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Even if the DIY superstore is right at the top of the list of household expenditure in France – accounting for double the amount allocated to furnishings or sport – changes are still in evidence. There is no doubt about the enthusiasm shown by the French for do-it-yourself: a family will visit its DIY store six times a year on average.
But the market is growing only slowly, and is no longer even approximating earlier figures. Nobody can remain indifferent to the discount boom (including the Brico Dépôt retail channel), which is forcing all operators to rework their strategies and look for new ways to stimulate growth.
Over the months the price argument has come to occupy an important place in the economic strategy of the retail sector. In view of the expansion of the discount business, the DIY retailers are segmenting their product offer more clearly by price and with regard to the price-quality relationship in order to show their customers that they, too, are capable of offering attractive products. This has led to a noticeable slowdown where price increases for DIY products are concerned. Whereas the rate was 2 per cent in 2002, it amounted to just 0.7 per cent in 2004 (Xerfi).
The problem is one of size for the operators on the frontline. As a means of emphasizing their identity in comparison with the discounters, the DIY retail channels have invested in new store concepts and upgraded segments that offer significant margins, garden and decoration above all. This is dependent on customer advice, the training of sales staff and communication. However, more than ever before they are also preoccupied with lowering their costs in a market that is less prosperous and offers a regulatory framework that is not exactly favourable to them. The two industry associations, La Fédération des Magasins de Bricolage (FMB) and Unibal, simply have to react to the situation and rediscover a source of sales growth other than by growing volume.
Agnès RichardDIY in Europe, FranceEditor-in-chief, Univers Hebdo
But the market is growing only slowly, and is no longer even approximating earlier figures. Nobody can remain indifferent to the discount boom (including the Brico Dépôt retail channel), which is forcing all operators to rework their strategies and look for new ways to stimulate growth.
Over the months the price argument has come to occupy an important place in the economic strategy of the retail sector. In view of the expansion of the discount business, the DIY retailers are segmenting their product offer more clearly by price and with regard to the price-quality relationship in order to show their customers that they, too, are capable of offering attractive products. This has led to a noticeable slowdown where price increases for DIY products are concerned. Whereas the rate was 2 per cent in 2002, it amounted to just 0.7 per cent in 2004 (Xerfi).
The problem is one of size for the operators on the frontline. As a means of emphasizing their identity in comparison with the discounters, the DIY retail channels have invested in new store concepts and upgraded segments that offer significant margins, garden and decoration above all. This is dependent on customer advice, the training of sales staff and communication. However, more than ever before they are also preoccupied with lowering their costs in a market that is less prosperous and offers a regulatory framework that is not exactly favourable to them. The two industry associations, La Fédération des Magasins de Bricolage (FMB) and Unibal, simply have to react to the situation and rediscover a source of sales growth other than by growing volume.
Agnès RichardDIY in Europe, FranceEditor-in-chief, Univers Hebdo
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