of inflation and supply chain issues. The growth of specialists, then, will depend on their ability to aid consumers in navigating this uncertainty, while catering to newer trends and changing shopping behaviours.”

Marco Amasanti
Retail Analyst

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • Uncertainty lies ahead, but specialists should consolidate
      • Figure 1: DIY specialists sector outlook, 2022-27
    • The market
    • Market size and forecast
      • Figure 2: Market forecast for consumer spending on total DIY/hardware specialist sector (including VAT), 2016-26
    • Big-box specialists consolidate their fightback
      • Figure 3: Estimated segmentation of DIY specialists (including VAT), 2019-21
    • A second year of double-figure growth in total expenditure
      • Figure 4: Category breakdown of consumer spending on DIY-related products, 2016-21
    • Online spending nears £4 billion
      • Figure 5: Estimated online DIY market size (ex VAT), 2017-21
    • Companies and brands
    • Big-box specialists top the table
      • Figure 6: DIY products, estimated channels of distribution, 2021
    • The consumer
    • Three quarters of consumers purchased DIY products
      • Figure 7: Where they shopped for DIY products, 2020, 2021 and 2022
    • Stores remain the most popular channel
      • Figure 8: Where they shopped for DIY products, in-store and online, 2020-22
    • Lighter-ticket categories spearhead engagement
      • Figure 9: Recent home improvements, 2022
    • A wealth of opportunities to re-encourage footfall
      • Figure 10: Interest in in-store features, 2022
    • Two years on, there are clear ramifications from the pandemic
      • Figure 11: Post-COVID-19 attitudes, 2022
    • Room for improvement for specialists
      • Figure 12: Interest in innovation, 2022
  3. Issues and Insights

    • Great uncertainty ahead
    • Cost-of-living crisis
    • Mounting supply chain disruption
    • The Ukraine conflict exacerbates both inflation and supply chain issues
    • How can DIY specialists help consumers navigate this?
    • Cost savings
    • Marketing future cost savings
    • More flexible payment options
    • How can DIY specialists consolidate more broadly?
    • Underlining in-store USPs
    • Providing for the spotlight on sustainability
    • Offer an end-to-end proposition
  4. Market Size and Performance

    • Another year of double-digit growth at DIY specialists
    • Led by big-box specialists
    • Continued demand for home improvements
    • Newfound confidence in do-it-yourself
    • An upscaling of home improvement projects
    • Record activity in the housing market
    • But demand grows increasingly polarised
      • Figure 13: Consumer spending on total DIY/hardware specialist sector (including VAT), 2016-21
      • Figure 14: Consumer spending on total DIY/hardware specialist sector (including VAT), at current and constant prices, 2016-21
  5. Market Forecast

    • Uncertainty lies ahead, but specialists should consolidate
      • Figure 15: DIY specialists sector outlook, 2022-27
    • Growth will flatten with mounting uncertainty
    • Rising cost of living
    • Spending will be challenged as other non-discretionary markets are prioritised
    • Specialists must provide for new trends and growing confidence online
      • Figure 16: Market forecast for consumer spending on total DIY/hardware specialist sector (including VAT), 2016-26
    • Market drivers and assumptions
      • Figure 17: Key drivers affecting Mintel’s market forecast, 2016-26
    • Learnings from the last income squeeze
      • Figure 18: DIY specialists’ sales (including VAT), 2007-12
    • Forecast methodology
  6. Market Segmentation

    • Big-box specialists consolidate their fightback
    • With room for further advances
      • Figure 19: Shed/big-box specialists’ sector size (including VAT), 2016-21
    • Smaller specialists grow sales at a lower rate
      • Figure 20: Other DIY/hardware stores’ sector size (including VAT), 2016-21
      • Figure 21: Estimated segmentation of DIY specialists (including VAT), 2019-21
  7. Consumer Spending on DIY Products

    • A second year of double-digit growth
      • Figure 22: Consumer spending on DIY-related products, 2016-21
    • Gardens move up the agenda
      • Figure 23: Category breakdown of consumer spending on DIY-related products, 2016-21
    • Mintel’s consumer spending market size
  8. Online

    • Total market rises again as it nears the £4 billion mark
      • Figure 24: Estimated online DIY market size (ex VAT), 2017-21
    • DIY specialists find their feet online after a bumper 2020
    • Kingfisher better leverages store networks
    • B&Q achieves eCommerce growth with the launch of an online marketplace
    • Screwfix online sales slip following a bumper 2020
    • Wickes estimates 5 million digital customers
    • Homebase launches a new website
    • ManoMano proves demand for specialist pure players
    • Non-specialist pure players grow again
      • Figure 25: Estimated share of DIY sales, by specialist and non-specialist DIY retailers, 2017-21
  9. Market Drivers

    • The conflict in Ukraine will hurt the UK economy
    • GDP reached pre-pandemic levels in November 2021…
    • …but the post-COVID-19 bounce back will be followed by a period of slower growth
    • Employment has held up better than expected
    • Inflation is the key concern for 2022 for consumers, brands and the economy
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 26: Household financial wellbeing index, 2016-2022
    • …and concerns over inflation are coming to the fore
      • Figure 27: Consumer concerns about household finances, 2021-22
    • The home continues to gain from redirected expenditure
    • But this raises concerns moving forward
      • Figure 28: Spending, by sector, 2022
    • Record house sales are pivotal to recent growth
      • Figure 29: Monthly UK residential property transactions, 2019-2022
    • Nearly two thirds are homeowners
      • Figure 30: England housing tenure, 2017-21
  10. Market Share

    • Big-box specialists top the table
    • Online pure players continue their upward trajectory
    • Generalists gain from continued disruption
      • Figure 31: Top 10 leading retailers’ estimated share of all DIY spending, 2021
      • Figure 32: DIY products, estimated channels of distribution, 2021
  11. Leading Specialists

    • Kingfisher reaps the rewards of its strategy shift
    • B&Q
    • Screwfix
    • Kingfisher remains confident of growth despite uncertainty
    • Early signs are promising following Wickes’ demerger
    • Homebase marks the conclusion of its turnaround strategy
    • ManoMano doubles UK sales
      • Figure 33: Leading DIY specialists’ sales, 2017-21
    • Kingfisher matches turnover with double-figure growth in profits
    • Homebase returns to profits and ends its CVA early
      • Figure 34: Leading specialists’ operating profit, 2017-21
      • Figure 35: Leading specialists’ operating margin, 2017-21
    • Kingfisher: the success of multichannel propositions
    • B&Q experiments with new store formats
    • Screwfix nears target of 1,000 stores in the UK and Ireland
    • Toolstation aims to reach 650 stores
    • Wickes revamps its existing estate
      • Figure 36: Leading DIY specialists’ outlets, 2017-21
      • Figure 37: Leading DIY specialists’ estimated sales per outlet, 2017-21
  12. Leading Non-Specialists

    • Disruption continues to fragment spending
    • Amazon bolsters sales, albeit more narrowly
    • Supermarkets gain from multi-mission shopping
    • Discounters will come into the spotlight in 2022
      • Figure 38: Leading non-specialists’ estimated DIY sales (excluding VAT), 2017-21
  13. Launch Activity and Innovation

    • A continued emphasis on technology to bridge online and offline
    • The rise in mobile purchasing maintains the spotlight on apps
    • Brico Depôt Iberia launches video-chat online consultancy
    • OBI turns to social media to engage younger consumers
    • Specialists continue to experiment with new store formats
    • Homebase partners with Tesco for store-in-store launch
      • Figure 39: Homebase store-in-store in Tesco, 2022
    • Branded concessions offer multi-mission experiences in-store
    • ‘IKEA Decoration’ launched in Paris
    • French specialist Bricoman trials a two-shops-in-one concept in Paris
    • B&Q launches an online marketplace
    • Leroy Merlin launches a new online marketplace in Italy
    • ManoManoPro online marketplace for trade professionals
    • Disruption drives innovation around sustainability
    • Specialists make moves in-store
    • Opportunities for greener product ranges
    • The rising cost of living will boost the importance of after-sales offerings
    • Leroy Merlin partners with Jobby to provide support for small household chores
    • .. and offers planning and assistance packages with ‘Studio’ concept
    • Screwfix launches a rapid delivery service: Screwfix Sprint
      • Figure 40: Screwfix Sprint, 2022
    • Any cost savings will be in high demand
  14. Advertising and Marketing Activity

    • Total sector advertising expenditure recovers in 2021, but still below pre-pandemic levels
      • Figure 41: Total above-the-line, online display and direct mail advertising expenditure by UK DIY retailers, 2018-21
    • B&Q, Wickes and Homebase account for nearly 98% of total sector advertising spend
      • Figure 42: Leading UK DIY retailers’ recorded above-the-line, online display and direct mail total advertising expenditure, 2018-21
    • Majority of advertising spend channelled through TV
      • Figure 43: Total above-the-line, online display and direct mail advertising expenditure by UK DIY retailers, by media type, 2021
    • Key campaigns
    • B&Q’s ‘Change. Made Easier.’ campaign
    • Wickes debuts first TV bathroom advert in a decade
    • ‘Escape to the Chateau’ duo front Homebase 2021 Christmas campaign
    • Toolstation advert champions the skills of key tradespeople
    • Nielsen Ad Intel coverage
  15. Brand Research

    • What you need to know
    • Brand map
      • Figure 44: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 45: Key metrics for selected brands, 2022
    • Brand attitudes: Screwfix provides a great online service and Wilko offers good value
      • Figure 46: Attitudes, by brand, 2022
    • Brand personality: B&Q accessible and ethically minded
      • Figure 47: Brand personality – macro image, 2022
    • B&Q aspirational, Homebase stylish, Screwfix cutting edge, Wilko basic but welcoming
      • Figure 48: Brand personality – micro image, 2022
    • Brand analysis
    • Screwfix offers an excellent experience and is highly recommended
    • B&Q is trustworthy, reliable, accessible and ethically minded
    • Wilko is good value for money, welcoming and accessible, but basic
    • Wickes is affordable, but somewhat boring and less ethically minded than its competitors
    • Homebase is stylish, but overrated and expensive
  16. Where They Shop

    • Three quarters of consumers purchased DIY products
    • DIY specialists again lead the way…
    • .. with two of the top three most popular destinations
    • But non-specialists continue to offer an attractive alternative
      • Figure 49: Where they shopped for DIY products, 2020, 2021 and 2022
  17. In-store vs Online

    • Stores remain the most popular channel
    • But confidence has grown online
      • Figure 50: Where they shopped for DIY products, in-store and online, 2020-22
    • Multichannel specialists regain stability in-store and online
    • How physical DIY specialists improved their online offering
      • Figure 51: Where they shopped for DIY products, in-store and online, 2022
    • Store buyers are more likely to shop around
      • Figure 52: Repertoire analysis of where they shopped for DIY products, in-store and online, 2022
  18. Recent Home Improvements

    • Lighter categories spearhead engagement
    • But many undertook larger projects in the past year
    • Disruption shined the spotlight on communal and outdoor areas
      • Figure 53: Recent home improvements, 2022
    • Newfound confidence boosts uptake
    • Six in 10 undertook more than two projects
      • Figure 54: Repertoire analysis of recent home improvements, 2022
  19. In-store Interest

    • Ramping up traditional USPs
    • Mounting interest in sustainability offers a wealth of opportunities
    • Demand for provenance will grow with supply chain uncertainty
      • Figure 55: Interest in in-store features, 2022
    • Multi-mission experiences provide more reasons to come in-store
    • Leveraging online to streamline in-store shopping
    • Older, affluent consumers look to specialist staff
      • Figure 56: Target groups based on interest in in-store features – CHAID – tree output, 2022
      • Figure 57: Target groups based on interest in in-store features – CHAID – table output, March 2022
  20. The Legacy of the Pandemic

    • The spotlight on the home…
    • … and newfound confidence will continue to offer opportunities
    • While feeding into newer, sustainable behaviours
      • Figure 58: Post-COVID-19 attitudes, 2022
    • Pure players present a growing threat
  21. Interest in Innovation

    • There remains strong demand for do-it-for-me
    • But the newfound confidence in DIY has created opportunities
      • Figure 59: Interest in innovation, 2022
    • The rising cost of living will further polarise demand
      • Figure 60: Interest in innovation, by financial situation, 2022
    • Consumers expect the utmost convenience
    • New movers more likely to seek additional ranges and services
      • Figure 61: Interest in innovation, by duration in current home, 2022
  22. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  23. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 62: Consumer spending on total DIY/hardware specialist sector, 2021-26
    • Market drivers and assumptions
    • Forecast methodology

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