BMBI

BUILDERS MERCHANT BUILDING INDEX

MERCHANT VOLUMES FALL AGAIN BUT PRICE INFLATION MAKES FOR A RECORD-BREAKING Q2

The latest total value sales data from Britain’s Builders’ Merchants shows Q2 2022 recorded the highest revenue since the BMBI started, despite lacklustre June sales. However, with Q2 volumes falling -11.3% compared with Q2 2021, +17.3% price inflation is behind the record-breaking growth.

QUARTERLY SALES, YEAR-ON-YEAR

Quarter 2 2022 total value sales were +4.0% higher than Q2 2021, with one less trading day this year. Ten of the 12 categories sold more with Kitchens & Bathrooms (+18.5%), Heavy Building Materials (+9.2%), Decorating (+7.0%), Tools (+2.9%) and Ironmongery (+1.3%) all having their best-ever quarterly sales. Only Timber & Joinery Products (-3.0%) and Landscaping (-6.3%) sold less.

Comparing Q2 2022 with Q2 2019, a more normal pre-Covid trading year, total value sales were +25.2% higher this year, but volume sales were -2.7% down while prices were up +28.7%. Despite one less trading day, likefor-like sales were +27.3% higher. All categories sold more.

QUARTER-ON-QUARTER

Quarter-on-quarter, sales were up +9.7% in Q2 2022 compared to Q1 2022. Volume sales were +7.9% higher and prices were up +1.6%. Like-for-like sales were +15.1% higher in Q2, despite three less trading days in the most recent quarter. Seasonal category Landscaping (+37.4%) significantly outperformed the other categories. Heavy Building Materials (+12.1%) was the only other category growing faster than total Merchants.

JUNE SALES, YEAR-ON-YEAR

June 2022 sales were -1.0% down year-on-year. Volume sales for the month were -15.3% lower with prices up +17.0% compared to the same month in 2021. With two less trading days this year, likefor-like sales were up +8.9%. Nine of the twelve categories sold more, led by Kitchens & Bathrooms (+10.8%) and Renewables & Water Saving (+7.7%). Compared to the same month three years ago, total value sales in June 2022 were 31.0% higher, with no difference in trading days. All categories sold more than June 2019, with Landscaping (+44.5%) and Timber & Joinery Products (+40.3%) performing the best.

JUNE SALES, MONTH-ON-MONTH

Total merchant sales in June were -4.2% down compared to the previous month. Volume sales were -3.7% lower than May, with prices down -0.6%. Eleven of the 12 categories sold less, with only Workwear & Safetywear (+4.2%) selling more. Decorating (-1.7%), Heavy Building Materials (-2.8%) and Kitchens & Bathrooms (-4.1%) all fared better than Builders Merchants overall.

LAST 12 MONTHS

Sales in the 12 months from July 2021 to June 2022 were +12.9% higher than in the same 12 months a year earlier, with two less trading days this year. Eleven categories sold more. Timber & Joinery Products (+20.3%) and Kitchens & Bathrooms (+16.7%) were the strongest categories while Heavy Building Materials (+12.1%) and Plumbing, Heating & Electrical (+11.8%) grew more slowly.

GfK’s Builders Merchant Panel

GfK’s Merchant Panel includes national, multi-regional and regional merchants such as Buildbase, Jewson, Travis Perkins, EH Smith, Gibbs & Dandy, MKM and Bradfords. GfK’s Builders’ Merchant Point of Sale Tracking Data represents more than 80% of the value of the builders’ merchant market. GfK insights can trace product group performance and track relevant features. GfK can also produce robust like-forlike market comparability, tailored to the requirements of an individual business.

The Builders Merchant Building Index

The BMBI is published every month, in print and online. A full quarterly report is available every three months. The BMBI is a brand of the Builders Merchants Federation. Launched and produced by MRA Research, it uses sales-out data from GfK’s Builders Merchant Panel. BMBI includes a panel of leading industry Experts, who speak exclusively for their markets.

For the full report, Expert comments and Round Table Debates, visit www.bmbi.co.uk.