SLOW START TO MERCHANT SALES REVEALED IN Q1 BMBI

Figures for the Q1 2023 published in late May as part of the BMF’sBuilders Merchants Building Index (BMB) reveal a slow start to sales through UK builders’ merchants during the first quarter of the year.

Comparing the first three months of 2023 with the same quarter in 2022 shows total sales value down by -2.3% this year. Drilling down to price and volume a contrasting picture emerges, with prices up by +16.9%, while volume sales were down by -16.4.%.

There was one more trading day in the period in Q1 2023. Adjusting the figures for this, shows like-forlike sales values were -3.8% lower than in Q1 2022.

Nine of the twelve categories saw sales values increase year on year although this was mostly due to price inflation. The largest category, Heavy Building Materials was up +3.3%, and all Lightside categories had their best performing quarter on record. Renewables and Water Saving was up by +42.3%, Plumbing, Heating and Electrical increased by +12.8%, while Decorating (+13.9%), and Workwear and Safetywear (+14.9%) both saw double digit growth.

The major contributors to the overall sales decline were Landscaping (-18.3%) and Timber and Joinery Products (-15.3%) . Landscaping suffered from the wettest March in England since 1981, while the Timber and Joinery result was influenced by continuing price declines for Timber and Sheet Materials.

Comparing sales in Q1 2023 with the final quarter of 2022, total sales in Q1 were +5.8% higher, with volume sales increasing by +0.6% and price up by +5.2%.

However, the overall sales increase was largely due to the most recent period having five additional trading days. Taking the trading day difference into account, like-for-like sales in Q1 2023 were -2.5% lower than the final quarter of 2022.

John Newcomb, CEO of the Builders Merchants Federation, said: “This is a challenging market but ONS output figures for Q1 were better than many predicted, largely due to an increase in repair and maintenance work, which is a mainstay for many merchant customers. With prices beginning to stabilise, there is some room for optimism.”

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