SHERIDAN, WYOMING - November 27, 2025 - The home improvement and garden retail sector in Germany and the wider European market is still searching for a sustained upswing, as new figures from the Handelsverband Heimwerken, Bauen und Garten e.V. (BHB) reveal a modest decline in sales after the third quarter of 2025 despite a strong second quarter and pockets of category growth.
Cautious Consumers Slow DIY and Garden Spending
Across Germany, Austria and Switzerland, macroeconomic uncertainty and consumer caution continue to weigh on DIY spending. After nine months of 2025, German DIY and home improvement stores generated €16.08 billion in gross sales, down 1.4% year-on-year, or 1.2% on a like-for-like basis. Switzerland also reported a decline, while only Austria managed to end the period with a positive overall result.
BHB CEO Dr. Peter Wüst underscores the mood on the consumer side: "Angesichts der weiterhin gedämpften Grundstimmung im Land agieren die Menschen vorsichtig und investieren eher verhalten in Projekte rund um Haus und Garten, und das ist für uns alle gut nachvollziehbar". Like other sectors, the DIY industry is closely watching the new government's planned measures to stimulate growth and boost confidence.
Germany: Q2 High Point, Q3 Setback
The German market shows a classic "stop-go" pattern in 2025. A weak first quarter with a 4.0% drop in sales was followed by a temporary rebound in Q2, where revenues rose 1.2% (1.4% like-for-like). However, the third quarter slipped back, with sales down 2.3% year-on-year (2.2% on a like-for-like basis).
For retailers and suppliers across the Retail & Consumer Goods Industry, this volatility complicates planning:
- Inventory and procurement cycles remain difficult to align with demand.
- Promotional campaigns around spring and autumn seasons must respond to weather and sentiment swings.
- Store investments and remodeling projects are being reassessed or delayed.
Yet Wüst points to signals that suggest medium-term improvement is possible: „Sowohl die stetig steigende Zahl der Baugenehmigungen wie auch die optimistischeren Wachstumsprognosen der Wirtschaftsinstitute lassen erwarten, dass die Situation wieder ins Positive dreht, auch wenn es sicherlich noch einige Zeit benötigt, bis die Effekte echte Wirkung für die Branche zeigen".
Austria and Switzerland: Diverging Trends in the DACH Region
While Germany and Switzerland have had to digest slight declines, Austria stands out as a relative bright spot in the DACH region. Austrian DIY stores generated €2.4 billion in gross sales between January and September 2025, translating into a 1.2% year-on-year increase, driven by a particularly strong second quarter (+6.3%).
However, the context matters: Austria's comparatively high inflation rate needs to be factored into the interpretation of these nominal gains. In Switzerland, DIY retailers posted CHF 2.58 billion in sales over the period, representing a 1.1% decline year-on-year, with Q3 down 6.8% despite a robust Q2 (+4.8%). For European suppliers, this means that strategies must be tailored to country-specific price dynamics and consumer confidence levels rather than treating the DACH region as a uniform market.
Category Winners and Losers Across Home and Garden
The BHB data also highlights where consumers are still prepared to spend-and where they are cutting back. In Germany, some segments managed to grow despite the overall decline:
- Wall and floor coverings: +1.9%
- Garden equipment and outdoor fittings: +1.5%
- Technology/office/entertainment: +1.4%
By contrast, discretionary and lifestyle-oriented categories felt the pressure:
- Home décor and interior living: -5.9%
- Leisure and seasonal goods: -5.9%
- Household goods: -5.2%
- Tiles: -4.7%
In Austria, wood products were the clear standout with a 9.5% increase, supported by solid growth in building chemicals/building materials (+6.8%) and automotive products (+6.6%). The largest losses were seen in the "Other" category (-19.7%) and again in leisure and seasonal goods (-7.7%). In Switzerland, garden tools and irrigation performed best (+3.8%), while garden furniture (-10.7%) and building elements (-4.7%) continued to struggle.
Strategic Implications for Retailers and Suppliers
For decision-makers across the European home improvement retail market, the BHB figures underscore the importance of agile category management and precise customer targeting. Essential and project-driven categories-such as structural materials, wall and floor coverings, and garden tools-are holding up better than purely decorative or seasonal lines.
Retailers and their suppliers will need to:
- Rebalance assortments towards resilient, project-based demand.
- Fine-tune pricing and promotions in an environment of ongoing inflation and cautious consumer sentiment.
- Prepare for a potential upturn driven by rising building permits and a more positive macro outlook, ensuring they can capture demand when renovation and construction activity accelerates.
As a cross-border association, BHB's benchmarking across Germany, Austria and Switzerland provides vital guidance for retailers, manufacturers and service providers seeking to navigate these mixed signals and align their strategies with shifting consumer priorities in the Furniture & Interiors and broader DIY space.
For deeper insights into the figures and association activities, visit www.bhb.org.