The bank says the economic impact of the war in Iran, combined with higher inflation, rising interest rates, and weaker consumer confidence, is slowing the market. It now expects the sector to grow by 2 percent in 2026, instead of the 3 percent previously forecast.
According to the bank, the DIY sector reacts quickly to changes in the economy. When people feel pressure on their spending power, they tend to delay big home‑improvement projects. A large part of the demand for DIY products comes from the need to maintain the Netherlands’ ageing housing stock. Most homes are more than twenty years old and require regular repairs, renovations, and sustainability upgrades. Rising energy costs, also linked to the war, have made energy‑saving improvements especially important.
Self work
Many homeowners are choosing to take on smaller tasks themselves, such as insulating walls or roofs. This is partly because professionals are hard to find and often expensive. However, rules can make DIY work more complicated. For example, the ISDE subsidy for sustainable energy and insulation is only available if the work is carried out by a certified installation company.
The market is dominated by large chains like Hornbach, Gamma, Karwei, and Praxis. Because these stores often operate in the same shopping areas, it is difficult for them to stand out. ABN AMRO notes that while turnover is rising each year, this is mainly due to higher prices. On the other hand, the costs for staff, energy, buildings, and purchasing are increasing, putting pressure on profit margins.
Competition
E‑commerce makes it easier for consumers to buy DIY products from abroad. Amazon is now the largest online player in Europe for DIY items, with a market share of around 15 percent. Chinese platforms such as Temu and AliExpress are also gaining ground.
Competition is strongest in categories like small tools, lighting, decoration, gardening products, and hardware. According to ABN AMRO, DIY stores that support customers with bigger projects such as bathroom renovations, flooring, or insulation, have the best chance of protecting their margins.
@anp | NEWSBRAINPORT
