Home improvement attracts phenomenal sales.

Czech Republic citizens are big spenders where it comes to home improvements. In 2008, despite the worsening economic outlook, they spent Euros1.1 billion in the country's five biggest domestic improvement chains. That's Euros168.2 million more than the year before, which was itself a record year.

MODERNÍ OBCHOD magazine and analysts at INCOMA Research reckon that the home improvement sector is growing faster than ever before in store chains such as OBI CR, Baumax CR, Hornbach Baumarkt CS, Mountfield and Bauhaus.

Research has also shown that more than 50% of the Czech population shop in megastores that specialise in goods for DIY enthusiasts, gardeners and handicrafters.

Home improvement is viewed as a hobby and a great way to save money. Many people enjoy spending free time by improving their homes and gardens. Enjoying the results of improvement in the home or backyard is a rewarding experience as well as good exercise, not only for "golden hands" Czech crafts workers but for amateurs too.

"The saying 'every Czech is a handyman' is starting to be valid once again," said Vojtech Sevcik, Business Director of Home Credit, a small consumer loans provider and a company through which Czechs sometimes finance their home projects.

"People know where to save money. They have started to repair their apartments and houses on a large scale. The sales of tools for home and garden and the products for small interior construction projects have exceeded all our expectations," he added.

In fact, from January to March 2009, loans for home improvement grew 272% in comparison to the same period last year. The average amount loaned in 2008 was Euros485.

Demand for tools to meet the economic crisis

Demand for tools to save money.

The demand for tools and other products may well be a reflection of the economic crisis. Czechs are repairing older items, which can still work well, instead of buying new ones.

The motivation to save money may also be a driving force behind home improvements, as owners decide to do the work themselves instead of hiring a contractor.

The most sought-after products, according to INCOMA Research, are drilling and welding machines, tiles, screwdrivers and saws.

But some "hobby markets" see much greater variation in demand even than that. Shopping lists include bathroom furniture and accessories, as well as lumber, lamps and screws. The garden section sells plants, outdoor furniture and lawn mowers as well as traditional gardening tools.

from Zuzana Piper, Prague Consultant

(Images courtesy of Hornbach Holding AG)