Marco Amasanti is a Retail Analyst specializing in spending on the house, together with DIY, electricals and furnishings
As residence and DIY retailer Kingfisher studies its revenues have been up 61.9% to £4.4 billion, we spotlight how the altering shopper focus in direction of residence enhancements has contributed to the corporate’s success over the previous yr.
Kingfisher’s manufacturers embody B&Q, Screwfix, and French retailers Castorama and Brico Depot.
COVID-19 gave a lift to the house enchancment market
What a distinction a yr makes… This time final yr, Kingfisher’s gross sales had fallen sharply throughout residence retail, as shoppers withheld near-all non-essential spending and the overwhelming majority of shops had been closed for at the very least the earlier month. Since then, nonetheless, home improvement has proved to be among the best performing markets across retail, as it was elevated by prolonged intervals inside and the rise in versatile dwelling calls for.
In actual fact, since their shops reopened after the primary lockdown in Might 2020, Kingfisher and main DIY specialists haven’t seemed again – with double-figure gross sales development throughout the market. These retailers have additionally helped drive a lot of the shift to ecommerce, as many, significantly newcomers, proceed to look to their experience when buying on-line.
Given this shift in shopper behaviours, Kingfisher’s launch of Screwfix as an online-only retailer in France is intriguing. This chance has been outlined by the large success of Amazon, which has grown into a serious DIY vacation spot throughout Europe prior to now yr; but in addition, ManoMano, which has proven the demand for specialists within the on-line sphere.
The DIY pattern is for the long run
These modifications over the previous yr will undoubtedly have longer-lasting implications. Amongst specialists similar to Kingfisher, development has additionally been pushed by the newfound confidence for Do-It-Your self, which has partially reversed the rising pattern for Do-It-For-Me (paying another person for the service), as seen over the previous decade. Accordingly, this panorama has supplied a springboard for these big-store DIY specialists to consolidate sooner or later.
Nevertheless, they have to act now to capitalise on this. Maybe foremost, specialists can use this chance to spice up engagement with historically much less engaged demographics, similar to youthful and feminine shoppers. Equally, given the unprecedented development in ecommerce, these specialists should higher leverage their retailer networks to increase their USPs to shoppers buying on-line. In actual fact, this extension of the in-store expertise on-line and constructing of a extra full multi-channel purchasing expertise might be essential to their future prosperity, significantly within the fightback towards non-specialists and pure gamers.
What we predict
Within the coming years, Mintel expects specialists similar to Kingfisher to proceed to develop; nonetheless, this can stabilise as restrictions ease additional and different non-essential sectors, similar to journey, leisure and clothes, return totally to the desk. This forecast might be buoyed by the windfall of larger residence enchancment tasks, similar to kitchens, extensions and gardens, that are set to get well after a lulled yr. Look out for extra dialogue on the British and European DIY market in our upcoming DIY Retailing – UK, Might 2021 and DIY Retailing – Europe, Might 2021 studies.