What are the growth levers in the mature D.I.Y. market?
John Herbert, General Secretary of European DIY Retail Association
As the D.I.Y. retail sector is seeing unexpected moves, with international takeovers and omnichannel shift, Global Retail News met John W. Herbert, General Secretary of European DIY Retail Association and Valerie Dequen, General Delegate of Unibal federation.
Global Retail News: Like the home furnishing sector, the D.I.Y. market is directly linked with the purchases of new homes. Could you explain why?
Valerie Dequen: When young people rent a flat, they rarely make significant home improvement work such as arranging a new kitchen, a bathroom, etc. Once they become property owner, everything changes and they become eager to undergo major renovation works. The D.I.Y. (Do It Yourself) market is structurally linked with the sales of flats and homes, which have decreased since the 2008/2009 crisis. In France for instance, real estate transactions dropped by 40% in the last 7 years. Considering such a drop, the D.I.Y. market resisted pretty well. As soon as home transactions will start again, the D.I.Y. market will naturally follow.
Global Retail News: How performed the D.I.Y. retail sector recently?
John Herbert: At a global level, the D.I.Y. market remains a very exciting business offering opportunities for good retailers. The U.S.A., Australia and South America seem to be doing well (except for Brazil of course). In Europe, the D.I.Y. retail sector is rather mature with sales of €130.2 billion in 2014, and it’s about stagnant year-on-year. Russia is not doing very well at the moment, D.I.Y. retailers are down in sales compared to one year ago. The world’s biggest D.I.Y. markets are the U.S.A. (sales of €255 billion in 2014), followed by Germany (€36 billion), France (€24.8 billion) and…