Home Improvement Multiples Market Report - UK 2016-2020 Analysis Published: 26/08/2016 / Number of Pages: 89 / Price: 845.00 Introduction and Overview The new edition of the 'Home Improvement Multiples Market Report - UK 2016-2020 Analysis'(previously entitled 'DIY Multiples Market Report') contains extensive analysis of the market for DIY and home improvement multiples, including a review of the market, key factors affecting growth, a review of the supply chain and an analysis of the product groups relevant to the sector, assessed by product group and sub-category. The report also includes an analysis of the impact of the home improvement multiples within each of the product groups, as well as distribution share within each of the product groups. Key content covered: Forecasts of market developments to 2020. Detailed assessment of the market - analysis of the recent trends and future prospects. In-depth analysis of the key companies - including recent developments, store numbers and financial analysis. Analysis by product group - market sizes, product mixes and distribution - garden, domestic landscaping & leisure, building supplies, bathrooms, decorating, hardware & housewares, window & floor coverings, furniture & kitchens, lighting and electrical, and other products. Key areas of insight: Analysis of market size & trends and a comprehensive review of key factors influencing the market. Forecasts for 2016-2020 and identification of key issues including 'Brexit'. Review of leading home improvement multiples - expanded to include Wilko, B & G Retail and Robert Dyas. Product mix analysis - garden, landscaping & leisure; building supplies; lighting & electrical; decorating, HVAC & plumbing; bathroom; furniture; kitchens; floorcoverings; windows & doors: window coverings & home textiles. Analysis of the mix in retail channels for home improvement product sectors - home improvement multiples, builders merchants, grocery multiples etc. Detailed market data and insight on the home improvement multiples market by AMA Research, a leading UK provider of construction market intelligence.
Some of the companies included: B & M Retail, B&Q, CDS Superstores, Homebase, Maxwells DIY, Robert Dyas, Wickes, Wilko Retail etc. Market Overview Recent market performance 2011-2015 - general review of market size and key trends, changes and market developments. Forecast 2016-2020 - market size and key factors including the potential impact of 'Brexit', declining in the value of sterling and its impact on import prices, private rental, consumer attitudes etc. Key market influences - trends in housing RMI, house moving transactions, 'improve not move' trend, 'Get someone in' trend, demographics & buyer behaviour, changes in home ownerships, increases in private rental, growth of competing channels and influence of the media. Assessment of the changing nature of DIY, with younger people not buying their first homes until much later in life and as a result not learning the DIY skills, while older consumers are more likely to 'get someone in', thereby squeezing the DIY market. Home Improvement Multiples Review Major groups - turnovers, estimated product mixes, recent developments. Market positions and shares for the major companies. Comment on the impact of the Homebase takeover and likely changes in the market as a result. Store numbers - trends in numbers 2011-2016. Procurement issues, processes adopted by the majors etc. Main Product Categories and Key Ranges Overview of overall retail market for home improvement products - home improvement multiples position and shares within the key product categories. Overall home improvement multiples market - mix by value by product category Individual product category reviews for: garden, domestic landscaping & leisure; building supplies; bathrooms & sanitaryware; HVAC & plumbing; decorating; tools & hardware; floorcoverings; furniture; fitted kitchens; lighting & electrical; replacement windows & doors; window coverings & home textiles. Each product category review includes - definitions of what products are included; summary of total retail markets 2011-2015; home improvement multiples product sales mixes; brief review of recent key trends for key products; distribution channel shares (home improvement multiples vs builders merchants, grocery chains etc); shares for home improvement multiples within the overall retail market for key product ranges. Report Summary The UK home improvement multiples market increased by around 4% in 2015, in value terms (RSP). Overall home improvement market conditions have improved in recent years following a period of falling incomes, rising household expenses and employment insecurities, with sales in the multiples sector having increased steadily since 2012 - a year when particularly poor weather had a marked impact on demand for products used outdoors. Garden, domestic landscaping &
leisure is the largest product category within the home improvement multiples sector, accounting for over 20% of total sales. The other major product groups are building supplies, lighting & electrical, tools, hardware & PPE and decorating products. Underpinning the market over the last few years has been factors including; growth in the general economy, rising incomes, growth in online shopping, a strong housing market and much better summer weather in 2013 and 2014. However, growth has to some extent been constrained by a shift away from householders doing DIY jobs towards using tradesmen. This has been most noticeable among the under 35s, where a general lack of skills / aptitude and a preference for spending money and time on other things has developed over the last few years. Also, the ongoing housing shortage and accompanying rises in house prices and mortgage deposits has made it harder for potential first time buyers to buy a home, forcing them to rent from private landlords. Affluent, and often older, homeowners have also been generally more likely to use tradesmen to work on extensions, loft & basement conversions and garden landscaping. Tradesmen, though, typically use trade suppliers such as builders merchants, trade counters and specialist distributors. This trend to GSI (Get Someone In) has contributed towards some loss of share for the home improvement multiples in certain product markets, although some of the leading multiples are also significant trade suppliers. In recent years, the traditional home improvement multiples have implemented major changes including store rationalisation and diversification, driven by increasing competition in core product markets from general merchandise multiples, specialist online home improvement products retailers, grocery multiples, discount chains and catalogue stores. Other strategies have included expanding product lines into non-diy offerings including homewares, electronic security equipment, lighting and kitchens & bathrooms. Following the EU referendum, there is considerable uncertainty as to how the UK economy will fare over the next few years, with many experts expecting a recession in the building and construction industry. As with the market for building materials in general, it is expected there will be a marked impact on home improvement retailing, as householders cut back on spending on major projects. Many home improvement products are imported and a weak pound is likely to drive up prices of commodities from China etc., which in turn would impact on suppliers and retailers' margins while also possibly deterring consumers. Other factors likely to impact on home improvement multiples over the next few years include factors such as lower home ownership, further growth in private rental, younger people living with parents longer, average home sizes decreasing, increased flat and apartment ownership, the continuing trends towards using tradesmen and increasing use of online retail stores and other channels offering products at increasingly competitive prices e.g. multi-channel operators and budget retail multiples. List of Report Contents Contents Listing 1. INTRODUCTION 8 1.1 BACKGROUND 8 1.2 SOURCES OF INFORMATION 9 2. SUMMARY 10 2.1 SUMMARY OF CURRENT MARKET SITUATION 10 2.2 SUMMARY OF MARKET PROSPECTS 11 3. ECONOMIC ENVIRONMENT 13 3.1 GDP 13 3.2 INFLATION & INTEREST RATES 15
3.3 UNEMPLOYMENT 16 3.4 HOUSEHOLD CONSUMPTION 16 3.5 HOUSING & CONSTRUCTION 17 3.6 STERLING 18 3.7 POPULATION PROFILE 19 3.8 CONCLUSIONS 19 4. HOME IMPROVEMENT MULTIPLES MARKET 21 4.1 DEFINITION 21 4.1.1 Products 21 4.2 MARKET SIZE 22 4.2.1 Recent Performance 22 4.2.2 Market Prospects to 2020 24 4.3 KEY FACTORS INFLUENCING THE HOME IMPROVEMENT MULTIPLES MARKET 26 4.3.1 Housing RMI 26 4.3.2 House moving 27 4.3.3 Relaxation of Planning Laws 28 4.3.4 'Improve Not Move' 28 4.3.5 Housebuilding Completions 29 4.3.6 Demographics and Buyer Behaviour 30 4.3.7 Home Ownership Trends 31 4.3.8 Growth in Private Rental 31 4.3.9 Growth of Competing Channels 32 4.3.10 Influence of the Media 33 5. HOME IMPROVEMENT MULTIPLES 34 5.1 MARKET STRUCTURE 34 5.2 MARKET SHARES 34
5.2.1 Market Position 35 5.3 COMPANY REVIEW 37 5.3.1 B&Q 37 5.3.2 Homebase 38 5.3.3 Wickes 39 5.3.4 B & M Retail 40 5.3.5 Wilko Retail 41 5.3.6 Other 42 5.3.7 Number of Outlets 42 5.4 PROCUREMENT 43 6. PRODUCTS 46 6.1 OVERALL HOME IMPROVEMENT MULTIPLES PRODUCT MIX 46 6.2 HOME IMPROVEMENT MULTIPLES PRODUCT MARKET SHARES 47 6.3 PRODUCT TRENDS 47 6.3.1 Garden, Domestic Landscaping & Leisure 47 6.3.2 Lighting & Electrical Products 52 6.3.3 Tools, Hardware & PPE Products 56 6.3.4 Decorating Products 60 6.3.5 Building Supplies 63 6.3.6 Bathroom and Sanitaryware Products 67 6.3.7 HVAC and Plumbing Equipment, Fittings & Accessories 71 6.3.8 Furniture (excludes fitted kitchens) 76 6.3.9 Kitchen Units 79 6.3.10 Floorcovering Products 82 6.3.11 Replacement Windows & Doors and Conservatories 85 6.3.12 Window Coverings & Home Textiles 88
Tables & Charts TABLE 1 HOME IMPROVEMENT MULTIPLES MARKET BY VALUE 2011-2016 10 TABLE 2 GDP DATA - 2013-2016 - KEY CONSTITUENT ELEMENTS 14 CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 2000-2020 15 CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2020 17 TABLE 5 EXCHANGE RATE FLUCTUATIONS 2012-2018 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 18 TABLE 6 HOME IMPROVEMENT MULTIPLES MARKET BY VALUE 2011-2016 22 TABLE 7 HOME IMPROVEMENT MULTIPLES' MARKET FORECASTS BY VALUE ( RSP) 2015-2020 24 CHART 8 RMI HOUSING OUTPUT AND FORECASTS- BY VALUE ( M AT CURRENT PRICES) 2011-2020 27 TABLE 9 UK HOUSING TRANSACTIONS VALUED AT 40K OR ABOVE 2011-2020 28 TABLE 10 HOUSE BUILDING COMPLETIONS (UK) 2011 TO 2020 - BY VOLUME ('000 DWELLINGS) 29 CHART 11 GROWTH TRENDS IN NO. OF PRIVATE RENTED DWELLINGS (PRS) (MILLION) 2014-2025 31 CHART 12 HOME IMPROVEMENT MULTIPLES ESTIMATED MARKET SHARES 2015 35 CHART 13 DIY MULTIPLES MARKET POSITIONING 2015 36 CHART 14 B & Q PRODUCT MIX - SHARE BY VALUE 2015 37 CHART 15 HOMEBASE PRODUCT MIX - SHARE BY VALUE 2015 38 CHART 16 WICKES PRODUCT MIX - SHARE BY VALUE 2015 40 CHART 17 UK HOME IMPROVEMENT MULTIPLES - NUMBER OF OUTLETS 2011-2016 43 CHART 18 THE 6 STEPS OF A TYPICAL RANGE REVIEW 44 CHART 19 HOME IMPROVEMENT MULTIPLES OVERALL SALES MIX 2015 46 TABLE 20 KEY RETAIL MARKETS FOR HOME IMPROVEMENT PRODUCTS - OVERALL MARKET SIZES AND HOME IMPROVEMENT MULTIPLES MARKET SIZES 2015 47 CHART 21 UK TOTAL RETAIL MARKET FOR GARDEN, DOMESTIC LANDSCAPING & LEISURE PRODUCTS - BY VALUE ( M RSP) 2011, 2013 AND 2015 48 TABLE 22 HOME IMPROVEMENT MULTIPLES' SALES MIX OF GARDEN, DOMESTIC LANDSCAPING & LEISURE PRODUCTS BY CATEGORY 2015 49 CHART 23 GARDEN PRODUCTS DISTRIBUTION SHARES BY CHANNEL BY VALUE 2015 50
CHART 24 % SHARES OF GARDEN, DOMESTIC LANDSCAPING & LEISURE PRODUCTS DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 51 CHART 25 UK TOTAL RETAIL MARKET FOR LIGHTING & ELECTRICAL PRODUCTS- BY VALUE ( M RSP) 2011, 2013 AND 2015 53 TABLE 26 HOME IMPROVEMENT MULTIPLES SALES MIX OF LIGHTING & ELECTRICAL PRODUCTS BY CATEGORY 2015 54 CHART 27 LIGHTING & ELECTRICAL PRODUCTS DISTRIBUTION SHARES BY CHANNEL BY VALUE 2015 55 CHART 28 % SHARES OF LIGHTING & ELECTRICAL PRODUCTS DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 55 CHART 29 UK TOTAL RETAIL MARKET FOR TOOLS AND HARDWARE & PPE- BY VALUE ( M RSP) 2011, 2013 AND 2015 57 TABLE 30 HOME IMPROVEMENT MULTIPLES SALES MIX OF TOOLS, HARDWARE & PPE PRODUCTS BY CATEGORY 57 CHART 31 TOOLS, HARDWARE & PPE PRODUCTS DISTRIBUTION SHARES BY CHANNEL BY VALUE 2015 58 CHART 32 HOME IMPROVEMENT MULTIPLES % SHARES OF TOOLS, HARDWARE & PPE DISTRIBUTION 59 CHART 33 UK RETAIL MARKET FOR DECORATING PRODUCTS- BY VALUE ( M RSP) 2011, 2013 AND 2015 60 TABLE 34 HOME IMPROVEMENT MULTIPLES SALES MIX OF DECORATING PRODUCTS BY PRODUCT CATEGORY 2015 61 CHART 35 DECORATING PRODUCTS DISTRIBUTION SHARES BY CHANNEL BY VALUE 2015 62 CHART 36 % SHARES OF DECORATING PRODUCTS DISTRIBUTION TAKEN BY HOME IMPROVEMENT MULTIPLES 62 CHART 37 UK RETAIL MARKET FOR BUILDING SUPPLIES BY VALUE ( M RSP) 2011, 2013 AND 2015 64 TABLE 38 HOME IMPROVEMENT MULTIPLES SALES MIX OF BUILDING SUPPLIES BY CATEGORY BY VALUE (RSP) 2015 64 CHART 39 % SHARES OF MAIN BUILDING SUPPLIES DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 66 CHART 40 UK RETAIL MARKET FOR BATHROOM PRODUCTS- BY VALUE ( M RSP) 2011, 2013 AND 2015 68 TABLE 41 HOME IMPROVEMENT MULTIPLES SALES MIX OF BATHROOM PRODUCTS BY CATEGORY 2015 68 CHART 42 BATHROOM PRODUCTS DISTRIBUTION SHARES BY CHANNEL BY VALUE 2015 70 CHART 43 % SHARES OF BATHROOM PRODUCTS DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 70 CHART 44 UK RETAIL MARKET FOR HVAC & PLUMBING PRODUCTS BY VALUE ( M RSP) 2011, 2013 AND 2015 72 TABLE 45 HOME IMPROVEMENT MULTIPLES SALES MIX OF HVAC & PLUMBING PRODUCTS BY CATEGORY 2015 73 CHART 46 HVAC & PLUMBING PRODUCTS DISTRIBUTION SHARES BY CHANNEL BY VALUE 2015 74 CHART 47 % SHARES OF HVAC & PLUMBING PRODUCTS DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 75
CHART 48 UK RETAIL MARKET FOR FURNITURE BY VALUE ( M RSP) 2011, 2013 AND 2015 76 TABLE 49 HOME IMPROVEMENT MULTIPLES SALES MIX OF FURNITURE PRODUCTS BY CATEGORY 2015 77 CHART 50 % SHARES OF FURNITURE DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 78 CHART 51 UK RETAIL MARKET FOR FITTED KITCHEN UNITS BY VALUE M RSP 2011, 2013, 2015 79 TABLE 52 HOME IMPROVEMENT MULTIPLES SALES MIX OF KITCHEN PRODUCTS BY CATEGORY 2015 80 CHART 53 FITTED KITCHEN UNITS DISTRIBUTION SHARES BY CHANNEL BY VALUE 2015 81 CHART 54 % SHARES OF FITTED KITCHENS DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 82 CHART 55 UK RETAIL MARKET FOR FLOORCOVERING PRODUCTS BY VALUE M RSP 2011, 2013, 2015 83 TABLE 56 HOME IMPROVEMENT MULTIPLES SALES MIX OF FLOORCOVERING PRODUCTS BY CATEGORY 2015 83 CHART 57 FLOORCOVERINGS DISTRIBUTION SHARES BY CHANNEL BY VALUE 2015 84 CHART 58 % SHARES OF FLOORING & TILING DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 85 CHART 59 UK RETAIL MARKET FOR REPLACEMENT WINDOWS & DOORS AND CONSERVATORIES BY VALUE M RSP 2011, 2013, 2015 86 TABLE 60 HOME IMPROVEMENT MULTIPLES SALES MIX OF WINDOWS, DOORS & CONSERVATORIES BY CATEGORY 2015 86 CHART 61 % SHARES OF REPLACEMENT WINDOWS & DOORS AND CONSERVATORIES DISTRIBUTION THROUGH HOME IMPROVEMENT MULTIPLES 87 CHART 62 UK RETAIL MARKET FOR WINDOW COVERINGS & HOME TEXTILES M RSP 2011, 2013, 2015 88 The 'Home Improvement Multiples Market Report - UK 2016-2020 Analysis' costs 845+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets.
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