Today

The British DIY & gardening market is set to record a second consecutive year of declining sales after many years as the fastest growing sector in retail, a report warns.

The report, by retail analysts Verdict Research, shows that DIY & gardening sales will fall by a further 0.2 per cent this year after dropping 3.2 per cent in 2005.

The decline in sales reduces the total market value to just £16.1bn, about £600m below its 2004 high, the firm said.

Looking ahead, the prospects for the sector are mixed, according to the report.

Study author Nick Gladding said: "Though the market will recover in 2007, a re-run to the boom days of double digit sales growth it achieved in the late 1990s is not realistic.

"Only retailers that adapt to a changing consumer psyche and new competitive challenges can expect to prosper."

Verdict Research also questions the popularity and appeal of home improvement programmes.

"Home improvement programmes are no longer a staple of prime time TV, rather DIY horror stories have become much more prevalent, causing consumers to think twice before embarking on major home improvement projects," Verdict Research said in their report.

The company also believes that the increasing popularity of getting home improvement work 'Done for You' has suppressed DIY market growth.

"The influx of skilled tradesmen from new EU member states prepared to work for lower wages than British workers has reduced the cost of home improvement projects to consumers," Verdict Research said.

"It has made 'Done for You' a much more affordable option and explains why builders merchants and trade-orientated specialists have outperformed."

Verdict Research has urged DIY retailers to look at their pricing tactics, marketing strategies and product ranges if they are to improve their fortunes over the next few years.