UK DIY & Gardening Retailers 2010
Verdict Research Limited, March 2010, Pages: 197
It was estimated that the DIY & gardening sector would grow grew by 0.6% to £12.7bn in 2009. This was primarily driven by the performance of the gardening sub-sector which is benefitting from a number of positive trends. Demand for core DIY products remains weak with the recession accentuating the negative impact of a depressed housing market and comparative lack of interest in do-it-yourself.
Scope:
- Market size, sales and growth rates for the DIY & gardening sector overall and at category level.
- In-depth analysis of the key issues that are impacting the sector and the specialists operating within it.
- Profiles of the key specialists and non-specialists operating in the sector: including operating statistics and market share analysis.
- Space allocation by product category across the leading operators.
Highlights:
We estimate that the DIY sub sector declined by 3.1% in 2009. A depressed housing market and a more general decline in mass interest in do-it-yourself has had an adverse post-2004 impact on demand for core DIY products. The recession has weakened the market even further and demand for DIY products is unlikely to rebound in the short term.
Conversely the impact of recession on the consumer mindset will be a lasting fillip to the gardening sub sector. Gardening grew by 10.0% in 2009 with an increasingly austere consumer driving demand for grow your own and a greater proportion of consumers choosing not to holiday abroad heightening the garden's position as an important social venue.
The trend among DIY superstores to more general home enhancement has accelerated. Showrooms have been a key area of focus, with the Big Four attempting to capitalise on the high profile collapse of MFI in late 2008. Another major area of focus has been gardening, with gardening products representing an increasing part of DIY superstores' sales mix.
Reasons to Purchase:
- The report summarizes and explains in detail the issues and changing dynamics of the market.
- It gives unique market share information and key operating statistics of leading players for benchmarking across the sector.
- Gain competitive advantage by understanding the strengths and weakness of the key DIY & gardening operators.
CHAPTER 1 EXECUTIVE SUMMARY
- Key findings
- Main conclusions
- Gardening props up sector performance
- Recession of lasting benefit to gardening
- But sales will fall in 2010 if weather is not as good
- DIY demand unlikely to rebound in short term
- Core DIY weakness prompts range diversification
- However, DIY specialists must not lose sight of specialism
- Competition intensifies
- Superstores improve service propositions
- Grocers and general merchandisers gain market share
- Price an increasingly important battleground
- DIY superstores respond
- However, smaller independents continue to struggle
- Shakeout will continue
- Garden centres to compete more effectively
CHAPTER 2 KEY ISSUES
- Market struggles as recession accelerates emerging trends
- Consumer interest in DIY has been waning for some time
- ... So DIY is no longer a spending priority
- The short term outlook is far from encouraging
- Recession accelerates need for improved propositions
- Range diversification
- DIY superstores increasingly target general home enhancement
- Recession accelerates diversification
- Superstores should be careful not to lose specialist credentials
- Add product value and service
- Value
- Service
- Multichannel
- Loyalty schemes
- Space
- Balance sheet
- Outlook for DIY superstores
- Smaller DIY specialists continue to struggle
- Smaller multiples and independents in eye of storm
- Over reliance on declining categories
- Town centre specialists hit by general merchandisers
- Specialist credentials should be a focus
- Gardening props up sector
- Benefits from a changing consumer and long term trends
- DIY superstores focus more heavily on the sub sector
- Garden centres improve destination status
- Gardening will continue to close gap to DIY
CHAPTER 3 MARKET ANALYSIS
- Market definition
- Overview
- Prevelant trends worsen in recession
- Spend by sub sector: gardening continues to grow share
- DIY
- Non-decorative materials for repair and maintenance
- Tools, equipment and accessories
- Decorative materials for repair and maintenance
- Gardening
- Greenstock and growing media
- Garden structures
- Outdoor living
- Gardening tools & utensils
- Channels of distribution
- DIY specialists
- Garden centres
- General merchandisers
- Builders merchants
- Grocers
CHAPTER 4 DIY SUPERSTORES
- Superstores find safety in diversification
CHAPTER 5 COMPANY DATA ANALYSIS
- Market shares
- Operating statistics
- Space allocation
- Advertising spend
CHAPTER 6 DIY SPECIALISTS
- B&Q
- Lies in wait for upturn
- Recent key events
- Invests to strengthen proposition
- Develops online proposition
- Rolls out reserve & collect
- Strengthens gardening offer
- Signs veteran Titchmarsh
- Steps up green activities
- Pledges carbon emissions cut in 2010
- Enters furniture market and strengthens appliance offer
- Creates innovation director
- Doubles apprenticeship scheme
- Revamps UK store network
- Secures better rent terms
- Cuts costs in supply chain
- Trials Screwfix Trade Points instore
- Adopts new promotional strategy
- Proposition
- Financials
- Profits shrink as sales dip
- Space
- Growth on hold with focus on revamps
- Sector performance - DIY & gardening
- Market share bounces up once more
- Outlook
- Well placed for recovery
- Stores set impressive standard
- Cut price refurbishments carry risks
- Needs to give One Planet Home greater focus
- Seeks to enhance innovation
- Continues to differentiate on service
- Should not stray too far from EDLP
- Has lucrative opportunity in gardening
- Needs to capitalise on Wickes exit from bedrooms and conservatories
- Focus
- Establishes base to compete more effectively
- Recent key events
- CVA gives it a base to work from
- More changes to senior management
- Conducts a Company Voluntary Agreement (CVA) to avoid administration
- Rids itself of 38 non-trading stores
- Ups ad spend
- Turnaround strategy
- Smaller format considered
- Proposition
- Financials
- Mixed performance as retailer implements turnaround strategy
- Space
- Reverts to growth following savage cuts
- Space allocation
- Sector performance - DIY & gardening
- Market share slide levels out
- Outlook
- Signs of recovery but still a long way to go
- Pieces fall into place to return to growth
- ... but still long way to go
- Like its peers, Focus has benefited from range diversification
- Strong price architecture and robust own brand offer will drive profits
- Smaller format could drive long term growth
- Competitors boast greater destination status
- Improved service essential to separate Focus from rivals
- Homebase
- Firm cost control limits damage by recession
- Recent key events
- New focus on value, loyalty and online
- Launches Value range
- Invites direct comparison with B&Q
- Rolls out reserve & collect
- Joins Nectar and ditches Spend & Save
- Develops online marketing
- More emphasis on price and value
- Invests in style-led offer
- Shores up position in core DIY
- Starts online survey
- Cash bonuses provoke shareholder revolt
- Proposition
- Financials
- Promotions and exchange rate take toll on profits
- Space
- Virtual halt to growth
- Space allocation
- Sector performance - DIY & gardening
- Gradual progress as Homebase benefits from Focus decline
- Outlook
- Profitability improves but further investment required
- Margin poised for recovery
- More strategic focus on core DIY needed
- Concessions could be removed
- Exploitation of Argos synergy must not dilute Homebase identity
- Stores need more investment
- Further own brand development needed
- Multichannel expertise gives Homebase an edge
- Service requires more investment
- Wickes
- Plenty of potential for more expansion long term
- Recent key events
- Rights issue facilitates investment
- New showroom focus on kitchens and bathrooms
- Launches MyCard
- Invests in multichannel capabilities
- Travis Perkins raises £300m through rights issue
- TP group reduces costs
- Charity partnership with Leukaemia Research
- Proposition
- Financials
- Sales momentum and margins hold firm through recession
- Space
- Expansion on hold with focus on revamps and relocations
- Space allocation
- Sector performance - DIY & gardening
- Market share plateaus
- Outlook
- Performs well through recession
- Solid performance through tough times
- Tight ship
- Repositions as multichannel champion
- New ads boost kitchens and bathrooms
- Solid performance
- Wickes paint gets marketing support to communicate quality vs brands
- Potential for many more stores in longer term
- Ireland down but not out
- Smaller DIY Specialists
- Robert Dyas
- Outlook
- Could not afford essential improvements
- Foundations in place for growth
- Risks losing specialist credentials by entering too many markets
- Must ensure expansion will bring returns
- Tile Giant
- Outlook
- Should improve performance of existing stores
- Could explore concessions in Wickes stores
- Topps Tiles
- Outlook
- 2010 performance will benefit from soft comparatives
- Careful investment is sensible
- Pulling out of Holland was another correct move
- More premium offer should be post recession aim
- Tile Giant a significant threat
- CHAPTER 7 GARDEN CENTRES
- The Garden Centre Group
- New identities for garden centre leader
- Recent key events
- Rebranding goes against the grain
- Nursery revival
- Gross profits rise over Christmas
- Reinstates old names of centres as Wyevale name largely disappears
- Baugur collapse necessitates refinancing
- Gardening Club relaunch
- Sweeping boardroom changes
- Proposition
- Financials
- Debt for equity swap provides new stability
- Space
- Growth on hold with focus on revamps
- Space allocation
- Sector performance - DIY & gardening
- Slow rise in market share
- Outlook
- Many challenges for new management team
- Owns few destination garden centres
- Debt deal offers new stability
- New management team has valuable garden retail expertise
- Debranding unproved
- Advantages of scale reduced
- Concession income a major opportunity
- Potential to tap demand for eco-products
- Smaller Garden Centres
- Dobbies
- Attractions build destination status
- Foodhalls target demand for local products
- Co-location with Tesco to accelerate expansion
- Planning applications in
- Concern over viability of 600,000sq ft centre
- Centres to be built alongside new Tesco stores
- Dobbies products to be stocked at Tesco
- Raises eco-friendly stakes
- Converts spare land to allotments
- Encouraging growth in first year of Tesco ownership
- Tesco online expertise deployed at Dobbies
- Notcutts
- NWF acquisition transforms Notcutts scale
- Free tea and coffee twice a month
- Sage Privilege Club takes on rivals
- Tight cost control lifts profits despite recession
- Specialist focus on pets and wild birds
- RSPB talks
- Basic website sells Notcutts short
CHAPTER 8 GENERAL MERCHANDISERS
- Argos
- Multichannel strengths copied by rivals
- Recent key events
- Emphasis on online expansion and value
- Home enhancement sales contribution approaches half
- Greatly expands online product range
- Enhances value credentials
- Modernises logo
- Launches price comparison site
- Trials mobile phone video marketing
- Cash bonuses provoke shareholder revolt
- HRG cuts head office costs
- Improves customer feedback
- Proposition
- Financials
- Shift in sales mix hits margins
- Space
- Continuing gradual growth, especially out-of-town
- Space allocation
- Sector performance - DIY & gardening
- Gains market share in a tough market
- Outlook
- Catalogue called into question by online expansion
- DIY ranges appear weak
- Gardening ranges deserve more promotion
- Works hard to strengthen multichannel credentials
- Faces Direct competition from Tesco and Asda
- Should look beyond the catalogue
- More pricing excitement needed
- Why no Nectar?
- Wilkinson
- Expansion drive aided by Woolworths demise
- Recent key events
- Renegotiates supplier terms
- Improves sourcing methods
- Appoints Asda director as head of buying
- Modernises store appearance and launches new logo
- Proposition
- Financials
- Operating margins come under pressure from trading climate
- Space
- Growth continues but target of 500 stores by 2012 likely to be missed
- Space allocation
- Sector performance - DIY & gardening
- New format and winning over ABs should keep growth on track
- Outlook
- Weak margins and one off factors take shine off sales growth
- Wilkinson benefits from Woolworths demise
- Value positioning in tune with times
- New style stores should be rolled out more widely
- Focus on costs should lift margins
- Increasing marketing spend could pay dividends
- CSR policies should be flagged
CHAPTER 9 GROCERS
- Need to cater for improve not move demand
- Tesco
- Asda
- Sainsbury
- Outlook
- Target should remain casual DIYers
- Trend to improve not move
- Separate car maintenance and combine DIY & gardening with homewares
- Grocers should exploit online capabilities to enhance DIY propositions
- Seasonal flexibility
- Sainsbury joins fray
- Tesco and Asda can also exploit Direct and non-food standalones
- Asda could do more in gardening instore
CHAPTER 10 BUILDERS MERCHANTS
- Housing recovery could prove fragile
- Jewson
- Travis Perkins
- Wolseley
- Outlook
- Tax rises and public sector cuts could derail recovery
- Uncertainty surrounds pick up in housing
- Investment needed at Jewson
- Travis Perkins in strongest position
- Wolseley struggles to stabilise business
CHAPTER 11 GLOSSARY
- Financial Statistics - VAT
- Trading Record
- Physical Development
- Computer Rounding
- Abbreviations
List of Tables:
Table 1: DIY & gardening market definition 2010
Table 2: Consumer spend on DIY & gardening products 2000-2010e
Table 3: Total consumer expenditure on DIY products 2005-2010e
Table 4: Breakdown of consumer spend on DIY products 2005-2010e
Table 5: Total consumer spend on gardening products 2005-2010e
Table 6: Breakdown of consumer spend on gardening 2005-2010e
Table 7: DIY & gardening channels of distribution 2005 & 2010e
Table 8: DIY Superstores sales, stores and space, 2005-2010e
Table 9: DIY & gardening retailers market shares 2005-2010e
Table 10: DIY & gardening major specialists - trading 2008/09
Table 11: DIY & gardening major specialists - stores 2008/09
Table 12: Summary of space allocation for leading retailers 2009
Table 13: Summary of space allocation for leading retailers 2009 (continued)
Table 14: Major DIY specialists advertising spend 2005-2008
Table 15: Major DIY specialists advertising spend by media 2008
Table 16: B&Q company overview 2010
Table 17: B&Q retail proposition 2010
Table 18: B&Q retail proposition 2010 (continued)
Table 19: B&Q key operating statistics 2005-2010e
Table 20: B&Q UK trading record 2000-2010e
Table 21: B&Q store profile 2000-2010e
Table 22: B&Q space allocation 2009
Table 23: B&Q space allocation 2009 (continued)
Table 24: Focus overview 2010
Table 25: Focus retail proposition 2010
Table 26: Focus retail proposition 2010 (continued)
Table 27: Focus key operating statistics 2005-2010e
Table 28: Focus UK trading record 2000-2010e
Table 29: Focus store profile 2000-2010e
Table 30: Focus space allocation 2009
Table 31: Focus space allocation 2009 (continued)
Table 32: Homebase overview 2010
Table 33: Homebase retail proposition 2010
Table 34: Homebase retail proposition 2010 (continued)
Table 35: Homebase key operating statistics 2005-2010e
Table 36: Homebase UK trading record 2000-2010e
Table 37: Homebase store profile 2000-2010e
Table 38: Homebase space allocation 2009
Table 39: Homebase space allocation 2009 (continued)
Table 40: Wickes company overview 2010
Table 41: Wickes retail proposition 2010
Table 42: Wickes retail proposition 2010 (continued)
Table 43: Wickes key operating statistics 2005-2010e
Table 44: Wickes UK trading record 2000-2010e
Table 45: Wickes store profile 2000-2010e
Table 46: Wickes space allocation 2009
Table 47: Wickes space allocation 2009 (Continued)
Table 48: Robert Dyas key operating statistics 2005-2010e
Table 49: Tile Giant key operating statistics 2005-2010e
Table 50: Tile Giant space allocation 2009
Table 51: Topps Tiles key operating statistics 2005-2010e
Table 52: Topps Tiles space allocation 2009
Table 53: The Garden Centre Group overview 2010
Table 54: The Garden Centre Group retail proposition 2010
Table 55: The Garden Centre Group key operating statistics 2005-2010e
Table 56: The Garden Centre Group UK trading record 2000-2010e
Table 57: Wyevale store profile 2000-2010e
Table 58: Wyevale space allocation 2009
Table 59: Dobbies key operating statistics 2005-2010e
Table 60: Notcutts key operating statistics 2005-2010e
Table 61: Argos company overview 2010
Table 62: Argos retail proposition 2010
Table 63: Argos retail proposition 2010 (continued)
Table 64: Argos key operating statistics 2005-2010e
Table 65: Argos UK trading record 2000-2010e
Table 66: Argos store profile 2000-2010e
Table 67: Argos catalogue space allocation Spring/Summer 2010
Table 68: Wilkinson overview 2010
Table 69: Wilkinson retail proposition 2010
Table 70: Wilkinson retail proposition 2010 (continued)
Table 71: Wilkinson key operating statistics 2005-2010e
Table 72: Wilkinson UK trading record 2000-2010e
Table 73: Wilkinson store profile 2000-2010e
Table 74: Wilkinson space allocation 2009
Table 75: Grocers - key operating statistics 2008/09
Table 76: Builders merchants - key operating statistics 2008/09
Table 77: Travis Perkins store portfolio 2008-2009
List of Figures:
Figure 1: Emerging trends in DIY accelerated by recession 2010
Figure 2: Recession causes DIY market to struggle 2010
Figure 3: DIY superstores strategic priorities 2010
Figure 4: DIY superstores sales % of total DIY specialists sales 2005-2010e
Figure 5: Gardening expenditure and % of total DIY & gardening spend 2005-2010e
Figure 6: Factors boosting garden centres channel share 2010
Figure 7: Price inflation/deflation in total retail & DIY/garden 2005-2010e
Figure 8: DIY & gardening market composition 2010e
Figure 9: DIY category shares of DIY & gardening market 2005 & 2010e
Figure 10: Garden category shares of DIY & garden spend 2005 & 2010e
Figure 11: DIY superstores sales (current prices) 2008-2010e
Figure 12: DIY superstores space 2008-2010e
Figure 13: DIY superstores stores 2008-2010e
Figure 14: B&Q retail sales and growth to January 2005-2010e
Figure 15: B&Q operating profit to January 2004-2009
Figure 16: B&Q DIY & gardening sales and growth calendar 2005-2010e
Figure 17: B&Q DIY & gardening market share 2005-2010e
Figure 18: Focus retail sales and growth to February 2005-2010e
Figure 19: Focus operating profit to February 2004-2009
Figure 20: Focus DIY & gardening sales and growth 2005-2010e
Figure 21: Focus DIY & gardening market share 2005-2010e
Figure 22: Homebase retail sales and growth to February 2005-2010e
Figure 23: Homebase operating profit, year end February 2004-2009
Figure 24: Homebase DIY & gardening sales and growth calendar 2005-2010e
Figure 25: Homebase DIY & gardening market share 2005-2010e
Figure 26: Wickes retail sales and growth to December 2005-2010e
Figure 27: Wickes operating profit to December 2004-2009
Figure 28: Wickes DIY & gardening sales and growth calendar 2005e-2010e
Figure 29: Wickes DIY & gardening market share 2005-2010e
Figure 30: Robert Dyas DIY & gardening market share 2005-2010e
Figure 31: Tile Giant DIY & gardening market share 2005-2010e
Figure 32: Topps Tiles DIY & gardening market share 2005-2010e
Figure 33: Garden Centre Group retail sales & growth to Dec 2005-2010e
Figure 34: Garden Centre Group operating profit 20043-2009
Figure 35: The Garden Centre Group DIY & gardening sales and growth calendar 2005-2010e
Figure 36: Garden Centre Group DIY & garden market share 2005-2010e
Figure 37: Dobbies DIY & gardening market share 2005-2010e
Figure 38: Notcutts DIY & gardening market share 2005-2010e
Figure 39: Argos retail sales and growth to February 2005-2010e
Figure 40: Argos operating profit to February 2004-2009
Figure 41: Argos DIY & gardening sales and growth calendar 2005-2010e
Figure 42: Argos DIY & gardening market share 2005-2010e
Figure 43: Wilkinson retail sales and growth, year to January 2005-2010e
Figure 44: Wilkinson operating profit to year end January 2004-2009
Figure 45: Wilkinson DIY & gardening sales & growth calendar 2005-2010e
Figure 46: Wilkinson DIY & gardening market share 2005-2010e
Figure 47: Grocers DIY & gardening sales and growth calendar 2005-2010e
Figure 48: Tesco share of DIY & gardening market 2005-2010e
Figure 49: Asda share of DIY & gardening market 2005-2010e
Figure 50: Sainsbury share of DIY & gardening market 2005-2010e
Figure 51: Builders merchants DIY & garden sales calendar 2005-2010e
Figure 52: Builders merchants DIY & gardening market share 2005-2010e
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