Moderate growth of floorspace

The French DIY market increased in volume last year by 4.2 per cent to 15.25 bn euro (FRF 100 bn), according to a market survey undertaken by the manufacturers’ association Unibal. This ascertained sales growth of 6.2 per cent to 9.35 bn euro (FRF 61 300 bn) for DIY stores over 300 m² in size, and a market share of 61.3 per cent.
Food retailers recorded a slight sales decline of one per cent, achieving a market share of 10.5 per cent. Wholesalers, on the other hand, achieved a 4 per cent sales increase and a market share of 21 per cent through sales to consumers. This growth goes hand in hand with the opening of self-service outlets. The market share of the traditional retail trade with sales areas below 300 m² in size dropped to 5.2 per cent, though there are problems of delimitation here: some shops actually belong to the DIY store category as a result of building extensions or becoming members of a group.
DIY superstore sales per square metre rose by 2.4 per cent in 1999, from 2 278 euro (FRF 14 940) to 2 333 euro (FRF 15 300), and retail space grew by 3.8 per cent.
Of the total sales achieved by DIY superstores in 1999, 86.5 per cent (8.084 bn euro/FRF 53.025 bn) went to the DIY segment and 13.5 per cent (1.261 bn euro/FRF 8.275 bn) was generated by garden products. This translates into a boost of 5.7 per cent for the sale of DIY items and 9.4 per cent for gardening products, meaning that the garden category recorded the greatest growth within the in-dividual product ranges and, following two poor summers, almost reached the 1995 level of market share (14 per cent) once again.
The highest rates of growth within the DIY ranges were recorded for building materials (+8.7). Unibal considers this development can probably be attributed to the fact that even medium-sized DIY stores offer this product range, even if a lack of selling or storage space does mean the products must be ordered, then delivered from a central distribution warehouse. Added to this is the growing number of Dépôt stores, which carry a disproportionate share of building materials in their product mix compared with the average DIY store. This type of store is similar to the self-service concept of the wholesale builders’ merchants, particularly in terms of their range of building materials and the customers attracted to them, of course. It will be difficult to draw a clear line between the two marketing channels in the long term, whereas many DIY superstores are increasingly turning to decorative ranges aimed at women, who are regarded as the driving force behind many DIY activities.
Equally dazzling were the developments recorded by the product categories of electrical/lighting (+8.3 per cent) and timber (+8.1 per cent), followed by hardware (+5.3 per cent), motor/cycling accessories (+5.4 per cent), paint/varnish/adhesives (+5.7 per cent) and plumbing/heating/ventilation (+4.7 per cent). Growth of 4 per cent in the category of wall and floor coverings turned out lower than overall market growth. In the sale of tiles the DIY superstores are meeting with competition from wholesalers, who are opening up to consumer business and offering brilliant displays, as well as from discounters. Where floor coverings are concerned the DIY superstore sector also has problems holding its own against specialist stores, especially since this sector requires a great deal of space. Competition is also still on the increase for DIY superstores in the decorative sector through the growing number of shops offering the entire gamut of home enhancement products, with wall and floor coverings as well as textiles.
Bottom of the sales growth table were tools, with an increase of 1.9 per cent. Portable power tools showed value growth of 4.2 per cent and volume growth of 5.8 per cent, which indicates a slight decline in prices.
The French federation of DIY superstores, or Fédération Française des Magasins de Bricolage (FFB), estimates the 1999 market volume at 20.89 bn euro (FRF 137 bn) and assumes like-for-like growth of 4.1 per cent. DIY stores with a retail area in excess of 400 m² had a turnover of 9.04 bn euro (FRF 59.3 bn) and consequently achieved a market share of 43.3 per cent. FFB estimates attribute a 17.4 per cent share of sales worth 1.57 bn euro (FRF 10.3 bn) to the garden ranges and, for the DIY side, come to a figure of 7.47 bn euro (FRF 49 bn), corresponding to a share of 82.6 per cent.
The FFB established that there was a total of 2 350 DIY stores with a floorspace in excess of 400 m². The combined retail area of these stores came to 4.9 bn m² and a figure of 1 844 euro (FRF 12 100) is put on average sales per square metre. Selling space density was 115.5 m² per 1 000 inhabitants in districts with a population of more than 40 000. Per capita spend came to 91.47 euro (FRF 600) for garden products and 256.11 euro (FRF 1 680) for DIY items.
DIY superstore scene
One of the striking developments in the French DIY landscape last year was the creation of a standard marketing arm called Weldom for the Domaxel group’s DIY business. ANPF has also decided to standardise its DIY business by relinquishing its Bricotruc chain and including its stores under the Mr. Bricolage logo. Another group going for centralisation is Tabur, which has bundled buying for its four DIY channels, Bricogite, B3, Catena and Super Catena, into one central organisation.
The Dépôt concept, i.e. stores focusing on the heavyside DIY ranges at keen prices, is continuing to gain ground in France. Now Leroy Merlin has developed the idea, too, opening the first Bricoman outlet last year. The second branch started up in January, and more are to follow. How successful this format can be is shown by Castorama’s discount channel Brico Dépôt which, according to the company report for the first half of 2000, contributed substantially to the sales growth of the Castorama group in France. In the first six months of this year five Castorama stores were reopened as Brico Dépôt outlets and, following three new openings as well, the total for this type of marketing chain now stands at 34. Further new openings are at the planning stage. This store type has also been successfully imported into Germany as Casto-Dépôt.
International activities
The Castorama group has a network of branches spanning the whole world: stores are operated in Italy, Germany, Belgium, Poland and Brazil under the Castorama logo, and the Réno Dépôt stores in Canada also belong to the group. Stores are operated in Taiwan (6) and China (2) under the logo of the British B&Q chain, and the group also has a stake in Nomi, the Polish DIY operator (30 stores) and in Koçtas, the Turkish DIY multiple (5). For the second half of the year the Castorama group has announced 12 new openings outside France and the United Kingdom.
Lively international activity, particularly in further-off regions, is also shown by Mr. Bricolage. The Mr. Bricolage logo has penetrated as far as Azerbaijan and Uruguay, in addition to stores in Belgium, Spain and Turkey. A new opening of 1 400 m² is to take place in Antananarivo, the capital of Madagascar, at the end of November. Also on the agenda for November is entry into the Bulgarian market, where a store of 2 000 m² is to start up in Sofia, with further outlets to follow. Then in March 2001 will come the opening of a further store at Córdoba in Spain. The first quarter of 2001 will see one more store open for business at Montevideo in Uruguay, and Portugal’s first store is to open at Lisbon with a retail area of 3 300 m². Mr. Bricolage intends to open 160 stores abroad, 10 of them wholly-owned branches, by the year 2004.
French DIY retailers abroad(download PDF-File)
Percentage sales by product category 1999(download PDF-File)
DIY superstores in France(download PDF-File)