Industry research
DIY Retail
Scope
Europe
Companies
132
Table of contents
Report collaborator:
Josh Winduss, associate director at CIL Strategy Consultants, provided expert insights for this report. Read the interview transcript here
Key takeaways
What is the scope of this industry report?
The European do-it-yourself (DIY) retail market consists of players operating both brick-and-mortar and online stores that distribute a wide range of DIY products. These include home improvement, decoration, construction, gardening, painting, lighting and sanitary applications. Market participants may either offer a broad assortment across multiple categories or specialise in a specific product vertical.
Based on this, we segmented the market into:
Generalists,
Gardening,
Building materials.
What does the DIY retail landscape look like in Europe?
The European DIY retail landscape varies by segment, with generalists, gardening specialists and building materials players exhibiting distinct operating models and consolidation dynamics. Generalists represent the broadest and most integrated segment, leveraging large-format store networks, wide assortments, private-label ranges and value-added services to capture project-based consumer demand, while increasingly using omnichannel capabilities to connect online research with in-store advice and fulfilment. Gardening remains more specialised and store-led, supported by experiential browsing, seasonal demand patterns and destination-based retail formats, with operators seeking to enhance year-round monetisation through adjacent services and selective consolidation. In contrast, building materials specialists are more affected by construction and renovation cycles, serve a more professional and B2B-oriented customer base and have logistics, product availability and technical advisory capabilities as key differentiators.
Across segments, the market remains fragmented at a pan-European level but is gradually consolidating, as larger players pursue M&A to:
Expand geographic coverage,
Strengthen local retail & distribution network,
Broaden service capabilities,
Improve operating efficiency.
What is the level of investor activity in the DIY retail landscape in Europe?
Sponsor-led interest has been limited, with ~24% of identified assets backed by financial sponsors (May 2026).
Investors are primarily attracted by:
Long-term renovation demand from ageing housing stock and energy efficiency regulations,
Improving conversion rates and basket values via omnichannel expansion,
Consumer trade-down from professional services to DIY for smaller home improvement projects.
On the other hand:
Weak discretionary demand amid inflation and low consumer confidence,
Supply chain and fulfilment subject to geopolitical disruptions,
Lowering Gen Z basket values and reduced operating leverage serve as key deterrents for investors.
What are the key ESG considerations in Europe's DIY retail industry?
ESG topics are primarily related to environmental and social challenges. Environmental issues revolve around reducing emissions across product manufacturing, store operations and fulfilment, with most emissions generated outside retailers’ direct operations. To address this, players strengthen responsible sourcing, expand sustainable product ranges and optimise logistics. On the social front, challenges are mainly driven by labour turnover, seasonal staffing needs and widening skills gaps. To address this, incumbents focus on employee engagement, retention and skills development through ownership programmes, internal promotion and targeted training.
Company benchmarking
Market growth
The global DIY home improvement retail market is forecasted to grow from ~$845bn in 2024 to ~$1.1tn in 2029 (+5.2% CAGR 2024-2029; Technavio, December 2024)
The European DIY and hardware store market is estimated to grow from ~€374.9bn in 2026 to ~€414.9bn in 2030 (+2.6% CAGR 2026-2030; Statista, May 2026)
Positive drivers
Ageing housing stock and regulatory-driven energy renovation support long-term growth, with ~75% of EU buildings requiring renovation under the Energy Performance of Buildings Directive. DIY retailers are well-positioned to capture the corresponding demand with insulation and heating systems, among other products (CIL expert interview; European Commission, May 2026)
Tailwinds from rising omnichannel adoption among DIY customers. Strong omnichannel experiences can make customers ~3.6x more likely to buy additional products and services, driving higher conversion rates, purchase frequency and basket value for DIY retailers (CIL expert interview; Deloitte, February 2025; McKinsey & Company, November 2024)
Cost efficiency remains a key priority for European consumers undertaking home improvement projects, while rising labour costs, longer waiting times and skilled-trade shortages further support DIY adoption for simpler tasks. As a result, more spending shifts towards DIY-led maintenance and small renovation work, ultimately benefiting DIY retailers through stronger demand, higher footfall and increased sales in core categories (Farnsworth Group, February 2026; USP Marketing Consultancy, May 2025)
Negative drivers
Cost-of-living pressures continue to constrain European household discretionary spending, with additional headwinds expected as recent events (e.g. oil price hikes) weigh on consumer confidence. This weakens consumers’ willingness to commit to large home improvement projects, putting pressure on big-ticket DIY sales (CIL expert interview; Euronews, April 2026; Eurostat, April 2026)
Geopolitical disruptions (e.g. the Iran-US conflict) increase procurement and freight costs for imported categories (e.g. tools, components) and slow the pace of inventory resets. Furthermore, omnichannel fulfilment continues to increase return volumes and reverse-logistics complexity (Reuters, April 2026; EIA, April 2026)
Generational shifts may weigh on DIY intensity, as younger consumers, including Gen Z, show lower DIY confidence and capabilities while facing delayed home ownership, potentially reducing the volume of large self-led renovation projects. As a result, DIY retailers may see weaker demand in higher-ticket categories and reduced operating leverage, making it harder to absorb the fixed cost base of large store operations (Nationwide, October 2025)
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