INDUSTRY COMMENT: YEAR IN REVIEW
TESTING TIMES FACING UP TO
AN INCREASED APPETITE FOR HOME IMPROVEMENT
ONCE AGAIN!
The Covid-19 pandemic continued its march through 2021 causing massive problems for every section of society and businesses, both large and small in many industries. Luckily, the DIY, home improvement and garden sector continued to weather the storm better than most. All this has meant there’s been a mixed response and opinions of 2021 vary, so we’ve canvassed our panel of industry experts once again for their view of yet another challenging year…
RESILIENCE, PASSION AND DEDICATION
Vicky Nuttall – Director, Garden Industry Manufacturers’ Association
This year will forever be the year where pressures
squeezed supply chains like never before. Whether it was labour
shortages, ever increasing raw material costs, freight issues not to mention the dreaded Covid-19 keeping us guessing
about what is around the corner, the whole garden retail sector has been ducking and diving to make it through the year. But survived we have! Maybe a little bruised at times, but mostly we are entering a new year in a buoyant mood. Gardening remains popular despite freedoms opening up again, as the mental and physical wellbeing benefits of this age-old tradition becomes well known within the mainstream. The strength of the housing market and the uncertainty surrounding international travel is also seeing more and more people turn to their outside spaces as an at-home sanctuary. It is an understanding
of this that will help our sector to optimise further growth in the year ahead.
One thing I will say for our sector – and which never fails to impress me – is the resilience, passion and dedication that everyone from manufacturers and suppliers to retailers demonstrates every day, even when faced with the most incredible adversity. From growing businesses, launching new ones, and focusing on innovation, to driving sustainable change within product, packaging and processes, a lot has been achieved in 2021. But this is just the start. Watch this space as 2022 looks set to be another benchmark setting year.
NOT ALL PLAIN SAILING FOR THE DIY MARKET
Andrew Goodacre – Chief Executive, British Independent Retailers Association (BIRA)
It is true to say that there is never a dull year in retailing, and 2021 proved to be no exception. We started the year in a lockdown, and once again the hardware/ DIY shops saw the benefit of being classed as
www.diyweek.net
essential retailers. The ongoing presence of Covid also curtailed spending on leisure activities, further benefitting the DIY
market with more money being spent on homes and gardens. However it was not all plain sailing for the DIY market as we saw increasing pressures on the supply chains. The cost of containers increased by 700-800%. There were
Covid related production problems with factories being closed and ports closed. This made for a very uncertain supply, and lots of supply issues for a whole range of products. Stories of seasonal items arriving late were common – garden furniture arriving in October was not uncommon. There is no doubt that supply chain problems have resulted in missed sales opportunities, and 2022 promises to be no different. Prices have increased continually throughout the year whether as a
result of Brexit or Far East sizing the supply shortage opportunity. Overall we would say that 2021 has been positive with shoppers continuing to shop locally. The festive period has been strong with evidence of people buying earlier than usual. However, as we end the year with Covid regulations firmly in place, we fear that December will not be as buoyant as we might have expected, and there are natural concerns about the start to 2022.
DECEMBER 2021 DIY WEEK 11
Mark Alexander – MD, Benchmark Retail Services
We all came into 2021 with mixed feelings; the Covid-19 vaccine programme had just started and early indications
were of an end to lockdowns and return to normality. On the flip side Christmas had just been cancelled as another wave of infections spread rapidly. But DIY had boomed after the first lockdown, things were looking good.
The question was: what would happen as life did return to normal? And more importantly, would our re-discovered love of DIY continue? At Benchmark we recorded our best six months of trading between July and December 2020 for over 10 years, the appetite for home improvement drove masses of range activity and brought to market long delayed reviews. This year has seen that continue, early on, a combination of social distancing measures, reduced staffing levels and the government’s economic stimulus drove activity for merchandising. The housing market, long the driver of DIY sales has continued to thrive and as a service provider, Benchmark has too. The ability to launch, brief teams and nurture products quickly and economically is continuing to drive sales and judged by our order book, 2022 looks to be more of the same.
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