DIY market feels the heat
Published: 15 July, 2009
CREWE: Lenders to Britain's third-largest DIY retailer, Focus DIY, are to undertake a financial review to decide whether to continue backing the company.
Banks, HBOS and GMAC have agreed in principle to renew the two-year credit facility but want an independent review.
Focus faces increasing pressure after credit insurers reduced cover to its suppliers.
The news comes as DIY retailers Wickes owned by Travis Perkins and B&Q compete for consumer spend with TV advertising campaigns: Wickes is focusing on bathrooms while B&Q is pushing its kitchens.
DIY sales are highly dependent on the housing market which is expected to remain stay in the doldrums until the middle of the next decade, said PricewaterhouseCoopers in a report issued today.
The accountants said house prices were likely to fall by a further 5-10% and there is a 30% chance that prices will take until 2020 to return to their peak before the crash.