Prepared by OpenBrand, Platinum Sponsor at HIRI's 2024 Home Improvement Insights Summit. Join us this September 18 and 19, 2024 in Chicago! Learn more and register to attend here.
We've reached the midway point of 2024, and the Home Improvement (HI) market is buzzing with fresh trends and innovations, prompting questions like: How is market share shifting? Are consumers opting more for the convenience of online shopping? What market trends are driving Major Appliance promotions and sales?
OpenBrand explores 5 market trends and evaluates the 'why' behind share changes. Read on to uncover changes in online and in-store purchases, learn what consumer trends are driving promotional changes for retailers, and understand other 2024 market trends.
Source: All data looks at home improvement categories tracked by OpenBrand as of Q2 2024 including: Home Appliances, Kitchen & Bath, Lawn & Garden, Tools & Hardware, Furniture, Home Accessories, Home Care Products, Paint Products, Building Materials, Lighting, Millwork, Plumbing & Electrical, and Flooring.
Across all Home Improvement categories, the top 5 retailers holding the highest market share in dollars for the first half of 2024 are:
Note: While not a traditional retail source, 'Contractor' is a top outlet within OpenBrand data as the majority of consumers are purchasing products directly from the contractors they hire to complete project work.
Among all home improvement purchases, the three categories generating the most dollar share for the industry in 2024, as well as the leading brands and outlets for each, are as follows:
With Major Appliance products generating the most revenue for home improvement businesses, let's look at some of the pricing and promotions driving sales ' specifically at Lowe's and Home Depot.
Throughout 2024, Major Appliance consumers were increasingly price-conscious, often comparing pricing across retailers and favoring replacements over upgrades.
Home Depot strategically catered to this trend by focusing on lowering shelf prices rather than net prices and enhancing promotions. Specific insights include:
In 2020, at the height of the COVID-19 pandemic, online sales in home improvement saw tremendous growth, jumping from 19% of purchases made online to 27%. Though not returning to a pre-pandemic state, online home improvement purchases did see a slight decline over the next two years, dropping back to 25% in 2022.
In 2024, online home improvement purchases are back on the rise, continuing a two year trend and reaching a new all-time high of nearly 29%.
This corresponds to 22.3% of dollar share being made online. Interestingly, while 1.6% more units are sold online now than during the 2020 pandemic era, dollar share is .1% lower now than in the second half of 2020.
In line with dollar share growing slower than unit share, the average price paid (APP) across online home improvement purchases was down YOY, dropping from $237 in 1H 2023 to $228 in 1H 2024.
Additionally, during the first half of 2024, APP across online home improvement purchases was $19 lower than purchases made in-store. This has been a consistent trend over the past five years, with the exception of the first half of 2020, when the APP for online purchases ($212) was slightly higher than those made in-store ($207).
Across all home improvement products, Hardware was the category most often purchased online so far in 2024, with slightly more than half of all Hardware (52%) purchased online.
Notably, Hardware is the only home improvement category where the majority of purchases are made online. The next closest categories were Furniture & Home Accessories, with 47% of all purchases made online, and Small Appliances, at 45%.
If you're ready to learn more about the current state of the home improvement market, join us from 5:30-7p on September 18 for our complimentary Reception & Cocktail Hour at the HIRI Summit, happening September 18-19-2024 in Chicago.
OpenBrand uses a combination of time-tested processes and next-generation technologies to deliver unmatched market intelligence to the Home Improvement industry, helping businesses determine not only what is happening ' but why. Learn more about how they are shaping the future of market intelligence for home improvement.