DIY & Home Improvements Industry- 2009 Edition

• Publication date: February 2009

The UK retail market for DIY tools and materials grew in value by 2.6% in 2008, to £11.73bn. This Market Review focuses on five major product sectors, which, together, accounted for just under a quarter of the market's value in 2007. These are: paint and woodcare; wallcoverings; ceramic tiles; power tools and accessories; and hand tools and decorating tools. Garden products and furniture are excluded, as are the housewares and soft fur...

The UK retail market for DIY tools and materials grew in value by 2.6% in 2008, to £11.73bn. This Market Review focuses on five major product sectors, which, together, accounted for just under a quarter of the market's value in 2007. These are: paint and woodcare; wallcoverings; ceramic tiles; power tools and accessories; and hand tools and decorating tools. Garden products and furniture are excluded, as are the housewares and soft furnishings sold by some DIY stores.

Key Note estimates that the total retail value of these five sectors remained virtually static in 2008, at £2.72bn. However, their performances varied over the review period (2004 to 2008), with paints and woodcare, ceramic tiles, and hand and decorating tools all growing in value and wallcoverings showing signs of a recovery in 2007. The decline in the value of the power tools/accessories sector, which appeared to have halted in 2008, was attributed to price deflation caused by the increasing volume of goods sourced from the People's Republic of China (PRC) and the Far East.

Among the main drivers of growth within the DIY and home-improvement industry have been high levels of home ownership and, until recently, a boom in house prices, increased levels of household disposable income and low unemployment. However, interest in DIY waned during the review period, with less media coverage of the topic and a growing consumer trend towards employing someone else to do the work, which spurred the do-it-for-me (DIFM) sector.

However, since the beginning of 2007, the financial backdrop within the UK has changed, culminating in the economic downturn currently being experienced. The collapse of the housing market, the failure of many of the UK's banking institutions, rising fuel and food prices, along with consumer credit restrictions and a general fall in consumer confidence, have all had an impact on the DIY and home-improvements market.

On the retail side, the major DIY superstores still dominate the UK market, but the presence of the major supermarkets and online retailers is growing. Stores that focus on the trade side of the business — for example, Wickes and Travis Perkins — have benefited from the DIFM trend, as UK homeowners have made the most of the influx of low-cost, skilled migrant workers, following EU expansion.

Key Note forecasts that the overall market will show only marginal growth between 2008 and 2010, reflecting the UK's tougher economic outlook and contractions in the housing market. While it is difficult to predict the depths of the economic downturn and, therefore, its effects on this market, Key Note forecasts that the market will begin to pick up in 2011 
 

Diy And Garden Equipment Industry in the United Kingdom

Executive Summary

1. Industry Overview

REPORT COVERAGE

REPORT BACKGROUND

ECONOMIC TRENDS

Gross Domestic Product

Table 1.1: UK Gross Domestic Product at Current and

Annual Chain-Linked Prices (£m), 2003-2007

Inflation

Table 1.2: UK Rate of Inflation (%), 2003-2007

Household Disposable Income

Table 1.3: UK Household Disposable Income Per Capita (£), 2003-2007

Population

Table 1.4: UK Resident Population Estimates by Sex

(000), Mid-Years 2003-2007

Unemployment

Table 1.5: Actual Number of Unemployed Persons in the UK

(million), 2003-2007

MARKET SIZE

Consumer Expenditure at Current Prices

Table 1.6: Consumer Expenditure on DIY Products at Current Prices

(£m at rsp), 2004-2008

Consumer Expenditure at Chained Volume Measures

Table 1.7: Consumer Expenditure on DIY Products at Chained Volume

Measures Referenced to 2003 (£m at rsp), 2004-2008

Retail Sales

Table 1.8: The UK Retail Market for DIY Products — Five Key Sectors —

by Value (£m at rsp), 2004-2008

MARKET SEGMENTATION

INDUSTRY STRUCTURE

Concentration

Number of Businesses

Employment

Distribution

Market Shares

DIY Superstores

Wholesalers and Trading Groups

Supermarkets

The Internet

MARKET POSITION

KEY TRENDS

Slowdown of the UK Housing Market

Increased Cost of Borrowing

Table 1.9: Owner-Occupier Uses of Equity Released from Properties

in England (% of mortgage owners), 2006/2007

Retail Sales

Table 1.10: Annual Growth in Retail Sales Through ‘Household Goods Stores’

at Current and Constant 2000 Prices (%), 2004-2008

Expenditure on DIY as a Proportion of Household Expenditure

Table 1.11: Spending on DIY Products as a Proportion of Total Household

Expenditure at Current Prices and at Chained Volume Measures

Referenced to 2003 (£bn and %), 2004-2008

Seasonal Trends

DIY Skills Gap

LEGISLATION

EU Battery Recycling

Packaging Waste Regulations

Paints Directive

The Electrical Equipment (Safety) Regulations 1994

Energy Using Products Directive

Waste Electrical and Electronic Equipment Directive

New Building Regulations

KEY TRADE ASSOCIATIONS

British Hardware Federation

British Home Enhancement Trade Association

European Associations

European DIY-Retail Association

European Federation of DIY Manufacturers

2. PEST Analysis

POLITICAL FACTORS

Housing Policies

Stamp Duty

Home Information Packs

Revision to UK Planning Rules

Environmental Regulations

ECONOMIC FACTORS

Sub-Prime Mortgage Crisis and Credit Crunch

Global Government Intervention into the World Economic Environment

The Fluctuating Pound

Cost of Professional Services

Table 2.1: Spending on Home Maintenance Services and Materials

at Current Prices, Chained Volume Measures Referenced to 2003

and Price Indices (£m at rsp and index 2003=100), 2004-2008

Home Ownership and the Purchasing of Properties

Interest Rates

Output of New Housing

Table 2.2: Output of New Housing by Sector at Constant 2000 Prices

(£m), 2003-2007

Unemployment

SOCIAL FACTORS

Changing Household Structure

Ageing Population

DIY and Home Improvement Media

TECHNOLOGICAL FACTORS

Use of the Internet

Product Innovations

3. Key Note Primary Research

INTRODUCTION

STORES USED TO PURCHASE DIY SUPPLIES

Table 3.1: Stores Used to Purchase DIY Supplies in the Last 12 Months

(% of adults), October 2008

By Sex

Table 3.2: Stores Used to Purchase DIY Supplies in the Last 12 Months

by Sex (% of adults), October 2008

By Age

Table 3.3: Stores Used to Purchase DIY Supplies in the Last 12 Months

by Age (% of adults), October 2008

By Social Grade

Table 3.4: Stores Used to Purchase DIY Supplies in the Last 12 Months

by Social Grade (% of adults), October 2008

By Region

Table 3.5: Stores Used to Purchase DIY Supplies in the Last 12 Months

by Region — South (% of adults), October 2008

Table 3.6: Stores Used to Purchase DIY Supplies in the Last 12 Months

by Region — Midlands and North (% of adults), October 2008

By Housing Tenure

Table 3.7: Stores Used to Purchase DIY Supplies in the Last 12 Months

by Housing Tenure (% of adults), October 2008

By Working Status

Table 3.8: Stores Used to Purchase DIY Supplies in the Last 12 Months

by Working Status (% of adults), October 2008

PRODUCTS PURCHASED

Table 3.9: DIY Products Purchased in the Last 12 Months

(% of buyers), October 2008

By Sex

Table 3.10: DIY Products Purchased in the Last 12 Months by Sex

(% of buyers), October 2008

By Age

Table 3.11: DIY Products Purchased in the Last 12 Months by Age

(% of buyers), October 2008

By Social Grade

Table 3.12: DIY Products Purchased in the Last 12 Months by Social Grade

(% of buyers), October 2008

By Region

Table 3.13: DIY Products Purchased in the Last 12 Months

by Region — South (% of buyers), October 2008

Table 3.14: DIY Products Purchased in the Last 12 Months

by Region — Midlands and North (% of buyers), October 2008

By Housing Tenure

Table 3.15: DIY Products Purchased in the Last 12 Months

by Housing Tenure (% of buyers), October 2008

By Working Status

Table 3.16: DIY Products Purchased in the Last 12 Months

by Working Status (% of buyers), October 2008

AMOUNT SPENT

Table 3.17: Amount Spent on DIY Materials in the Last 12 Months

by Sex, Age, Social Grade, Working Status, Region and Housing Tenure

(% of buyers), October 2008

DIY TASKS UNDERTAKEN

Table 3.18: DIY Tasks Undertaken in the Last 12 Months by Sex

(% of adults), October 2008

By Age

Table 3.19: DIY Tasks Undertaken in the Last 12 Months by Age

(% of adults), October 2008

By Social Grade

Table 3.20: DIY Tasks Undertaken in the Last 12 Months by Social Grade

(% of adults), October 2008

By Region

Table 3.21: DIY Tasks Undertaken in the Last 12 Months

by Region — South (% of adults), October 2008

Table 3.22: DIY Tasks Undertaken in the Last 12 Months

by Region — Midlands and North (% of adults), October 2008

By Housing Tenure

Table 3.23: DIY Tasks Undertaken in the Last 12 Months by Housing Tenure

(% of adults), October 2008

DIY INTENTIONS

Table 3.24: DIY Tasks Undertaken in the Last 12 Months and DIY Tasks

Intended for the Next 12 Months (% of adults), October 2008

MOTIVATIONS TO CARRY OUT DIY ACTIVITY

Table 3.25: Main Motivations to Carry Out DIY/Home Improvement Work

by Sex (% of adults), October 2008

DIY VERSUS DIFM

Table 3.26: DIY Versus DIFM Home Improvements by Sex, Age,

Social Grade, Working Status, Region, Marital Status and Housing Tenure

(% of respondents planning DIY projects in the next 12 months), October 2008

4. Competitive Structure

THE MARKETPLACE

MARKET LEADERS

Table 4.1: Selected Leading Retailers of DIY Products by Turnover

(£000), 2007/2008

B&Q PLC

Homebase Ltd

Wilkinson Hardware Stores Ltd

Wickes Building Supplies Ltd

Screwfix Direct Ltd

Focus (DIY) Ltd

Topps Tiles PLC

Robert Dyas Holdings Ltd

B&M Home Stores

Other Companies

ASDA Group Ltd

Tesco PLC

Argos and Woolworths

Others

OUTSIDE SUPPLIERS

MARKETING ACTIVITY

Main Media Advertising Expenditure

Table 4.2: Main Media Advertising Expenditure by DIY Retailers

(£000), Years Ending June 2007 and 2008

Sponsorship

Trade and Consumer Exhibitions

UK Events

International Events

5. Paint and Woodcare

DEFINITION

Paint

Emulsion

Gloss and Interior Finish

Masonry Paints

Primers and Undercoats

Speciality Paints

Aerosol Spray Paints

Woodcare

Varnishes

Woodstains

Wood Effects

Wood Preservers

Wood Fillers and Hardeners

Furniture Care

Wood Dyes

Eradicators

KEY TRENDS

MARKET SIZE

Table 5.1: The UK Retail Market for Paint and Woodcare by Value

(£m at rsp), 2004-2008

MARKET SEGMENTATION

Paint

Woodcare

SUPPLY STRUCTURE

Number of Companies

Employment

Distribution

Trade Associations

British Coatings Federation

MAJOR PLAYERS

Akzo Nobel

Crown Paints

PPG Industries

Ronseal Ltd

Other Companies

ADVERTISING AND PROMOTION

Main Media Advertising Expenditure

Paint

Table 5.2: Main Media Advertising Expenditure on Paint by Manufacturers

and DIY Superstores (£000), Years Ending June 2007 and 2008

Woodcare

Table 5.3: Main Media Advertising Expenditure on Woodcare

(£000), Years Ending June 2007 and 2008

BUYING BEHAVIOUR

Paint

Painting Tasks Undertaken

Table 5.4: Profile of Adults Who Had Undertaken DIY Painting Tasks in

the Last 12 Months by Sex, Age and Social Grade (% of adults), October 2008

Penetration of Paint Use

Table 5.5: Penetration of Paint Use in the Last 12 Months by Sex, Age,

Social Grade, Region and Family Income (% of adults), March 2008

Profile of Paint Users

Table 5.6: Profile of Adults Who Had Used Paint in the Last 12 Months by Sex,

Age, Social Grade, Region and Family Income (% of users), March 2008

Volume of Paint Used

Table 5.7: Volume of Paint Used in the Last 3 Months

(% of adults), March 2007 and 2008

Types of Paint Used

Table 5.8: Types of Paint Used in the Last 3 Months

(% of adults), March 2008

Woodcare

Penetration of Woodstain, Varnish and Wood Preservers

Table 5.9: Penetration of Woodstain, Varnish and Preservers in

the Last 12 Months by Sex, Age, Social Grade, Region and Family Income

(% of adults), March 2008

Profile of Users

Table 5.10: Profile of Users of Woodstain, Varnish and Preservers in

the Last 12 Months by Sex, Age, Social Grade, Region and Family Income

(% of users), March 2008

Volume Used in the Last 3 Months

Table 5.11: Volume of Woodstain, Varnish and Preservers

Used in the Last 12 Months (% of adults), March 2008

FORECASTS 2009 TO 2013

Table 5.12: The Forecast UK Retail Market for Paint and Woodcare

by Value (£m at rsp), 2009-2013

6. Wallcoverings

DEFINITION

Wallpaper

Flat Vinyls

Blown Vinyls

Expanded Vinyls

Others

KEY TRENDS

MARKET SIZE

Table 6.1: The UK Retail Market for Wallcoverings by Value and Volume

(£m at rsp and million rolls/coils), 2004-2008

MARKET SEGMENTATION

Table 6.2: The UK Retail Market for Wallcoverings by Substrate

by Value (%), 2007

SUPPLY STRUCTURE

Number of Companies

Table 6.3: Number of UK VAT-Based Enterprises Engaged in the

Manufacture of Wallpaper by Turnover Sizeband, 2007 and 2008

Employment

Table 6.4: Number of UK Local Units Engaged in the Manufacture

of Wallpaper by Employment Sizeband, 2007 and 2008

Distribution

Trade Associations

British Coatings Federation

Home Decoration Retailers Association

MAJOR PLAYERS

CWV Ltd

Graham & Brown Ltd

H-A Interiors Ltd

Walker Greenbank PLC

Fine Décor Wallcoverings Ltd

Leading Specialist Wholesalers

Coleman Bros Wholesale Wallpapers Ltd

SJ Dixon & Son Ltd

ADVERTISING AND PROMOTION

Main Media Advertising Expenditure

Table 6.5: Main Media Advertising Expenditure on Wallcoverings

(£000), Years Ending June 2007 and 2008

Trade Exhibitions

BUYING BEHAVIOUR

Wallpaper

Penetration and Profile

Table 6.6: Wallpaper Purchasing in the Last 12 Months

(% of buyers), October 2008

DIY Wallpapering

Table 6.7: Wallpapering Activity Undertaken in the Last 12 Months

and Intended in the Next 12 Months (% of adults), October 2008

FORECASTS 2009 TO 2013

Table 6.8: The Forecast UK Retail Market for Wallcoverings by Value

and Volume (£m at rsp and million rolls/coils), 2009-2013

7. Ceramic Tiles

DEFINITION

KEY TRENDS

MARKET SIZE

Table 7.1: The UK Retail Market for Ceramic Tiles by Value and Volume

(£m at rsp and million square metres), 2004-2008

MARKET SEGMENTATION

SUPPLY STRUCTURE

Number of Companies

Table 7.2: Number of UK VAT-Based Enterprises Engaged in the Manufacture

of Ceramic Tiles and Flags by Turnover Sizeband, 2007 and 2008

Employment

Table 7.3: Number of UK Local Units Engaged in the Manufacture

of Ceramic Tiles and Flags by Employment Sizeband, 2007 and 2008

Distribution

Trade Associations

The Tile Association

MAJOR PLAYERS

H&R Johnson Tiles Ltd

Pilkington’s Tiles PLC

British Ceramic Tile (BCT Ltd)

CP Group

ADVERTISING AND PROMOTION

Main Media Advertising Expenditure

Table 7.4: Main Media Advertising Expenditure on Ceramic

Tiles (£000), Years Ending June 2007 and 2008

Trade Exhibitions

Tile and Stone Show

Expotile

Cersaie

Cevisama

BUYING BEHAVIOUR

Table 7.5: Ceramic Tile Purchasing in the Last 12 Months

(% of buyers), October 2008

DIY Tiling

Table 7.6: Tiling Activity Undertaken in the Last 12 Months and Intended

in the Next 12 Months (% of adults), October 2008

FORECASTS 2009 TO 2013

Table 7.7: The Forecast UK Retail Market for Ceramic Tiles by Value

and Volume (£m at rsp and million square metres), 2009-2013

8. Power Tools and Accessories

DEFINITION

Drills and Screwdrivers

Sanders

Saws

Decorating Tools

Multifunction Power Tools

Other Power Tools

Power-Tool Accessories

KEY TRENDS

MARKET SIZE

Table 8.1: The UK Retail Market for Power Tools and Accessories

by Sector by Value (£m at rsp), 2004-2008

MARKET SEGMENTATION

Table 8.2: Breakdown of the UK Market for DIY and Professional Electric

Handheld Power Tools by Value at Manufacturers’ Selling Prices

(%), 2004 and 2008

SUPPLY STRUCTURE

Number of Companies

Employment

Distribution

Trade Associations

Portable Electric Tool Manufacturers’ Association

MAJOR PLAYERS

Black & Decker

Robert Bosch Ltd

Pulse Home Products Ltd

Makita (UK) Ltd

Earlex Ltd

Other Companies

ADVERTISING AND PROMOTION

Main Media Advertising Expenditure

Table 8.3: Main Media Advertising Expenditure on

Non-Garden Power Tools by Manufacturers and DIY Superstores

(£000), Years Ending June 2007 and 2008

Trade Exhibitions

BUYING BEHAVIOUR

Penetration of Power Tools

Table 8.4: Ownership of Small Electric Tools and Separate

Attachments by Sex, Age, Social Grade, Region and Family Income

(% of adults), March 2008

Profile of Ownership

Table 8.5: Profile of Owners of Small Electric Tools and Separate

Attachments by Sex, Age, Social Grade, Region and Family Income

(% of owners), March 2008

Purchasing of Electric Power Tools

Table 8.6: Purchasing of Electric Tools and Separate Attachments in

the Last 12 Months — First-Time Purchases and Replacement Purchases

(% of adults), March 2008

Amount Spent

Table 8.7: Amount Spent on Electric Tools and Separate Attachments

in Last 12 Months (% of adults), March 2008

FORECASTS 2009 TO 2013

Table 8.8: The Forecast UK Retail Market for Power Tools and

Accessories by Sector by Value (£m at rsp), 2009-2013

9. Hand Tools and Decorating Tools

DEFINITION

KEY TRENDS

MARKET SIZE

Table 9.1: The UK Retail Market for Hand Tools and Decorating

Tools by Sector by Value (£m at rsp), 2004-2008

SUPPLY STRUCTURE

Number of Companies

Employment

Distribution

Trade Associations

Federation of British Hand Tool Manufacturers

MAJOR PLAYERS

Stanley Tools

Spear & Jackson PLC

LG Harris & Co Ltd

Hamilton Acorn Ltd

Halls Beeline Group

ADVERTISING AND PROMOTION

Main Media Advertising Expenditure

Table 9.2: Main Media Advertising Expenditure on Hand Tools

and Decorating Tools (£000), Years Ending June 2007 and 2008

Trade Exhibitions

BUYING BEHAVIOUR

Purchasing of Non-Electric Tools

Table 9.3: Purchasing of Non-Electric Tools in the Last 12 Months by Sex, Age,

Social Grade, Region and Family Income (% of adults), March 2008

Profile of Purchasers

Table 9.4: Profile of Purchasers of Non-Electric Tools in the Last 12 Months

by Sex, Age, Social Grade, Region and Family Income

(% of purchasers), March 2008

FORECASTS 2009 TO 2013

Table 9.5: The Forecast UK Retail Market for Hand Tools and

Decorating Tools by Sector by Value (£m at rsp), 2009-2013

10. A Global Perspective

THE US — THE WORLD’S LARGEST DIY MARKET

THE EU — EXPANSION CONTINUES TO MOVE EAST

Germany

France

Italy

Eastern Europe

RUSSIA — AN EXPANDING MARKET

ASIA AND THE PACIFIC REGIONS

Japan — Exposure to Global Financial Pressures

China — 1.3 Billion Consumers

11. The Future

INTRODUCTION

The Economy

Gross Domestic Product

Table 11.1: Forecast UK Growth in Gross Domestic Product

in Real Terms (%), 2008-2012

Inflation

Table 11.2: Forecast UK Rate of Inflation (%), 2008-2012

Unemployment

Table 11.3: Forecast Actual Number of Unemployed Persons

in the UK (million), 2008-2012

Population

Table 11.4: Forecast UK Resident Population by Sex

(000), Mid-Years 2008-2012

Trends in Housing

Table 11.5: Output of New Housing by Sector at Constant 2000 Prices

(£m), 2003-2007

Table 11.6: New Orders for Housing by Sector at Current Prices

(£m), 2003-2007

Retail Results 2008

FORECASTS 2009 TO 2013

Table 11.7: Forecast Consumer Expenditure on DIY Products

at Current Prices (£m at rsp), 2009-2013

Table 11.8: The Forecast UK Retail Market for DIY Products —

Five Key Sectors — by Sector by Value (£m at rsp), 2009-2013

FUTURE TRENDS

Further Sources

Associations

Publications

General Sources

Government Publications

Other Sources

Key Note Sources

Understanding TGI Data

Number, Profile, Penetration

Social Grade

Standard Region

Key Note Research

The Key Note Range of Reports