Garden watering, summer of 2018
Garden watering and garden furniture did extremely well in the super summer of 2018.
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Climate change

Figures dictated by the weather

Climate change has arrived in the home improvement sector – at least, that’s how the sector figures for last year from Germany, Austria and Switzerland are being interpreted
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The home improvement industry in Germany will probably have to get to grips more with the effects of climate change on its business in the future. At any rate, that's what is suggested by the figures put forward last year by the German industry association BHB regarding the trend in DIY retailing. 2018 was a year characterised primarily by an extremely long, dry summer. "Without exception, all months from April to November were excessively warm, excessively dry and very sunny," stated the German Meteorological Office.
Sales in the home improvement sector in Germany increased by 1.6 per cent last year to a gross total of EUR 18.75 bn. Sales on the same store area grew by 1.3 per cent. In presenting the figures, the spokesman of the BHB board, Ralf Bartsch, referred to the unusually large impact of the weather in 2018. The cold spell in March, for example, caused a 16.6 per cent drop in sales, while an unseasonably warm April boosted them by 22 per cent. This showed "the extent to which DIY and home improvement stores depend on the garden business," said Bartsch, who runs the Brüder Schlau company. Touching on the issue of climate change, his fellow board member, Franz-Peter Tepaß of Obi, commented that "we have really felt for the first time in the last year that buying behaviour has changed."
Sales of classic DIY store ranges fell, with tile sales declining by 3.6 per cent and electricals down by 1.8 per cent. On the other hand, garden furniture sales rose by 8.7 per cent, garden equipment by 6.9 per cent and garden watering solutions by 4.5 per cent.
The highest overall sales were achieved with the construction chemistry/building materials categories (EUR 1.89 bn) and by plumbing/heating (EUR 1.75 bn). The garden equipment range (EUR 1.32 bn) displaced tools (EUR 1.31 bn) from the number three slot for the first time. According to the BHB, the sales increase of 7.7 per cent in the technology/office/entertainment assortment category shows the relevance of the smart home product trend, which is included in this category.
As far as e-commerce is concerned, the BHB currently estimates that online sales account for between five and six per cent of the most recent total gross sales for the sector, which would be equivalent to around EUR 1 bn.
It was a similar situation in neighbouring Austria. Home improvement retailers here recorded total gross sales amounting to EUR 2.56 bn in fiscal 2018. This was equivalent to growth of 1.4 per cent, with like-for-like sales…
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