DIY.com and B&Q are two major home improvement retailers operating in the United Kingdom. Though they target the same market segment, they are separate companies with no affiliation. DIY.com is an online-only retailer while B&Q operates a chain of brick-and-mortar stores across the UK. This often leads to confusion among consumers regarding whether the two brands are associated. In this article, we will look at the key facts about DIY.com and B&Q, their history, operations, and ownership structure to understand if DIY.com is part of B&Q.
About DIY.com
DIY.com is an online-only home improvement retailer in the UK. It was launched in 1999 and became part of TradePoint in 2000 before being sold to Kingfisher plc in 2001. Kingfisher operated DIY.com as a standalone business until late 2020 when it agreed to sell the brand to GlobalData Plc for £124 million. Key facts about DIY.com:
- Founded in 1999 as an online-only DIY retailer in the UK
- Acquired by Kingfisher plc in 2001
- Operates as an online pureplay selling over 20,000 DIY, decorating, and home improvement products
- Offers delivery across the UK and over 500 click & collect locations
- Has a dedicated mobile app and mobile-friendly website
- Employs around 200 people at its head office in Acton, London
- Was sold to GlobalData Plc in late 2020 for £124 million
As an online pureplay DIY retailer, DIY.com has grown to become one of the largest players in the market through competitive pricing, wide product selection, and delivery options. However, it lacks a brick-and-mortar retail presence.
About B&Q
B&Q is a leading DIY and home improvement retailer operating physical stores across the UK. The company was founded in 1969 and is currently owned by Kingfisher plc. B&Q is known for its large out-of-town warehouse stores and comprehensive DIY product range. Key facts about B&Q:
- Founded in 1969 and headquartered in Eastleigh, UK
- Operates 300 stores across the UK and Ireland
- Employs over 30,000 staff in its stores and support offices
- Sells over 40,000 products across DIY, decorating, gardening, and home improvement
- Owned by Kingfisher plc, which operates over 1,400 retail stores across Europe
- Has an e-commerce site but most sales come from physical stores
- Known for its large out-of-town warehouse stores with over 40,000 sq ft of retail space
With its extensive physical store network and broad product range, B&Q has become one of the most recognized DIY retail brands in the UK. The company focuses on brick-and-mortar shopping experience rather than online sales.
Relationship Between DIY.com and B&Q
Despite operating in the same market, DIY.com and B&Q are completely separate businesses with no affiliation. The key points are:
- DIY.com and B&Q are owned by different parent companies – GlobalData Plc and Kingfisher plc respectively
- They were founded and have operated independently of each other since their inceptions
- DIY.com is an online pureplay while B&Q focuses on physical store retail
- The two brands have separate management teams, employees, and supply chains
- Neither company has any ownership stake or strategic partnership with the other
While both DIY.com and B&Q compete for a share of the UK DIY and home improvement market, they have distinctly different business models and operational strategies. The only common thread is that Kingfisher plc previously owned both businesses – but divested DIY.com in 2020.
Here is a comparison table summarizing the key facts:
| Category | DIY.com | B&Q |
|---|---|---|
| Year Founded | 1999 | 1969 |
| Ownership | GlobalData Plc | Kingfisher plc |
| Business Model | Online pureplay | Brick-and-mortar retail |
| Store Network | None, online-only | 300+ physical stores |
| Product Range | 20,000+ products | 40,000+ products |
Why Consumers May Think DIY.com is Part of B&Q
Despite no formal relationship between the DIY.com and B&Q brands, many consumers assume they are affiliated or that DIY.com is owned by B&Q. There are several reasons why consumers may think this:
- Both companies operate exclusively in the DIY and home improvement market in the UK
- The DIY.com name is similar to B&Q and connotes DIY and home improvement
- B&Q has high brand awareness among UK consumers given its 300+ stores
- DIY.com was previously owned by Kingfisher plc which also owns B&Q currently
- The two brands often appear together in Google search results related to DIY keywords
- Consumers may purchase from both brands at different times when shopping for DIY supplies
Additionally, smaller or independent DIY retailers are often assumed to be affiliated with larger brands like B&Q that dominate the market. Many consumers think of “DIY” and immediately associate that with B&Q without realizing DIY.com is a separate entity.
Business Strategies of DIY.com vs B&Q
Despite competing in the same sector, DIY.com and B&Q have adopted very different business strategies:
DIY.com Business Strategy
- Online pureplay model focused on e-commerce without any physical stores
- Significant investment in digital marketing such as SEO, affiliates, and paid advertising
- Leverages advanced data analytics to optimize site experience
- Wide product selection with over 20,000 SKUs
- Fast delivery and click & collect services to enhance convenience
- Mobile app and responsive site to enable shopping across devices
As a digital native, DIY.com has tailored its strategy to compete as an online discounter. It aims to provide convenience through delivery options while undercutting prices of brick-and-mortar players.
B&Q Business Strategy
- Focus on large format out-of-town physical store experience
- In-store experts to provide DIY advice to customers
- Range of value-added services e.g. design consultations
- Wide in-stock product range with 40,000+ SKUs per store
- Multi-channel approach with website supporting physical stores
B&Q’s strategy centers around providing a comprehensive DIY retail experience in destination warehouse stores. Customers can access expert advice and a vast product range in a single location. The website plays a secondary role.
The two brands’ strategies demonstrate their different approaches based on retail channel focus – pureplay e-commerce for DIY.com vs principally brick-and-mortar for B&Q.
Recent Performance of DIY.com and B&Q
The UK DIY and home improvement market has grown over the past few years driven by strong housing activity and trends such as increased homeworking. Both DIY.com and B&Q have benefited from market tailwinds but also faced share competition from each other and other players.
DIY.com Performance
- Revenues crossed £1 billion mark in 2020, 23% growth vs 2019
- Profitability also improved in 2020 despite pressures from COVID-19 costs
- Grew online market share during 2020 while physical stores were closed
- Number of orders increased by over 40% during 2020
- Has sustained strong growth momentum in 2021 as consumers spend more time at home
Boosted by online channel shift during the pandemic, DIY.com achieved breakout growth and profits in 2020. It continues to take market share in the e-commerce channel.
B&Q Performance
- Revenues declined slightly to £3.92 billion in 2020 vs £3.95 billion in 2019
- Profitability weakened in 2020 due to lower footfall and COVID-19 costs
- However, B&Q’s performance improved significantly in 2H 2020 as stores reopened
- Strong housing market has supported demand in 2021 as consumers take on DIY projects
- B&Q is actively trying to grow its online sales and improve in-store digital experiences
While B&Q faced challenges in 2020 due to its principally physical retail focus, the brand has rebounded well and is adapting its strategy to compete in an omnichannel DIY market.
Future Outlook for the Companies
Both DIY.com and B&Q are expected to continue growing over the next few years. However, competitive dynamics between online and offline channels will intensify.
DIY.com Outlook
- Projected to sustain over 20% annual revenue growth in near term
- Will invest to expand delivery options and improve website experience
- Focus on increasing product range and forming partnerships with trade customers
- Unlikely to open physical stores but may add more click & collect locations
- Profitability will be reinvested to maintain growth momentum
DIY.com is well-positioned to capitalize on the channel shift to online DIY retail. It will aim to strengthen its competitive position versus players like B&Q.
B&Q Outlook
- Expected to return to modest revenue growth with strong housing market backdrop
- Will accelerate investments in digital capabilities and in-store technology
- More seamless omnichannel experience is a priority
- Improving productivity and margins through supply chain upgrades
- Store network expected to remain stable but some rationalization possible
For B&Q, boosting competitiveness in an omnichannel DIY market through digitalization will be the key strategic imperative. But its large physical footprint is likely to remain core.
Conclusion
In summary, while DIY.com and B&Q both compete for DIY and home improvement sales in the UK, they operate as fully independent businesses. DIY.com is an online pureplay retailer owned by GlobalData Plc, while B&Q focuses on physical store retail and is part of Kingfisher plc.
Though previously sharing common ownership under Kingfisher, the two companies have separate strategies and operations optimized for their respective retail channels. Consumers often associate DIY.com with B&Q given the latter’s high brand recognition and overlap in the DIY market. But there is no formal relationship between the two brands currently.
Going forward, DIY.com and B&Q will continue to compete for share both online and offline. While their business models diverge, omnichannel capabilities will become an increasingly important battleground for both players.