Market to see increase to £16bn…but don’t celebrate just yet.
A report, published by retail analysts Verdict Research, predicts that the UK diy and gardening market will return to growth in 2007 after two years of falling sales.
However, retail analysts warn that the recovery is fragile and that, rather than suggest an increase in demand for home improvement products, the results reflect higher inflation and greater investment by retailers to try and stimulate the market.
Verdict estimates that the market will see an increase of 3.1% to £16bn during the year. This is promising news when compared to falls of 3.2% in 2005 and 0.2% in 2006.
Despite this, Verdict lead analyst Nick Gladding said: "The diy and gardening sector remains one of the weakest sectors in UK retail."
He adds: "Even with this year's upturn in sales, the market will still be worth less than in 2004. And while demand was strong through the first half of the year...the combination of disappointing summer weather and the succession of interest rate rises has slowed sales once more."