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DIY Multiples Market Report - UK 2012-2016 Analysis

Abstract

INTRODUCTION and OVERVIEW

AMA Research are pleased to announce the publication of the ninth edition of the report 'DIY Multiples Market Report - UK 2012-2016 Analysis'. This report incorporates original input and primary research and represents an up-to-date and comprehensive review of the DIY multiples market.

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The report contains:

  • FORECASTS OF MARKET DEVELOPMENTS TO 2016.
  • DETAILED ASSESSMENT OF THE MARKET - analysis of the recent trends and future prospects.
  • IN-DEPTH ANALYSIS OF THE KEY COMPANIES - including recent developments, store recent developments, store numbers and financial analysis.
  • ANALYSIS BY PRODUCT GROUP - market sizes, product mixes and distribution of: Garden and Leisure, Building Materials, Lighting and Electrical, Window and Floor Coverings, Furniture and Kitchens, Decorating, Hardware and Housewares and Other Products.

The DIY multiples market has remained static over the last 3-4 years, primarily due to lower levels of disposable income and higher living costs negatively influencing consumer confidence. However, consumers have continued to focus on essential or smaller scale DIY tasks and jobs rather than higher value, large scale home improvement projects, with market value remaining at just over £7 billion.

This report provides a QUALTITATIVE and QUANTITATIVE ASSESSMENT of the market and is invaluable to those interested in the DIY Multiples market.

Of particular interest are the following:

  • Economic uncertainty, low consumer confidence and a low level of house moves have particularly affected 'big ticket' items such as kitchen and bathroom installations.
  • The effects of the difficult economic climate have supported a higher level of DIY rather than GSI (Get Someone In) in recent years.
  • The economic climate has also driven sales of home enhancement products and certain garden products in line with the 'grow your own' trend over the last two years.
  • Other factors affecting the market include the increased prominence of other retailers selling home and DIY products, particularly the grocery multiples.
  • Events such as the Olympics, Golden Jubilee and European football may impact sales in some product sectors in 2012, but consumers are likely to remain cautious in the short term until there are signs of sustained recovery.

Key areas covered in the report include:

THE MARKET

  • The DIY Multiples market - key characteristics of the market, analysis by value from 2006-2011, with forecasts to 2016.
  • The development of the market in recent years including the market background as well as the current situation.
  • Key trends affecting the market including the influence of the current economic climate on the housing market, consumer confidence and consumer purchasing habits.
  • Development of the market compared to Builders Merchants.

THE MULTIPLES

  • Major companies - turnover, product mix, recent developments.
  • Other significant DIY multiples - company profile, turnover, key characteristics and recent developments.
  • Market shares of major DIY multiples, including how this has developed in recent years.
  • Financial analysis - including operating profitability, stock turnover and sales per square metre analysis of major companies.
  • Store numbers - development of store numbers by company, as well as details of planned store developments and network expansion.
  • Company positioning - a simple, graphical representation of the major multiples market position in relation to one another.

PRODUCTS

  • Overall product mix of DIY multiples and how this has developed in recent years.
  • DIY multiples' overall share of market by product sector, allowing their relative strength to be assessed.
  • Market sizes and recent trends for each of the 8 product sectors detailed above.
  • The mix of products within each key product sector.
  • The role of DIY multiples in the distribution of each product sector - in which areas are they strong, in which areas are they weaker?

FUTURE PROSPECTS

  • Forecast of expected market development in the short, medium and long term.
  • Positive and negative factors affecting the growth of the Multiples market. Views on when the market is likely to recover.
  • Outlook for the DIY Multiples market through to 2016.

SUMMARY OF REPORT CONTENTS

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The UK DIY multiples market was worth just over £7bn in 2011, illustrating a static market over the last three years.

Following the economic decline in 2008, falling house prices, low consumer confidence and a low level of house moves particularly affected 'big ticket' items such as kitchen and bathroom installations during 2008 and 2009. Lower levels of equity withdrawal following tighter mortgage restrictions, which funded a large proportion of major home improvement projects prior to the economic downturn also impacted on the market.

The market took a slight upturn in 2010, supported by both new work and RMI in the domestic sector, with slightly higher sales of big ticket items. However, the economic situation, high inflation and living costs continue to influence the market, impacting on high value home improvement projects in particular, with lower levels of sales in 2011 and early 2012.

Consumers have been saving or repaying debts and mortgages rather than undertaking major DIY projects. Consequently there has been a focus on essential or smaller scale DIY tasks and jobs in 2011, rather than higher value, large scale home improvement projects. Following the growth of GSI (Get Someone In), more consumers are now undertaking lighter DIY tasks themselves in order to save money. The DIY multiples have responded with project guides and DIY classes. The trend towards 'grow your own' and 'improve, don't move' has supported sales in some sectors of the garden and leisure market, along with the home furnishings and decorating sectors.

Performance has varied significantly between product sectors, with some such as Lighting & Electrical, garden leisure, horticulture and wallcoverings performing relatively well, while others such as kitchens and bathrooms have been weak.

The market for DIY and Home Improvement products has become increasingly competitive, with greater competition from rival retailers such as grocery multiples and High Street stores. The increased prominence of other retailers selling home and DIY products, particularly the grocery multiples, such as Asda and Tesco with their huge buying power and store numbers are driving the level of price competition.

The grocery multiples are continuing to expand into the DIY and home furnishings sectors, with Asda and Tesco increasing their range of products in these sectors during the last year. These Multiples are capable of competing on price with the DIY sector, therefore an extensive store network, wider product ranges and the ability to offer value for money is likely to become increasingly important in order to compete effectively.

The performance of the DIY sector in the short term is largely dependent on the economic rate of recovery and the influence this has on consumer confidence and spending. The economic situation remains uncertain and consumers are likely to remain cautious until there are signs of sustained recovery along with an avoidance of significant interest rate rises.

Table of Contents

CONTENTS and LIST OF TABLES & CHARTS

1 INTRODUCTION

  • 1.1 BACKGROUND
  • 1.2 SOURCES OF INFORMATION

2 SUMMARY AND FUTURE PROSPECTS

  • 2.1 SUMMARY
  • 2.2 FUTURE PROSPECTS
  • 3 ECONOMIC ENVIRONMENT

3.1 GDP

  • 3.2 INFLATION & INTEREST RATES
  • 3.3 UNEMPLOYMENT
  • 3.4 HOUSEHOLD CONSUMPTION
  • 3.5 HOUSING & CONSTRUCTION
  • 3.6 STERLING
  • 3.7 POPULATION PROFILE
  • 3.8 CONCLUSIONS

4 DIY MULTIPLES MARKET

  • 4.1 DEFINITION
    • 4.1.1 Companies
    • 4.1.2 Products
  • 4.2 MARKET SIZE
    • 4.2.1 The UK DIY Multiples Market
    • 4.2.2 Recent Performance - 2006 to 2011
    • 4.2.3 Future Prospects - 2012 to 2016
  • 4.3 KEY MARKET INFLUENCES
    • 4.3.1 The Housing Market
    • 4.3.2 Changing Customer Profile
    • 4.3.3 Get Someone In (GSI)
    • 4.3.4 Environmental Issues

5 DIY MULTIPLES

  • 5.1 MAJOR MULTIPLES
    • 5.1.1 B&Q
    • 5.1.2 Homebase
    • 5.1.3 Wickes
    • 5.1.4 Focus
    • 5.1.5 Others
  • 5.2 MARKET SHARES
  • 5.3 COMPANY POSITIONING
    • 5.3.1 Market Position
    • 5.3.2 Number of Outlets
    • 5.3.3 Sales per Square Metre
    • 5.3.4 Profitability
    • 5.3.5 Stock Turnover
    • 5.3.6 Turnover per Store
  • 5.4 PURCHASING PROCEDURES

6 PRODUCTS

  • 6.1 PRODUCT MIX
  • 6.2 DIY MULTIPLES' SHARE OF MARKET
  • 6.3 PRODUCT SECTOR TRENDS
    • 6.3.1 Garden & Leisure
    • 6.3.2 Building Materials
    • 6.3.3 Bathrooms
    • 6.3.4 Decorating Products
    • 6.3.5 Houseware and Hardware
    • 6.3.6 Window & Floor Coverings
    • 6.3.7 Furniture
    • 6.3.8 Lighting & Electrical Products
    • 6.3.9 Other Products

TABLES AND CHARTS

  • CHART 1 UK DIY MULTIPLES MARKET 2005-2016 - BY VALUE (£M RSP)
  • CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2016
  • CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2016
  • TABLE 4 EXCHANGE RATE FLUCTUATIONS 2006-2012 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES
  • CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 ('000)
  • CHART 6 IMPORTANCE OF THE DIY MULTIPLES BY PRODUCT SECTOR 2001 & 2011 BY VALUE
  • CHART 7 DIY MULTIPLES MARKET - 2007-2012 (£M RSP)
  • CHART 8 DIY MULTIPLES/BUILDERS MERCHANTS SALES 2006-2012 (2000=100)
  • CHART 9 THE UK DIY MULTIPLES MARKET GROWTH FORECASTS 2010-2016 - BY VALUE (£M RSP)
  • CHART 10 NUMBER OF UK RESIDENTIAL PROPERTY TRANSACTIONS 2007-2011 ('000)
  • TABLE 11 DIY MULTIPLES % SHARE OF UK HOUSING RMI ACTIVITY 2006-2011
  • CHART 12 UK PRIVATE HOUSING RMI CHANGES QUARTERLY AND ANNUALLY 2006-2011 BY VALUE
  • TABLE 13 HOUSE BUILDING STARTS AND COMPLETIONS (GREAT BRITAIN) 2005 - 2015, BY VOLUME UNITED KINGDOM ('000 DWELLINGS)
  • CHART 14 HOUSEBUILDING COMPLETION MARKET MIX BY TYPE (HOUSES/FLATS) FOR ENGLAND 2000 TO 2011 - % BY VOLUME
  • TABLE 15 AMOUNT SPENT ON SERVICES FOR THE REPAIR AND MAINTENANCE OF DWELLINGS  2006 TO 2011
  • CHART 16 ENVIRONMENTAL POLICIES OF DIY MULTIPLES
  • CHART 17 B&Q PRODUCT MIX - SHARE BY VALUE 2011
  • CHART 18 HOMEBASE PRODUCT MIX - SHARE BY VALUE 2011
  • CHART 19 WICKES PRODUCT MIX - SHARE BY VALUE 2011
  • CHART 20 OTHER DIY MULTIPLES PRODUCT MIX 2011 - BY VALUE
  • CHART 21 DIY MULTIPLES MARKET SHARE 2011
  • CHART 22 DIY MULTIPLES MARKET POSITIONING 2011
  • CHART 23 UK DIY MULTIPLES - NUMBER OF OUTLETS 2000-2011
  • CHART 24 UK MAJOR DIY MULTIPLES SALES PER Mロ - 2007 TO 2011
  • TABLE 25 PROFITABILITY OF DIY MULTIPLES 2007-2011
  • TABLE 26 DIY MULTIPLES' STOCK IN WEEKS 2007-2011
  • TABLE 27 DIY MULTIPLES' TURNOVER PER STORE 2007-2011
  • CHART 28 THE 6 STEPS OF A TYPICAL RANGE REVIEW
  • CHART 29 DIY MULTIPLES SALES BY PRODUCT SECTOR - % SHARE 2011
  • CHART 30 DIY MULTIPLES % SHARE OF MARKET SECTOR 2011
  • CHART 31 UK GARDEN PRODUCTS MARKET 2006-2011 - (£M RSP)
  • CHART 32 SHARE OF THE GARDEN PRODUCTS MARKET BY MAJOR PRODUCT GROUP 2011
  • CHART 33 GARDEN & LEISURE PRODUCTS SHARE BY MAJOR MULTIPLE 2011
  • CHART 34 UK BUILDING MATERIALS MARKET PERFORMANCE 2006-2011 - BY VALUE (£M RSP)
  • TABLE 35 BUILDING MATERIALS MARKET MAJOR PRODUCT GROUPS BY VALUE (RSP) 2011
  • CHART 36 DIY BUILDING MATERIALS SHARE BY MAJOR MULTIPLE 2011
  • CHART 37 UK BATHROOM PRODUCTS MARKET 2006-2011 - BY VALUE (£M RSP)
  • CHART 38 UK BATHROOM MARKET SHARE BY PRODUCT SECTOR BY VALUE 2011
  • CHART 39 DIY BATHROOM PRODUCT SALES BY MULTIPLE 2011 BY VALUE
  • CHART 40 UK DECORATIVE PRODUCTS MARKET 2006-2011 - BY VALUE (£M RSP)
  • CHART 41 UK DECORATIVE PRODUCTS MARKET - 2011 BY PRODUCT GROUP
  • CHART 42 DIY DECORATIVE PRODUCTS - SHARE BY MULTIPLE 2011
  • CHART 43 HOUSEWARE & HARDWARE MARKET 2006-2011 BY VALUE (£M RSP)
  • CHART 44 SHARE OF THE HOUSEWARE, HARDWARE, FIXINGS AND FASTENERS PRODUCTS MARKET BY MAJOR PRODUCT GROUP 2011
  • CHART 45 HARDWARE/HOUSEWARE PRODUCTS 2011 % BY MULTIPLE
  • CHART 46 UK MARKET FOR WINDOW AND FLOOR COVERINGS 2006-2011 - BY VALUE £M RSP
  • CHART 47 WINDOW AND FLOOR COVERINGS PRODUCT MIX 2011 - BY VALUE
  • CHART 48 DIY WINDOW/FLOOR COVERINGS SHARE BY MULTIPLE 2011
  • CHART 49 UK FURNITURE MARKET - 2006-2011 (£M RSP)
  • CHART 50 FURNITURE MARKET PRODUCT MIX - 2011 BY VALUE
  • CHART 51 DIY FURNITURE PRODUCTS MARKET - MIX BY MULTIPLE 2011
  • CHART 52 UK MARKET FOR LIGHTING & ELECTRICAL PRODUCTS 2006-2011 - BY VALUE £M RSP
  • CHART 53 SHARE OF THE LIGHTING AND ELECTRICAL PRODUCTS MARKET BY MAJOR PRODUCT GROUP 2011
  • CHART 54 DISTRIBUTION OF LIGHTING & ELECTRICAL PRODUCTS 2011 BY MULTIPLE - BY VALUE (£ RSP)
  • CHART 55 OTHER PRODUCTS 2011 - % SHARE BY MULTIPLE
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