2023 was not a good year for hardware stores. The crisis atmosphere and the bad weather are to blame. The industry is not very optimistic about the future.
Customers’ reluctance to buy and thrift are also affecting the DIY store industry in Germany. Despite higher prices, sales fell by a nominal 3.1 percent to 21.2 billion euros in 2023 compared to the previous year. The DIY, Farmers and Garden Trade Association (BHB) announced this on Monday in Cologne. Not only wars, inflation and consumer uncertainty have had a negative impact on business, but also the bad weather in spring and summer.
Revenues in 2023 therefore developed significantly worse than in retail as a whole, which was able to increase slightly, at least without taking price increases into account. The DIY and garden centers recorded a particularly high decline in sales in the leisure and seasonal goods, garden equipment and tiles ranges (minus 11 percent each). Online sales fell by almost five percent. Things went better than in the previous year in the product groups garden chemicals, soils and seeds, and household goods, among others. In 2022, the hardware store industry was still able to grow significantly. Despite the slump, the economic sector is currently in a better position than it was in 2019 before the corona pandemic.
From the perspective of BHB board spokesman Franz-Peter Tepaß, retail has come through the various crises well. Nevertheless, we are still faced with ongoing challenges this year. The industry is concerned about the difficult situation in the construction sector and climate change. The shift in seasonal times means that “the need for product ranges and items changes at short notice,” says Tepaß. More frequent extreme weather events such as storms, heavy rain and long periods of heat would have an impact on your own home. People would have to take preventive or repair measures. The markets are forced to expand their offerings.
The hardware store industry is hoping for better business in 2024. At least the fall in the inflation rate and the increase in real wages offer some cause for optimism, says Tepaß. At the same time, the association sees an increasing risk of insolvencies among suppliers and service providers.
Source: Stern
