DIY market in Poland grew by over 5% in 2016

More information on this topic is presented in the PMR report:

The total DIY market in Poland (i.e., sales of products needed to build, renovate or decorate a home, garden products, and tools, both to individuals and to institutional clients) grew by 5.3% to reach PLN 51.9bn in 2016, according to data presented in a new report from PMR, "DIY market in Poland 2017. Market analysis and development forecasts 2017-2022".

 

The DIY retail market (i.e., sales to individuals and to construction and renovation companies acting on their behalf) represented 57% of the total DIY market in 2016. With a strong housing market, rising household expenditures on home maintenance, and more households planning to renovate their homes (partly thanks to payouts from the Rodzina 500+ programme), the outlook for the market is seen as very positive – even under a pessimistic scenario the value of DIY retail in Poland will not decline in the period 2017-2022.

There are certain threats on the horizon, though, and the biggest of those is the prospect of a ban on Sunday trading. If enacted, such a ban would create a major inconvenience for the many consumers who work during the week and only have time for a longer shopping trip on the weekends - they would be left with just one day to do so instead of two. However, latest indications from the Sejm - which is still working on the legislation - are that there is a chance that the ban will be introduced in a phased manner, thus spreading its negative effects for the market over a longer period of time. Other threats for the DIY market include the expiry of the popular Mieszkanie dla Mlodych scheme for first home buyers in 2018, which could impact negatively on the housing market;  and the risk of the government returning to its plan to impose a tax on retail sales. 

 

 

The biggest player on the Polish DIY market is the British group Kingfisher, which owns the Castorama and Brico Depot chains. Kingfisher had 12% of the total DIY market in Poland in 2016. Furthermore, a new PMR survey carried out for the DIY market in Poland 2017 report in January 2017 on a representative sample of over 1,000 respondents shows that Castorama is also the most recognised DIY chain in Poland – 89% of Poles know the brand. The French chains Leroy Merlin and Bricomarche are the second- and third-largest player by market share respectively, with OBI of Germany and Polish PSB-Mrówka (a unit of the Polskie Sklady Budowlane group) completing the top five.

Interestingly, the list of top 10 players on the Polish DIY market includes two grocers – the French chain Auchan and the British chain Tesco. Although the large-format grocers carry only limited ranges of DIY products in their stores to complement the core offer and they do not pose direct competition to specialty DIY retailers, the sheer scale of their business (in terms of the number of stores, customers, total sales turnover) means they are able to generate fairly high amounts of revenue from the sale of DIY products. The same factors explain the rapidly growing DIY revenue of discount chains such as Biedronka or Lidl. The discounters sell DIY products primarily as part of limited-time offers, but with their huge store estates and with the format enjoying high popularity among Poles and drawing large numbers of shoppers, even a small DIY range translates into substantial DIY revenue.  

 


More information on this topic is presented in the PMR report:
DIY retail in Poland 2017. Market analysis and development forecasts for 2017-2022