Emerging markets generate growth of 56.7% between 2000 and 2005
While the mature core markets of Western Europe showed slowing growth rates between 2000 and 2005, emerging markets performed strongly over the period, with growth of 56.7%.

Research from Verdict reveals the UK's home improvement champion, Kingfisher continues to cement its position as Europe's largest diy retailer with sales twice those of its closest rival Leroy Merlin.

Verdict also found that across the major European markets sales densities have become a matter of concern, with EU diy sales densities falling 1.6% in 2005.

"The situation is set to get worse, with space growth outpacing sales growth across most EU-15 states," Verdict says. "Harnessing group wide synergies in buying, direct sourcing and investing in store environments to boost sales densities represents a major challenge for diy retailers. Fortunately, there are other strategies they can deploy to deliver productivity gains."

EU predictions

Smaller outlets
Moves by Praktiker with a major downsizing of selling space in Germany, and Kingfisher in the UK accelerating its B&Q mini-Warehouse conversion programme, represent a sensible move in a climate of rising property costs.

International expansion
Domestic rationalisation remains high on the agenda in Germany, where the three leading players have a market share of 20%.

Further consolidation across European diy markets

Growth opportunities remain in Spain, Italy, Portugal and Greece. These relatively fragmented markets signify excellent growth opportunities for the major international diy operators – merger and acquisition activities are likely.

Energy efficiency
Rising energy costs coupled with growing consumer demand for environmentally friendly products will act as a significant pull for new energy efficient products over the next few years.