UK DIY & Gardening Retailers 2007

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 15
Key Findings 15
Main Conclusions 16
CHAPTER 2 MARKET ANALYSIS 20
Market Definition 20
Expenditure 21
Expenditure Growth 22
Inflation 24
DIY Expenditure 25
Gardening Expenditure 28
DIY/Hardware Specialists 31
Key Drivers 32
Inflationary Pressure on DIY in 2007 33
Housing Market 34
Mortgage Equity Withdrawal 37
CHAPTER 3 COMPANY DATA ANALYSIS 38
Market Shares 38
Key Operating Statistics 40
Space Allocation 42
Advertising Media Expenditure 44
CHAPTER 4 OUTLOOK 46
Market Recovery Continues 46
Service Development 48
Garden Centre Sector Shake-up? 50
Environmental Agenda 51
Fashion and Design 53
Promotional Stance 53
Format Development 54
Multichannel Retailing 56
Threat of Non-specialists 58
CHAPTER 5 B&Q 60
Company Overview 60
Market Share 62
Trading Record 63
Store Portfolio 66
Retail Proposition & Space Allocation 69
Outlook 72
CHAPTER 6 FOCUS 74
Company Overview 74
Market Shares 76
Trading Record 77
Year to October 2006 77
Current Trading 78
Store Portfolio 79
Retail Proposition 81
Outlook 85
CHAPTER 7 HOME RETAIL GROUP 87
Company Overview 87
Market Shares 89
Trading Records 91
Argos Current Trading 95
Homebase Current Trading 96
Store Portfolios 97
Retail Propositions 101
Outlooks 107
Argos 107
Homebase 109
CHAPTER 8 TOPPS TILES 111
Company Overview 111
Market Share 113
Trading Record 114
Store Portfolio 116
Retail Proposition 118
Outlook 120
CHAPTER 9 WICKES 122
Company Overview 122
Market Share 124
Trading Record 125
Store Portfolio 127
Outlook 132
CHAPTER 10 WILKINSON 134
Company Overview 134
Market Share 136
Trading Record 137
Store Portfolio 138
Retail Proposition 140
Outlook 143
CHAPTER 11 WYEVALE GARDEN CENTRES 145
Company Overview 145
Market Share 147
Trading Record 149
Year Ending December 2006 150
Current Trading 150
Store Portfolio 151
Retail Proposition 154
Outlook 157
CHAPTER 12 BUILDERS MERCHANTS 159
Sector Overview 159
Jewson 161
Outlook 162
Travis Perkins 163
Outlook 165
Wolseley 167
Outlook 169
CHAPTER 13 SMALLER DIY RETAILERS 170
Overview 170
Floors 2 Go 172
Outlook 174
Robert Dyas 175
Outlook 177
Trago Mills 178
Outlook 179
Woolworths 180
Outlook 182
CHAPTER 14 SMALLER GARDEN CENTRES 183
Overview 183
Dobbies 185
Outlook 187
Notcutts 188
Outlook 189
CHAPTER 15 GLOSSARY 191
Financial Statistics � VAT 191
Trading Record 191
Physical Development 191
Computer Rounding 191
Abbreviations 192
Source � Verdict Research 192

LIST OF TABLES
Table 1: DIY & gardening market definition 2007 20
Table 2: Consumer expenditure on DIY & gardening 1996-2007e 21
Table 3: Consumer expenditure on DIY 1996-2007e 25
Table 4: DIY expenditure � principal components 2005, 2006 & 2007e 26
Table 5: Consumer expenditure on gardening 1996-2007e 28
Table 6: Gardening spend � principal components 2005, 2006 & 2007e 29
Table 7: DIY/hardware specialists performance 1997-2007e 31
Table 8: Leading retailers DIY & gardening market shares 2001-2007e 38
Table 9: Key operating statistics 2006/07 40
Table 10: Store portfolios of leading retailers 2006/07 41
Table 11: Summary of space allocation for leading retailers 2007 42
Table 12: Advertising expenditure 2002-2006 44
Table 13: Breakdown of advertising expenditure 2006 44
Table 14: B&Q company overview 2007 60
Table 15: B&Q key operating statistics 2002-2007 61
Table 16: B&Q trading record 1997-2007 64
Table 17: B&Q store portfolio 1997-2007 66
Table 18: B&Q and Kingfisher store estate by format July 2006 and 2007 66
Table 19: B&Q retail proposition 2007 69
Table 20: B&Q space allocation 2007 70
Table 21: Focus company overview 2007 74
Table 22: Focus key operating statistics 2002-2007e 75
Table 23: Focus trading record 1997-2007e 77
Table 24: Focus store profile 1997-2007e 79
Table 25: Focus retail proposition 2007 81
Table 26: Focus space allocation 2007 83
Table 27: Home Retail Group overview 2007 87
Table 28: Argos key operating statistics 2003-2007 88
Table 29: Homebase key operating statistics 2003-2007 88
Table 30: Home Retail Group trading record 2001-2007 91
Table 31: Argos trading record 1997-2007 93
Table 32: Homebase trading record 1997-2007 95
Table 33: Argos store portfolio 1997-2007 97
Table 34: Homebase store portfolio 1997-2007 99
Table 35: Homebase sales area breakdown 2003-2007 100
Table 36: Argos retail proposition 2007 101
Table 37: Homebase retail proposition 2007 103
Table 38: Argos catalogue space allocation Spring/Summer 2007 and Autumn/Winter 2007 105
Table 39: Homebase space allocation 2007 106
Table 40: Topps Tiles company overview 2007 111
Table 41: Topps Tiles UK key operating statistics 2002-2007e 112
Table 42: Topps Tiles UK trading record 1997-2007e 114
Table 43: Topps Tiles UK store portfolio 2002-2007e 116
Table 44: Topps Tiles retail proposition 2007 118
Table 45: Wickes company overview 2007 122
Table 46: Wickes key operating statistics 2001-2006 123
Table 47: Wickes trading record 1996-2006 125
Table 48: Wickes store portfolio 1996-2006e 127
Table 49: Wickes retail proposition 2007 129
Table 50: Wickes space allocation 2007 130
Table 51: Wilkinson company overview 2007 134
Table 52: Wilkinson key operating statistics 2002-2007 135
Table 53: Wilkinson trading record 1997-2007 137
Table 54: Wilkinson store profile 1997-2007 138
Table 55: Wilkinson retail proposition 2007 140
Table 56: Wilkinson space allocation 2007 142
Table 57: Wyevale Garden Centres company overview 2007 145
Table 58: Wyevale key operating statistics 2002-2007e 146
Table 59: Blooms of Bressingham key operating statistics 2002-2007e 147
Table 60: Wyevale trading record 1997-2007e 149
Table 61: Wyevale store profile 1997-2007e 152
Table 62: Wyevale retail proposition 2007 154
Table 63: Wyevale space allocation Summer 2007 156
Table 54 Builders merchants � key operating statistics 2005-06 159
Table 64: Jewson company overview 2007 161
Table 65: Travis Perkins company overview 2007 163
Table 66: Travis Perkins store portfolio 2005/06 164
Table 67: Wolseley company overview 2007 167
Table 68: Smaller DIY retailers � key operating statistics 2005-2007 170
Table 69: Floors-2-Go company overview 2007 172
Table 70: Robert Dyas company overview 2007 175
Table 71: Trago Mills company overview 2007 178
Table 72: Woolworths company overview 2007 180
Table 73: Dobbies & Notcutts company overviews 2007 183
Table 74: Smaller garden centre operators � key operating statistics 2005/06 184
Table 75: Dobbies trading record 2001-2007e 185
Table 76: Notcutts trading record 2000-2007e 188

LIST OF FIGURES
Figure 1: DIY & gardening vs total retail growth 1996-2007e 23
Figure 2: DIY & gardening vs total retail inflation/deflation 1996-2007e 24
Figure 3: DIY expenditure � principal components 2006 27
Figure 4: Gardening expenditure � principal components 2006 30
Figure 5: Examining inflation in raw materials 2007 33
Figure 6: The impact of the housing market on the DIY & gardening market 2007 34
Figure 7: House price inflation (England & Wales) 1996-2007e 35
Figure 8: Housing transactions (England & Wales) 1996-2007e 36
Figure 9: Mortgage equity withdrawal 1996-2007e 37
Figure 10: DIY & gardening expenditure and growth rates 2000-2007e 47
Figure 11: Development of DIY retailers service propositions 2007 48
Figure 12: Shifting dynamics in the garden centre sector beyond 2007 50
Figure 13: Environmental considerations for DIY retailers 2007 52
Figure 14: Advantages of flexible format development 2007 55
Figure 15: Positioning of DIY retailers in DIY & gardening sector 2007 58
Figure 16: B&Q DIY & gardening market share 1997-2007e 62
Figure 17: Focus DIY & gardening market shares 1997-2007e 76
Figure 18: Argos & Homebase DIY & gardening market shares 1997-2007e 89
Figure 19: Home Retail Group sales breakdown 2006/07 92
Figure 20: Topps Tiles DIY & gardening market share 1997-2007e 113
Figure 21: Wickes DIY & gardening market share 1997-2007e 124
Figure 22: Wilkinson DIY & gardening market shares 1997-2007e 136
Figure 23: Wyevale market shares 1997-2007e 148