WWW.THE-LIST.CO.UK

REPORTFINDER

Overview

Worldwide Business Information and Market Reports

Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder@btinternet.com

Join the ReportFinder mailing list and be told of new reports

Email:

This report covers: DIY,DIY multiples, Bathroom/Shower, Furniture, Garden/Leisure, Lighting/Electrical, Hardware/Housewares/Tools, Window/Floorcoverings, Decorating, Building Materials, : Adhesives, Car Care, Seasonal, Toys

Companies covered include: Wickes,B & Q,Do It All

Key Areas

Table of Contents

Executive Summary

Back to Wholesaling & Retailing Index and Shopping Cart

WANT TO BUY THIS? The easiest way is just to ring ReportFinder on +44 (0) 1404 891528 from 0900 to 1930 UK time and ask for Sales.Just one of a HUGE range of titles from publishers such as Aktrin, AMA Research, eMarketer, Key Note, MAPS, MBD, MSI and The Prospect Shop that you can BUY RIGHT NOW online from us. To buy or to browse further, use either of the Back To buttons below to activate our catalogue. If you would like to buy this title, you will find it in alphabetic order in the Index using the first Back To button. If you need further information, please contact us using the details at the top of this page. Please tell your colleagues if you find our site useful!

KEY AREAS

AMA Research have published an interim review of ‘The UK DIY Multiples Market Report’. The Update 2002 Edition reviews the key aspects of the fifth edition of the ‘UK DIY Multiples Market Report 2001’ originally published in January 2001, and provides revised information on activities within the market during 2000/2001- incorporating original input and primary research, it represents an informed review of this fast changing £5+ billion market.

While there is much general information available on DIY Multiples, AMA’s market research report concentrates on aspects of the market not covered elsewhere, including:-

• Review of purchasing procedures - supplier selection criteria, differences between Multiples, implications for new suppliers, price/non-price factors.
• Analysis of Major Multiples by product group - sales by Multiple, relative strengths and weaknesses, market positioning, trends etc.
• Competitive Channels of Distribution - performance comparisons with Builders Merchants, Garden Centres.
• Analysis by product group:-
  • Bathroom/Shower
  • Furniture
  • Garden/Leisure
  • Lighting/Electrical
  • Hardware/Housewares/Tools
  • Window/Floorcoverings
  • Decorating
  • Building Materials
  • Others: Adhesives, Car Care, Seasonal, Soft Furnishings etc.

The market has shown good growth over 1999 and 2000, with 2001 experiencing continued healthy levels of growth. The report assesses the current market situation and forecasts likely market development through to 2005.

Of Particular Interest:-

• Purchase process, key DIY Multiple requirements.
• Mix of sales by product group estimated for each DIY Multiple.
• Detailed qualitative comment on product market trends.

This 150+ page report is compiled by marketing professionals with a background in building product markets and will be of use to any company interested in the DIY Multiples or considering entry into that sector.

Key areas of coverage in the report include:-

THE MULTIPLES

• Market size in value terms and forecast through to 2005.
• Underlying influencing factors for the mid-end 1990s. What are the trends and which are likely to continue?
• Current situation - factors influencing growth/decline, prospects for the next 3-4 years.
• Market shares for major multiples - recent trends and future prospects.
• Major multiples - size, outlets, market positioning etc.
• Analysis by product group - estimates of sales by all leading multiples by major product group (value, trends, etc).
• Leading Multiples overall product strengths, product strategies and future direction.

PURCHASING PROCEDURES

• Purchasing procedures - key influencing factors in negotiations - sales volumes, price, merchandising, methods of distribution, delivery performances, environmental concerns, branded products and own brand, etc.
• Pricing, selective promotions, rebates/settlements, entry premiums, merchandising, distribution methods, advertising, promotions.
• Implications of Purchasing/Selection criteria for new suppliers - stock clearance, decision-making period, panel premiums, delivery requirements, barriers to entry etc.
• Trends in data control/use - information flow between buyers & suppliers, the rising importance of web technology.

PRODUCTS / SUPPLIERS

• Market size per major product group.
• Product mix within major product groups, trends within products.
• DIY Multiples market share by product group, key competitive channels (Merchants, Garden Centres, High Street, Independent Specialists, Mail Order etc).
• Opportunities and threats to the DIY Multiples - competitive channels and their changing emphasis in the 1990s.
• Strengths and weaknesses within product groups, shares, future prospects.
• Leading suppliers by major product groups. Leading Multiples by product group.
• Role of distributors - variations within product groups.

GENERAL / FUTURE PROSPECTS

• Future developments and implications for suppliers.
• Economic influences & future prospects for the market.
• Housing, age profile of population, PDI & savings etc.

KEY PRODUCT SECTORS COVERED:-

• Furniture
  • Kitchen / Bedroom
  • Dining / Occsaional
• Window / Floorcoverings
  • Blinds / Curtains / Accessories
  • Carpets / Vinyls
• Lamps / Bulbs / Fittings
• Electrical Accessories
• Hardware / Houseware
  • Hardware
  • Ironmongery
  • Tools
  • Housewares
• Decorating
  • Paint
  • Woodcare
  • Wallcoverings
  • Ceramic Tiles
• Garden Products
  • Horticulture / Chemicals
  • Furn / BBQ / Tools / Equipment
  • Conservatories / Sheds / Greenhouses
  • Fencing / Paving / Decking etc
• Building Materials
  • Bricks & Blocks / Timber / Board
  • Doors & Windows / Sheet
  • Plumbing / Heating / Drainage
  • Cement / Plasterboard / Insulation
• Bathroom
  • Baths / Sanitaryware / Brassware
  • Shower Controls
  • Enclosures
  • Accessories
• Others
  • Adhesives
  • Car care
  • Seasonal / Toys
  • Shelving / Ladders etc.

TABLE OF CONTENTS

Back to Top

EXECUTIVE SUMMARY (FOR 2001 ORIGINAL)

The UK DIY multiples market has grown rapidly over the last decade to reach over £4.4 billion at retail prices in 1997.

Growth in the 1980s was stimulated by a rapid increase in disposable income, a larger proportion of younger first-time homebuyers in the population and the rise in housebuilding and housemoving levels, all contributing to the demand for home improvement products. The early to mid 1990s have seen a less positive growth pattern, however, growth has been achieved in a sometimes difficult retailing environment.

The DIY multiples market has exceeded the growth performance of other retail sectors due to successful market penetration through expansion of the number of outlets and share gain from competitive channels of distribution, in particular the independent hardware retailers.

1996 and 1997 have shown good growth, reflecting a more positive housing and refurbishment market, and a higher level of consumer confidence driven by financial windfalls for example. In 1998, the economic climate has deteriorated, reflecting higher interest rates over 1997 and the first half of 1998, and a deteriorating world economic climate.

The short to medium term future may be difficult for the multiples, with consumer confidence and retail spending declining and the housing market static at best. Nevertheless, some growth is anticipated as multiples continue to take share from competitive channels.

The DIY multiples share of selected household goods retailing is just under 30%, having shown growth every year since 1990, illustrating the gains made by multiples over competitive channels.

The number of DIY multiple outlets has stabilised and even declined, over the last two years. Certain multiples have increased their numbers of outlets, but the closure programme at Do It All has led to the reduction in numbers. Nevertheless, the outlets themselves have a larger average size and sales per outlet is on an increasing trend.

The major product groups offered by the multiples, are garden products followed by building materials and decorative products, furniture, hardware and housewares and bathroom products. Furniture share has reduced over the last year, reflecting the Homebase reformatting of Texas outlets.

Other leading product sectors include lighting, windowcoverings, floorcoverings, adhesives and a wide range of miscellaneous products. The key growth sector has been garden products reflecting growth by Homebase and an increasing orientation to garden products in other multiples. Building product sales have increased through Wickes expansion and the growth of Warehouses, though other multiples have shifted away from building materials to some extent. In addition, housewares and furnishings have increased indicating a growth in non-core DIY product areas.

The role and importance of the multiples varies significantly between the major product groups with DIY multiples accounting for significant shares of the decorative products, garden/leisure and bathroom sectors.

Conversely, the share for building materials is only 5% of the total market, though there are some specific product sectors where the share is somewhat higher eg timber and plumbing materials. The overall share is low due to the high volume of heavyside building materials (bricks, blocks, cement, aggregates etc), some of which are delivered direct to end-use application areas.

Individual variations between the major multiples in terms of product ranges are significant with recent and continued changes in market positioning. Wickes are heavily oriented towards building materials which account for around 50% of sales, with B & Q also oriented to building products particularly through growth of their Warehouses.

Homebase and Great Mills are moving more towards home adornment or home enhancement products eg garden furniture, decoration, furnishings etc, resulting in some niche positioning of the major multiples as they seek to create areas of market differentiation. As the DIY market matures further, it will become more important for multiples to have a clear identity and distinct market position. Sophisticated consumers will then perceive particular DIY companies as appropriate for specific needs.

The Focus acquisition of Do It All has further consolidated the multiples industry, reflecting the importance of economies of scale and how difficult profitable trading has become, particularly without a clear market position.

While price competition remains, the industry tends to compete on a far wider range of factors, in comparison to earlier in the decade. For example, the level of service, advice and support for the buyer has increased and the B & Q Warehouses make a virtue of the skilled support that they offer. In addition, product range is an important competitive factor to B & Q Warehouse. Conversely, Wickes offer a far more focused range but aim to be the lowest cost provider of that range of products.

The multiples are also expanding their target market sectors from DIY products, into pet products, home enhancement, craft products etc. This may offer potential for future growth of the sector, by taking share from other channels of distribution. In addition, some multiples take a more 'holistic' approach to DIY, offering paint, wallpaper, textiles (for curtains, carpets etc) as part of a whole room redecoration approach. Do It All for example offer this concept and will include all the tools, adhesives etc appropriate for a project in a given store area or on a computer programme.

Potential for growth exists in terms of taking share from other channels, either hardware and DIY channels, or possibly pet products and textile sectors. In addition, more focused market positions by the major multiples will be a growing feature of the market, reflecting their drive to become more profitable.

This comprehensive report represents a detailed assessment of the market, reviewing major trends, key factors influencing developments and future prospects for the sector. Analysis is both quantitative and qualitative, based on our substantial experience of the building and home improvement markets.

Text © 2002 AMA Research

Back to Top

Back To REPORTFINDER HOME PAGE

Ariadne - working together with our customers to enhance productivity and increase knowledge

© 2002 www.the-list.co.uk Ariadne

Last updated by Duncan Nottage 5th March 2002