DIY retailer B&Q losing its No 1 position, says research study |
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Tue, 30 Aug 2005 16:05
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LONDON: Kingfisher Plc's do-it-yourself (DIY) retail chain, B&Q, the largest in the country, is giving ground to rival Homebase, according to market research firm Verdict. The research firm says this is essentially because the boom time for home improvements is over.
Verdict has said B&Q's share of the country's DIY market will go up by an insiginificant 0.1 percentage points this year, while Homebase and sister company Argos could together secure a 0.8 percentage point increase.
B&Q had a market share of 24.1 per cent in 2004, the same as in the previous year, while Homebase's share registered an increase of 0.2 percentage points to 10.4 per cent.
Verdict said the DIY and gardening sector will see the first ever decline in consumer spending in 2005 -- by 1.6 per cent to 16.4 billion pounds.
Verdict's senior analyst Gavin Rothwell, says B&Q had logged in extremely strong growth in the past 10 years, but now it is facing stronger competition from ARG (owner of Homebase and Argos)."
He also said Homebase has enhanced its price position and its store environment.
The research attributed the slowdown in the housing market for the decline in consumer spending on DIY and gardening.
Rothwell is, however, upbeat about the prospects of the DIY segment. "We remain optimistic over the longer-term prospects for the £16.4billion DIY and gardening sector, with favourable economic, cultural and demographic drivers still in place."
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