home improvement industry

www.datamonitor.com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email protected]

Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: [email protected]

Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 9754 4517 f: +49 69 9754 4900 e: [email protected]

Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: [email protected]

Home Improvement in the United Kingdom

Industry Profile

Reference Code: 0183-0529Publication date: September 2009

ABOUT DATAMONITOR

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by

any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of

the publisher, Datamonitor.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.

Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based

on information gathered in good faith from both primary and secondary sources, whose accuracy we are

not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions

taken based on any information that may subsequently prove to be incorrect.

United Kingdom - Home Improvement

© Datamonitor (Published September 2009)

ABOUT DATAMONITOR

Datamonitor is a leading business information company specializing in industry analysis.

Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services.

The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world’s largest 5000 companies.

Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas.

Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market Value

The United Kingdom home improvement market shrank by 3.6% in 2008 to reach a value of $16.6 billion.

Market Value Forecast

In 2013, the United Kingdom home improvement market is forecast to have a value of $14.3 billion, a decrease of 13.8% since 2008.

Market Segmentation I

Non-decorative materials sales generated 41.2% of the United Kingdom home improvement market's overall value.

Market Segmentation II

The United Kingdom accounts for 8.3% of the European home improvement market's value.

CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

CHAPTER 1 Market Overview 7

1.1 Market Definition 7

1.2 Research Highlights 7

1.3 Market Analysis 8

CHAPTER 2 Market Value 9

CHAPTER 3 Market Segmentation I 10

CHAPTER 4 Market Segmentation II 11

CHAPTER 5 Five Forces Analysis 12

5.1 Summary 12

5.2 Buyer Power 13

5.3 Supplier Power 14

5.4 New Entrants 15

5.5 Substitutes 16

5.6 Rivalry 17

CHAPTER 6 Leading Companies 18

6.1 B&Q 18

6.2 Homebase Ltd. 20

6.3 Focus (DIY) Limited 21

6.4 Wickes Ltd. 22

CONTENTS



CHAPTER 7 Market Forecasts 23

7.1 Market Value Forecast 23

CHAPTER 8 Macroeconomic Indicators 24

CHAPTER 9 Appendix 26

9.1 Methodology 26

9.2 Industry Associations 27

9.3 Related Datamonitor Research 27

CONTENTS



LIST OF TABLES

Table 1: United Kingdom Home Improvement Market Value: $ billion, 2004-2008 ...........9

Table 2: United Kingdom Home Improvement Market Segmentation I: % Share, .............. by Value, 2008..................................................................................................10

Table 3: United Kingdom Home Improvement Market Segmentation II: % Share, ............. by Value, 2008..................................................................................................11

Table 4: Key Facts: B&Q ................................................................................................18

Table 5: Key Facts: Homebase Ltd.................................................................................20

Table 6: Key Facts: Focus (DIY) Limited ........................................................................21

Table 7: Key Facts: Wickes Ltd. .....................................................................................22

Table 8: United Kingdom Home Improvement Market Value Forecast: $ billion, ............... 2008-2013 ........................................................................................................23

Table 9: United Kingdom Size of Population (million) , 2004-2008 .................................24

Table 10: United Kingdom GDP (Constant 2000 Prices, $ billion), 2004-2008 .................24

Table 11: United Kingdom Inflation, 2004-2008................................................................24

Table 12: United Kingdom Exchange Rate, 2004-2008....................................................25

MARKET OVERVIEW



CHAPTER 1 MARKET OVERVIEW

1.1 Market Definition

The home improvement market consists of the decorative materials, non-decorative materials, electrical hardware, hardware, and tools segments. Decorative materials includes paint, varnish, wall tiles, wallpaper and woodcare products. Non-decorative materials includes adhesives, aggregates, board, cement, doors and window frames, glass, plaster, plumbing supplies, timber, and other non-decorative materials like bricks, sand, etc. Electrical hardware includes alarm systems, batteries, ceiling / wall lights, garden and outdoor lighting, sockets, plugs and switches, torches and portable lamps and wiring / flex. Hardware includes brackets, locks, nails, nuts and bolts, screws and other hardware like base metal mountings, door fittings etc.

Tools includes manual and power tools. Market values are calculated at retail selling price (RSP). Any currency conversions used in the creation of this report have been calculated using constant annual average 2008 exchange rates. The abbreviation 'DIY' in this profile refers to 'do-it-yourself', an alternative term for home improvement used in certain countries.

For the purpose of this report Europe is deemed to comprise of Belgium, the Czech Republic, Denmark, France, Germany, Hungary, Italy, Netherlands, Norway, Poland, Romania, Russia, Spain, Sweden, the Ukraine and the United Kingdom.

1.2 Research Highlights

The United Kingdom market generated total revenues of $16,555 million in 2008, representing a compound annual rate of change (CARC) of -1.9% for the period spanning 2004-2008.

Non-decorative materials sales proved the most lucrative for the United Kingdom market in 2008, generating total revenues of $6,819.5 million, equivalent to 41.2% of the market's overall value.

The performance of the market is forecast to decelerate, with an anticipated CARC of -2.9% for the five-year period 2008-2013, which is expected to drive the market to a value of $14,267.5 million by the end of 2013.

MARKET OVERVIEW



1.3 Market Analysis

The years 2004-2008 proved to be difficult times for the United Kingdom home improvement market. Overall, its value declined. Going forward to 2013, although recovery is predicted eventually, overall contraction relative to 2008 is expected.

The United Kingdom market generated total revenues of $16,555 million in 2008, representing a compound annual rate of change (CARC) of -1.9% for the period spanning 2004-2008. In comparison, the French and German markets grew with compound annual growth rates (CAGRs) of 4.1% and 2% respectively, over the same period, to reach respective values of $31,694.7 million and $58,039.9 million in 2008.

Non-decorative materials sales proved the most lucrative for the United Kingdom market in 2008, generating total revenues of $6,819.5 million, equivalent to 41.2% of the market's overall value. In comparison, sales of decorative materials generated revenues of $4,268.6 million in 2008, equating to 25.8% of the market's aggregate revenues.

The performance of the market is forecast to decelerate, with an anticipated CARC of -2.9% for the five-year period 2008-2013, which is expected to drive the market to a value of $14,267.5 million by the end of 2013. Comparatively, the French and German markets will grow with CAGRs of 2.2% and 1.3% respectively, over the same period, to reach respective values of $35,278.1 million and $61,952.3 million in 2013.

MARKET VALUE



CHAPTER 2 MARKET VALUE

The United Kingdom home improvement market shrank by 3.6% in 2008 to reach a value of $16.6 billion.

The compound annual rate of change of the market in the period 2004-2008 was -1.9%.

Table 1: United Kingdom Home Improvement Market Value: $ billion, 2004-2008

Year $ billion £ billion % Growth 2004 17.9 9.8 2005 17.0 9.3 -4.80%2006 16.8 9.2 -1.10%2007 17.2 9.4 1.90%2008 16.6 9.0 -3.60% CAGR, 2004-2008: -1.9% Source: Datamonitor D A T A M O N I T O R

Figure 1: United Kingdom Home Improvement Market Value: $ billion, 2004-2008

Source: Datamonitor D A T A M O N I T O R

02468

101214161820

2004 2005 2006 2007 2008

$ bi

llion

-6.0%-5.0%-4.0%-3.0%-2.0%-1.0%0.0%1.0%2.0%3.0%

% G

rowth

$ billion % Growth

MARKET SEGMENTATION I



CHAPTER 3 MARKET SEGMENTATION I

Non-decorative materials sales generated 41.2% of the United Kingdom home improvement market's overall value.

Sales of decorative materials generated 25.8% of the market's aggregate revenues.

Table 2: United Kingdom Home Improvement Market Segmentation I: % Share, by Value, 2008

Category % Share Non-Decorative Materials 41.20%Decorative Materials 25.80%Electrical Hardware 15.70%Hardware 11.10%Tools 6.20% Total 100.0% Source: Datamonitor D A T A M O N I T O R

Figure 2: United Kingdom Home Improvement Market Segmentation I: % Share, by Value, 2008


Non-Decorative Materials41.2%

Decorative Materials25.8%

Electrical Hardw are

15.7%

Hardw are11.1%

Tools6.2%

MARKET SEGMENTATION II



CHAPTER 4 MARKET SEGMENTATION II

The United Kingdom accounts for 8.3% of the European home improvement market's value.

In comparison, Germany accounts for 29.1% of the regional market's value.

Table 3: United Kingdom Home Improvement Market Segmentation II: % Share, by Value, 2008

Geography % Share Rest of Europe 30.30%Germany 29.10%France 15.90%Italy 8.90%United Kingdom 8.30%Spain 7.60% Total 100.0% Source: Datamonitor D A T A M O N I T O R

Figure 3: United Kingdom Home Improvement Market Segmentation II: % Share, by Value, 2008

Germany29.1%

Rest of Europe30.3%

Spain7.6%United Kingdom

8.3%

Italy8.9%

France15.9%


FIVE FORCES ANALYSIS



CHAPTER 5 FIVE FORCES ANALYSIS

The home improvement market will be analyzed taking owners and operators of home improvement retail stores as players. The key buyers will be taken as individual consumers, and manufacturers of home improvement products as the key suppliers.

5.1 Summary

Figure 4: Forces Driving Competition in the Home Improvement Market in the United Kingdom, 2008

0

1

2

3

4

5Buyer Pow er

Supplier Pow er

New EntrantsThreat of Substitutes

Degree of Rivalry

Score for each force is mean of scores for its drivers. Total area & color indicates intensity of competition overall. Source: Datamonitor D A T A M O N I T O R

The home improvement market in the United Kingdom is split into large, competitive, low-price entities and smaller, localized enterprises. Over the last few decades, B&Q has focused mainly on Europe while its biggest competitor - Home Depot - has been committed to expanding in North America, gaining large market shares in the U.S., Mexico and Canada. As the definition of the analyzed market comprises diversified range of home improvement products, it also indicates a vast amount of small, single entity buyers, thus diminishing their power. Low switching costs and customers’ willingness to switch between the retailers, serve to boost buyer power and boost the rivalry. On the players’ side there are both: large equipment and products manufacturers, but also a myriad of small independent cabinet and gardenware makers, etc. There are possibilities of players’ backward integration – i.e. by cooperation with retailers to develop own-label products lines or by opening in-house production. These tend to weaken supplier power. Like in most retail markets, barriers to entry are not high: capital requirements are low enough for individuals to enter. Substitutes exist in form of new house purchase; however they are usually considerably more expensive thus reducing the threat of substitution.

Intensity of competition

Weak Strong




5.2 Buyer Power

Figure 5: Drivers of Buyer Power in the Home Improvement Market in the United Kingdom, 2008

01

23

4

5Buyer size

Oligopsony threat

Low -cost sw itching

Undifferentiated product

Tendency to sw itch

Price sensitivity

Financial muscle

Backw ards integration

Buyer independence

Product dispensability

Scores: 1= weak driver...5=strong driver Source: Datamonitor D A T A M O N I T O R

This market has a large number of small buyers. This fact serves to reduce buyer power, as customers do not possess the financial strength to hold sway in a tug-of-war with market players. However, some homeowners are beginning to make more intensive use of their properties. With an increased number of people now working from home, the desire for 'multi-functional' rooms and living areas has grown.

The effects of branding remain moderate and switching costs are low. Modern householders are looking to get more out of their homes at an affordable price, especially regarding big-money purchases such as flooring, and price sensitivity is likely to be exacerbated in those countries where house prices have risen sharply during recent years, increasing the amount spent on servicing mortgages.

The exception to the rule is found in high-end kitchens and bathrooms, where certain brands are seen as delivering style, class and quality. There is no threat of players’ forward integration due to the retailer’s position in the value chain and the probability of backward integration is approaching zero. Buyer power is assessed as moderate within the UK market overall.

Strength of buyer power

Weak Strong




5.3 Supplier Power

Figure 6: Drivers of Supplier Power in the Home Improvement Market in the United Kingdom, 2008

012345

Supplier size

Oligopoly threat

Sw itching costs

Player independence

Player dispensabilityNo substitute inputs

Importance of quality/cost

Differentiated input

Forw ard integration


Suppliers within this market are the providers of home improvement equipment and materials to retailers. Due to the nature of the market and its diversification, such suppliers vary in size from large companies like Black and Decker and Akzo Nobel, to a myriad of small, independent cabinet and gardenware makers. The sheer number of providers diminishes supplier power. Due to finite shelf space, suppliers need to persuade such retailers, who often exert strong bargaining power, to stock their products. Additionally, suppliers are forced to absorb the impact of rising fuel, labor and raw material costs during the global commodity price boom that occurred before the late-2008 recession, and ongoing resistance by retailers to accept price rises from manufacturers and a reluctance to pass rising costs on to the consumer. Supplier power is weakened furthermore by the existence of low switching costs, as market players can move from one supplier to another without being penalized. Elements of backward integration exist in the home improvement market further taking from supplier power. Some retailers may decide to work closely with suppliers to develop new lines, such as private-label products that compete with branded products in the retail market. Suppliers are also occasionally replaced with in-house producers, in order to better coordinate supplies, but in the main market players use the advantages of a global source of supply to search for the best deal. Forward integration does occur sporadically, i.e. with suppliers of kitchens and bathrooms housing their own stores, using the Internet to their advantage and reducing their reliance on third-party retail outlets. Overall, supplier power within the UK market is moderate.

Strength of supplier power

Weak Strong




5.4 New Entrants

Figure 7: Factors Influencing the Likelihood of New Entrants in the Home Improvement Market in the United Kingdom, 2008

012345



Scale unimportant

Low fixed costs

Little regulation

Incumbents acquiescentDistribution accessible

Suppliers accessible

Little IP involved

Weak brands

Market grow th


There are different entry routes to the home improvement market. It is possible to start a new company, to diversify an existing company’s operations into home improvement products sales, or to acquire a company already operating within the market. Like in most retail markets, barriers to entry are not high: capital requirements are low enough for individuals to enter. It is possible to start activities on a small scale, perhaps specializing in a narrow segment of the market.

However, economies of scale are an issue as large firms such as Home Depot in the US or B&Q in the UK utilize their scale and consequent buying power to source goods at more competitive prices than smaller players. The fact that switching costs are low and consumers are largely prone to switch if lower prices are offered is favorable to new entrants.

Also, whilst the effects of the 'credit crunch' and recession in many major markets are likely to result in lower property sales in the next few years, the house improvement market are expected to benefit from this situation, as householders seek to 'improve, rather than move'.

In some cases, there is still a degree of locality in the home improvement market, since some customers are not prepared to visit larger retailers, often found in industrial parks at the edge of cities and towns. The threat of new entrants is therefore assessed as moderate overall.

Likelihood of new entrants

Weak Strong




5.5 Substitutes

Figure 8: Factors Influencing the Threat of Substitutes in the Home Improvement Market in the United Kingdom, 2008

012345


Cheap alternativeBeneficial alternative


The main substitute for home improvement retail is to use the services of professional builders, painters, plumbers, and other tradespeople. This is almost certainly more costly for customers if they simply add up the price of materials for a particular job and the professionals' fees.

However, most consumers will also consider factors such as the need to buy specialised tools (which they may not use often), and also the opportunity cost of the time and effort spent in carrying out laborious or difficult home improvement tasks. Many will decide that some DIY jobs are beyond their abilities. Overall, there is a weak threat from substitutes.

Threat of substitutes

Weak Strong




5.6 Rivalry

Figure 9: Drivers of Degree of Rivalry in the Home Improvement Market in the United Kingdom, 2008

012345

Competitor size

Number of players



Low fixed costs

Easy to expandHard to exit

Lack of diversity

Similarity of players

Storage costs

Zero-sum game?


Amongst market players in the home improvement market there are several large, and many smaller, retailers. Players can differentiate themselves by various means: primarily through their product lines, but also with services such as low-cost home delivery, timber cutting, or the ability to offer guidance on practical DIY techniques.

However, the major market players are fairly similar in nature and in the type of products they stock; also, with the exception of companies like Wal-Mart and Sears, the major players tend to be rather narrowly focused on the home improvement and gardening market. This increases the level of rivalry within the market. Competition is also boosted by low switching costs and willingness of customers to switch to a new player if better offer is presented. Overall, the threat of competition in the UK market is strong.

Degree of rivalry

Weak Strong

LEADING COMPANIES



CHAPTER 6 LEADING COMPANIES

6.1 B&Q

Table 4: Key Facts: B&Q Address: Portswood House, 1 Hampshire Corporate Park, Chandlers

Ford, Eastleigh, Hampshire SO53 3YX, GBR Telephone: 44 23 8025 6256 Fax: 44 23 8025 7480 Website: www.diy.com Financial Year-End: February Source: Company Website D A T A M O N I T O R

B&Q, a subsidiary of Kingfisher, is engaged in the retail of do-it-yourself (DIY) and garden products. The company offers over 45,000 home improvement and garden products for the homemaker, DIY enthusiast, and trade professional. As of March 01, 2008, the company operates 330 stores including 119 warehouses, 117 mini-warehouses, and 94 supercenters in the UK and Ireland. The company also operates more than 60 stores internationally, including B&Q Beijing, China.

The company offers the following product lines: bathrooms and plumbing; kitchen and appliances; garden and leisure; decorating and lighting; building, hardware and tools; heating and cooling; and bedrooms and flooring.

In bathrooms and plumbing, B&Q offers bathroom fixtures and plumbing products such as boilers, plumbing supplies, radiators, valves and accessories, and ventilation and ducting products.

The company supplies kitchens and appliances including, freestanding appliances, hoods, ovens, hobs, fridges and freezers, and dishwashers.

In garden and leisure products category, the company provides outdoor living, garden buildings, garden power, gardening, landscaping, conservatories and plants. It also provides garden and leisure services.

B&Q's decorating and lighting products include tiles, wall coverings, abrasives, decorating sundries, curtains and accessories, indoor lights, outdoor lights, and light bulbs.

The company's building, hardware and tools product category comprises building materials, electrical products, hand tools, power tools, hardware, timber, doors and windows, and ladders.

LEADING COMPANIES



In heating and cooling line, B&Q offers fans, coolers, heating equipment, fire chimneys and solar energy systems. B&Q's bedrooms and flooring products comprise modular and freestanding bedroom furniture, sliding wardrobe doors and other furniture. It also consists of laminates, solid wood, rugs and mats.

In addition, B&Q offers planning and installation services, repair, and maintenance services.

Key Metrics

Financial details for the company are not available.

LEADING COMPANIES



6.2 Homebase Ltd.

Table 5: Key Facts: Homebase Ltd. Address: 489 499 Avebury Boulevard, Saxon Gate West,

Milton Keynes MK9 2NW, GBR Telephone: 44 0845 601 6911 Fax: 44 1908 692 301 Website: www.homebase.co.uk Financial Year-End: March Source: Company Website D A T A M O N I T O R

Homebase is a privately-held subsidiary of Home Retail Group. The company is one of the UK largest home improvement and garden supply retailers. The company product line includes bathroom and kitchen fixtures, floorings and tiles, tools, appliances, conservatories, consumer electronics and fashion home furnishings. Homebase sells over 30,000 products. It also provides online shopping. Through its stores, the company serves over 70 million customers per year.

The company owns and operates 300 stores in the UK and Ireland. It is headquartered in Milton Keynes, the UK and employs 18,784 people. Homebase publishes its own magazine ‘Ideas’ with a circulation of almost half a million.

Key Metrics

The company is a subsidiary of Home Retail Group and does not publish its financial details separately.

LEADING COMPANIES



6.3 Focus (DIY) Limited

Table 6: Key Facts: Focus (DIY) Limited Address: Gawsworth House, Westmere Drive, Crewe, Cheshire

CW1 6XB, GBR Telephone: 44 1270 501 555 Fax: 44 1270 250 501 Website: www.focusdiy.co.uk Source: Company Website D A T A M O N I T O R

Focus (DIY) is a privately-held company owned by Cerberus. It offers a range of DIY and gardening products, primarily to consumers seeking to undertake light home improvement and maintenance projects.

Focus offers a range of private label and branded products. Its product range includes decorative products such as paint and wall coverings, core DIY products such as tools and building materials, home enhancement products including bathroom and kitchen units, and gardening and seasonal products such as plants and lawnmowers.

Focus stores are distributed nationally, with approximately 60% located in the key target markets, which consist of market towns with populations of between 20,000 and 80,000, and edge-of-urban locations.

The company operates 250 stores, with a total of approximately 8.2 million square feet of net selling space (including 1.9 million square feet of outdoor selling space) and, on average, approximately 32,000 square feet of net selling space per store.

Key Metrics

Focus is a privately-held company and does not publish its financial data.

LEADING COMPANIES



6.4 Wickes Ltd.

Table 7: Key Facts: Wickes Ltd. Address: Wickes House, 120-138 Station Road, Harrow, HA1 2QB,

United Kingdom Telephone: 44 20 8901 2000 Fax: 44 20 8901 2036 Website: www.wickes.co.uk Source: Company Website D A T A M O N I T O R

Wickes, Ltd., founded in 1972, operates a chain of home improvement stores. Its product categories include adhesives and sealants; bathroom products; building materials; doors and windows; electrical products; flooring; garden products; heating and plumbing; insulation; kitchen products; lighting; nails, screws, and fixings; paint and decorating; roofing and guttering; tiles; and timber, tools, ladders, and storage products. Wickes operates stores in the United Kingdom. As of January 2008, it has a portfolio of over 190 stores.

Wickes opened its first store in the UK in 1972 at Whitefield in Manchester, UK. The concept was launched as a joint venture between the US group, Wickes Corporation, and the UK builders merchant, Sankeys. In 1987, Wickes was floated on the London Stock Exchange. At that time the company was trading from 41 units in the UK. In 1996, Wickes underwent a change of management followed by a rights issue and the sale of its European stores in 1997. In September 2000, Wickes was acquired by the Focus Group.

Within the Focus Wickes Group, Wickes was able to grow significantly with an increase in store numbers from 131 at 29 October 2000 to 172 at 31 March 2004, including the conversion of 36 Focus outlets to Wickes stores. Since February 2005, Wickes has operated as a subsidiary of Travis Perkins plc.

In October 2007, Wickes Ltd. has entered a franchise agreement with Moritz Home Improvements Ltd. under which Moritz agreed to develop home improvement stores in Ireland under the Wickes brand.

Key Metrics

Financial details for the company are not available.

MARKET FORECASTS



CHAPTER 7 MARKET FORECASTS

7.1 Market Value Forecast

In 2013, the United Kingdom home improvement market is forecast to have a value of $14.3 billion, a decrease of 13.8% since 2008.

The compound annual rate of change of the market in the period 2008-2013 is predicted to be -2.9%.

Table 8: United Kingdom Home Improvement Market Value Forecast: $ billion, 2008-2013

Year $ billion £ billion % Growth 2008 16.6 9.0 -3.60%2009 15.1 8.2 -9.10%2010 14.4 7.8 -4.50%2011 14.0 7.6 -2.40%2012 14.0 7.6 -0.20%2013 14.3 7.8 1.90% CAGR, 2008-2013: -2.9% Source: Datamonitor D A T A M O N I T O R

Figure 10: United Kingdom Home Improvement Market Value Forecast: $ billion, 2008-2013


12.513.013.514.014.515.015.516.016.517.0

2008 2009 2010 2011 2012 2013

$ bi

llion

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

% G

rowth

$ billion % Growth

MACROECONOMIC INDICATORS



CHAPTER 8 MACROECONOMIC INDICATORS

Table 9: United Kingdom Size of Population (million) , 2004-2008 Year Population (million) % Growth 2004 60.32005 60.4 0.30%2006 60.6 0.30%2007 60.8 0.30%2008 60.9 0.30% Source: Datamonitor D A T A M O N I T O R

Table 10: United Kingdom GDP (Constant 2000 Prices, $ billion), 2004-2008

Year Constant 2000

Prices, $ billion % Growth 2004 1603.12005 1632.5 1.80%2006 1678.6 2.80%2007 1729.0 3.00%2008 1744.5 0.90% Source: Datamonitor D A T A M O N I T O R

Table 11: United Kingdom Inflation, 2004-2008 Year Inflation Rate (%) % Growth 2004 3.02005 2.8 -4.70%2006 3.2 12.70%2007 4.3 34.20%2008 3.5 -18.50% Source: Datamonitor D A T A M O N I T O R

MACROECONOMIC INDICATORS



Table 12: United Kingdom Exchange Rate, 2004-2008 Year Exchange Rate ($/£) 2004 1.831372005 1.818052006 1.839792007 2.000522008 1.83517 Source: Datamonitor D A T A M O N I T O R

APPENDIX



CHAPTER 9 APPENDIX

9.1 Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, and cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

APPENDIX



9.2 Industry Associations

European DIY-Retail Association An der Rechtschule 1-3, 50667 Cologne, Germany Tel: 49 221 277 5950 Fax: 49 221 2775 9579 www.heimwerkerverband.de/english

9.3 Related Datamonitor Research

Datamonitor Industry Profiles

Global Home Improvement

Home Improvement in Asia-Pacific

Home Improvement in Europe

Home Improvement in the United States

Home Improvement in France

Home Improvement in Germany

Home Improvement in Japan

Home Improvement in China

Home Improvement in Italy

Home Improvement in Spain

Home Improvement in Belgium

home improvement industry

Documents