DIY's Not Dead, Just Moving Online
The death of DIY as reported in the Guardian 23rd March may be restricted to the High Street. For online DIY retailers like Plumbworld, things have never looked better.
(PRWEB) April 6, 2006 -- The death of DIY as reported in The Guardian 23rd March may be a bit premature.
http://shopping.guardian.co.uk/household/story/0,,1738003,00.html
They reported, under the headline DIY RIP: “B&Q, the biggest DIY store in Europe with 322 stores across Britain, announced a 52% fall in UK profits. MFI is closing 11 stores and pulling out of the bathroom market; Homebase and Wickes have also reported sales and profit declines; Focus has had to renegotiate its banking covenants; Floors to Go last week announced an 18% fall in underlying sales for 2005 and a halving of profits.”
Far from signalling a move away from DIY, these trends might simply reflect the move away from the High Street and the growth of online retailers like Plumbworld.
Unlike the main DIY chains, www.Plumbworld.co.uk has shown very strong growth again this year with sales up 36% to £8.7 Million for the year ended March 31st 2006. If anything the growth is getting faster, with the company reporting it’s first ever million pound sales month in March.
www.Plumbworld.co.uk has been trading online since 1999 and is now the UK’s largest independent online retailer of bathroom and plumbing products.
In fact according to the third party web traffic monitor www.hitwise.co.uk, plumbworld is the UK’s 8th largest online shop in the entire home and gardens sector, ahead of household such names as MFI, Wickes, DFS and Laura Ashley.
According to Managing Director, James Hickman: "The reason is simple economics, it costs less to run a website and central distribution centre than it does to rent 322 stores, pay salaries to 322 store managers, umpteen deputy managers and a sales force of thousands. These reduced overheads translate into lower prices, and better value for consumers."
It looks like despite the dot.com crash of the 90’s high street retailers still have a lot to fear from their low overhead online rivals.
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