DIY store sales on the rise again

There are good signs of an improvement in the sales climate in DIY retail in Germany after the first quarter of 2024: with an increase of 4.4 per cent compared to the same period last year (like-for-like +4.5 per cent), the figures are climbing again after eight months in a row in Germany. The month of March in particular saw the most noticeable growth with an increase of 9.6 per cent. In total, DIY and garden centres in Germany generated EUR 4.76 bn in the first quarter. These figures were recently published by the BHB.

The first quarter looks somewhat more subdued in neighbouring countries: sales in Austria are up +2.8 per cent (EUR 645.3 mio). After three months, Switzerland is still in the black (CHF 729.2 mio, EUR 746.8 mio).

However, the BHB does not - yet - see any reason for euphoria: on the one hand, sales in Germany slumped significantly in the same quarter of 1/2023, and on the other hand, items from the construction segment have not yet been able to emerge from the trough.

Garden product ranges reflect the situation most clearly

A look at the sales development in the individual product ranges clearly confirms this trend. According to BHB figures, sales for items in the garden chemicals/soil/seeds segment increased by 43.5 per cent compared to the same period last year, closely followed by growth for living greenery (+39.4 per cent), garden tools/irrigation and drainage (+36.1 per cent), garden equipment (+16.7 per cent) and garden furniture (+15.2 per cent). The tiles (-15.2 per cent), furniture (-9.7 per cent) and construction elements (-8.2 per cent) segments recorded significant declines.

In Austria, the situation is similar for the product ranges. At +28.5 per cent, garden furniture saw the strongest growth, followed closely by living greenery at +27.5 per cent. Garden chemicals/soil/seeds also sold better than in the same period last year at +25.7 per cent. The sharpest decline in Austria was recorded for building materials/construction materials (-21.8 per cent), and there was also a noticeable drop for tiles (-15.1 per cent).

The situation is similar for DIY and garden centres in Switzerland: while garden chemicals/soil/seeds (+19.1 per cent) and living greenery (+16.1 per cent) increased, tiles (-13.1 per cent) and furniture (-11.2 per cent) saw double-digit declines.

‘The trend can certainly not yet be described as stable, but at least it allows for cautious optimism,’ emphasises BHB board spokesman Franz-Peter Tepaß. ‘Basically, we expect inflation to stabilise at a lower level and the improvement in wages for many employees to boost consumer sentiment again somewhat. If the weather then remains stable and a positive mood develops around the European Football Championship in our own country, this could also provide very good impetus for the business of DIY and garden centres.’