Home improvements stores

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Do DIY retailers have the right tools to navigate Covid-19?

The closure of all but essential retailers due to Covid-19 is one of the most significant changes within the UK retail market in living memory. However, there are a number of exceptions to the closures, one of which is hardware shops and equipment, plant and tool hire outlets, to allow consumers to repair and maintain their homes.

Following Government measures issued on 23 March, DIY and home improvement stores remained open for trade, with sales in stores actually accelerating as people faced the prospect of increased time at home. In fact, Kingfisher (owner of Screwfix and B&Q) reported that sales increased by 38 per cent in the third week of March compared with the same period in 2019.

However, the difficulties faced by these retailers in their stores soon became apparent for a number of different reasons. Firstly, with homeware retailers often occupying large stores and with staff levels inevitably dropping as a result of the virus, many retailers were predicting an upcoming struggle in maintaining sufficient staff numbers on the shop floor.

Secondly, as DIY and hardware stores naturally sell a wide range of goods, many products fall outside of the ‘essential’ category meaning stores faced the prospect of having to rope off sections deemed to be selling ‘non-essential’ items such as bathrooms and kitchens.

It’s therefore perhaps unsurprising that in light of these factors, a number of major DIY and hardware stores took the decision to close, despite receiving Government approval to remain open. Research by Local Data Company suggests that a total of 83 per cent of all UK stores are currently closed, despite only 69 per cent of retail units being forced to shut by the Government, showing that some ‘essential’ retailers have chosen to close voluntarily.

In light of this major decision, we are now beginning to see just how these retailers fare when it comes to their online offerings. Consumer demand for this sector has shown no sign of slowing down as isolation and lockdown measures continue, and therefore the capabilities of their ecommerce operations are arguably more crucial now than ever.

When B&Q closed its stores its website became so overwhelmed that it had to close down for a period while Wickes customers have been faced with lengthy virtual queues. However, in spite of these teething issues, both continue to service online sales either through delivery or via click and collect, along with Homebase, which also provides an online service.

The sector has certainly faced its well-documented struggles in recent years. However, if DIY retailers are able to capitalise on this surge in demand, it could provide the much-needed boost that these businesses need. An efficient online service is key, with warehouse staff taking all necessary health and safety precautions, but those that have the facilities and systems in place will be the ones to climb the ladder.

 

Further information

Contact Savills Out of Town Retail

Read more: Savills Covid-19 Resource Hub

 

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