Germany: BHB: After a mix of Bad Weather and Inflation, There is Hope for a Trend Reversal.
This development was already indicated after the first quarter: The year 2023 will remain difficult for the DIY and garden centers in Germany, but also in Austria and Switzerland, reports the BHB - Handelsverband Heimwerken, Bauen und Garten in a press release on the first half of the year 2023 in the DIY industry: "In addition to the effects of consumer fears that were already apparent last year, coupled with high energy costs and persistently high inflation, there are now the effects of a rainy and cold spring that lasted until the first days of May. All of this leads to a net loss in sales, according to the BHB. The good news: the rest of May and June already showed a much more positive development.
In Germany, sales fell by -2.3 percent in the first six months of 2023 (also by -2.3 percent on the same area) and reached a value of 11.25 billion euros. However, this must also be compared to the high double-digit increase from the first quarter of 2022.
The overall situation in Germany can also be clearly seen in the individual ranges. Products in the leisure/seasonal range recorded the largest decline at -15.9 percent, closely followed by wood (-12.6 percent), garden equipment (-12.3 percent) and tiles (-10.6 percent). The greatest growth in the first half of the year was in garden chemicals/soil/seeds (+8.1 percent), household goods (+7.1 percent) and automotive (+5.3 percent).
BHB General Manager Dr. Peter Wüst sees these figures as a realistic reflection of the current situation: "Customers are still confronted with high additional expenses - energy costs remain at a high level, the prices for almost all everyday products have risen significantly." people clearly felt with their disposable income, "and our retailers also notice the reluctance, especially with higher-priced ranges."