UK DIY & Gardening Retailers 2012

Verdict Research Limited, March 2012, Pages: 167

The UK DIY & Gardening Retailers 2012 report provides a thorough analysis of the currently challenging DIY & gardening market. With sales growth hard to achieve, we examine strategies retailers can use to come out of the downturn stronger. We also provide comprehensive analysis of the market, and the major players in the sector.

Scope

- Benchmark your performance against competitors and the overall market
- Gain a greater understanding of your competitors performance and develop strategies to exploit weaknesses in their offer
- Use the strategies for success Verdict has identified in the DIY and gardening market to protect and grow your business

Highlights

While slower than 2011, we forecast that the DIY & gardening market will contract again in 2012, shrinking by 1.9%. The main factors behind this remains the weak housing marrket and tight disposable incomes. The market remains divergent, with gardening, which is supported by events and a more frugal customer, 1.5% up in 2012 while DIY is 3.6% down.

Between 2007 and 2012, grocers and general merchandisers have taken the greatest share of the DIY gardening market, gaining 2.7 and 1.5 percentage points of share respectively over the period. Both have benefitted from targeting a less affluent customer base and having higher levels of convenience.

As sales growth will be tough in the current environment, retailers should focus on protecting margins and developing their offer to come out of the downturn stronger. Opportunities to grow sales include creating a compelling offer for older customers, who are more likely to own their own home, developing online and engaging with customer trends.

Reasons To Buy

- Which product and customer sectors are set to be the most buoyant during this challenging period?
- How has the collapse of Focus impacted the market? Who has benefited the most from the former specialist's exit?
- What do we forecast for Garden Centre Group following its recent sale?</BulletPoint><BulletPoint>How are non-specialists gaining a greater share of the market?</BulletPoint></PurchaseReasons></Description>

EXECUTIVE SUMMARY
-Key findings
?(Untitled sub-section)
-Main conclusions
?DIY & gardening market decline set to slow
?Gardening still outperforms depressed DIY
?Garden Centre Group poised for sale amid garden consolidation moves
?Remaining Big Three gain share
?Sourcing and own label key to building profits
?Home ownership trends shift market to over 45s
?Dangers in widening garden centre ranges too much
?Gaps in online offers
?Wickes leads way in major space reduction
?Non-specialists advance further
?Green and stay at home trends still positive
OUTLOOK
-Key Issues
-Who are the future DIY customers?
?(Untitled sub-section)
-Strategies in a low demand market
?Margin improvement becomes essential
-Engaging with consumer trends
?Grow your own trend continues
-Non-specialists advance in garden sector
?(Untitled sub-section)
-Garden centres add to lifestyle appeal
?(Untitled sub-section)
-Online development
?Many products still not available for online purchase
-Location strategy
?(Untitled sub-section)
-Competitive positioning
?(Untitled sub-section)
-Summary and strategies for success
?(Untitled sub-section)
MARKET ANALYSIS
-Market Definition
OVERVIEW
-Decline slows but market still tough
?Gardening lifts sector
?Inflation trend including VAT …
?… and excluding VAT
-DIY
?(Untitled sub-section)
?DIY sales excluding VAT
-Gardening
?(Untitled sub-section)
?Gardening sales excluding VAT
-Channels of distribution
?(Untitled sub-section)
DIY SUPERSTORES
-(Untitled section)
?Sales including VAT
?Space
?Stores
?DIY superstores sales excluding VAT
COMPANY DATA ANALYSIS
-Most players will benefit from share ceded by Focus – except builders merchants
-Operating statistics
?Key financials and space data of major players
-Space allocation
?DIY & gardening retailers
?Gardening specialists
-Advertising spend
?Top Three all raise spend in 2010
B&Q
-Reinforces position as DIY sector leader
-Recent key events
?Focus on efficiency and improving proposition
-Proposition
-Financials
?Poor big ticket sales lead to further slowdown
?Operating margin improves slowly
-Space
?Former Focus stores create growth
?Space allocation
-Market share
-Outlook
?Scale matters in tough market
?Benefits from disappearance of Focus
HOMEBASE
-New services, ranges and store formats
-Recent key events
?Aims to drive sales with improved offer and services
-Proposition
-Financials
?Cost cuts help profits in 2010/11
-Space
?Reduced space helps to cut costs
?Space allocation
-Sector performance
?Falls further behind market leader B&Q
-Outlook
?Moves further upmarket in difficult environment
WICKES
-Online growth prompts radical review of stores
-Recent key events
?Cuts store network significantly
-Proposition
-Financials
?Kitchens & bathrooms sales up in 2010 and slide in 2011
-Space
?Focus acquisition boosts portfolio
?Space allocation
-Market share
-Outlook
?Radical approach to store needs
SMALLER DIY SPECIALISTS
-Robert Dyas
?Looks for new owner to invest in expansion
?Market share
?Outlook
-Tile Giant
?Expansion rate slows
?Market share
?Outlook
-Topps Tiles
?Trading takes a tumble
?Market share
?Outlook
-The Garden Centre Group
?Diversifies product range
-Recent key events
?Proposes giving up lease on Beverley garden centre
?Buys Country Homes and Gardens
?Pushes against trading restrictions
?Sale may be imminent
?Adds 30 pet centres and clothing sections to its stores
-Proposition
-Financials
-Space
?Space allocation
-Market share
-Outlook
?New ownership crucial to future
?Product diversification likely to take it further away from core categories
?Internet needs further development
SMALL GARDEN CENTRES
-Sustained by favourable consumer trends
-Dobbies
?Ambitious expansion plans for 100 centres
-Notcutts
?Grows by diversifying product ranges
?Comparable profit margins fall
?Expands Tunbridge Wells centre
?Runs pop up shops again
-Outlook
?Concentrating more on lifestyle appeal
ARGOS
-Sales declines continue
-Recent key events
?Reinforces ranges and convenience
-Proposition
-Financials
?Poor sales continue
?Further decline on the cards
-Space
?Plans to optimise store portfolio
-Market share
-Outlook
?Focuses on multichannel despite sales sliding
WILKINSON
-Sales slow as retailer seeks further UK expansion
-Recent key events
?Revamps and grows store portfolio
-Proposition
-Financials
?Slowdown in sales set to continue
?Sales have almost doubled since 2002
-Space
?Growth in store space slows
?Space allocation
-Market share
-Outlook
?Refurbished stores enhance sales but margin remains a problem
GROCERS
-Non-food growth slows – including DIY
?(Untitled sub-section)
-Asda
?Share grows as non-food expands
-Sainsbury’s
?DIY & gardening limited part of non-food
-Tesco
?Rapidly growing share driven by Direct
-Outlook
?Advantages in incremental sales and green image
BUILDERS MERCHANTS
-Still suffering from the construction downturn
?Jewson
?Travis Perkins
?Wolseley
-Outlook
?Consolidation under market pressure
APPENDIX
-Ask the analyst
-Verdict consulting
-Disclaimer
TABLES
-Table: Margin and sourcing strategy among major DIY retailers January 2012
-Table: Own brand strategy among DIY retailers, January 2012
-Table: Internet features & services offered by DIY & gardening retailers January 2012
-Table: DIY & gardening market definition 2012
-Table: Consumer spend on DIY & gardening products 2002–12e
-Table: DIY & gardening sales excluding VAT 2007–12e
-Table: Total consumer expenditure on DIY products 2007–12e
-Table: Breakdown of consumer spend on DIY products 2007–12e
-Table: DIY sales excluding VAT 2007–12e
-Table: Total consumer expenditure on gardening products 2007–12e
-Table: Breakdown of consumer spend on gardening products 2007–12e
-Table: Gardening sales excluding VAT 2007–12e
-Table: DIY & gardening channels of distribution 2007 & 2012e
-Table: DIY superstores sales, stores and space 2007–12e
-Table: DIY superstores sales excluding VAT 2007–12e
-Table: DIY & gardening retailers market shares 2007–12e
-Table: DIY & gardening major specialists – UK trading 2010/11
-Table: DIY & gardening major specialists – UK stores 2010/11
-Table: Summary of space allocation for leading DIY & gardening retailers 2011
-Table: Summary of space allocation for leading DIY & gardening retailers (continued) 2011
-Table: Summary of space allocation for leading gardening retailers 2011
-Table: Major DIY specialists advertising spend 2007–10
-Table: Major DIY specialists advertising spend by media 2010
-Table: B&Q company information 2012
-Table: B&Q retail proposition 2012
-Table: B&Q UK key operating statistics 2007–12e
-Table: B&Q UK trading record 2002–12e
-Table: B&Q UK store portfolio 2002–12e
-Table: B&Q DIY & gardening space allocation 2011
-Table: B&Q DIY & gardening space allocation (continued) 2011
-Table: Homebase company information 2012
-Table: Homebase retail proposition 2012
-Table: Homebase UK key operating statistics 2007–12e
-Table: Homebase UK trading record 2002–12e
-Table: Homebase UK store portfolio 2002–12e
-Table: Homebase space allocation to DIY & gardening 2011
-Table: Homebase space allocation to DIY & gardening (continued) 2011
-Table: Wickes company information 2011
-Table: Wickes retail proposition 2011
-Table: Wickes UK key operating statistics 2007–12e
-Table: Wickes UK trading record 2002–12e
-Table: Wickes UK store portfolio 2002–12e
-Table: Wickes space allocation to DIY & gardening 2011
-Table: Robert Dyas UK key operating statistics 2007–12e
-Table: Tile Giant UK key operating statistics 2007–12e
-Table: Tile Giant space allocation 2011
-Table: Topps Tiles UK key operating statistics 2007–12e
-Table: Topps Tiles space allocation 2011
-Table: The Garden Centre Group company information 2012
-Table: The Garden Centre Group retail propositions 2012
-Table: The Garden Centre Group key operating statistics 2007–12e
-Table: The Garden Centre Group UK trading record 2002–12e
-Table: The Garden Centre Group UK store profile 2002–12e
-Table: The Garden Centre Group space allocation 2011
-Table: Dobbies UK key operating statistics 2007–12e
-Table: Dobbies space allocation 2011
-Table: Notcutts UK key operating statistics 2007–12e
-Table: Argos company information 2012
-Table: Argos retail proposition 2012
-Table: Argos UK key operating statistics 2007–12e
-Table: Argos UK trading record 2002–12e
-Table: Argos UK store portfolio 2005–12e1
-Table: Wilkinson company information 2012
-Table: Wilkinson retail proposition 2011
-Table: Wilkinson key operating statistics 2007–12e
-Table: Wilkinson trading record 2002–12e
-Table: Wilkinson UK store portfolio 2002–12e
-Table: Wilkinson space breakdown 2011
-Table: Supermarket DIY & gardening market 2005–12e
-Table: Top Three grocers latest results 2010/11 and DIY & gardening share 2012e
FIGURES
-Figure: Key Issues in DIY & gardening retail 2012
-Figure: Change % in heads of household who are homeowners, in England by age 2010 on 2005
-Figure: Heads of households who are homeowners, percentage share by age group 2010
-Figure: Next store in Shoreham 2011
-Figure: Positioning by age and socioeconomic grouping for major DIY retailers 2012
-Figure: Year-on-year growth in DIY and gardening 2002–12e
-Figure: DIY & gardening market composition 2012e
-Figure: DIY & gardening inflation vs total retail inflation 2006–12e
-Figure: DIY category shares of DIY & gardening market 2007 & 2012e
-Figure: Gardening category shares of DIY & gardening market 2007 & 2012e
-Figure: Change in category shares of DIY & garden spend 2012e on 2007
-Figure: DIY superstores sales (current prices) 2010–12e
-Figure: DIY superstores space (m sq ft) 2010–12e
-Figure: DIY superstores stores 2010–12e
-Figure: Market shares of leading channels of distribution 2012e
-Figure: Change in market share of leading players 2012e on 2007
-Figure: B&Q store fascia 2012
-Figure: B&Q mobile transactional website 2011
-Figure: B&Q UK sales and growth to January 2007–12e
-Figure: B&Q UK operating profit and growth to January 2006–11
-Figure: B&Q UK sales density to January 2007–12e
-Figure: B&Q's DIY and gardening market share 2007–12e
-Figure: Homebase store fascia 2012
-Figure: Homebase UK sales (£m) and y-o-y change to February 2007–12e
-Figure: Homebase UK operating profit and growth to February 2006–11e
-Figure: Homebase UK sales density to February 2007–12e
-Figure: Homebase DIY and gardening market shares 2007–12e
-Figure: Wickes fascia 2011
-Figure: Wickes UK sales and growth to December 2007–12e
-Figure: Wickes UK operating profit and growth to December 2006–10
-Figure: Wickes UK sales density to December 2007–12e
-Figure: Wickes DIY & gardening market shares 2007–12e
-Figure: Robert Dyas DIY & gardening market share 2007–12e
-Figure: Tile Giant DIY & gardening market share 2007–12e
-Figure: Topps Tiles DIY & gardening market share 2007–12e
-Figure: The Garden Centre Group – Wyevale fascia 2012
-Figure: The Garden Centre Group retail sales & growth to December 2007–12e
-Figure: The Garden Centre Group operating profit & growth to December 2007–10
-Figure: The Garden Centre Group DIY & garden market share 2007–12e
-Figure: Garden centres DIY & gardening sales and growth rate 2006–12e
-Figure: Dobbies share of total DIY & gardening 2007–12e
-Figure: Notcutts share of total DIY & gardening 2007–12e
-Figure: Argos Romford store 2012
-Figure: Argos UK sales and y-o-y change to January 2007–12e
-Figure: Argos UK operating profit and growth to February 2006–11
-Figure: Argos UK sales density to February 2007–12e
-Figure: Argos DIY & gardening market share 2007–12e
-Figure: Wilkinson store fascia 2012
-Figure: Willkinson sales and y-o-y change to January 2007–12e
-Figure: Wilkinson operating profit to January 2006–11
-Figure: Wilkinson sales density to January 2007–12e
-Figure: Willkinson DIY & gardening market share 2007–12e
-Figure: Value of grocers DIY & gardening sales and growth rate 2006–12e
-Figure: Asda share of the DIY & gardening market 2007–12e
-Figure: Sainsbury's share of the DIY & gardening market 2007–12e
-Figure: Tesco (excluding Dobbies) share of the DIY & gardening market 2007–12e
-Figure: Value of builders merchants DIY & gardening sales and growth rate 2007–12e

Caterpillar Logistics Services, Inc., CMS Energy Corporation, Compagnie de Saint-Gobain, Currys, General Mills, Inc., Hutchison 3G UK Limited, J Sainsbury plc, Kingfisher Plc, Kwik-Fit Group Limited, Metro AG, Nectar, Schindler Holding Ltd., Travis Perkins plc, Wm Morrison Supermarkets Plc, Wolseley plc

Customers who bought this item also bought

• The UK Salon Haircare Market 2011
• UK Salon Market 2011
• Domestic Window Coverings Market Report - UK 2012-2016 Analysis
• UK Afro Caribbean Haircare Market 2011
• Sourcing Activities of Leading Clothing Retailers in Europe 2012
• Supply Chain Review of the Furniture Industry Market Report - UK 2012-2016 Analysis
• Consumer Trends in the Haircare Market in the UK
• United Kingdom: Personal Hygiene/ Personal Care Industry Guide
• Toiletries Market Report Plus 2013
• UK Air Fresheners Market Analysis, 2010-2014