DIY Home Improvement Retailing Market: A Rising Trend
The Do-it-Yourself (DIY) Home Improvement Retailing Market is on the rise. According to forecasts, the market is set to grow from USD 757650 Million in 2023 to USD 979880 Million by 2029, marking a Compound Annual Growth Rate (CAGR) of 4.4%. This surge can be traced back to several factors, including a growing DIY culture, rising homeownership rates, and an increase in home renovation activities.
Empowering Consumers Through DIY Culture
The rise of online resources has empowered consumers to undertake DIY projects, which proves to be more cost-effective than hiring professionals. This trend is bolstered by consumer preferences for customization and environmental sustainability. Social media platforms and dedicated home improvement channels inspire consumers, generating demand for trending products.
North America Leads the DIY Home Improvement Market
The North American market stands out for its established DIY culture and high homeownership rates, driving consistent market growth. Key players in the DIY home improvement retailing market include ADEO, BAUHAUS, HORNBACH Baumarkt, Kingfisher, Travis Perkins, Intergamma, Les Mousquetaires, Sherwin-Williams Company, and Toolstation.
A Look at Lowe’s and MR DIY Group
Lowe’s, the second largest home improvement company in the US, boasts a significant history and current operations. Founded in 1921 and public since 1961, Lowe’s had a revenue of $96.2 billion in 2022. With a market cap of $119.52 billion, the company operates 2,200 stores across the US and Canada, employing 300,000 people. The company’s strengths lie in its brand name, marketing efforts, and efficient supply chain. On the other hand, its weaknesses include a heavy reliance on a single market.
MR DIY Group (M) Bhd, on the other hand, has robust growth plans aimed at driving the group’s earnings performance. With a focus on expanding its store network, particularly in the underserved areas of Sabah and Sarawak, the company aims to open 180 new stores in FY24 and achieve a store count of 2,000 by 2028. MR DIY’s private label strategy has seen significant growth, and private label product sales now account for 50% of total sales. The company’s gross profit margin has also widened by 480 basis points year-on-year to 45.2% in the first nine months of 2023.