AMA Research are pleased to announce the publication of the tenth edition of the report 'DIY Multiples Market Report - UK 2014-2018 Analysis'. This report incorporates original input and primary research and represents an up-to-date and comprehensive review of the DIY products market. It provides both a quantitative and qualitative assessment of the market and is invaluable to anyone with a business interest in the DIY Multiples market.
The DIY multiples market has remained static following the initial decline at the start of the economic downturn. The market has been supported during this time by a switch to DIY from GSI that favours the DIY Multiples, with high value home improvement projects being replaced by more simple DIY tasks. Also there has been increased use of the multiples by tradesmen. 2013 DIY activity was stimulated by warmer weather, fractionally higher levels of consumer confidence, stronger economic indicators and continued improvement in the housing sector.
The UK DIY multiples market was worth an estimated £6.8bn in 2013, having remained static following the initial decline at the start of the economic downturn. This is a compact market that is dominated by 3 key players, B&Q. Homebase and Wickes. Key market drivers include consumer confidence & spending, demand for major home improvements, replacement/ upgrading of kitchens & bathrooms, moving home and new housebuilding.
The economic and construction downturn saw the UK DIY market decline by 4% in 2008 and has been relatively static since. The market has been supported during this time by a switch to DIY from GSI that favours the DIY multiples, with high value home improvement projects being replaced by more simple DIY tasks. Also there has been increased use of the multiples by tradesmen. In to 2013 DIY activity was stimulated by warmer weather, higher levels of consumer confidence, stronger economic indicators and healthier levels of activity & output in the construction and housebuilding sectors. This benefited the DIY multiples with an improvement in big ticket products as well as a good performance in the garden products sector (influenced by both good and poor weather).
Although the UK economy remains fragile, there is more optimism for a continued recovery in the construction industry, particularly in the housebuilding sector, as well as improving consumer confidence & spending. Therefore prospects for the DIY multiples market in 2014 appear more positive, with growth forecast to reach a market size of almost £7bn.
In to the medium term it is likely that there will be a switch back in favour of GSI that may benefit the builders' merchants more. Also consumers that do undertake larger scale projects are likely to use a variety of purchasing options to source the most competitive prices as they seek value for money.
The DIY multiples market has seen quite significant changes since the downturn following store rationalisation either as a result of increased competition or financial re-structuring as well as the closure of key multiples Focus and Godfrey DIY.
Performance has varied significantly between product sectors across the period, although garden & leisure remains the largest sector within the DIY multiples market. Other important sectors include building materials, lighting & electrical, decorating, houseware & hardware.
Digital technology and changes in consumer behaviour have fundamentally changed the face of retailing and companies are developing plans and strategies to ensure they keep pace with consumer demands. Consumers are increasingly seeking better value as well as more convenient ways to shop. Many undertake research online prior to visiting stores as well as searching online using mobile devices whilst in store.
In the short term consumers may continue to undertake DIY tasks themselves, but in the medium term it is likely that there will be a switch back in favour of GSI. Consumers are then likely to undertake larger scale home improvements, particularly as there has been a number of years of deferral of product replacements and home improvements.