UK DIY & Gardening Sector Report summary
August 2023
Period covered: Period covered: 02 – 29 July 2023
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
DIY & Gardening Sales
DIY & Gardening sales fell xx% YoY in July according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).
ONS data shows the wider Household Goods category faced xx% YoY shop price inflation in July, pointing to a decline in sales volumes.
Tough macro backdrop
DIY & Gardening sales struggled in July against the backdrop of a weak housing market, poor weather and rising interest rates.
Headline inflation eased to a 17-month low of 6.8% in July, but remained slightly ahead of economists’ expectations, while core inflation remained unchanged at 6.9% for the second consecutive month.
High prices are therefore continuing to put pressure on household’s discretionary incomes, particularly for big ticket purchases.
GfK’s consumer confidence index fell suddenly by 6 points to -30 as a result, following six months of steady improvement in the first half of the year, reflecting waning consumer resilience in tough macroeconomic conditions.
Notably, GfK’s major purchases index fell another 7 points to -32 in July, pointing to significant cutbacks in spending on large scale home improvements.
Wet weather
Growth in Gardening sales volumes was further hindered by uncharacteristically poor weather in July, which was the wettest in over a decade.
This resulted in a xx% fall in sales of barbecues and outdoor furniture in the month (GCA).
However, sales of indoor (+xx%) and outdoor (+xx%) plants remained resilient, as consumers appreciated the positive effects of increased precipitation relative to last summer’s dry heatwave.
Housing market in decline
After half a year of steady recovery, the housing market remained subdued in July.
UK house prices fell on an annual basis in the month (-2.4%), although the MoM decline (0.3%) was smaller, pointing to the positive impact of strong wage growth and easing inflation (Halifax).
Indicators for buyer enquiries, price expectations, and sales expectations remained low in July following sharp declines in June (RICS)
Households are feeling the pinch of persistent high living costs and rising interest rates, choosing either to stay put or moving to smaller, more affordable properties.
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Significant headwinds in the housing market
Source: RICS
