What's happened to the DIY customers?

In the end the DIY stores achieved total gross sales of € 17.64 bn, according to calculations of the so-called DIY Panel, which have been computed by the GfK on behalf of the BHB, the German DIY retail association. This means that the stores with a heated sales area in excess of 1 000 m² failed by 1.4 per cent to achieve the level of the previous year's result. Sales were 3.4 per cent down in like-for-like terms. However, this approach has made no allowance for the 3 percentage point rise in value-added tax. The BHB reports that the sector experienced a good start to the year, with excellent results until March and April; thereafter the sales trend was in continuous decline, even falling steeply at times. But there were some sales gains as well. These include the garden departments of the DIY stores, where the category of garden furniture and décor expanded by 6.1 per cent, and the garden hardware segment by 4.2 per cent. Electrical goods such as lamps and lighting in the DIY range saw growth of 1.9 per cent. Building materials remained at the previous year's level. By contrast, all the other categories within the core product offer fell below the previous year's result, including classic DIY store products like hardware, tools and machinery. Plumbing departments recorded sales down by 6.6 per cent, and the tiling range was around 7.2 per cent short of the previous year's sales total. Wallpaper, floor coverings and interior décor, along with coatings plus accessories, accumulated a deficit of 4.0 per cent and 5.3 per cent respectively. Sales of the category covering leisure, handicrafts and hobbies, which admittedly only accounts for a share of about one per cent of the stores' total sales, went down by 17.7 per cent. It appears from the information available that the start of the current year has been restrained, with the sector more or less achieving last year's level after the first two months. However, since then the mood has become more optimistic once again: according to the BHB, unadjusted sales growth of 2 per cent might be a possibility for the year 2008.