DIY stores are not profiting from the improving economy and are still seeing their turnover drop, according to economists at ABN Amro.
Research into the sector shows turnover nearly 25% lower than seven years ago and still falling.
ABN Amro says the main reason is that the younger generation is without the skills to undertake home improvements. The aging population is also having an effect, with older people more often hiring someone to do jobs around the house.
Tighter demands for mortgages are also having an impact, the bank says. ‘The consumer needs an increasing amount of money to buy a house,’ ABN Amro’s Sonny Duijn told broadcaster Nos. ‘This leaves much less money over for home improvements.’
In July, the Maxeda DIY group was given permission by the European Commission to sell its DIY stores Praxis and Formido. The sale will see the DIY chains taken over by French investors Ardian and the US Goldentree Asset Management.
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