How Britain Shops: DIY 2011

EXECUTIVE SUMMARY

Verdict view
Key findings
  DIY retailers hit by waning consumer interest and weak demand;
  Increased competition and fickle consumers cause loyalty rates to drop;
  Convenience major driver of loyalty;
  Specialist credentials, expertise and service will boost loyalty;
  Store environment now more important to customers;
  Conversion rates remain stable;
  B&Q remains leader in more competitive market;
  Focus only specialist to gain main user share;
  Wilkinson spearheads increased competitive threat from non-specialists;
  Only Focus and Homebase see loyalty rates improve.
Main conclusions
  DIY retailers hit by waning consumer interest and weak demand
  Increased competition and fickle consumers cause loyalty rates to drop
  Convenience stays ahead of price (and behind range) as a major driver of loyalty
  Specialist credentials, expertise and service will boost loyalty
  Store environment now more important to customers
  Conversion rates remain stable
Retailer highlights
  B&Q remains leader in more competitive market
  Focus only specialist to gain main user share
  Wilkinson spearheads increased competitive threat from non-specialists
  Only Focus and Homebase see loyalty rates improve
  Wickes sees conversion fall

SECTOR SUMMARY

Share of shoppers
  DIY continues to struggle attracting consumers
Penetration of DIY & gardening shoppers
  Affluent 45-54year olds key age group
Retailer usage
  Focus only specialist to gain user share
  Main user share by region
Conversion rates
  Conversion rates remain stable
Shopping around
  Consumers are not shopping around more in DIY
Loyalty
  Increased competition and fickle consumers sees loyalty rates drop again
Drivers of loyalty/ disloyalty
  Convenience and service increase further in importance as drivers of loyalty

B&Q

Competitive pressures mount
  Suffers from intensifying competition
  Improves on already rival beating conversion rate
  Loyalty leader
  Pricing needs further attention
Visitors
  DIY store of choice despite losing share
Main users
  Competition erodes share, but B&Q still attracts the majority of DIY shoppers as main users
Conversion rates
  Retains a clear lead over rivals
Loyalty
  Retains top loyalty crown
Competitors
  Competitive pressures mount especially from Focus, grocers and general merchandisers

HOMEBASE

Shopper share continues to fall but loyalty is on the up
  Visitor and main user shares show further falls
  Conversion drops to new low …
  … yet loyalty rises steadily
  B&Q remains main rival, but all around competitive pressures mount
Visitors
  DIY & gardening shopper share falls away due to continued diversification of offer
Main users
  Decline in main user share continues
Conversion rates
  Staff cuts weaken service levels and hence conversion rates
Loyalty
  Rises further
Competitors
  Slight decline in shopping around, but competitive pressures mount

FOCUS

Customer satisfaction raises loyalty and conversion rates
  Conversion rate continues to improve
  Main user share recovers close to 2008 level
  Visitor share recovers, but remains behind main specialists
  Customer loyalty recovers from low level but remains below rivals
  Competition increases
Visitors
  Store expansion, convenience factor and better value offer raise visitor share
Main users
  Improved conversion raises main user share back to high level
Conversion rates
  Second place to market leader B&Q
Loyalty
  Bounces off bottom
Competitors
  Competition mounts

WICKES

Suffers in current climate
  Main user share slips below levels of past three years
  Competition intensifies
  After rising for three years, conversion rates fall – but poised for recovery in line with market
  Loyalty hits new low but Wickes moves in right direction
Visitors
  Share slips from high level
Main users
  Share falls sharply in challenging trading conditions
Conversion rates
  Falls dramatically after three years of improvement
Loyalty
  Falls to low level but Wickes puts recovery strategy in place
Competitors
  Competition increases once more

WILKINSON

Benefits from more austere consumer environment
  Continues to close gap on specialists
  Main user share benefits from austere consumer mindset
  Loyalty continues to fall in fickle consumer environment
  Price and range are the biggest drivers of loyalty – and disloyalty
Visitors
  Share rises for third consecutive year
Main users
  Sharp rise in main users thanks to store expansion and more austere consumer environment
Conversion rates
  Slight recovery thanks to value-led offer
Loyalty
  Increased competition keeps loyalty falling
Competitors
  Competition remains intense

APPENDIX

Methodology
  Selection of parliamentary constituencies
  Selection of enumeration districts
  Selection of respondents
  Post survey weighting
Further reading
Ask the analyst
Global Retail FreeView
Verdict Research consulting
Disclaimer

TABLES

Table: Profile of DIY & gardening shoppers – by region 2011
Table: Percentage of active DIY & gardening shoppers regularly using each retailer 2007–11
Table: Share of active DIY & gardening shoppers mainly using each retailer 2007–11
Table: % DIY & gardening shoppers naming a retailer as their main store by TV region 2011
Table: Average rate of conversion from visitor to main user by TV region 2011
Table: Average number of other stores used by TV region 2011
Table: Loyalty to main store by TV region 2011
Table: Detailed drivers of loyalty 2011
Table: DIY & gardening loyalty score 2007–11
Table: DIY & gardening loyalty score 2007–11
Table: DIY & gardening disloyalty score 2007–11
Table: DIY & gardening disloyalty score 2007–11
Table: What disloyal users preferred about other DIY & gardening stores 2007–11
Table: What disloyal users preferred about other DIY & gardening stores 2007–11
Table: Visitor share by region 2011
Table: Main user share by region 2011
Table: Conversion rates by region 2011
Table: Loyalty by region 2011
Table: Drivers of loyalty 2011
Table: Drivers of disloyalty 2011
Table: Potential changes 2011
Table: Other DIY & gardening stores used 2007–11
Table: Retailers most used in other sectors 2011
Table: Visitor share by region 2011
Table: Main user share by region 2011
Table: Conversion rates by region 2011
Table: Loyalty by region 2011
Table: Drivers of loyalty 2011
Table: Drivers of disloyalty 2011
Table: Potential changes 2011
Table: Other DIY & gardening stores used 2007–11
Table: Retailers most used in other sectors 2011
Table: Visitor share by region 2011
Table: Main user share by region 2011
Table: Conversion rates by region 2011
Table: Loyalty by region 2011
Table: Drivers of loyalty 2011
Table: Drivers of disloyalty 2011
Table: Potential changes 2011
Table: Other DIY & gardening stores used 2007–11
Table: Retailers most used in other sectors 2011
Table: Visitor share by region 2011
Table: Main user share by region 2011
Table: Conversion rates by region 2011
Table: Loyalty by region 2011
Table: Drivers of loyalty 2011
Table: Drivers of disloyalty 2011
Table: Potential changes 2011
Table: Other DIY & gardening stores used 2007–11
Table: Retailers most used in other sectors 2011
Table: Visitor share by region 2011
Table: Main user share by region 2011
Table: Conversion rates by region 2011
Table: Loyalty by region 2011
Table: Drivers of loyalty 2011
Table: Drivers of disloyalty 2011
Table: Potential changes 2011
Table: Other DIY & gardening stores used 2007–11
Table: Retailers most used in other sectors 2011
Table: Sample sizes by sector 2011

FIGURES

Figure: DIY & gardening share of shoppers 2007–11
Figure: Breakdown of DIY & gardening shoppers by gender 2007–11
Figure: Profile of DIY & gardening shoppers by age bracket % 2007–11
Figure: Profile of DIY & gardening shoppers by socioeconomic class 2007–11
Figure: Percentage of consumers who shop for DIY & gardening by demographics 2011
Figure: Percentage of consumers who shop for DIY & gardening by TV region 2011
Figure: Concentration of main user share of Top Five retailers in 2009
Figure: Concentration of main user share of Top Five retailers in 2010
Figure: Concentration of main user share of top five retailers in 2011
Figure: Average rate of conversion from visitor to main user 2007–11
Figure: Rate of conversion from visitor to main user by retailer 2011
Figure: Average number of other stores visited by retailers main users 2011
Figure: Average number of other stores used 2007–11
Figure: Percentage of DIY & gardening shoppers that are loyal to their main store 2007–11
Figure: Loyalty to main store by demographic group 2011
Figure: Loyalty to main store by retailer 2011
Figure: Percentage point change in loyalty year-on-year by retailer 2011
Figure: Percentage of loyal main users identifying drivers of loyalty 2007–11
Figure: Visitor share 2007–11
Figure: Visitor share by demographic group 2011
Figure: Main user share 2007–11
Figure: Main user share by demographic group 2011
Figure: Conversion rates 2007–11
Figure: Conversion rates by demographic group 2011
Figure: Loyalty 2007–11
Figure: Loyalty by demographic group 2011
Figure: Preference stores 2011
Figure: Shopping around 2011
Figure: Visitor share 2007–11
Figure: Visitor share by demographic group 2011
Figure: Main user share 2007–11
Figure: Main user share by demographic group 2011
Figure: Conversion rates 2007–11
Figure: Conversion rates by demographic group 2011
Figure: Loyalty 2007–11
Figure: Loyalty by demographic group 2011
Figure: Preference stores 2011
Figure: Shopping around 2011
Figure: Visitor share 2007–11
Figure: Visitor share by demographic group 2011
Figure: Main user share 2007–11
Figure: Main user share by demographic group 2011
Figure: Conversion rates 2007–11
Figure: Conversion rates by demographic group 2011
Figure: Loyalty 2007–11
Figure: Loyalty by demographic group 2011
Figure: Preference stores 2011
Figure: Shopping around 2011
Figure: Visitor share 2007–11
Figure: Visitor share by demographic group 2011
Figure: Main user share 2007–11
Figure: Main user share by demographic group 2011
Figure: Conversion rates 2007–11
Figure: Conversion rates by demographic group 2011
Figure: Loyalty 2007–11
Figure: Loyalty by demographic group 2011
Figure: Preference stores 2011
Figure: Shopping around 2011
Figure: Visitor share 2007–11
Figure: Visitor share by demographic group 2011
Figure: Main user share 2007–11
Figure: Main user share by demographic group 2011
Figure: Conversion rates 2007–11
Figure: Conversion rates by demographic group 2011
Figure: Loyalty 2007–11
Figure: Loyalty by demographic group 2011
Figure: Preference stores 2011
Figure: Shopping around 2011