Www.mediagrouponlineinc.com



Home Improvements & Hardware Market 2021One of Few 2020 Retail WinnersWith more people staying at home during the pandemic and the need to improve the home environment, the home improvement market had one of its most successful years and outperformed almost all other retail sectors.According to the US Census Bureau, sales in the Building Materials and Garden Equipment and Supplies Dealers category (NAICS 444) increased 13.3% YOY through November 2020, with Q2 increasing 14.0% YOY and Q3 17.4% YOY.Placer.ai, in its Q4 Quarterly Index, reported YOY visits to home improvement/home goods stores increased the most during Q3 2020 or 14.9% YOY, but remained strong during Q4, with a 12.1% YOY increase.Building Materials and Garden Equipment and Supplies Dealers*’ Sales Performance, 2020Time PeriodDollar SalesYOY % ChangeTime PeriodDollar SalesYOY % ChangeJan–Feb 2020$55.05 B+4.9%1H 2020$211.39 B+10.4%March 2020$33.09 B+7.1%July 2020$40.52 B+16.6%April 2020$36.80 B+4.8%August 2020$37.79 B+13.0%May 2020$43.30 B+12.8%September 2020$38.08 B+23.0%June 2020$43.17 B+24.8%Q3 2020$116.39 B+17.4%Q2 2020$123.25 B+14.0%Jan–Nov 2020$402.24 B+13.3%US Census Bureau, January 2021(NAICS code 444)DIY in the Pandemic HouseholdAccording to findings from The Farnsworth Group and the Home Improvement Research Institute (HIRI), being at home more often was the catalyst for many DIY projects, at 87% during March, 81% during April and 83% during September.“Having more time” was first during April 84%, May 80% and September 81% while “saving money by not hiring a contractor”: July 42%, August 50% and September 45%.In Consumer Specialists’ June 2020 survey, “did not want to spend the money” was the #1 reason respondents said they were doing fewer home improvement projects. “Did not want contractors in the house” was second at 46.8%.DIY Projects Consumers Planned To Start, July–September 2020ProjectJulyAugustSeptemberPainting a room or exterior49%48%49%Lawn maintenance48%46%45%Landscaping43%36%36%General home maintenance42%41%41%Painting or staining28%24%28%Home Improvement Research Institute, October 2020Consumer Shopping PatternsAdditional Placer.ai data shows the dominance of the 2020 home improvement market as measured by foot traffic. It decreased during March and April, but increased by 90% YOY during June and was still +40% YOY during October. Considering consumers wanted the shortest possible trip in a retail store during the pandemic, it’s remarkable the average visit/customer increased 22.9% YOY at The Home Depot and the visit duration increased 12.5% YOY at True Value.Probably because of more people at home, the preferred daily time to visit a major-chain home improvement store shifted from the evening to the afternoon (1–4 pm) by approximately 1% to 2%.Consumers’ Primary Source of Funding for Home Improvements During April–June 2020SourcePercentSourcePercentCash from savings38%Cash from previous home sale6%Credit card23%Gift/Inheritance6%Government stimulus check13%Insurance payout6%Tax refund10%Retirement funds6%Personal loan7%Borrowed from family or friends5%Home equity loan6%Porch, July 2020Even More Shopping PatternsWith so many people online during the pandemic, it’s unsurprising 63.5% of consumers planning a home improvement project during the next two years chose the Internet as their primary source of information, according to Consumer Specialists’ June 2020 survey.Although a clear majority (59.3%) of survey participants said local stores were the primary source of products, it decreased from 65.6% during 2019, while contractor-supplied materials increased from 24.7% to 28.4% and online retailers 5.1% to 8.8%, respectively.Similarly, 77.4% of consumers said they plan to shop at local home center stores; however, the increase was 3 points from 2019 while hardware store increased almost 8 points to 48.3% and lumber yard 6 points to 22.0%.Where DIYers Purchased Their Home Improvement Products, May–September 2020SourceMayJuneJulyAugustSeptemberIn-store83%82%82%84%86%Online: delivered to home48%42%40%39%35%Online: picked up at store24%18%20%15%12%Did not purchase5%4%6%4%5%Home Improvement Research Institute, October 20202021 Home Sales Will Sustain Home ImprovementsIn the latest US Census Bureau data, November 2020 new-home sales increased 20.8% YOY while existing-home sales increased 25.8% YOY, trends expected to continue into 2021, with housing starts increasing 9% and existing home sales increasing 7%.An easing of home prices to just a 5.7% increase by the end of 2021, compared to 7.6% for 2020, and relatively affordable mortgage rates of 3.5% or less will return the 2021 housing market to a more traditional pattern.The significant percentages of Americans continuing to work at home and with many moving from dense urban areas to the suburbs will also drive the 2021 housing market and likely generate more interest in home improvement projects.Adults 18–54 Who Plan To Buy a Home During the Next Two Years, by Selected Age Groups and Three Selected Markets, 2020Market18–2425–4445–54PercentIndexPercentIndexPercentIndexDes Moines, IA (16.3% of all adults)25.8%18351.8%15818.3%105New York, NY (16.6% of all adults)20.0%16751.4%14717.0%91Spokane, WA (15.4% of all adults)16.8%11541.9%13814.7%88Little Rock, AR (15.9% of all adults)30.6%23549.0%14910.1%63Indianapolis, IN (15.7% of all adults)12.2%17423.9%1458.1%89Based on The Media Audit’s Fall 2020 and Winter 2021 surveys Record Revenues for the Big ThreeUnsurprisingly, The Home Depot experienced an excellent 2020, as Q3 2020 total sales increased 23.2% YOY to $33.5 billion, e-commerce transactions increased 80% YOY and comparable US sales increased 24.6% YOY.Lowe’s Q3 2020 performance was equally excellent, with a 28% YOY increase for total sales of $22.3 billion and approximately +24% YOY for the first three quarters of 2020. Comparable sales increased 30.4% during Q3 as well as transactions at +16.4% YOY.Ace Hardware’s Q3 2020 sales were significantly less at $2 billion, but it was a record and increased 30.7% YOY. Tractor Supply Co. also set a Q3 record, with net sales increasing 31.4% YOY and comparable sales almost +27% YOY.Home Depot and Lowe’s Weekly Store Visits, September–November 2020Week ofHome DepotLowe’sSeptember 21st11.4%19.2%September 28th11.6%20.2%October 5th11.2%20.3%October 12th14.8%22.7%October 19th15.5%20.8%October 26th11.3%16.5%November 2nd17.3%18.3%Placer.ai, January 2021More Valuable InsightsConsumer Specialists’ July 2020 report, How COVID-19 Is Reshaping the Home Improvement Market, presented additional data about where consumers access home-improvement project information.Consumers’ Sources for Home-Improvement Project Information, June 2020Source20202019Online/Internet63.5%51.3%Contractors/Professionals49.2%37.1%Friends/Relatives42.2%36.8%Home improvement TV/cable shows31.7%24.2%Store personnel31.2%32.9%In-store displays31.0%33.5%Manufacturer or retailer brochures25.7%18.4%Consumer Reports24.2%12.0%Homes/Home improvement magazines20.7%18.3%Home improvement books19.3%15.2%TV advertising12.8%9.9%In-store clinics11.6%9.2%Consumer Specialists, July 2020Of the 63.5% who visited an Internet source for home-improvement project information, most of them used a search engine.Consumers’ Online Sources for Home-Improvement Project Information, June 2020Source20202019A search engine (e.g., Google)77.7%70.6%Home-improvement retailer’s Website65.6%58.4%Search for how-to videos51.7%47.9%Home-improvement product manufacturers’ Websites50.6%38.7%Websites specializing in home improvement information48.6%40.8%Social media29.2%22.1%Websites of home improvement media (TV and radio shows)18.8%15.8%Consumer Specialists, July 2020Sources: US Census Bureau Website, 1/21; Placer.ai Website, 1/21; Home Improvement Research Institute Website, 1/21; Consumer Specialists Website, 1/21; Porch Website, 1/21; Website, 1/21; Forbes Website, 1/21; The Media Audit Website, 1/21; Hardware Retailing Website, 1/21.Updated: January 2021? 2021 Media Group Online, Inc. All rights reserved.Local Market and Station Information ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download