Table of Contents
Executive Summary
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- Market overview
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- Figure 1: Total US sales and forecast of home décor, at current prices, 2014-24
- Impact of COVID-19 on Home Décor Retailing
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- Figure 2: Short, medium and longer term impact of COVID-19 on Home Décor Retailing, April 2020
- Top takeaways
- COVID-19 creates a new sense of the home and wellbeing
- Décor purchases are dually emotionally driven and need-based
- Multiple types of value drive décor shopping
- Consumers need verification before bringing items into their home
- The issues
- COVID-19 will disrupt the competitive landscape
- The “can’t see it, won’t buy it” mentality challenges retailers to get creative
- The opportunities
- Focusing on functional benefits will drive future purchases
- Redefining the store will keep consumers engaged
- What’s next
The Impact of COVID-19 on Home Décor Retailing
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- Figure 3: Short, medium and longer term impact of COVID-19 on Home Décor Retailing, April 2020
- Opportunities and Threats
- The changing landscape will benefit home décor specialists
- Holistic wellness becomes a bigger priority
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- Figure 4: Ikea Wellness-focused Social Media Post, April 2020
- Inspiring decoration through digital initiatives
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- Figure 5: Pottery Barn Shoppable Pinterest Pins, April 2020
- Figure 6: West Elm Zoom meeting feature, March 2020
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- Figure 7: Marshalls Redecorating Social Post, April 2020
- Impact on the home décor market
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- Figure 8: Total US sales and forecast of home décor, at current prices, 2014-24
- How the crisis will affect key consumer segments
- Consumers will see added value in convenience, particularly online
- Clean shopping becomes a purchase driver
- Homeowners shift focus to improving individual areas
- Single adults may have a new view of their home
- How a COVID-19 recession will reshape the industry
- Inventory issues and value-seeking shoppers lead to deep-discounting
- Evolving the brick-and-mortar shopping experience
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- Figure 9: IKEA’s city-center Manhattan store, April 2019
- Shifts in behavior and attitudes will impact home décor market initiatives
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- Figure 10: Poshmark Home Décor Items, April 2020
- COVID-19: US context
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The Market – What You Need to Know
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- Small growth is expected but current events will threaten future projections
- Understanding consumer needs will benefit retailers through uncertainty
- Diverse living situations create more sales opportunities
Market Size and Forecast
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- COVID-19 will hinder expected growth
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- Figure 11: Total US sales and forecast of home décor, at current prices, 2014-24
Market Perspective
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- Impact of COVID-19 on home décor
- Consumers have a new sense of their home and wellbeing
Market Factors
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- Diversifying household types and locations create new needs
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- Figure 12: Households, by detailed type, 2008 and 2018
- Figure 13: Number of households in metro and nonmetro areas, 2008 and 2018
- Home ownership rates remain stable, but renting is still more popular among young adults
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- Figure 14: Home ownership rate, by age of householder, 2018
- Figure 15: IKEA’s city-center Manhattan store
Key Players – What You Need to Know
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- Situation plays a role in style preference
- The COVID-19 pandemic creates unique opportunities and significant challenges for all retailers
Consumers’ Preferred Décor Styles
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- Style preferences are driven by trends and lifestyle
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- Figure 16: Preferred décor styles – NET, February 2020
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- Figure 17: HGTV Chip & Joanna TV show teaser, April 2019
- Situation influences style
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- Figure 18: Preferred décor styles, by residence and location, February 2020
- A shared home means a shared style for married adults
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- Figure 19: Preferred décor styles, by marital status, February 2020
What’s Happening?
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- What’s happening as a result of COVID-19
- Retailers’ response to COVID-19 can impact consumers’ future shopping behavior
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- Figure 20: Target taking care of its team
- Figure 21: West Elm Zoom meeting feature, March 2020
- What’s struggling as a result of COVID-19
- Existing struggles likely to accelerate and expand as a result of COVID-19
- What’s happening aside from COVID-19 impact
- When it comes to home décor, gender norms still exist
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- Figure 22: Lifestyle statements surrounding home décor – Any agree, December 2019
What to Watch
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- How will COVID-19 impact the category moving forward?
- Shifts in behavior and interests will impact the home décor market
The Consumer – What You Need to Know
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- Affordable essentials drive purchases
- Convenience motivates shopping at mass, but opportunities exist online for décor retailers
- Consumers need assurance, but prefer their own research to sales assistance
- Seasons are a chance to embrace nostalgia and express one’s style identity
Items Purchased
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- Analyst perspective:
- Consumers use small, less-expensive items to style their home
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- Figure 23: Items purchased, February 2020
- Homeowners have more room and more interest in nonessentials
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- Figure 24: Items purchased, by primary residence, February 2020
- Women see value decorating their home, regardless if they cohabitate or live alone
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- Figure 25: Wayfair shoppable Pinterest post – Christmas décor ideas
- Figure 26: Items purchased, by gender and/or marital status, February 2020
Retailers Shopped and Method
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- Analyst perspective:
- Convenience prompts consumers to shop mass merchandisers more than décor retailers
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- Figure 27: Retailers shopped – NET – Any retailer, February 2020
- Trip type dictates method of shopping
- In-store shopping is preferred, but many will shop online when needed
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- Figure 28: Retailers shopped, in-store versus online, February 2020
- Men are interested in low-risk rental options
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- Figure 29: Retailers shopped by gender and age, any rental service, February 2020
- Type and place of residence influences where consumers shop
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- Figure 30: Retailers shopped, by region and housing situation, February 2020
Shopping Behavior
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- Analyst perspective:
- Shoppers are supplementing sales assistance with their own research
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- Figure 31: Shopping behavior, February 2020
- Showrooms and digital tools can reassure renters and urban residents
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- Figure 32: Shopping behavior, by area and residence, February 2020
- Social content can fuel commerce among young adults
Purchase Motivations
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- Analyst perspective:
- Seasonality is a key purchase driver
- Decorating for the holidays is vastly appealing
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- Figure 33: Purchase motivations, February 2020
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- Figure 34: Macy’s Instagram post, December 2019
- Figure 35: Target Twitter post, November 2018
- Change of season is a time for women to refresh their home style
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- Figure 36: Purchase motivations (décor) and shopping seasonality (clothing), by gender, February 2020
- Young men are involved during home furnishings or renovation projects
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- Figure 37: Purchase motivations, by gender and age, February 2020
Attitudes toward Shopping for Home Décor
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- Analyst perspective:
- Price and quality: consumers want both types of value
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- Figure 38: Attitudes toward shopping for home décor, February 2020
- If they can’t see it, most won’t buy it
- Multicultural consumers express their adventurous style through décor
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- Figure 39: Attitudes toward shopping for home décor, by race and Hispanic origin, February 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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