The market is growing

According to data compiled by British market researchers Verdict, in 2004 the DIY and garden market in the United Kingdom grew by 4.9 per cent over the previous year to achieve a figure of € 24.2 bn (£ 16.8 bn).
In 2004 events in the UK were once again dominated by the three major DIY multiples. Homebase seems to have been making good money as part of the Argos group, while B&Q has powered ahead, particularly in terms of international development and the expansion of its Warehouse and Mini Warehouse formats. During the year B&Q opened its largest-ever DIY store in the United Kingdom: a 15 200 m² outlet in Manchester.
It was a year that started off once again with speculation that Home Depot, the giant American DIY retailer, could be planning to make a move onto the UK market. Once again the speculation came to nothing.
It was also a year in which the complaints of suppliers became perceptibly louder. It is clear that not everyone is benefiting from the DIY boom. Homebase in particular had some problems with its suppliers towards the end of the year, as it tried to implement new business conditions.
The Christmas selling period was generally reckoned to be a success, and various respected market researchers suggested during the year that DIY would remain one of the strongest areas of retail in the UK during the coming years.
The year’s most significant development was the dissolution of the Focus Wickes group. Focus, historically one of the smaller groups in the UK, went on a buying spree some years ago and acquired the former Great Mills and Do It All chains, which it absorbed. It also bought Wickes, which it continued to run as a separate chain. However, at the turn of the year Wickes was sold off to the builders’ merchant chain Travis Perkins. Although some builders’ merchant operators have had DIY businesses in the past, this is the first time that such large merchant and DIY operations have been joined together. Wickes has always had a greater focus on the “heavier“ end of the market than the other DIY retailers, and it will be interesting to see what further heavyside expertise the new parent company brings to the segment.
The transaction leaves Focus with 259 stores and € 1.37 bn (£ 950 mio) in the bank. Focus is planning to continue to develop the business, investing in further refits and store improvements.