Homework well done

The European DIY industry is still feeling the effects of the 2009 crisis. The international “homing” trend, which prompts consumers to make themselves comfortable with-in their own four walls (including the green living space on balcony or patio), has not been able to compensate for the negative consequences of the downward performance of the economy. This is confirmed by a look at the Big Three countries that this issue of DIY International deals with in its regional report: only in Germany has the sector turned in a clear plus result. The assessment for the United Kingdom depends on whether the euro or the pound is used for the calculations, and in France there was a decline in sales for the very first time. Does this mean that the European DIY retail sector is weakened in general? Many indicators speak against this. By no means the least important of these pointers is the fact that the three core countries have strong market leaders, which not only stand out in their domestic markets because of a numerical superiority in terms of outlets and the size of their turnover, but which also provide the market with fresh momentum. With a turnover of £ 10.5 bn, the British Kingfisher Group is not only Number 1 in Europe and the United Kingdom (B&Q) plus Number 3 worldwide, but also leads the field with a topic that will continue to keep the industry busy for a long time yet: it is pushing through the idea of sustainability on many different levels. This has long since caught on in France as well. Kingfisher is also the market leader here, with a turnover of € 5.742 bn. Leroy Merlin, the biggest individual brand, belongs to the French Groupe Adeo and is Number 2 in Europe with € 11.24 bn. This is another retailer that has added the topic of sustainability to its agenda. In Germany the market leader has cleared up a question of crucial importance. Obi, the third largest DIY trading group in Europe with sales of € 5.043 bn, has declared its unequivocal support for franchising, after years of preoccupation with its own problems. The company’s partners have just signed a new contract with head office. The strengthened situation of the market leaders is substantiated not least by some figures from the GfK that were presented at the 1st European Home Improvement Forum (which DIY International covers in detail): when questioned about where they prefer to do their DIY shopping, consumers in the three relevant countries name B&Q, Leroy Merlin and Obi. Which shows…