DIY Review - UK - January 2005

Contents

Introduction and Abbreviations

• Definitions
• Consumer research
• ACORN
• PRIZM

Abbreviations

Summary of Key Report Findings

• DIY retail is now worth in the region of ｣12 billion
• A mature market...
• ...in danger of retail saturation
• Manufacturers tempt with convenience and style
• Leisure, fashion and money saving as consumer drivers
• The various motivations for DIY produce a complex market
• The housing market and changing population demographics could alter the DIY landscape

Market Factors

• The housing market is still the primary driving force
• Figure 1: Average UK house prices* and average annual UK gross earnings, 1999-2003
• Figure 2: Average UK house price, GDP and PDI Index, 1999-2003
• The buoyant remortgaging market
• Figure 3: Loans for house purchase, remortages and further advances wiithin the UK, 1993-2003
• Home ownership will help sustain the DIY market
• Figure 4: UK housing stock, by tenure, 1999-2003
• Long-term growth is determined by demographics
• Figure 5: Average weekly household expenditure on home maintenance and repairs, by income, 2002/03
• Figure 6: UK population structure, by socio-economic group, 1999-2009
• Figure 7: UK population structure, by lifestage, 1999-2009
• Figure 8: UK population structure, by household size, 1999-2009
• Lifestyle also plays a part in influencing DIY decisions
• Figure 9: Women in employment, 1999-2009
• Ten years of Changing Rooms
• DIY is a leisure activity, not a chore

Market Size and Trends

• Figure 10: The DIY retail market*, at current and 1999 prices, 1999-2004

Market Segmentation

• Figure 11: The DIY retail market, by major product categories, 2000-04

Building materials

• Figure 12: Sales of building materials through DIY retailers, 1999-2004
• Figure 13: The building materials market, by category, 2000-04

Home decoration

• Figure 14: Sales of home decoration products through DIY retailers, 1999-2004
• Figure 15: Home decoration market, by product category, 2000-04
• Paint
• Figure 16: Sales of decorative paint, by product category, 2000-04
• Tiles
• Figure 17: Sales of tiles, by product category, 2000-04
• Wallcoverings
• Figure 18: Sales of wallcoverings, by product category, 2000-04
• Chemicals and adhesives
• Figure 19: Sales of chemicals and adhesives, by product category, 2000-04
• Woodcare
• Figure 20: Sales of woodcare products, by product category, 2000-04

Tools and hardware

• Figure 21: Sales of tools and hardware through DIY retailers, 1999-2004
• Figure 22: Segments of the tools and hardware category, 2000-04
• Figure 23: DIY tools, by product category, 2000-04

Other products sold through DIY retailers

• Figure 24: Sales of other products through DIY retailers, 1999-2004
• Figure 25: Segments of the other products category, 2000-04

The Supply Structure

Distribution channels and background to the multiples

Market shares and major multiple profiles

• B&Q (Kingfisher)
• Figure 26: Kingfisher: DIY sales, 2000-04
• Focus Wickes
• Figure 27: Focus Wickes sales, 1999-2003
• Homebase
• Figure 28: Homebase financial results, 2000-04
• Other DIY retailers

The Consumer

Who does DIY?

• Figure 29: Participants in DIY, August 2004
• Participation in decorating
• Figure 30: Participation in decorating, by gender, age, socio-economic group and working status, August 2004
• Figure 31: Participation in decorating, by tenure, region, area and ACORN categories, August 2004
• Figure 32: Participation in decorating, by detailed lifestage groups, marital status and household size, August 2004
• Figure 33: Participation in decorating, by media usage, commercial TV viewing and supermarket usage, August 2004
• DIY participation
• Figure 34: Participation in DIY, by gender, age, socio-economic group and working status, August 2004
• Figure 35: Participation in DIY, by tenure, region, area and ACORN categories, August 2004
• Figure 36: Participation in DIY, by detailed lifestage groups, marital status and household size, August 2004
• Figure 37: Participation in DIY, by media usage, commercial TV viewing and supermarket usage, August 2004

What DIY tasks do consumers do?

• Figure 38: DIY tasks undertaken, 2002 and 2004

Where do consumers shop for DIY materials and equipment?

• Figure 39: DIY specialist stores used in the last 12 months, by PRIZM groups, 2004
• Figure 40: Variety stores used in the last 12 months, by PRIZM groups, 2004

The Future

• 2005 - at last, a slowdown?
• Game, set and match - B&Q?
• Expanding product lines is the way forward
• Keeping an eye on changing demographics
• DFY - a major new trend among busy consumers?

Forecast

• Figure 48: Forecast of the DIY retail market, 2004-09
• Figure 49: Projected index growth rates, at current prices, 2004-09
• Factors incorporated in the forecast