The Home Improvement Multiples market continues to evolve to appeal to a younger demographic, with declining DIY skills and greater reliance upon professional supply & fit services.

The style and look of the home is of paramount importance to this social media generation. The product portfolio is therefore adapting to reflect a greater focus on home decoration, not just home renovation.

The UK Home Improvement Multiples market increased by 6% during 2021, reflecting recovery from the impact of Covid-19. Some product categories experienced a sharper rise than others.

Our estimates include discount General Merchandise Retailers, where categories significantly overlap with B&Q, Homebase and Wickes; notably B&M Retail, The Range and Wilko.

Additionally, Home Furnishings is also included as a category, to reflect its growing importance within the Home Improvement Multiples. However, this category generally represents a much smaller proportion of turnover in the traditional DIY Multiples, compared to the discount General Merchandise Retailers.

The Home Improvement market faced challenging times in 2017/18, with fierce price competition, store closures and Homebase being sold, once again. However, after a period of restructuring and consolidation, the market has bounced back and performed comparatively well throughout the Covid-19 pandemic, although fortunes differ by product type.

Key Areas Covered in the Report

Market Overview

  • The Home Improvement Multiples market is influenced by diverse factors which include home ownership levels, the average size of properties and consumer confidence & spending levels.
  • Lifestyle changes can also impact significantly on this market, such as adaptation of properties to cater for the needs of multi-generational households, with younger people living at home for longer and demand for more ‘inclusive’ products for older family members, such as walk-in showers.
  • A further significant trend is the rise in the number of people Working from Home (WFH), accelerated by the pandemic, with demand for additional space.
  • With multiple channels competing for a share of this market, and with fierce price competition, the Home Improvement Multiples continue to evolve.
  • Our report provides insight into the key trends influencing this market, as well as prospects for the next 5 years to 2026.

Product Sectors

  • The report covers the following key categories within the Home Improvement Multiples market:
    • Outdoor & Garden (comprising horticultural, domestic landscaping, leisure, buildings & structures)
    • Decorating (including wall tiles)
    • Building supplies
    • Tools and hardware
    • Lighting & Electrical products (including Smart lighting)
    • Bathroom Equipment
    • Kitchens
    • HVAC & Plumbing Equipment
    • Floorcoverings & Floor Tiles
    • Windows, Doors & Conservatories
    • Furniture (including home offices & storage)
    • Home furnishings

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    Market Prospects

    • Market prospects for the Home Improvement Multiples market remain favorable and anticipate reasonable growth, despite the competitive marketplace.
    • Partnerships will play a major part in the development of this market, including potentially sharing space with retailers offering complimentary product portfolios, with in-store concessions and combined efforts to attract a broader range of customers.
    • Digital is also expected to continue to increase its penetration of sales within the Home Improvement market, with greater use of geo-locational services to target customers with local promotions. Click & Collect and fast home delivery services, remain critical to achieve competitive advantage.
    • The larger players will seek to differentiate by broadening their value-added services, from design advice to installation services, whilst strengthening contacts with local tradesmen.
    • Meanwhile, the price-driven General Merchandise Retailers, with overlapping categories, have potential to increase share in decoration, lighting, home furnishings and garden products and potentially with a wider selection of kitchen and bathroom furniture.

    Supply and Distribution

    • The Home Improvement Multiples face increased competition from other channels, which includes Builders & Plumbers’ Merchants, who sell primarily heavyside materials, but who have also increased their share of lightside products, in a bid to attract homeowners.
    • Consequently, Home Improvement Multiples have in turn placed greater emphasis on servicing trade customers, blurring the lines between these two categories.
    • The leading players in the Home Improvement Multiples market are B&Q, Wickes and Homebase, which together are estimated to account for between 67-69% of the market.

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