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Andrew RossDIY in Europe, UK
Twenty years ago or more, grocery retailer Tesco had non-food areas devoted to home products that included DIY and clothing. There were even garden centres at some stores. As the DIY retail sector began to grow at the end of the eighties, Tesco decided to withdraw these elements from most of its stores and concentrate on selling food instead. This year it seems as though things have gone full circle. The food retailers are once again looking enviously at the higher margin possibilities which exist in DIY and other products for the home.
Leading the way is Tesco, with the opening of a number of exclusively non-food stores. However, other supermarket operators including Waitrose, Aldi and Spar are joining the trend. Asda has had a significant non-food offering for some years, mainly clothing, and is now set to step up a gear. To the consumer, the proposition of offering DIY products to those doing their weekly food shopping is an appealing one. Equally attractive to retailers is the ability to entice customers into their stores by means of offering eye-catching promotions from the DIY segment.
But are these new suppliers of DIY products really any good at it? Although many of the principles of retailing are standard and applicable to any sector, the history of retailers from outside this sector is not a happy one. One only has to think of the non too good experiences suffered by the pharmacy chain Boots when attempting to run the Do It All business. Evident there was a little too much general retailing theory and too little understanding of the DIY trade. Whether the supermarkets are eventually successful will depend on the buying habits of consumers. Those undertaking major home improvement projects will continue to shop at DIY stores. But consumers who only want a tin of paint, a few screws or a smoke alarm will now be able to pick them up in the supermarket. If enough consumers are happy to shop in this way, without the reassurance provided by a specialist DIY store, the grocery retailers will undoubtedly find a good market in DIY.
Twenty years ago or more, grocery retailer Tesco had non-food areas devoted to home products that included DIY and clothing. There were even garden centres at some stores. As the DIY retail sector began to grow at the end of the eighties, Tesco decided to withdraw these elements from most of its stores and concentrate on selling food instead. This year it seems as though things have gone full circle. The food retailers are once again looking enviously at the higher margin possibilities which exist in DIY and other products for the home.
Leading the way is Tesco, with the opening of a number of exclusively non-food stores. However, other supermarket operators including Waitrose, Aldi and Spar are joining the trend. Asda has had a significant non-food offering for some years, mainly clothing, and is now set to step up a gear. To the consumer, the proposition of offering DIY products to those doing their weekly food shopping is an appealing one. Equally attractive to retailers is the ability to entice customers into their stores by means of offering eye-catching promotions from the DIY segment.
But are these new suppliers of DIY products really any good at it? Although many of the principles of retailing are standard and applicable to any sector, the history of retailers from outside this sector is not a happy one. One only has to think of the non too good experiences suffered by the pharmacy chain Boots when attempting to run the Do It All business. Evident there was a little too much general retailing theory and too little understanding of the DIY trade. Whether the supermarkets are eventually successful will depend on the buying habits of consumers. Those undertaking major home improvement projects will continue to shop at DIY stores. But consumers who only want a tin of paint, a few screws or a smoke alarm will now be able to pick them up in the supermarket. If enough consumers are happy to shop in this way, without the reassurance provided by a specialist DIY store, the grocery retailers will undoubtedly find a good market in DIY.
