UK DIY & Gardening Sector Report summary
April 2024
Period covered: Period covered: 25 February – 30 March 2024
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
DIY & Gardening Sales
DIY & Gardening sales fell by xx% YoY in March, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).
ONS data shows the wider Household Goods category faced shop price inflation of xx% in March.
Within household goods, both DIY & Gardening and Furniture & Flooring (xx%) saw negative sales performance, compared to a positive figure of xx% for Homewares.
Mixed DIY sales
DIY & Gardening sales were subdued in March. However, seasonal influences on demand meant that some product areas performed better than others.
Inflation eased to the lowest level since xxxx in February, rising by xx% YoY but remained above expectations. This cast further doubt on the onward trajectory of interest rate reductions, fuelling hesitancy to make big-ticket purchases for the home.
It comes despite prices of furniture and household goods experiencing the largest fall since xxxx in March, driven by a combination of easing shipping costs and heavy discounting on the part of retailers, which saw shop price inflation at household good stores ease by xx% in the month (ONS).
GfK’s measure of consumer confidence was unchanged from the previous month in March at xx, but the Major Purchase Index fell xx points further into negative territory at xx.
While spending on big-ticket items and home improvements projects was muted, the approach of spring and Easter sustained demand for smaller and garden-related goods.
Subdued demand
The first quarter of 2024 has seen sticky inflation and uncertainty around the onward trajectory of interest rates further erode demand for large-scale home improvements, particularly among mortgagors.
Topps Tiles reported a downturn in sales and profit over the 26 weeks to 30 March, attributing the decline to a "weaker market." The retailer experienced a xx% YoY decrease in total group sales to £xx, compared to a "record revenue performance" in 2023.
Like-for-like sales fell by xx% in the second quarter, which the retailer attributed to reduced footfall and volume. The retailer noted particularly muted demand in the domestic maintenance and improvement sector, evidenced by a drop in footfall among the “homeowner customer group”.
On the other hand, the retailer’s online pureplay business Tile Warehouse recorded xx% growth on an annual basis, reflecting healthy demand from younger, “online-first” consumers, who use the platform for cheaper and essential home improvements products.
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Price and sales expectations improve
Source: RICS
