An ABN Amro study has revealed that the DIY branch in the Netherlands will have to face a shrink as the store areas are too large compared to current turnover levels.
Companies want to maximize their turnover per square meter and that is where the Dutch DIY branch is currently failing. Turnover has dropped 30 % since 2008, while store sizes have not diminished at all.
An average-sized store is now 2,950 sqm and that is unmanageable according to ABN Amro, which feels that there is an overcapacity and that online is slowly clawing away at turnover as well (currently 6 %). ABN Amro says some chains have already started changing, by adding more household appliances and a shift in consumer focus.