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UK DIY industry to reach a value of £8.3 billion in 2017

Press Release   •   Aug 27, 2013 09:37 BST

The UK DIY industry has been forecast to contract by 0.6% in 2013, marking the sixth consecutive year the market has declined, however there should be signs of a recovery towards the end of the year.

UK DIY demand has been in steady decline since 2005 and as demand recovers, it is hoped that the promotional climate, and margins, will recover faster than expected.

DIY has been severely affected during the downturn as shoppers shied away from discretionary purchases while the weak housing market provided little stimulus to buy. From 2008 to 2013, DIY declined by 20.2%.

Tools and equipment was the worst affected sector as major redecorating projects were deferred and shoppers kept using existing tools.

In 2012, Kingfisher, the owner of B&Q, suffered a 5.2pc decline in like-for-like sales while Homebase suffered a 4.9pc drop.

The unpredictable weather in the UK last year, particularly the wet summer, undoubtedly dampened the performance of DIY retailers.

Apart from the influence of weather, datapoints in UK home/DIY have started to improve this year. Ongoing government measures - Funding for Lending, Help to Buy - should lead to increasing house prices and housing transactions, and a desire to embark on home improvement

The UK DIY sector has been forecast to grow again in 2014 and will increase each year after that, for a market value of £8.3bn in 2017. Inflation will initially drive growth before volumes improve later as the housing market recovers.

All sectors will grow by at least 7.8% between 2013 and 2017 with decorative materials leading the way growing by 12.3%.

For more information on the UK DIY industry, see the latest research: UK DIY Industry

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