SHERIDAN, WYOMING - March 05, 2026 - The BHB (Handelsverband Heimwerken, Bauen und Garten e.V.) says the DIY and garden retail market in the DACH region delivered only a modest overall outcome in 2025, shaped by visible consumer restraint and delayed home investment decisions. Germany remained slightly negative at -1.6% year on year, reaching €20.58 billion, while Switzerland also declined nominally by -1.3% to CHF 3.35 billion; Austria posted a minimal increase of +0.2% to €3.10 billion. At the same time, the association points to a surprisingly clearer improvement in sentiment and early indicators that could support a gradual rebound, including rising building permits and a high level of refurbishment and renovation need that could begin to translate into measurable demand in 2026.
Market performance across Germany, Austria, and Switzerland
The association describes 2025 as a year marked by noticeable consumer caution across the DACH region, and the reported results reflect that pressure. Germany, as the largest market, recorded a -1.6% decline to €20.58 billion. Switzerland remained nominally negative at -1.3% to CHF 3.35 billion, while Austria came in slightly positive at +0.2% to €3.10 billion.
For operators, the cross-country pattern matters because it suggests the headwinds were broad-based rather than isolated to one geography, even if the magnitude differed. It also reinforces that demand conditions are still sensitive to consumer psychology, financing conditions, and perceived economic stability.
Consumer sentiment as a primary driver of DIY demand
The release frames economic development as strongly influenced by psychological factors, with customer sentiment either enabling or blocking discretionary and investment-oriented spending. It describes 2025 and 2026 as heavily affected by worldwide unrest and negative mood dynamics, and states that consumers in the DACH region remain unsettled and are holding back particularly on investment-type purchases.
Operationally, this is consistent with a DIY retail environment where larger ticket baskets are closely tied to willingness to invest in home improvement. The release also notes that higher savings rates in Germany reduced the funds available for DIY spending, while weather impacts in 2025 stayed within a "normal" range and did not add meaningful positive or negative momentum.
Category performance in Germany mirrors trade-down behavior
The association's German category figures point to the types of trade-offs consumers made. The strongest declines were reported in Wohnen/Dekoration (-5.2%), Fliesen (-5.0%), and both Haushaltswaren and Gartengeräte (each -4.1%).
At the same time, the release indicates refurbishment activity did not fully collapse, citing Wall/Floor (Wand/Boden) at +1.7% as one of the few areas in positive territory. Wood (Holz) and garden equipment (Gartenausstattung) were also reported at +0.5% each for the full year, described as the only other assortments ending the year in the plus. For buyers and merchandising leaders, this pattern reads as constrained spending with selective prioritization in areas tied to essential refurbishment.
Austria shows stronger movement in building-related assortments
For Austria, the release notes that some assortment segments developed significantly better in sales terms, partly attributed to an inflation rate of 3.2%. It also highlights strong increases in Bauchemie/Baumaterial (+5.2%), Holz (+6.8%), and Bauelemente (+6.8%), interpreting these as a sign that restraint in the refurbishment and renovation segment is gradually easing.
From an operator perspective, the Austria data provides a useful contrast: when demand begins to move, it may first become visible in building materials and components associated with concrete renovation projects, rather than purely discretionary categories.
Switzerland remains mixed, with a wide split inside the garden segment
In Switzerland, the release describes ambivalent performance, stating that both the strongest growth and the steepest declines occurred in the "green" area. It cites Gartengeräte, irrigation and drainage (Be- und Entwässerung) at +3.1% as the strongest increase, while Gartenmöbel fell sharply by -11.1%. Wohnen/Dekoration is also noted as down -8.0%.
For assortment planning, the Swiss picture emphasizes polarization: practical, functional categories held up better than discretionary outdoor lifestyle spend, which is often more sensitive to confidence and timing.
Store footprint: Germany's selling space continues to contract
Despite the rise of online sales, the release states that the stationary DIY and garden store landscape in Germany still represents the largest share of the market. However, it reports that selling space shrank again in 2025, more noticeably than in prior years. Based on an assessment by gemaba (Gesellschaft für Markt- und Betriebsanalyse), 26 DIY stores (as defined by BHB, larger than 1,000 square meters) exited the network in 2025, leaving 2,004 stores as of February. The release adds that further closures are already announced and that the 2,000 threshold is expected to be undershot soon, which it notes last occurred in 1993.
At the same time, the association describes supply coverage as strong: approximately one DIY store per 41,200 inhabitants, with the highest store counts in North Rhine-Westphalia (369) and Bavaria (315). The average German DIY store is reported with a weighted selling area of 6,500 square meters. For operators, the combination of network contraction and still-high coverage signals continued location rationalization pressure, especially where cost inflation and demand softness collide.
What to watch in 2026: early recovery indicators, but execution constraints remain
The release points to rising building permits and a high refurbishment and renovation requirement as early signs of a cyclical recovery that should become noticeable in 2026. However, it also describes persistent constraints: high bureaucracy, rising costs, and broad consumer uncertainty that delayed home investments, with budgets flowing instead into travel, leisure activities, and gastronomy.
For retail leaders, that mix suggests a year where performance may hinge on operational levers-availability, disciplined cost management, and category focus-while waiting for sentiment-driven demand to convert into actual projects and basket growth.