The British patient is back on its feet

In 2014 the UK DIY retail sector benefited from an improving economic environment and housing market, coupled with increased levels of consumer confidence, after several years of challenging trading conditions. This is how the industry experts from Insight DIY summed up the current situation, when asked for their assessment by DIY International.Data from Verdict indicates that 2014 saw the home improvement market return to growth for the first time in seven years - increasing by 2 per cent to reach an estimated GBP 7.3 bn - although when inflation is factored in, this figure is nearer to 0.4 per cent. According to GfK, sales of DIY and gardening goods (in value terms) rose by 3 and 10 percent respectively during the year. GfK also valued the combined UK DIY and gardening sector at over GBP 11.1 bn (November 2013 - October 2014) a rise of 6.7 per cent year-on-year.The unpredictable UK weather once again had a significant influence on the sector. The winter of 2013-2014 was the wettest on record and, coupled with an exceptional run of winter storms, culminated in widespread flooding which led to growth across the home improvement market as consumers sought to repair the damage to their properties. Despite the wet weather, the year was one of the mildest on record, with only the month of August failing to reach average temperatures.The performance of the property market and the DIY sector remain closely connected but despite an increase in housing transactions during 2014, the benefit to the UK's DIY retailers was more subdued than expected. Mintel research indicates that home ownership is actually on the decline because so many young people are unable to get on the property ladder, advising that the number of owner-occupiers fell from 73 per cent in 2007 to 67 per cent in 2012.A notable trend contributing to the slow growth in the sector is the rising number of consumers who are unwilling to perform DIY tasks and are subsequently becoming more reliant on tradesmen to undertake any necessary work. This behaviour also helps explain the growth experienced by specialist trade retailers including Screwfix, which saw like-for-like sales boosted by 13.1 per cent in Q3 2014-15.Home Retail Group CEO John Walden recently cited a lack of DIY skills as a key challenge for retailers such as Homebase, also noting that younger consumers have less spare time than their parents did a generation ago. Home Retail Group finance director Richard Ashton added that strict health…