After a challenging 2015 for the Home Improvement market we take a look at the performance of the market in the first 3 months of 2016. In total, the market remains stable during this first quarter.
January didn`t convince with a minor fall back of 0.7% in total value within the DIY Superstores. A very promising February 4 with a value raise of almost 6 % showed us the good direction.
However, in the month March we noted a decline of 0.7% in value. Let’s take a closer look at what happened during this quarter.
Firstly, January: After a long declining period in paint sales, January shows excellent results in this category. A growth in value by more than 3% is an excellent result.
The reason why January was negative in the end came from groups like Sanitary, Wood and doors. Although we have to mention that January is not the month that will make the year.
February was excellent. We see growth in almost all categories. Again paint looked promising once more with a 2% growth in value. “Is the paint segment recovering from a very hard 2015?”, that is the question many of us have. However, we cannot forget that we actually had one more selling day this year and this effects the results.
The real business starts in March and results were definitely not what we all hoped. We noted a minor fall back of 0.8% in turnover after a strong decline already in March 2015. Of course we still benchmark with an exceptional March 2014 (+16%). March didn`t show the best weather conditions this year and two big groups were heavily impacted: Garden (-8%) and unfortunately also a fall back for the Paint Sector with almost -7%. A positive note is the revival of building materials in March.
Overall a hesitant start to 2016. With nothing won or lost. The real performance in Home Improvement market will be measured in the coming months. It will be interesting to see how we can keep up with the strong performance from April until July in 2015.
Dimitri Vits - Consultant Home & Living