World of endless choice

According to Verdict, the UK DIY and Gardening market peaked in 2004 at GBP 13.5 bn. In 2013 it was less than GBP 12 bn, a decline of over ten per cent from the 2004 peak. B&Q's sales have not exceeded the GBP 4 bn reported in 2004 and Homebase sales have hovered around GBP 1.5 bn over the last ten years, despite competitors such as Focus DIY and MFI going out of business. But not everyone is struggling to grow. Screwfix has grown rapidly with sales up from GBP 479 mio in 2010 to GBP 665 mio in 2013, helped by a major store expansion programme (372 stores). The Range has more than doubled its store numbers (95) since 2009 and is reporting strong sales growth. Since 2011, Next have been adding new standalone "Home & Garden" stores. Kingfisher's two UK subsidiaries provide an interesting case study. Because B&Q is targeting a broad section of the population (tradesmen, serious DIYers and also 'home enhancers') it is hard to provide a proposition that stands out in the minds of such different consumer segments... and in a world of Amazon, Google and Ebay your offer needs to stand out. Screwfix targets a smaller number of customer segments and can tailor its offer to these segments more closely. A great example is its five minute 'click and collect' service that appeals to the tradesman who values convenience.

In this world of endless choice, consumers are calling out for brands that they can engage with, not just on a functional level but also on an emotional level. With our attachment to our homes, DIY retailers and suppliers have a great opportunity to make an emotional connection if they can help be a part of consumers' projects. So what are retailers doing to build their brands with a compelling proposition, whilst also ensuring they deliver growing sales and profits? In this new digital world, it can be easy to get too focused on technology. Products remain at the heart of any successful retailer's offer. Rather than offer everything, retailers can use deep customer insight to tailor their ranges to their target customers, making product selection easier. Use of Exclusive Brands to offer products no one else does, also plays a role as does constantly bringing in new and innovative products. A recent IDC forecast estimated that…