INDUSTRY COMMENT: BHETA


BETTER THAN PREDICTED - WITH MORE IMPROVEMENT TO COME


A viewpoint from Will Jones, Chief Operating Officer of BHETA - the leading UK Trade Association for manufacturers, importers, and distributors who operate in the home Improvement and garden sectors.


aimed at suppliers and retailers and pulling together multiple sources of data on recent trading in the home improvement, DIY, housewares, garden, and small domestic appliances sectors.


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Including category size, growth rates and consumer behaviour, and the macro-economic view, it shows that while there are plenty of challenges, things are better than predicted in terms of overall economics, and the DIY and garden category performance saw a relative improvement throughout 2022. Q4 in particular was supported by demand for energy efficient products, and while growth was lower than the YOY figure, total


HETA has just


published its latest quarterly economic report, a comprehensive market insight


expenditure remains above pre- pandemic levels. Moreover, 2023 Q1 has started off better than expected too. In 2022 overall, DIY


Gardening saw sales down by -10.1% versus 2021, amid rising cost- of-living pressures, coupled with higher inflation on DIY products. The category was also impacted by consumers having already brought forward purchases during the pandemic. However, Kingfisher was not alone in reporting a stronger end to the year. In its November results, it highlighted the strong start to Q4, with like for like sales up 2.8% for three weeks to 19th November 2022, backed by ongoing strength in energy efficiency product sales and demand from the trade segment. The moderation in retail price inflation towards end of the year and a restriction free Christmas (after three years), also provided a boost.


and


Categories on the up While Gardening and outdoor overall declined in the same period, sub- category, outdoor living performed more strongly, aided by relatively warmer weather in October and November. The Bathroom Furniture sub-category also performed well, growing 9.0% year-on-year against a positive comparative in Q4 2021. The essential nature of these products continues to boost demand, with purchases driven by replacement of old or worn-out items. Kitchen furniture experienced a double- digit growth this quarter, as retailers fulfilled orders from previous quarters, boosting recognised revenue. Additionally, consumers were buying into new looks and designs, in anticipation of social gatherings.


One key point here – suppliers and


retailers of similar big-ticket items must ensure they bring innovative product designs to market to maintain this trajectory, as well as cost-effective options for the under- pressure demographics.


Predicting 2023 As we know from the Budget, the Office for Budget Responsibility (OBR) has brightened its forecast with a shallower economic downturn short term, an uplift to medium term growth and an overall improvement in the offing. The UK will avoid recession this year and begin growing earlier than previously estimated, reaching its pre-pandemic peak by mid-2024. After peaking at 11.1% in October of last year, inflation is now forecasted to fall rapidly to 2.9% by the end of 2023. The forecast expects two years of close to 0% inflation in 2025-26. In DIY and garden, several categories are showing healthy growth


www.diyweek.net


in consumer interest online so far in 2023. While that doesn’t necessarily directly translate into positive sales growth it represents a strong start particularly in categories relating to energy efficiency and trade projects.


VOLUME OF UK GOOGLE SEARCHES YOY (Q1 2023)


Draught Excluder +40% Loft Insulation +26% Door Handles +15% Pipe Cutter Fixings


Paint Brush


+11% +11% +7%


Of course, this is only a snapshot of the full BHETA report, and I urge all suppliers and retailers in the category to access the whole document amounting to around fifty pages of crucial information for these tricky but opportunity-filled times. BHETA works extensively with Globaldata, the leading supplier of market data as well as its own in-house research, Google, ONS and other sources.


Even on its own,


GlobalData uses primary research to make estimates for private companies and independents and cross-references the estimates with secondary sources, to generate a complete view of the market. So, the BHETA Quarterly Market Report really is gospel for suppliers and retailers.


More information To obtain a copy and for more information about BHETA, BHETA events and BHETA services, contact the BHETA Member Services team on 0121 237 1130 or visit the BHETA website www.bheta.co.uk.


MARCH 2023 DIY WEEK 9


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