More presence of the Do-it-yourself sector

26 October 2015 / By: rmmcia

More presence of the Do-it-yourself sector.

Do-it-yourself is a sector growing in Spain. Despite the loss of 30% in sales during the past recession years, not all distributor channels suffered it. Now their revenues are growing and they modify their strategy, placing the stores closer to the city centre.

In the 90’s, DYI’s distributors spread across as “category kings”, highly specialized stores and with big sales volumes. The first one -still leader of the market- has been growing all this time while most of the sectors went into free fall, and 2014 happened to be their best year. All distributors have realised the opportunity of the DYI potential, so a big number of them are reinvesting part of their benefits by opening new stores.

annual_revenues_DIY_leader

As per the Observatorio Sectorial DBK/ INFORMA, the specialized DYI stores’ turnover increase was of 6,8% in 2014 when compared to the previous year, though a lower price level demand of products, and the forecast for 2015 if of a 5,6% raise.

The change of strategy shows in the boost of local commerce. Lots of distributors have promoted the opening of more sale points and they are getting closer to the city centre with new stores in city malls. While there’s a sector highly concentrated, the first 5 companies gather 86% of the market share, specialized local stores and small hardware stores are taking advantage of the market growth and are reinventing themselves: by associating with others, introducing new technologies in their businesses, new communication tools and expert advice, competing this way with the big ones.

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