The economic downturn also reaches the DIY chains

After registering a very positive development between 2004 and 2007, the turnover of establishments specializing in the sale of articles of DIY experienced a contraction in 2008, in a context marked by the unfavourable evolution of the real estate market and the decline of private consumption.

In 2008 sales of the points of sale specialising in the articles of DIY retail distribution accounted for a decrease of 6.1% over the previous year, encrypting in about 2.3 billion euros. The turnover of the traditional hardware stores experienced a significant decrease in 2008. At the end of this year the value of sales stood at EUR 1.15 billion, 9.8 per cent less than in 2007.

Forecasts for the end of 2009 target is stronger the downward trend in the sales of hardware and DIY due to the contraction of the expenditure of households. In this context, the rivalry has increased in price between the companies in the sector, with the proliferation of special offers and discounts to encourage the weakened demand.

Large specialized chains will continue to increase its market share, at the expense of small independent companies, which will have problems to survive in the current situation of market. The value of the sales of retailers of DIY could be below the EUR 2 billion in 2009, registering a fall of 15 per cent. For its part, the points of sale of hardware sales may fall to 950 million euros in 2009, with a decrease of 17%.

The total number of surfaces specializing in the sale of articles of DIY has been a downward trend in 2008 and 2009, in October 2009 in around 510, with the 550 operating at the end of 2007. The structure of the offer has been in recent years a trend of concentration, due to the processes of expansion carried out by some of the larger competitors and the disappearance of independent retailers.

In 2008 the Group of the first five companies specializing in the retail sale of articles of DIY - Leroy Merlin DIY Akí, Euro Depot Spain, Bricoking and Bricor - garnered a combined market share of 77% of total sales, participation amounting to 83 per cent to be considered in the top ten.

The offer of the traditional hardware retail distribution presents a high fragmentation, being composed a 3,750 points of sale, figure that has registered a sharp decline in the past two years to October 2009. The difficult situation facing companies is driving the associationism in cooperatives and purchase/service stations.

Data of synthesis