Exclusive Insights: Major Home-Improvement Chains vs. Online Platforms

Which full-range retailers had an advantage with the cheaper deals in fall and winter 2019: the large home-improvement chains or their online competitors? On our blog, we present exclusive insights into the German DIY market from the assortment analysis tool blackbee Insights.

Online Marketplaces Feature a High Number of Expensive Products

Nowadays, several retailers from the DIY sector compete for customers online. Among them are the major German home-improvement stores, which are represented by stationary stores as well as in eCommerce. More and more competition is coming from new retailers who exclusively use eCommerce as a distribution channel with full product ranges: so-called online pure players. But to what extent do these two types of retailers differ in terms of price? Where could you get the better deals in fall and winter?

From October to December, Webdata Solutions used blackbee Insights to analyze the retailers under observation. Using the price benchmark function, we divided all price changes according to their difference from our own lowest price. In this case, we set an average price for the products under observation and determined the deviations from this price. This resulted in four price segments: low, medium, higher and high. The low price segment includes all products that were offered more than 10 percent cheaper than the average price. The medium price segment includes all offers that were between 10 percent cheaper and 10 percent more expensive than the average price. The higher price segment includes all offers that were 10 to 20 percent more expensive than the average price. The high price segment includes all offers that were over 20 percent more expensive than the average price.

The analysis with blackbee Insights showed that the three largest German home-improvement stores are represented in the different price segments to varying degrees, meaning each pursues a different pricing strategy. However, compared to the two major online pure players in the DIY sector, they focus much more on low- and medium-priced products.

By contrast, the combined low and medium-priced products of the two selected online pure players on Google Shopping account for only half of the assortment at most. Products in the higher-priced and – in particular – the most expensive segment are clearly more prevalent.

Conclusion: In fall and winter, DIYers were able to take advantage of a wider selection of comparatively cheap deals at full-range retailers from the major home-improvement chains.

Ready for the deep dive? You can obtain further analyses from us for free in the current “blackbee Insights Pricing Report: Fall and Winter 2019 in German DIY ECommerce.” Send us a message!