June 2012

A Service

Home Improvement/DIY Retailing Overview

By Niklas Reinecke and Matthew StychResearch DirectorAssociate Analyst

2

Niklas ReineckeAssociate Analyst

Niklas.Reinecke@4c.planetretail.net

Home Improvement/DIY Retailing Overview

All images ©Planet Retail Ltd unless otherwise stated.

This presentation evaluates the performance of the leading global home improvement/ DIY retailers, examines the Top 10 trends that are impacting the sector and assesses the opportunities and challenges for stakeholders.

With contributions from Matthew Stych, Research Director

3

Contents

1. Sector overview

2. Key Trends

3. Summary

4

1SectorOverview

5

Home Depot has retained its position as the largest home improvement retailer despite a drop in sales.

Home Depot’s retail banner sales have fallen significantly since 2007 as a result of the continued weakness in the US housing market. However, in 2010, the retailer achieved the first positive sales growth since 2006. Also, Lowe’s reported 2010 comparable store sales increased 1.3% – being the first such increase since 2005.

X Sector Overview

1

Home

Depot

Lowe'

s

King

fishe

r

Adeo

Teng

elm

ann

Coles

Gro

up

Men

ards

Bauha

us

RONA

DCM H

oldi

ngs

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Global: Retail Banner Sales, 2006e-2011e (USD bn)

2006e

2011e

Reta

il B

an

ner

Sale

s (U

SD

bn

)

Home Depot, Lowe’s and Kingfisher saw their net profits decline from 2007 to 2008. However, Home Depot and Kingfisher are on the rebound since 2008, while Lowe’s net profit has not recovered yet.

2006 2007 2008 2009 2010 2011

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Global: Net Profit, 2006e-2011e(USD mn)

Home Depot

Lowe's

Kingfisher

Net

Pro

fit

(US

D m

n)

Note: e - estimateSource: Planet Retail

Note: e - estimateSource: Planet Retail