Despite the tightening of economic conditions, AMA Research maintains that UK builders merchant sales will grow 3% this year.
The company’s latest report on the sector says that total merchant sales will rise from £11.18bn last year to £11.5bn. It also forecasts accelerating growth in the business to 2008 when sales will reach £13.2bn.
This year, says AMA, fuel price and interest rate rises have impacted business and the confidence of merchants’ customers has slipped.
The report says that the DIY multiples and catalogue businesses, notably Screwfix, are encroaching on merchants’ business, but that Travis Perkins‘ takeover of Wickes highlighted that the merchant sector can respond in kind.
AMA says that 65% of the merchant market is now held by the five biggest businesses. Timber was the sector’s third biggest product sector, accounting for 14-16% of sales.
