Retailers Face Slow Demand as Consumers Cut Spending, but E-Commerce and Energy Renovations Offer Hope.
The French DIY home improvement sector began 2025 under continued financial strain, as high inflation and economic uncertainty forced consumers to cut back on non-essential projects. After a 6.4% drop in total DIY sales in 2024, early 2025 saw further declines, particularly in large-scale renovations, while essential home maintenance and smaller DIY projects remained more resilient. While the market has yet to fully stabilize, some indicators suggest the worst may be over, with retailers adjusting their strategies to adapt to changing consumer behaviors.
Market Performance and Key Retailers’ Strategies
Leroy Merlin, which holds approximately 39% of France’s DIY market, entered 2025 with a cost-cutting and restructuring plan to maintain profitability. While still financially sound, the retailer saw negative like-for-like sales growth in early 2025, extending the downward trend from 2024. Kingfisher’s Castorama and Brico Dépôt, which together represent 25% of the market, faced an even steeper decline, with French sales dropping 5.9% year-over-year in FY2023/24. Kingfisher has since announced a store downsizing strategy, converting some Castorama stores into Brico Dépôt formats and reducing overall floor space in lower-performing locations.
Other retailers have found ways to remain stable in the downturn. Les Mousquetaires’ DIY chains (Bricomarché, Brico Cash, and Bricorama), which account for 13.7% of the market, reported smaller sales declines compared to the bigger players, thanks to their local proximity model, which attracts customers for everyday repair needs. Meanwhile, Mr. Bricolage (8.3% market share) has taken a bold expansion approach, announcing the opening of 40 new small-format stores by the end of Q1 2025. These smaller, urban-focused stores cater to customers looking for quick DIY solutions, positioning Mr. Bricolage to gain market share in an otherwise challenging environment.
Sales Trends: Like-for-Like Figures Show Continued Weakness
The French DIY market shrank by 6.4% in 2024, with total turnover falling from €24.3 billion in 2023 to €22.8 billion. The decline accelerated in the second half of 2024, and early 2025 figures suggest further contraction, though at a slower pace.
- Kingfisher’s France operations saw like-for-like sales drop 5.3% in Q1 2024, and early 2025 continued to trend negative, particularly in big-ticket project categories like kitchens and bathrooms.
- Leroy Merlin’s like-for-like sales remained negative in early 2025, extending a downward trajectory that began in late 2023.
- E-commerce is a rare bright spot, with DIY online sales growing +12.7% in 2024 and expected to climb again in 2025. Kingfisher’s new online marketplace in France has driven double-digit growth, and click-and-collect adoption continues to rise.
- Consumers are prioritizing maintenance purchases over major projects, with plumbing and hardware sales showing minor positive growth (+0.1% and +0.7%), while home décor and large renovations have seen the sharpest drops (-4.1%).
Consumer Behavior: Frugal Spending and Project Delays
French consumers remain cautious, with a January 2025 survey showing that 72% have changed their DIY and gardening spending habits due to economic pressures.
- 29% are avoiding new tool purchases, using what they already own.
- 26% are postponing planned DIY projects.
- 18% are waiting for promotions before making purchases.
This hesitancy is reflected in DIY tool sales, which saw a -3% decline in 2024, as consumers extend the lifespan of their existing equipment. Meanwhile, discretionary purchases, such as home décor, remain weak, as buyers avoid non-essential spending.
Despite budget constraints, engagement in DIY projects remains strong, with 58% of consumers still undertaking at least one home improvement activity per month. However, projects are getting smaller and more affordable, with a shift toward painting, basic repairs, and home organization rather than full-scale renovations.
Challenges and Opportunities in 2025
Retailers are navigating multiple headwinds in early 2025, including:
- Economic Pressures: High interest rates continue to depress home sales and renovations, leading to fewer large-scale improvement projects.
- Uncertainty Around MaPrimeRénov’ Subsidies: New regulatory discussions in early 2025 could exclude DIY retailers from key energy renovation subsidies, potentially reducing demand for insulation, heating systems, and eco-friendly materials.
- Growing Competition From Online Players: DIY marketplaces like ManoMano continue to capture market share, forcing traditional retailers to strengthen their omnichannel strategies.
However, several opportunities exist for growth:
- Energy-Efficient Home Improvements: Even with regulatory uncertainty, demand for insulation, solar energy, and heating system upgrades remains high.
- Growth in Proximity Retailing: Small-format stores like Mr. Bricolage’s “Relais” stores and Weldom’s neighborhood locations have outperformed big-box retailers.
- E-Commerce Expansion: Online penetration in DIY remains relatively low at 5.3% of total sales, meaning there is still room for growth.
Forecast for the Rest of 2025: Stabilization Ahead?
Industry analysts expect 2025 to be a year of stabilization rather than strong recovery.
- GfK/NielsenIQ predicts a further -2% contraction in DIY retail sales for the full year, following 2024’s -6.4% decline.
- Some analysts (e.g., Xerfi) are more optimistic, projecting a potential +3% rebound in H2 2025, depending on economic conditions.
- If inflation eases and interest rates drop, consumer confidence could improve in late 2025, leading to a release of pent-up demand for delayed DIY projects.
For now, the French DIY sector remains cautious, but retailers that invest in e-commerce, proximity retailing, and energy-efficient solutions are better positioned to navigate the uncertainty. If macroeconomic conditions stabilize, a modest recovery could emerge by the end of the year, bringing renewed momentum to a sector that remains vital to French homeowners.