Despite economists previously forecasting weak growth for the construction sector in 2024, it’s now predicted that we’ll have to wait until 2025 for a rebound of 2%. The bad weather towards the end of 2024 had an adverse effect on construction activity, with many merchants reporting a significant drop in footfall. However, the bigger problems for the industry are still the house building and private housing rm&i sectors.

The rising cost of living has hit discretionary household improvements spending. In addition, fewer property transactions in 2023 led to a decline in refurbishment activity from new homeowners who typically make cosmetic improvements within the first 6-9 months of moving in.

Smaller project work is likely to continue to remain flat in the first half of 2024 as household spending remains tight, while the continued fall in property transactions in the first half of the year is likely to hit larger project work for the remainder of 2024. With volume sales likely to remain subdued for at least the short term, it is paramount that merchants have the right mix of products available in-store.

Some customers may have specific requirements or preferences that can only be met by premium products. Offering a good, better, best range ensures that builders’ merchants can accommodate these customers while still providing options for those with simpler needs.

When customers find a range of options that meets their needs at a builders’ merchant, they’re more likely to return for future purchases. Offering quality products across different price points builds trust and loyalty with customers, while also creating opportunities for upselling and cross-selling.

Suppliers have in-depth knowledge about their products, including features, benefits, and best practices for display. By collaborating with suppliers, merchants can ensure that their staff are well-informed about the products they’re selling.

In a competitive market, offering premium products can help builders’ merchants differentiate themselves from competitors. While some competitors may focus solely on low-cost options to attract price-conscious customers, offering premium products appeals to customers who prioritise quality and are willing to pay more for it if the value is justified.