Home and Garden Specialist Retailers in Italy

PROSPECTS

Strong DIY trend supports moderate growth

Home and garden specialist retailers recorded moderate retail value growth in 2019 despite the sluggish economy, supported by the strong DYI trend in the country. Home and garden remained high on the agendas of Italian consumers, with the majority owning their own property, giving them a strong motivation to maintain their homes to a high standard.

Shops-in-shops increasingly popular

Home and garden specialist retailers are increasingly launching small shops-in-shops within modern grocery retailers. In July 2019 Brico Io launched a 400sq m shop-in-shop under the Brico Io Selection format in an Ipercoop hypermarket in Milan and announced others were planned; in addition, it announced its renewed partnership with homeware chain, Kasanova, which will continue to have shops-in-shops within Brico Io stores.

Multi-channel strategies increasingly important

Home and garden specialist retailers are strengthening their multi-channel strategies. Although less so than with products such as apparel, footwear and electronics, Italian consumers seem to be increasingly interested in purchasing home and garden products online.

COMPETITIVE LANDSCAPE

Major closures in homewares and home furnishings stores

The Italian homewares and home furnishing stores channel was shaken up in 2019. On 24 May 2019, 55 Mercatone Uno Services stores, controlled since 2018 by Shernon Holding, were closed after the parent company filed for bankruptcy with debts of more than EUR250 million outstanding to 500 vendors.

Leroy Merlin Italia opens a new store

Four years after its last opening in Italy, in September 2019 Leroy Merlin Italia, in second place in home and garden specialist retailers, opened a new 7,500sq m store in Rome. Some 4,000sq m are taken up by a showroom (a complete floor), an aspect which mirrors a trend which remains strong in this channel: the need for consumers to see and touch the products.

New retail concepts strengthen multi-channel sales

Home and garden specialist retailers are launching new retail concepts to strengthen cross-channel sales. Inter Ikea Systems chose Italy as a pilot market to launch lockers in three stores in Milan: consumers can purchase their products online and pick them up four hours after purchase.

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