In a significant shift in the French DIY market, leading brands such as Leroy Merlin, Castorama, and Brico Dépôt have reported a decline in sales for the second consecutive year, with the average reduction in turnover being 6% in 2024. This downturn has been attributed to various factors, including rising prices, changes in DIY needs, the slowdown in the property market, and extreme weather conditions.
The Impact of Rising Prices
The increasing cost of living in France has led to a significant reduction in the disposable income of consumers, resulting in a decrease in DIY spend. A staggering 40% of people in France have reduced their spend on DIY and housing equipment, with many opting for alternative uses for their funds. This trend is evident in the statement of a shopper from Val-d’Oise, who expressed his preference for only buying essential items when necessary.
“I used to love DIY projects, but rising prices mean I now only buy an item when something at home needs fixing,”
This sentiment is echoed by another shopper, who attributed her reduced DIY activities to the completion of multiple projects during the Covid crisis and lockdowns, resulting in less need for new projects.
Changing Consumer Trends
The French DIY market has also seen a shift towards online shopping, with e-commerce now accounting for 39% of DIY purchases. This trend is mirrored in the increased popularity of pet-related products, with a 6% rise in the sector over the past year. Furthermore, there is a growing demand for Smart Home DIY-Gardening products, with sales of internet-connected devices experiencing a significant growth of 8.2% in one year.
Properties and Renovation
The slowdown in the property market has also been cited as a contributing factor to the decline in DIY sales. With fewer people moving and fewer properties being sold, there is less need for renovation. Guillaume Mulleret, market intelligence director at NielsenIQ-GfK, notes that the housing market is a determining factor in the decline, as many expenses are related to moving.
Durable goods refers to goods that are designed to last for a long period of time, often requiring maintenance or replacement.
Brands Adapting to the Downturn
In response to the decline in sales, leading brands such as Castorama are adapting their strategies. The company is set to downsize 30 of its stores, reducing their square footage and dropping prices. This move aims to increase sales and attract more trade customers. Additionally, Castorama is focusing on its online offering, with online sales experiencing a significant rise of 13.4% in 2024.
Adaptation Strategies
• Downsize stores: Reducing square footage and dropping prices
• Focus on online sales: Increasing online sales and developing an e-commerce platform
• Attract trade customers: Offering products and services specifically designed for trade customers
• Implement attractive promotional policies: Offering discounts and promotions to boost sales
Weather-Related Factors
The extreme weather conditions in France have also had an impact on the DIY market. High rainfall and lack of sunshine have caused a slight “depression” of the gardening market, with a 4.9% drop in sales over the same period. However, this trend is expected to continue in the coming months, with the French DIY market experiencing a prolonged period of low sales.
Optimism for 2025
Despite the challenging 2024 context for the durable goods market, there is some cause for optimism for brands that can adapt. Guillaume Mulleret notes that 2025 may show signs of improvement, with French purchasing power still at a low point. Brands can increase their chances of success by implementing attractive promotional policies, listening to consumer expectations in terms of eco-responsibility, functionality, and ease of use, and innovating their products and services.
Pet and Smart Home Items
In contrast to the decline in DIY sales, there is a growing demand for pet-related products and Smart Home DIY-Gardening products. The NielsenIQ study found that purchases of pet and cat food from specialized pet shops have increased by 6% and 9.9% respectively, while sales of internet-connected products have grown by 8.2%. These trends suggest that consumers are focusing on areas other than DIY, such as pets and home automation.
