Merchant Volume Sales Fall but Price Inflation Makes for a Record-Breaking Q2

THE 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, it is +17.3% price inflation which is behind the record-breaking growth.

Total Value Sales Up

BMBI reported 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, like-for-like sales were +27.3% higher.

All categories sold more, including Landscaping (+38.9%), Timber & Joinery Products (+37.0%) and Renewables & Water Saving (+29.6%) which all outperformed Merchants overall. Heavy Building Materials (+22.1%) and Kitchens & Bathrooms (+20.3%) grew more slowly.

Inflation is Driving Force

John Newcomb, CEO BMF, commented, “We are starting to see signs of the market slowing in some areas as professional clients, particularly those negotiating fixed price contracts, and householders considering RM&I work think twice about projects amid rampant cost inflation.”

Emile van der Ryst, Senior Client Insight Manager – Trade, GfK, added, “The inflationary aspect has been the driving force behind a first half value growth figure of 10.1% when compared against 2021. In previous BMBI editions the focus has always been on value growth, but in 2022 this narrative has noticeably shifted to pricing.”

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