GlobalData: UK DIY Spending Set For £200m Fall

UK DIY spending set for £200 million fall, following easing of COVID-19 restrictions and the cost-of-living crisis, says GlobalData.

During the pandemic, GlobalData’s Monthly DIY Tracker found that the UK DIY sector enjoyed a £500 million uplift as consumers, prevented from going out, invested time and energy in sprucing up their homes and gardens. However, the leading data and analytics company’s tracker now shows that spending on home improvement is set for a £200 million fall which is its biggest drop in decades as the cost-of-living rises, bars and restaurants re-open and foreign holidays go back on the agenda.

Matt Piner, Head of Retail at GlobalData, comments: “This is the first spring/summer without restrictions in 3 years and people are understandably keen to go out and enjoy themselves, as well as get back to holidaying abroad. Suddenly, DIY and tending to homes is on the backburner and this was particularly clear over Easter, when there was a big uplift in socializing, eating out and drinking and a real fall in doing jobs around the home, a trend that looks to have subsequently been repeated over the Jubilee weekend.”

Piner continues: “With everyday costs rising, people are finding their spending power is lessening so they have to make decisions about their priorities. As a result, DIY is becoming one of the main sectors to lose out and looking at GlobalData’s Monthly DIY Tracker, we expect spending in 2022 to fall by around 5% on 2021.”

As inflation bites, the cost-of-living crisis is eating into the money consumers have available to spend on their homes. Sales of kitchens and bathrooms are highly reliant on the housing market, consumer confidence and mortgage rates. With housing sales slowing, consumer confidence falling and interest rates now rising, many people are getting jittery and shelving these purchases.

Piner adds: “These trends have started to be reflected in the financial results of the likes of B&Q and Wickes, where they remain up on two years ago but are starting to see year-on-year falls in revenue. Given that the post-lockdown ‘mini boom’ in socializing and holidays is set to continue, and that the cost-of-living crisis shows no sign of abating either, it is likely that DIY retailers are going to continue to come under pressure for the rest of the year at least.”

Source : GlobalData

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