Inoha criticises purchasing concentration

French manufacturers turn over 15 per cent less in DIY trade

Inoha president Jean-Luc Guéry fears an increasing concentration on the retail side.(Source: Inoha)
Inoha president Jean-Luc Guéry fears an increasing concentration on the retail side.

The turnover of French manufacturers of DIY and garden products through the DIY store distribution channel declined sharply in 2022. As reported by the manufacturers' association Inoha, its members turned over 15 per cent less through the big DIY retailers than in the previous year. With a drop of 17 per cent, the decline was particularly sharp in the second quarter; in the fourth quarter, the drop was 9 per cent. The garden range was hit hardest with a 40 per cent drop in sales, followed by tools (-19 per cent) and hardware. The downward trend seems to have continued at the beginning of 2023, the association said.

In contrast, sales through the grocery retail channel remained stable (-0.1 per cent) in 2022. Growth in building materials (23.9 per cent) and hardware (9.1 per cent) offset losses in the decorative (-9.3 per cent) and electrical (-4.6 per cent) ranges.

The picture is different for sales via garden centres and the agricultural trade. Here, garden sales fell by 7.7 per cent, as all main product groups were affected: -4 per cent for plants, -14.4 per cent for garden products and -11.2 per cent for garden equipment.

In view of these figures, the association has expressed concern about the further outlook for the sector. Association president Jean-Luc Guéry is critical of the announcement by DIY groups Mr Bricolage and Kingfisher that they will be buying together in future. This strengthens "the concentration of the players on the retail side even more”, says Guéry.

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