In 2006 the death of DIY was reported but is it a misinterpretation? After all, online DIY stores are experiencing growth - Plumbworld is actually seeing fantastic profits!

Under the headline DIY RIP - the Guardian reported on the state of DIY Stores profits:

"B&Q, the biggest DIY store in Europe with 322 stores across Britain, announced a 52% fall in UK profits. MFI is closing 11 stores and pulling out of the bathroom market; Homebase and Wickes have also reported sales and profit declines; Focus has had to renegotiate its banking covenants; Floors to Go last week announced an 18% fall in underlying sales for 2005 and a halving of profits."

What are the trends for retail and online DIY stores?

Far from signalling a move away from DIY, these trends might simply reflect the move away from the High Street and the growth of online DIY stores. The reason is simple economics; it costs less to run a website and central distribution centre than it does to rent 322 stores, pay salaries to 322 store managers, umpteen deputy managers and a sales force of thousands. These reduced overheads for online DIY stores translate into lower prices and better value for DIY consumers online.

How have these trends affected Plumbworld stores?

Online DIY store Plumbworld has shown strong growth last year with sales up 36% to £8.7 Million. Plumbworld stores started selling bathroom products online in 1999 as a home business founded by James Hickman and it seems that if anything, the growth is getting faster, with the company reporting its first ever million pound sales month in March.

Online DIY stores are having to work hard for their success online. They have to compete with the strong branding and familiarity of retail stores and somehow bring traffic to their sites.

Interestingly, Plumbworld announced yesterday, that its total in-house spend with the online advertising system Google Adwords has topped £1.25 Million Pounds. Clearly the focus for online retailers such as Plumbworld has to be on search engine optimisation (SEO) to ensure consumers find their sites.

James Hickman, Managing Director of Plumbworld Stores said:

"It was only when I checked our total spend the other day that I realised my Google Adwords training had cost me over £1.25 Million. It does sound like a lot of money, but actually I think it's been a bargain! During that time the Plumbworld bathroom business has grown from a first year turnover of under £100,000 to a forecast turnover this year of £18,000,000."

So it seems that despite the dot.com crash of the 90's high street DIY stores still have a lot to fear from the low overhead online DIY stores such as Plumbworld and that DIY is not necessarily out of favour with us Brits.