HOME IMPROVEMENT SECTOR RECOVERS IN STRONG SECOND QUARTER
Following the 2.2% turnover decline in the first quarter, the Belgian Home Improvement sector seems to be picking up the pace. Results of the second quarter show a solid 4.1% turnover growth, which leads to a semi-annual growth rate of 1.4%. The gardening category in particular has made a swift recovery.
Compared to the same period the prior year, turnover of the gardening category increased by almost 15%. High-pressure cleaners, garden chemicals, powered garden tools and garden furniture are key segments that have driven this growth. Looking at Q1 results, it seems that consumers might have just postponed some purchase decisions until later this year. In addition, the transformation of the garden chemicals range – with consumers favoring natural products – presents new opportunities for manufacturers and retailers to help shape the market.
Although it’s unclear at this time whether the scorching heatwave will help or hurt DIY summer sales, we believe that the outlook for the second half of the year remains positive for the Belgian Home Improvement sector, with global economic indicators pointing towards solid growth.