Ready for a DIY revival

At the beginning of a period of nearly 500 days without a government since the last elections, the Belgium of the business world – and by definition that of DIY and garden as well – has for its own sake to keep its nerve…The economic recession – and even more the threat of a second shock – has had a direct impact on the modus operandi of all the protagonists in the world of DIY and garden. These changes have resulted in a reshuffling of the top four in terms of position, results and both medium- and long-term forecasts. The “DIY Market Intelligence Belgium” is obtained by means of GfK figures representing nearly 85 per cent of the DIY world, of which the “Big 4” (Hubo, Brico, Gamma and Mr. Bricolage) stand for almost 70 per cent of the volume of turnover. Based on this body of figures, a cautious estimate puts the total market at some € 3.1 bn, which includes some big independent players as well. The players overall have suffered severely from the economic situation and are still under continuing pressure; all the more so because the weather conditions have aggravated the situation, particularly for the garden sector. Whereas the 2010 figures barely covered the rate of inflation (+1.5 per cent), forecasts to late 2011 expect a slight improvement. The expansionary momentum is somewhat reduced, with just 15 openings over the past 12 months. The exceptions here are Hubo and Mr. Bricolage, which are consolidating their national and regional coverage respectively. Market leader Brico (130 stores and a market share of almost 35 per cent) has, to the regret of many, lost the positive momentum of earlier times, particularly since the announcement that the Maxeda investment fund has for (far too) long been negotiating the sale of its DIY portfolio (Brico, Praxis and Formido). Brico is doing its utmost to make the best of the situation. The figures are far from encouraging, all the more so since the latest store concept (on a former Ikea site) is failing to provide the expected results. Nevertheless, the group is persisting in developing its neighbourhood formula (City). The big challenge for Brico now consists in finding the perfect common denominator for these different store formats by having the best possible management team. Hubo, the number two (120 stores and a market share of almost 23 per cent), is confirming its double-digit performance of recent years and reinforcing its position, thanks to a strategy of expansion based on perfect mastery of the market…