Does no-one do DIY anymore?

B&Q takes a hit.

While Sir Stuart Rose once commented that “weather is for wimps”, Kingfisher has more justification than most to pull this old excuse out of the hat when explaining this quarter’s weak trading results.

Easter is a bit like the DIY sector’s Christmas and is a key time for consumer activity and spending. Unfortunately, this year’s dismal weather dampened consumer demand, both literally and metaphorically. B&Q’s numbers show this with, for example, sales of nursery plants down 16 per cent on last year.

Conlumino’s seasonal consumer tracker, which looks at how people behave and what they buy over the Easter period, shows the same picture in a wider market context. Over the past two Easter periods (2011 & 2012) an average of 22.4 per cent of all consumers undertook some form of gardening activity; this year the figure fell sharply to just 9.4 per cent. The numbers for DIY activity shows a similar trend with 14.6 per cent of consumers undertaking some activity over Easter in 2011 & 2012; this year that number fell to 10.8 per cent, largely thanks to fewer people undertaking outdoor improvement and decoration.  These headline numbers had a very tangible impact on the penetration of consumers purchasing various products over Easter.

Although a weak Easter has had a very tangible downward impact on B&Q, it is only one of a number of negative headwinds impacting the DIY sector. Among these, the main one is a continued lack of traction in the housing market. Although there are now signs that activity is picking up, it will be some time before they return to robust levels of transactions which are critical for a healthy DIY sector.

The other essential issue is the waning consumer interest in DIY. With many projects more discretionary, cash-strapped consumers have been willing to delay improvement and decorative activity; at the same time, a greater reluctance to undertake DIY.

While the weather was a temporal blip – and indeed Kingfisher’s post Easter numbers look far more rosy – these two underlying dynamics are structural and represent the backdrop against which B&Q, and indeed all other players, is operating. While the DIY market will eventually reach a stable and settled level, this probably won’t be until the back end of next year.

As for Kingfisher itself, although it is a victim of circumstance the company is both well run and proactive. Investments in stores, a focus on value and the continued development of ranges and services put it in a strong position to grab share and take advantage of the upturn, when eventually materialises.

Photograph: Getty Images

 Managing Director of Conlumino

Photo: Getty
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Unite stewards urge members to back Owen Smith

In a letter to Unite members, the officials have called for a vote for the longshot candidate.

29 Unite officials have broken ranks and thrown their weight behind Owen Smith’s longshot bid for the Labour leadership in an open letter to their members.

The officials serve as stewards, conveners and negotiators in Britain’s aerospace and shipbuilding industries, and are believed in part to be driven by Jeremy Corbyn’s longstanding opposition to the nuclear deterrent and defence spending more generally.

In the letter to Unite members, who are believed to have been signed up in large numbers to vote in the Labour leadership race, the stewards highlight Smith’s support for extra funding in the NHS and his vision for an industrial strategy.

Corbyn was endorsed by Unite, Labour's largest affliated union and the largest trades union in the country, following votes by Unite's ruling executive committee and policy conference. 

Although few expect the intervention to have a decisive role in the Labour leadership, regarded as a formality for Corbyn, the opposition of Unite workers in these industries may prove significant in Len McCluskey’s bid to be re-elected as general secretary of Unite.

 

The full letter is below:

Britain needs a Labour Government to defend jobs, industry and skills and to promote strong trade unions. As convenors and shop stewards in the manufacturing, defence, aerospace and energy sectors we believe that Owen Smith is the best candidate to lead the Labour Party in opposition and in government.

Owen has made clear his support for the industries we work in. He has spelt out his vision for an industrial strategy which supports great British businesses: investing in infrastructure, research and development, skills and training. He has set out ways to back British industry with new procurement rules to protect jobs and contracts from being outsourced to the lowest bidder. He has demanded a seat at the table during the Brexit negotiations to defend trade union and workers’ rights. Defending manufacturing jobs threatened by Brexit must be at the forefront of the negotiations. He has called for the final deal to be put to the British people via a second referendum or at a general election.

But Owen has also talked about the issues which affect our families and our communities. Investing £60 billion extra over 5 years in the NHS funded through new taxes on the wealthiest. Building 300,000 new homes a year over 5 years, half of which should be social housing. Investing in Sure Start schemes by scrapping the charitable status of private schools. That’s why we are backing Owen.

The Labour Party is at a crossroads. We cannot ignore reality – we need to be radical but we also need to be credible – capable of winning the support of the British people. We need an effective Opposition and we need a Labour Government to put policies into practice that will defend our members’ and their families’ interests. That’s why we are backing Owen.

Steve Hibbert, Convenor Rolls Royce, Derby
Howard Turner, Senior Steward, Walter Frank & Sons Limited
Danny Coleman, Branch Secretary, GE Aviation, Wales
Karl Daly, Deputy Convenor, Rolls Royce, Derby
Nigel Stott, Convenor, BASSA, British Airways
John Brough, Works Convenor, Rolls Royce, Barnoldswick
John Bennett, Site Convenor, Babcock Marine, Devonport, Plymouth
Kevin Langford, Mechanical Convenor, Babcock, Devonport, Plymouth
John McAllister, Convenor, Vector Aerospace Helicopter Services
Garry Andrews, Works Convenor, Rolls Royce, Sunderland
Steve Froggatt, Deputy Convenor, Rolls Royce, Derby
Jim McGivern, Convenor, Rolls Royce, Derby
Alan Bird, Chairman & Senior Rep, Rolls Royce, Derby
Raymond Duguid, Convenor, Babcock, Rosyth
Steve Duke, Senior Staff Rep, Rolls Royce, Barnoldswick
Paul Welsh, Works Convenor, Brush Electrical Machines, Loughborough
Bob Holmes, Manual Convenor, BAE Systems, Warton, Lancs
Simon Hemmings, Staff Convenor, Rolls Royce, Derby
Mick Forbes, Works Convenor, GKN, Birmingham
Ian Bestwick, Chief Negotiator, Rolls Royce Submarines, Derby
Mark Barron, Senior Staff Rep, Pallion, Sunderland
Ian Hodgkison, Chief Negotiator, PCO, Rolls Royce
Joe O’Gorman, Convenor, BAE Systems, Maritime Services, Portsmouth
Azza Samms, Manual Workers Convenor, BAE Systems Submarines, Barrow
Dave Thompson, Staff Convenor, BAE Systems Submarines, Barrow
Tim Griffiths, Convenor, BAE Systems Submarines, Barrow
Paul Blake, Convenor, Princess Yachts, Plymouth
Steve Jones, Convenor, Rolls Royce, Bristol
Colin Gosling, Senior Rep, Siemens Traffic Solutions, Poole

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.