Let’s Spring into action…
As we enter another year with that feeling of uncertainty, it’s important to remember how incredible retail can be at adapting… after all, those of us who have been in the industry for many years know how fast-paced it can be, and that we need to be both resilient and creative in our approach.
One thing we know for sure is a lot of consumers are creatures of habit, so what do we think about once the festive season is over and the decorations are packed away for another year? Everyone looks forward to Spring, right? And within retail Spring can mean only one thing…
Home Improvements, DIY, Gardening… the Spring Clean, and a general spruce up of everything around us! We also know most of the Home, Garden, and Home Improvement sector has successfully managed to steer themselves through the pandemic, and dare we say it… starting 2022 in a more robust format compared to more challenged sectors.
The Home, Garden & DIY Sector
As the coronavirus outbreak was forcing many governments worldwide to impose lockdowns and consumers were advised to practice social distancing and stay home, DIY activities saw a surge with individuals in the UK. Between March 9-15, 2020, online sales of home improvement and gardening retail products grew almost by fifty percent compared to the same period the year before.
Statistics show the total annual turnover of retail sales of decorating and DIY supplies in the UK reached 7.2 billion pounds in 2019.
The annual retail sales volume in household goods stores in the UK was worth approximately 34.6 billion pounds in 2020, slightly up from a year earlier where the value stood at 34.2 billion.
The worldwide home improvement market was valued at 763 billion U.S. dollars in 2020. With a compound annual growth rate (CAGR) of more than four percent, the home improvement market value was expected to surpass the trillion-dollar mark by 2027.
The strength of the DIY sector is demonstrated by one of the leading retailers in the UK, coming right after our biggest grocery retailers, being the DIY and home improvement sector: Kingfisher plc. The company owns two of the UK’s most popular DIY retail stores, B&Q and Screwfix. While B&Q focuses on home improvement, gardening, and home furnishing products, Screwfix is a retailer at the heart of hardware tools and building materials.
B&Q has seen 3.7bn pounds worth of sales between 2011 – 2021
In 2021 Screwfix, the multi-channel retailer was set to exceed its target for store openings this year, creating more than 700 jobs in total across local communities in the UK and the Republic of Ireland (ROI). In March 2021, Screwfix announced plans to have open more than 50 stores throughout the rest of 2021 – they exceeded targets with a total of 70 new stores opened or due to open within the next month.
John Mewett, Screwfix CEO, said: “Currently, 98% of the population live within a 30-minute drive of a UK store, so our continued expansion ensures we can bring Screwfix closer to even more customers.”
The growth of Screwfix is supported by Kingfisher, its parent company, whose “Powered by Kingfisher” strategy focuses on empowering its distinct retail banners in key areas such as its own exclusive brand development, buying, and sourcing, e-commerce, technology, and services.
If we take a look away from Kingfisher, there are currently 5,891 specialised stores across the UK selling hardware and paints.
Generalised hardware such as Wilko who have DIY, homeware, and garden sections have achieved 1.28bn in the UK from campaigns such as ‘lots of little wins’.
An insight into Trends for 2022
The trend for home improvements will be very much at the forefront of people’s minds. This is due to many factors… one of which is that the general public is spending so much more time at home and wanting to invest more into their properties.
Whilst key improvement jobs for 2020 were based around maintenance and repair, plumbing, and general painting and decorating. 2021 saw more focus on general decorating, new carpets, kitchens, and bathrooms, and organising a better home/office space.
A little research from an independent home improvement platform is highlighting 2022 will see people investing more In their gardens and home space – 64% of UK residents say that outdoor space when purchasing a home is now more important to them than ever.
Interestingly, 38% of those working more from home want to invest further in a better home/office workspace… ideally being able to keep office space segregated from the main living space.
57% of UK residents want to be more eco-friendly… this is becoming an important part of home and DIY decision making. One retailer that is tackling sustainability and reducing plastic packaging is IKEA
The IKEA buy-back service was introduced globally to make it easier for customers to give the furniture a second life and is part of the company’s mission to become climate positive and circular by 2030. Customer research showed that many people felt bad about throwing things away and preferred to repair, reuse or recycle – but lacked the time, knowledge, or energy to do so.
In line with the commitment to have a positive impact on both people and the planet, IKEA will phase out plastic from consumer packaging solutions. The phase-out will happen in steps, starting with an all-new range by 2025. With this phase-out, IKEA aims to reduce plastic waste and pollution whilst driving the industry agenda to develop packaging solutions centred around renewable and recycled materials.
Having a trusted in-store agency can really support your consumer engagement and ongoing sales…
At Mirror we have extensive experience across the Home, DIY, and Garden Sectors. We work for some amazing well-known brands and in some cases specialists brands within building merchants. We find merchandising and product placement works extremely well. Premium positioning in the trade and DIY sheds, alongside eye-catching and informative POS, can genuinely achieve great sales figures.
Sales activation and in-store support, such as Brand Ambassadors give authority and a better understanding of your product range. This can be really effective when a consumer is struggling with decision-making – especially when they are faced with many different options or brands to choose from. This can be relevant for a lot of hardware items from paints to power tools or gardening products.
Field Sales teams can be an extremely viable option for those brands that require support throughout the year. This can be in the form of strategic or ad-hoc tactical teams. A lot of brands within the DIY, Home, and Garden Sector can be seasonal purchases. A good example of this is gardening and ensuring your key seasonal ranges are in prominent positions at the correct times, during both the retail and seasonal calendar. For example, planting tools in spring, grass cutting and maintenance spring/summer, and leaf blowers in the Autumn.
We pride ourselves in looking after our clients and supporting them to achieve their goals across retail and beyond. If you are interested in having a chat with us or finding out how we’ve supported some of the UK’s top DIY, Home, and Gardening Brands – give Pip a call on 01737 457477 or email email@example.com