INDUSTRY COMMENT: YEAR IN REVIEW


BRACING FOR ANOTHER TURBULENT YEAR IN GARDENING


Vicky Nuttall Director, GIMA


Garden retail continues to hold up in


comparison to the wider retail environment. Despite some difficult and


wet weather conditions, core gardening and garden sundries sales have held up well and members who deal in these categories are looking ahead to another strong season next year. The supply chain challenges of the pandemic are still having an impact in places, with some stock hangovers particularly for items higher ticket items that sold well during the pandemic.


Larger more decorative items, landscaping and some outdoor living categories have found it more difficult, with the drop in consumer confidence and cost of living crisis also impacting. But with the ongoing interest in gardening and the ‘improve not move’ trend for the home, most suppliers are still optimistic about 2024. There are still challenges ahead for all businesses regardless of size or category. With the costs of doing business on the rise for everyone – increases in the living wage, higher energy costs etc, the squeeze on margins is apparent throughout the whole supply chain, including retailers. Many suppliers will also be bracing themselves for the changes to EPR and ongoing costs that they will face for the first time next year.


RESPONDING TO DEMAND AND OPPORTUNITIES WITH RENEWED FOCUS


Kimberley Hornby Managing Director, Hornby Whitefoot PR


This has been a ‘different’ year. A very late season has seen 2023 shaped by caution as we tread carefully


in a world of unknowns. Global issues have certainly driven much of this, with the good old weather also playing its part, often keeping consumers out of the garden and certainly delaying spending. This has often left us feeling as though we’re swinging from chasing our tails to sitting and waiting


e-commerce has revolutionised how consumers access and purchase DIY and hardware products. Online platforms provide a vast array of options, making it easier for individuals to find the right tools and materials for their projects. This digital transformation has also led to a more informed and empowered consumer base, with user reviews and online communities offering valuable insights but this has worked to increase the requirement for knowledgeable retailer and well stocked retailer to satisfy and deliver those consumer enquiries.


A POSITIVE OUTLOOK FOR THE HOME IMPROVEMENT INDUSTRY


Ricky Johal


Head of Marketing, DK Tools


As we step into the promising landscape of 2024, the home improvement


grow 0.5% YoY, outperforming gardening & outdoors. Within DIY, decorative DIY and tools and security were the strongest performing categories, both growing 0.7% YoY. High interest rates have restricted people’s ability to move homes and resulted in many turning to decorative DIY to improve the look of their current homes. Likewise, growth within tools and security has been driven by consumers avoiding using tradespeople for minor tasks.


www.diyweek.net


industry, including stalwarts like DK Tools, faces a unique set of challenges following a tumultuous year. The hardware retail sector, weathering the storm of a worldwide cost of living crisis, has witnessed significant impacts on demand, driven by escalating food, fuel, and energy prices. Additionally, the industry has grappled with the sombre backdrop of geopolitical conflicts in Ukraine and Gaza, contributing to a sense of unease and low morale. In the face of adversity,


hardware retailers and trade DIY suppliers must adopt a resilient mind-set and proactively address the challenges that lie ahead.


Adaptability and innovation: Embrace adaptability as a core principle. Explore innovative solutions to streamline operations, reduce costs, and meet the evolving needs of consumers. Investing in technology and digital platforms can enhance efficiency and provide a competitive edge. Sustainable Practices: The


growing emphasis on sustainability offers a significant opportunity. Consider adopting eco-friendly practices, from sourcing materials responsibly to offering energy- efficient products. Demonstrating a commitment to sustainability not only aligns with current consumer preferences but also contributes to long-term environmental and economic goals.


Community engagement:


Strengthen ties with the local community. Collaborate with other businesses, participate in community events, and support initiatives that resonate with your customer base. Building a sense of community fosters customer loyalty and can serve as a beacon of positivity during challenging times. Employee well-being: Recognise the importance of employee well-being. In an


industry where morale is tested, prioritising the mental and physical health of your team is crucial. Implement wellness programmess, offer training opportunities, and create a supportive work environment to boost morale and productivity. Remember, great customer experience (CX) starts with nurturing employee experience! Marketing strategies: Develop strategic marketing campaigns that resonate with the current sentiments. Highlighting cost- effective solutions, value-driven promotions, and the quality of your products can capture the attention of shoppers.


While the challenges of 2023 have undoubtedly left their mark, the home improvement industry has a resilient spirit. By focusing on adaptability, sustainability, community engagement, employee well-being, and strategic marketing, businesses can not only navigate the challenges but also pave the way for a successful and uplifting year ahead. As we move forward, let’s harness our collective strength and determination to shape a brighter future for the industry.


DECEMBER 2023 DIY WEEK 15


for the inevitable to happen. But when the sun shone and wallets were dusted off, it was frankly, glorious. It will never fail to impress me how suppliers and retailers can respond so rapidly to demand, whilst also advocating for innovation and greener solutions. On the latter, there has been a definitive shift during 2023, with greenwashing being called out and a greater focus on truly sustainable practices taking control. Looking ahead to 2024 I think quiet optimism is the overarching goal. Gardening will forever be popular, and stock/Covid-19 hangovers are finally a thing of the past, leaving our sector with a clean slate, new opportunities and a renewed focus.


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