Optimistic forecast ­ for 2017

Companies in the Germany DIY trade continue to be on course for success in financial year 2016. With total gross sales of € 18.24 bn, the industry was able to achieve an increase in sales of 1.5 per cent last year, according to reports from the industry association BHB. Even when adjusted to retail space, the industry recorded a slight growth of 0.8 per cent. These figures are based on the latest results of the market research company GfK.
The association is also optimistic about the current financial year 2017. BHB is expecting a sales growth of 1.3 per cent, emphasises the speaker of the BHB association Detlef Riesche. He says that from a like-for-like aspect, an increase in growth of around 1.0 per cent can be assumed. This means that the industry association is in line with economic forecasts from leading German economic research institutes for the current year, which expect growth rates in the gross domestic product within a range of 1.2 to 1.9 per cent - and this despite possible upcoming economic uncertainties due to possible restrictions in free trade caused by the changing economic politics in the United States or the forthcoming negotiations with Great Britain on leaving the EU.
For the extended DIY core market (DIY stores, specialist trade, small business formats and sales in distance selling with DIY as core product range) the market researchers at Teipel Research & Consulting, Cologne, Germany, see a sales growth of 1.1 per cent for the year 2017 as realistic with a market volume of € 48.4 bn total gross sales. Potential for increased sales in 2017 in the DIY store industry is particularly seen to be in the area of private renovation and home building as well as in the thriving construction industry: it is said that the current boom, which is continuing into 2017, will benefit trade and also the DIY store trade. But the decisive driver of growth in 2017 is private consumption: the job market is said to be in an excellent condition, while wage rises, safe jobs and low interest rates have also tempted DIY store customers into spending their money again this year. The DIY store trade will profit from this.

The year 2016 was characterised by the restructuring of the DIY store industry. "Commercial enterprises are successfully meeting the new…