Home and Garden Specialist Retailers in Italy

PROSPECTS

Furniture bonus becomes increasingly restrictive

In 2018, the positive effects of the “furniture bonus” that drove sales growth towards the end of the review period has slowly decreased due to bonus rules becoming increasingly restrictive. In the same year, a new “Green bonus” was launched to boost sales of gardening products, although this had a much smaller impact on sales compared to furniture.

Homewares become ubiquitous

While during the recession, purchasing small and inexpensive homewares was a way to treat oneself without spending much money, after the recession, all retailers including home improvement and gardening stores targeted female consumers, while broadening their range of home-related products, from kitchenware to small appliances to textiles.

Private label and exclusive design to improve furniture sales for smaller operators

In Italy, there are many small furniture retailers that have been shrinking in numbers with the advent of large international groups. Nonetheless, furniture production in the country remains strong, therefore offering smaller retailers the possibility to offer higher quality products at competitive prices.

COMPETITIVE LANDSCAPE

Ikea Italia and Leroy Merlin join forces to improve last mile delivery

Logistics in Italy have always been difficult for operators, with high costs associated with last mile deliveries. Considering the increasing importance of a multichannel approach for retailers selling bulky items, in 2018, Ikea Italia and Leroy Merlin joined forces for their home deliveries.

Adeo Groupe’s brands focus on better supplier relationship

Adeo Groupe globally owns other brands besides Leroy Merlin, namely Brico Center, Bricoman and Zodio. Each format targets a specific clientele, and each of them has implemented different activities to drive future growth: Brico Center launched a new neighbourhood format, aimed at gaining share from independent ironmongers in small urban areas, and enhanced didactic activities to appeal to DIY fans; Bricoman, which targets a more professional customer, opened serviced corners in its stores, and increased made-to-measure offers for specific products such as blinds; Zodio launched the “Craft Market”, with local artisans selling their products inside the store.

Bricofer Italia Spa consolidates its position

Bricofer’s strategy is focused on consolidating under the same group the largest number of small local operators. In some regions, home improvement is in the hands of small consortia that affiliate independents and small chains.

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