COLOGNE (dpa-AFX) - Customers' reluctance to buy and thriftiness is also affecting the DIY sector in Germany. Despite higher prices, sales in 2023 fell by 3.1 percent in nominal terms compared to the previous year to 21.2 billion euros, according to the German DIY, Farmers' and Gardeners' Trade Association (BHB) in Koln on Monday. Not only wars, inflation and consumer uncertainty had a negative impact on business, but also the bad weather in spring and summer.
As a result, revenues in 2023 developed significantly worse than in the retail sector as a whole, which at least grew slightly without taking price increases into account. DIY stores and garden centers recorded a particularly high decline in sales in the leisure and seasonal goods, garden equipment and tiles product ranges (down 11% in each case). Online sales fell by just under five percent. The garden chemicals, soil and seeds and household goods product groups, among others, performed better than in the previous year. In 2022, the DIY sector was still able to record strong growth. Despite the slump, the sector is currently in a better position than in 2019 before the coronavirus pandemic.
According to BHB Board Spokesman Franz-Peter Tepaß, the retail sector has come through the various crises well. Nevertheless, the sector is still facing ongoing challenges this year. The industry is concerned about the difficult situation in the construction sector and climate change. The shift in seasons means that "the demand for product ranges and articles is changing at short notice," says Tepaß. More frequent extreme weather events such as storms, heavy rain and long periods of heat have an impact on people's homes. People have to take preventative or repair measures. Stores will be forced to expand their range.
The DIY sector is hoping for better business in 2024. At least the fall in the inflation rate and the increase in real wages offer some cause for optimism, according to Tepaß. At the same time, the association sees an increasing risk of insolvencies among suppliers and service providers./cr/DP/stw