The desire for good quality, uncertainty about regulations, convenience and lack of time are encouraging more consumers to outsource more complicated home improvement tasks to professionals. This trend is boosting B2B sales, meaning that the growth in this channel is higher than the B2C sales tracked by Euromonitor International.
Private label is currently thriving in home improvement and gardening stores in Finland. In the first half of 2018, for example, Kesko was reported to have around 30,000 different products in its six private label series in the channel.
Despite much talk about the rise of online sales, several chains have proved that stores are not yet on their deathbeds. For example, the Scandinavian chains Jysk and Clas Ohlson steadily increased their outlet numbers in the review period.
In 2017, the leader in home and garden specialist retailers, Kesko, merged its K-Rauta and Rautia hardware chains, rebranding all stores as K-Rauta. This rebranding, in a category which is one of Kesko’s strategic focus areas in retailing, has been successful, with the unified brand benefiting from Kesko’s unbeatable knowledge of consumers’ purchasing patterns, its local knowledge and individual retailers’ approachability.
Ikea ranks third in home and garden specialist retailers in Finland. In 2018, Ikea operated a network of five traditional large outlets in the country, along with the newest addition to the network, the far smaller than average outlet in Jyväskylä.
Towards the end of the review period, furniture specialists fell under the special scrutiny of the Consumer Ombudsman, with several chains being reprimanded for misleading marketing.
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This industry report originates from Passport, our Retailing market research database.