The definition of DIY used in this report is based on the definition in the official government publication Consumer Trends, produced by National Statistics:

"Decorators' and DIY supplies, including both self-assembly and ready-made kitchen units, sanitary equipment, sheet glass, paint, lighting, but excluding electrical fittings and accessories."

The definition includes DIY tools, but excludes garden tools, which are classed as hardware. Also excluded are plants and other garden products, carpets and hard floorcoverings, soft furnishings, bedlinen, bedroom furniture and housewares.

MARKET SIZE AND GROWTH

Consumer Trends showed that spending on DIY and home improvements increased by 7.2 percent in 2000, to £8.81bn at retail selling prices (rsp). Key Note expects expenditure to increase to £9.33bn in 2001. The market grew by 51.2 percent between 1996 and 2000, but growth in value has been slowing. Following the slump in the housing market after the last economic recession, the market benefited as consumers began to catch up on DIY jobs that had been deferred. This trend has now run its course and resulted in an inevitable slowdown in the growth rate.

The market experiences strong pressure on prices, as a result of fierce competition between the DIY superstore chains, and, in many product sectors, from low-cost imports. Between 1996 and 2000, overall price inflation was very low, and, at nearly 46.9 percent, growth in market volume almost matched value growth. In 1999, average prices actually fell.

PRODUCT SECTORS

Sections Four to Nine discuss the key markets — paint, woodcare, wallcoverings, glazed ceramic tiles, power tools, and hand and decorating tools — which account for around a quarter of the total market. Section Ten provides brief coverage of the remaining markets.

CONSUMER RESEARCH

The results of original research for Key Note, carried out by BMRB Access, are shown in Section Two. Relevant research by BMRB International is included under the various product sectors in Sections Four to Nine.

The Access survey asked consumers about several DIY activities and found that results were rather lower than in a similar survey conducted 18 months previously. The most popular activity was indoor painting or woodcare, followed by wallpapering. DIY still has a strong male bias and DIY activity peaks in the 35 to 44 age group.

Respondents were also asked which sources of DIY advice and information they found helpful. The survey revealed that other members of the family were the leading source of advice — cited by 54 percent of respondents — followed by on-pack instructions (51 percent). However, there were some significant differences between the sources chosen by men and those preferred by women.

RETAILERS

The most significant changes to have occurred in the DIY market since the 2000 edition of this Market Review have been the acquisitions in the superstore sector. Following two unsuccessful bids, Focus Do It All acquired Wickes, and went on to acquire Great Mills, thereby reducing the number of superstore companies from five to three. The other two are B&Q and Homebase, both of which performed well in 2000/2001. Homebase was sold by J Sainsbury PLC to Schroder Ventures Ltd in March 2001.

Online shopping is fast becoming an important feature of DIY retailing, and Kingfisher's Screwfix was reported to be making good progress. B&Q continues to expand overseas and now ranks among the world's leading DIY retailers.

FUTURE PROSPECTS

Background economic trends remain favourable, but growth in the DIY market is slowing, and Key Note expects more gradual growth between 2001 and 2005. Assuming price rises continue to be moderate, DIY spending is forecast to reach £11bn, at current prices, by 2005.