Essential reading for retailers and suppliers in the home improvement market

DIY and hardware independent sales sink in Q4

Published: 1 February 2016
DIY independents' impressive run of sales growth came to an abrupt halt in the last three months of 2015 as they slumped into decline.
DIY and hardware independent sales sink in Q4
In fact, the latest figures from the British Independent Retailers Association (BIRA) show that a dramatic reversal of fortunes brought to an end an 18-month run of turnover growth for small shops across a host of sectors.

DIY and hardware indies had for long been amongst the top performers of the shops within BIRA's quarterly sales monitor, consistently notching up growth. But Q4 saw their year-on-year sales slide by 2.4% - matching the overall average year-on-year decline among small shops, at 2.4%.

Cookshop sales fell by 2.7% and pet products were down 0.3%, but garden machinery and tool hire fell by 19.7%.

Only three sectors saw marginal growth: books, toys and music, up 3.3%; furniture, floorcoverings and beds, up 2.1%; and gifts and glass, up just 0.8%.

BIRA said: "While local conditions varied across the country, unseasonably warm and wet weather, falling footfall, falling prices, deeper discounting in sales and a rising tide of non-store retail in an 'internet Christmas' triggered in November by Black Friday, all contributed to the first quarterly drop in sales since the beginning of 2014."

Regionally, the north east completed a welcome full year of growth - the only region to do so, but the flood-hit north west suffered a disastrous 8.5% drop in the Christmas quarter.

The results polarised confidence levels, with nearly one in 10 feeling very confident about the year ahead, a third more than in Q3, but with one in 20 moving from reasonable confidence to anxiety.

BIRA concluded: "Retailers are by nature optimistic, it's in the blood, and this will stand them in good stead after a warm and soggy fourth quarter. Facing increased business rates, the loss of the £1,500 rates discount and the advent of the National Living Wage, all in April, they will be counting on improved trade to pump up results to overcome the added load that the government seems intent on adding to weigh down on high street buoyancy."

Comments made by those taking part in the survey suggest that for DIY and hardware independents the weather has been mainly to blame for the fall-off in sales. One Scottish member said: "October and November showed increase in turnover where December showed a small decrease, this was due mainly to the unseasonal weather with a drop in sales of fuel and heating products."

A retailer in the Midlands said: "The mild weather has halved the heating-related sales, eg, Calor Gas, heaters, coal etc." And another in the same area echoed: "The warm weather has had a drastic effect on the sales of seasonal products. The sales of Calor Gas and fireside products and heating must be 50% down on a normal winter."

It was the same in the south west: "Sales of fuels and heating products drastically reduced."

"Christmas trading disappointed, which I think was mainly down to the weather in December with the constant rain keeping customers away," commented one hardware retailer in the north west.

While another said: "We are based in South Cumbria and our Christmas trade was affected by the floods in December. Although we are only slightly down on last year for this quarter the fallout is still affecting us ie closed bridges and access to the shops."

However, on a more positive note, a south east hardware indie said: "Just amazing how busy it is and what with our nearest B&Q closing this month can only be positive about the future. Just had our biggest order for garden canes delivered as this year I am determined not to run out. Also seeds are already selling well!"


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