The post-Covid backlash is hurting. In France, more and more individuals are turning away from specialist DIY stores, which they consider too expensive, and are opting for recycling or buying second-hand materials to carry out their work.
Drop in income
This trend is part of a context where the DIY sector (which had experienced an unprecedented boom during the Covid-19 crisis) is now showing a sharp decline. Our colleagues at TF1 Info report that sales at large specialist stores such as Leroy Merlin, Castorama and Mr Bricolage fell by 4.3% in 2024, reaching €22.1 billion.
This is therefore around €1 billion less than in 2023 and certain departments, such as carpentry, have suffered more specifically with a drop of 7.2% in one year. Among pure-players on the web, ManoMano is doing a little better and hopes to achieve profitability this year, after having been forced to let a quarter of its workforce go in 2023.
This contraction is largely explained by the slowdown in the real estate market. Juliette Lauzac, a researcher for the Federation of DIY Stores, explained to AFP that "the number one explanatory factor" for this decline is "the decline in sales of existing homes, because in a home that has changed hands, work will be done, there is a period of 1 to 3 years during which we will have renovation or development projects." Fewer real estate transactions therefore mean less work to be done... and consequently less traffic in DIY stores. Furthermore, the high price of materials and tools is another major obstacle for consumers, our colleagues also explain. In the TF1 Info report, several customers interviewed in a store testified to their difficulty in meeting these costs. “I think, I analyze because it’s extremely expensive. The smallest thing is worth a pair of pliers… or two,” one of them confides, while another person points out: “You have to plan a budget and that’s expensive.”
According to Eric Flusin, data manager for Inoha, searching for the best price has become the number one trend on Google for DIY and home improvement. This trend is reflected in a 7.8% drop in searches for products such as lawnmowers, bathroom furniture, scaffolding rentals, and pellet stoves.
To deal with this situation, DIY stores are forced to review their sales strategy. In the store visited by TF1 Info, a policy of lowering prices to attract customers is observed. Loïc Porry, regional director for the Ile-de-France region of Leroy Merlin, explains: “We have this tap which, at the end of 2024, was at 89.90 euros, which we were able to reposition at 59.90 euros. We have the price of raw materials which has fallen sharply, the price of transport which has fallen sharply, which has allowed us and our supplier partners to review our purchase prices downwards.”
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