UK DIY & Gardening Retailers 2011
Verdict Research Limited, February 2011, Pages: 214
Introduction
UK DIY & gardening Retailers 2011: Examines the latest developments in DIY & gardening, providing comprehensive analysis of both sectors to identify the key issues impacting each of them and how growth opportunities can be exploited. Details the size of each market, with five year forecasts and analysis of emerging trends. Key retailers in the each sector are profiled and critically assessed.
Features and benefits
- Key metrics of DIY & gardening retailers: sales growth, space, store numbers, store sizes and sales densities.
- Analysis of B&Q, Homebase, Wickes, Focus, The Garden Centre Group, Dobbies, builders merchants, small DIY specialists, and independent garden centres.
- Profiles of key players operating in the location, including operating statistics, recent key events and outlook and market shares for 2006 to 2011.
- Comprehensive analysis of the issues impacting the market, identifying emerging trends and growth opportunities, recommending strategies for success.
Highlights
- The collapse of the DIY & gardening sector which began in 2005 – entirely due to the DIY sub sector – continued in 2010 with a fall we estimate at 0.8% to £12.6bn. We forecast that the market will remain in negative territory in 2011 with a further fall of 0.1% as consumers reel from subdued wage growth, higher taxes and increased living costs.
- DIY, deteriorating further with a decline of 0.9% in 2011, is falling out of fashion, and suffering from a subdued demand for home improvements. Gardening, the sector's saving grace with growth of 1.7% in 2011, is benefitting from the rise in popularity of gardening among a booming older population, and an increasingly warm climate.
- In DIY, specialists are facing more competition, forcing them to diversifying into new categories, exposing them to new rivals, especially in kitchens & bathrooms. In gardening, specialists are coming under huge pressure as more retailers look to capitalise on the growth potential available, changing the competitive dynamics of the market.
Your key questions answered
- Benchmark retailer performance against the market. Understand the competitive dynamics of each sector, their composition and prospects
- Identify the growth prospects of key players in both DIY and gardening retailing
- Analyse the key issues impacting the individual markets and identify the strategies for success for each
TABLE OF CONTENTS
Executive Summary 2
Key findings 2
Main conclusions 3
DIY & gardening's torrid time continues 3
DIY to blame as it suffers from waning interest and falling demand 3
Property markets provides limited fillip to growth 3
Core DIY biggest culprit – new products needed 3
Gardening continues to benefit from embedded population and climate trends 3
Players should transfer green lesson from garden to DIY 4
Traditional specialists fight encroachment of grocers and general merchandisers 4
Grocers offer lower prices and one-stop shop 5
High street offer hots up, too 5
Garden centres redefine themselves 5
Key Issues 22
DIY & gardening 22
Difficult time set to continue, with only gardening providing some relief 22
Growth is on the horizon 23
DIY 24
New strategies mitigate demise of core DIY 24
Diversifying into new areas 27
Move towards trade 29
Enhancing customer offer 33
Gardening 38
Growth becoming more elusive, but opportunities remain 38
Threat of Dobbies 39
Evolution of garden centres 41
Non-specialists enter market 43
Competition intensifies 44
Growth becomes steadier 45
Market analysis 46
Market definition 46
Overview 47
Prevalent trends worsen in recession 47
Gardening main driver of growth in DIY & gardening 48
Inflation still remains a big factor in growth 49
Spend by sub sector: gardening continues to grow share 50
DIY & gardening sales excluding VAT 51
DIY 52
Sub sector continues to struggle 52
Decline in core DIY categories continues 53
DIY sales excluding VAT 55
Gardening 56
After rapid growth, gardening continues to blossom 56
Gardening sales excluding VAT 59
Channels of distribution 60
Grocers exert more pressure on specialists 60
DIY Superstores 63
Superstores find safety in diversification 63
Sales including VAT 64
Space 65
Stores 66
DIY superstore sales excluding VAT 67
Company Data Analysis 68
Specialists feel the heat as trading conditions harden and competition intensifies 68
Specialists continue to dominate the market, but fortunes are mixed 68
Non-specialists make the biggest market share gains 71
Operating statistics 74
Key financials and space data of major players 74
Space allocation 75
DIY & Gardening retailers 75
Gardening specialists 79
Advertising spend 80
B&Q and Wickes raise spend in 2009 80
DIY Specialists 82
B&Q 82
Leads in share but lags in growth 82
Recent key events - Evolves to limit exposure to decline in core DIY 84
Proposition 87
Financials - Recovery in 2010 will not continue into 2011 88
Space - Freeze on store numbers in 2011 to hold profits 92
Sector performance – DIY & gardening - Steady as she goes 95
Market share - Strong value offer and frequent promotions helps maintain share 96
Outlook - Needs to respond quicker 97
Homebase 98
Cost reductions threaten service levels 98
Recent key events - Value proposition developed in tandem with innovative initiatives 99
Proposition 103
Financials - Improved ranges and high promotional activity boost performance 104
Space - Store numbers squeezed as focus turns to profitability 107
Sector performance – DIY & gardening - Suffering from decline in demand 110
Market share - Manages to maintain share in challenging environment 111
Outlook - Greater strategic focus on DIY needed 111
Focus 113
Recovery not coming into focus just yet 113
Recent key events - Endeavouring to create a niche in the market through local stores 114
Proposition 117
Financials - Mixed performance as retailer implements turnaround strategy 119
Space - Strong performance from new stores boost sales 122
Sector performance – DIY & gardening - Greater focus on show room categories dents sales 126
Market share - Manages to stem big declines in share 127
Outlook - Signs of recovery but still a long way to go 128
Wickes 130
Continues to outperform 130
Recent key events - Pursuing the right strategy 132
Proposition 134
Financials -Navigating economic downturn 135
Space - Space expansion back on the agenda 138
Market share - Space expansion and range enhancements help maintain share 141
Outlook - Pursuing a winning strategy 142
Smaller DIY Specialists 144
Robert Dyas 144
Store openings prompt speculation on expansion outside south-east 144
Market share - Greater focus on other categories sees share maintained 146
Outlook - Competition on the high street hots up 147
Tile Giant 148
Focus on expansion lifts sales but not profits 148
Market share - Hit by lack of demand for core DIY 149
Outlook - Margins need to be addressed 150
Topps Tiles 151
Steady operations cannot mitigate falling profits 151
Market share - Struggles against weak demand 152
Outlook - Competitive pressures mount 153
Garden Centres 154
The Garden Centre Group 154
Rebranded and rejuvenated but lacks direction 154
Recent key events - Redefining the traditional garden centre 155
Proposition 157
Financials - Recovering sales set scene for future growth 158
Space - Growth on hold with focus on revamps 161
Space allocation 162
Market share - Focus remains on protecting profits rather than share gains 164
Outlook - Lack of consistency in group strategy may lead to long term problems 165
Small Garden Centres 167
Capitalise on increasing consumer desire for gardening 167
Dobbies 168
Ambitious plans to create a £1.0bn business by 2020 168
Notcutts 172
Stage is being set for robust growth 172
General Merchandisers 174
Argos 174
Competition mounts in increasingly challenging trading conditions 174
Recent key events - Focuses on value credentials and store refurbishments 175
Proposition 177
Financials - Margins sacrificed for growth in selling space 178
Space - Store numbers rising despite move to online 181
Sector performance – DIY & gardening - Low exposure to core DIY and big ticket items promotes sales 182
Market share - Solid retention of market share 183
Outlook - Under threat from the grocers, but DIY & gardening not a priority 184
Wilkinson 185
Value proposition strikes note with consumers 185
Recent key events - Making strong gains with appealing proposition 186
Proposition 188
Financials - Profits highest of decade 189
Space - Growth continues but target of 500 stores by 2012 likely to be missed 192
Sector performance – DIY & gardening - Boosted by range enhancement and space expansion 193
Market share - Value proposition helps gain share 194
Outlook - Increased competition in the sector drives need for innovation 195
Grocers 196
Leveraging multichannel capabilities to broaden DIY & gardening offer 196
Grocers continue to increase share of DIY & gardening market 196
Asda 198
Aims to become number one in non-food 198
Sainsbury's 200
DIY & gardening not a key priority as it expands non-food 200
Tesco 202
Direct provides comprehensive DIY & gardening offer 202
Outlooks 203
Great opportunity to grow share in DIY & gardening 203
Builders Merchants 205
Benefit from improve not move trend 205
Jewson 206
Travis Perkins 207
Wolseley 208
Outlook 210
Trading conditions to remain tough 210
Glossary 212
Financial Statistics – VAT 212
Trading Record 212
Physical Development 212
Computer Rounding 212
Abbreviations 213
Appendix 215
Financials 215
Financial Statistics – VAT 215
Definitions 215
Ask the analyst 215
Verdict consulting 215
Disclaimer 215
TABLE OF FIGURES
Figure 1: DIY & gardening year-on-year growth 2010 — 2014 22
Figure 2: DIY retailers seek growth through diversification and offer enhancement 2011 24
Figure 3: Shrinking consumer expenditure on DIY products between 2006 and 2011 25
Figure 4: Five-year change % in sales via DIY channels between 2006 and 2011 26
Figure 5: Diversification of product offer by DIY specialists 2011 27
Figure 6: B&Q exploits opportunities in trade with launch of TradePoint 2011 29
Figure 7: Adapting offer to appeal to trade customers 2011 31
Figure 8: Aspects of proposition being improved to enhance customer offer 2011 33
Figure 9: Tesco kitchens set high standard on service 2011 34
Figure 10: B&Q and Homebase eco products 2010 35
Figure 11: DIY players become more multichannel 2011 36
Figure 12: B&Q provides expert advice and support on DIY projects 2011 37
Figure 13: Growth in gardening becoming steadier 2011 38
Figure 14: Dobbies is increasing competitive pressures in gardening market 2011 39
Figure 15: Evolution of garden centres 2011 41
Figure 16: Garden Centre Group – play areas 2011 43
Figure 17: Non-specialists enter market to exploit growth opportunities 2011 44
Figure 18: Growth in gardening sector vs. DIY 2006–11e 45
Figure 19: Year-on-year growth in DIY & gardening 2001–11e 48
Figure 20: DIY & gardening inflation vs. total retail inflation 2005–11e 49
Figure 21: DIY & gardening market composition 2010e 50
Figure 22: DIY category shares of DIY & gardening market 2006 & 2011e 53
Figure 23: Garden category shares of DIY & garden spend 2006 & 2011e 59
Figure 24: Change in category shares of DIY & garden spend 2011e on 2006 62
Figure 25: DIY superstores sales (current prices) 2009–11e 64
Figure 26: DIY superstores space (m sq ft) 2009–11e 65
Figure 27: DIY superstores stores 2009–11e 66
Figure 28: Market shares of leading channels of distribution 2011e 68
Figure 29: Change in market share of leading players 2011 on 2006 71
Figure 30: B&Q fascia 2011 82
Figure 31: One Planet Home Initiative 84
Figure 32: B&Q UK sales and growth to January 2006–11e 89
Figure 33: B&Q UK operating profit to January 2005–10 90
Figure 34: B&Q DIY & gardening sales in calendar years 2006–11e 95
Figure 35: B&Q share of total DIY & gardening market 2006–11e 96
Figure 36: Homebase store 2010 98
Figure 37: Transforming the nation – Carlisle station waiting area 2010 101
Figure 38: Homebase UK sales and growth to February 2006–11e 104
Figure 39: Homebase UK operating profit to February 2005–10 105
Figure 40: Homebase DIY & gardening sales in calendar years 2006–11e 110
Figure 41: Homebase share of total DIY & gardening market 2006–11e 111
Figure 42: Focus fascia 2011 113
Figure 43: Focus retail sales and growth to February 2006–2011e 121
Figure 44: Focus DIY & gardening sales and growth 2006–2011e 126
Figure 45: Focus DIY & gardening market share 2005–2011e 127
Figure 46: Wickes fascia 2011 130
Figure 47: Wickes UK sales and growth to December 2006–11e 136
Figure 48: Wickes UK operating profit to December 2004–09 136
Figure 49: Wickes DIY & gardening sales in calendar years 2006–11e 140
Figure 50: Wickes share of total DIY & gardening market 2006–11e 141
Figure 51: Robert Dyas DIY & gardening market share 2006–11e 146
Figure 52: Tile Giant DIY & gardening market share 2006–11e 149
Figure 53: Topps Tiles DIY & gardening market share 2006–11e 152
Figure 54: The Garden Centre Group – Wyevale fascia 2011 154
Figure 55: Garden Centre Group retail sales & growth to Dec 2006–11e 159
Figure 56: Garden Centre Group operating profit 2005–10 159
Figure 57: Garden Centre Group DIY & garden sales and growth calendar 2006–11e 163
Figure 58: Garden Centre Group DIY & garden market share 2006–11e 164
Figure 59: Garden centres DIY & gardening sales and growth rate 2005–11e 167
Figure 60: Dobbies share of total DIY & gardening market 2006–11e 168
Figure 61: Notcutts share of total DIY & gardening market 2006–11e 172
Figure 62: Argos fascia 2010 174
Figure 63: Argos UK sales and growth to February 2006–11e 178
Figure 64: Argos UK operating profit to February 2005–10 179
Figure 65: Argos DIY & gardening sales in calendar years 2006–11e 182
Figure 66: Argos share of total DIY & gardening market 2006–11e 183
Figure 67: Wilkinson fascia 2011 185
Figure 68: Wilkinson retail sales and growth to January 2006–11e 190
Figure 69: Wilkinson operating profit to January 2005–10 190
Figure 70: Wilkinson DIY & gardening sales in calendar years 2006–11e 193
Figure 71: Wilkinson share of total DIY & gardening market 2006–11e 194
Figure 72: DIY & gardening sales via supermarkets and growth rate 2005–11e 196
Figure 73: Asda share of DIY & gardening market 2006–11e 198
Figure 74: Sainsbury's share of DIY & gardening market 2006–11e 200
Figure 75: Tesco share of DIY & gardening market 2006–11e 202
Figure 76: Value of builders merchants DIY & gardening sales and growth rate 2005–11e 205
TABLE OF TABLES
Table 1: DIY & gardening market definition 2011 46
Table 2: Consumer spend on DIY & gardening products 2001–11e 47
Table 3: DIY & gardening sales excluding VAT 2006–11e 51
Table 4: Total consumer expenditure on DIY products 2006–11e 52
Table 5: Breakdown of consumer spend on DIY products 2006–11e 53
Table 6: DIY sales excluding VAT 2006–11e 55
Table 7: Total consumer spend on gardening products 2006–11e 56
Table 8: Breakdown of consumer spend on gardening 2006–11e 57
Table 9: Gardening sales excluding VAT 2006–11e 59
Table 10: DIY & gardening channels of distribution 2006 & 2011e 60
Table 11: DIY superstores sales, stores and space 2006–11e 63
Table 12: DIY superstore sales ex VAT 2006–11e 67
Table 13: DIY & gardening retailers market shares 2006–11e 70
Table 14: DIY & gardening major specialists – trading 2009/10 74
Table 15: DIY & gardening major specialists – stores 2009/10 74
Table 16: Summary of space allocation for leading DIY & gardening retailers 2010 75
Table 17: Summary of space allocation for leading DIY & gardening retailers 2010 (continued) 76
Table 18: Summary of space allocation for leading DIY & gardening retailers 2010 (continued) 77
Table 19: Summary of space allocation for leading gardening retailers 2010 79
Table 20: Major DIY specialists advertising spend 2006–09 80
Table 21: Major DIY specialists advertising spend by media 2009 81
Table 22: B&Q company overview 2011 82
Table 23: B&Q retail proposition 2011 87
Table 24: B&Q UK key operating statistics 2006–11e 88
Table 25: B&Q UK trading record 2001–11e 91
Table 26: B&Q store portfolio 2000–11e 92
Table 27: B&Q space allocation 2011 93
Table 28: B&Q space allocation 2011 (Continued) 94
Table 29: Homebase company overview 2011 98
Table 30: Homebase retail proposition 2011 103
Table 31: Homebase UK key operating statistics 2006–11e 104
Table 32: Homebase UK trading record 2000–11e 106
Table 33: Homebase store portfolio 2000–11e 107
Table 34: Homebase DIY & gardening space allocation 2010 108
Table 35: Homebase DIY & gardening space allocation 2010 109
Table 36: Focus overview 2011 113
Table 37: Focus retail proposition 2010 117
Table 38: Focus retail proposition 2010 (continued) 118
Table 39: Focus key operating statistics 2006–2011e 119
Table 40: Focus UK trading record 2001–2011e 120
Table 41: Focus store profile 2001–2011e 122
Table 42: Focus space allocation 2010 124
Table 43: Focus space allocation 2010 (continued) 125
Table 44: Wickes company overview 2011 130
Table 45: Wickes retail proposition 2011 134
Table 46: Wickes UK key operating statistics 2006–11e 135
Table 47: Wickes UK trading record 2001–11e 137
Table 48: Wickes store portfolio 2000–11e 138
Table 49: Wickes space allocation 2011 139
Table 50: Wickes space allocation 2011 (continued) 140
Table 51: Robert Dyas UK key operating statistics 2006–11e 144
Table 52: Tile Giant UK key operating statistics 2006–11e 147
Table 53: Tile Giant space allocation 2010 148
Table 54: Topps Tiles UK key operating statistics 2006–11e 150
Table 55: Topps Tiles space allocation 2010 151
Table 56: The Garden Centre Group overview 2011 154
Table 57: The Garden Centre Group retail proposition 2011 157
Table 58: The Garden Centre Group key operating statistics 2006–11e 158
Table 59: The Garden Centre Group UK trading record 2001–11e 160
Table 60: The Garden Centre Group store profile 2001–11e 161
Table 61: The Garden Centre Group space allocation 2010 162
Table 62: Dobbies UK key operating statistics 2005–11e 168
Table 63: Dobbies space allocation 2010 169
Table 64: Dobbies space allocation 2010 170
Table 65: Notcutts UK key operating statistics 2006–11e 172
Table 66: Argos company overview 2011 174
Table 67: Argos retail proposition 2011 177
Table 68: Argos UK key operating statistics 2006–11e 178
Table 69: Argos UK trading record 2000–2011e 180
Table 70 : Argos store portfolio 2000–2011e 181
Table 71: Wilkinson company overview 2011 185
Table 72: Wilkinson retail proposition 2011 188
Table 73: Wilkinson UK key operating statistics 2006–11e 189
Table 74: Wickes UK trading record 2001–2011e 191
Table 75: Wilkinson store portfolio 2000–11e 192
Table 76: Supermarket DIY & gardening market 2005–11e 197
Table 77: Grocers key operating statistics 2009/10 198
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
