Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Abbreviations and terms
- Abbreviations
- Terms and retailer categories
Executive Summary
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- Market overview
- Home ownership and home sales drive market: slump in 2006
- The largest home centers introduce new store formats, reach out to professionals, develop product lines and service offerings
- Demographic shifts: multi-ethnicity and aging of Baby Boomers
- Slower sales for the largest retailers, market consolidation seen in 2006
- Hardware stores develop strategies to hold market share
- Aggressive marketing, diverse and innovative advertising
- Consumer highlights: DIY activity and purchasing levels
- Consumer highlights: Home centers are the dominant retail channel
- Consumer highlights: Preferences and attitudes, gender differences
- Internet, other media and workshops
- Future remains positive over the next five years
Market Drivers
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- Home centers have played a major role in expanding DIY consumer base
- Housing sales serve as a primary driver
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- Figure 1: Sales of new and existing homes, 2001-06
- Rising interest rates affect housing sales and limit refinancing
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- Figure 2: interest rates for 15-year fixed rate mortgages, annual average, 2001-06
- Residential maintenance, repairs and remodeling
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- Figure 3: Expenditures for residential repairs and maintenance, and improvements, 2001-06
- Changes in homeownership by age and race/ethnicity
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- Figure 4: Incidence of home ownership, by age and race/ethnicity, 1995-2005
- Age
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- Figure 5: Population by age, 2002-12
- Race/ethnicity
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- Figure 6: Population by race and Hispanic origin, 2002-12
- Gender
- Media exposure: generating interest and skills in home improvement
- DIY magazines, programs and websites
- The Internet takes a growing role in the market
- Aggressive marketing, store innovation and expansion of major home centers
- In 2006, home centers continue developing new formats, greater service offerings and non-traditional product lines
- Product innovation and technology
- Large-scale natural disasters: the impact of hurricanes and heat waves
- Environmental concerns and green trends
Market Size and Trends
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- Figure 7: Total U.S. retail home channel sales, at current and constant prices, 2001-06
- A narrower definition of the market
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- Figure 8: Total U.S. sales by home improvement retailers, at current and constant prices, 2001-06
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Market Segmentation
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- Overview
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- Figure 9: Home channel sales, segmented by retailer type, 2004 & 2006
- Home centers/lumberyards
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- Figure 10: Total U.S. home improvement sales through home centers and lumberyards**, at current and constant prices, 2001-06
- Lawn and garden stores
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- Figure 11: Total U.S. home improvement sales through lawn and garden stores, at current and constant prices, 2001-06
- Department stores/mass merchandisers
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- Figure 12: Total U.S. home improvement sales through department stores (including mass merchandisers), at current and constant prices, 2001-06
- Hardware stores
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- Figure 13: Total U.S. home improvement sales through hardware stores, at current and constant prices, 2001-06
- Specialty floor covering stores
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- Figure 14: Total U.S. home improvement sales through specialty/floor covering stores, at current and constant prices, 2001-06
- Specialty paint and wallpaper stores
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- Figure 15: Total U.S. home improvement sales through paint and wallpaper stores, at current and constant prices, 2001-06
- Other general merchandise stores
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- Figure 16: Total U.S. home improvement sales through other general merchandise stores, at current and constant prices, 2001-06
Supply Structure
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- Overview
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- Figure 17: Home channel sales, by retailer, 2004 & 2006
- Home centers
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- Figure 18: Market share of Lowe’s and Home Depot, 2000-06
- Pricing pressure
- Marketing and store upgrades
- New services
- Moving from the suburbs into urban and rural areas
- Retail innovation
- Retailer size comparisons
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- Figure 19: Top home improvement centers’ operating statistics, latest fiscal year-end, 2006
- Home center retailer profiles
- Home Depot
- Lowe’s
- Menards
- Department stores/mass merchandisers
- Introduction
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- Figure 20: Top home improvement centers’ operating statistics, latest fiscal year-end 2005
- Wal-Mart
- Sears Holding
- Lumberyards
- Introduction
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- Figure 21: Top lumberyard retailers and share of DIY sales, 2005
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- Figure 22: Top lumberyard retailers, by sales, financial years ending 2004 and 2005
- Stock Building Supply
- 84 Lumber
- Pro-Build Holdings
- Floor covering stores
- Introduction
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- Figure 23: Top floor covering retailers and share of DIY sales, 2005
- Figure 24: Top floor-covering retailers, by sales, financial years ending 2004 and 2005
- CCA Global Partners
- Abbey Carpet
- Dal-Tile
- Paint and wall-covering stores
- Introduction
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- Figure 25: Number of paint and wall-covering stores and share of DIY sales, end of fiscal year 2004
- Figure 26: Top paint and wall-covering retailers, by sales, financial years ending 2004 and 2005
- Sherwin-Williams
- ICI Paints
- Professional Paint
- Dunn-Edwards
- Kelly Moore
- Independent hardware stores
- Introduction
- Product selection in key areas
- Convenience for small projects and quality service
- Cooperatives offer buying clout, marketing suggestions and brand identity
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- Figure 27: Top independent hardware-buying groups, by number of members, 2005
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- Figure 28: Top independent hardware-buying groups, by sales, financial years ending 2004 and 2005
- True Value
- Ace Hardware
- Do it Best
Advertising And Promotion
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- Major platforms and strategies for advertising and marketing
- Measured media advertising expenditures
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- Figure 29: Advertising spending in 28 measured media, 2004 and 2005
- Unmeasured advertising expenditures
- In-store marketing and shopper-centric retail environments
- Father’s Day and Christmas
- Outreach to families
- DIY retailer sponsorships
- DIY media
- Sports sponsorships
- Community and charitable activities
- The Internet
- Retailer advertising profiles
- Home improvement retailers
- Home Depot
- Lowe’s
- Menards
- Department stores/mass merchandisers
- Wal-Mart
- Sears
- Independent hardware cooperatives
- True Value
- Ace Hardware
- Do it Best
The Consumer—Who is the DIYer
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- Summary of findings
- Number of visits to various retail channels
- DIY retailing accomplished in last 12 months
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- Figure 30: Number of DIY retailing projects in last 12 months, by gender, February 2007
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- Figure 31: Number of DIY retailing projects in last 12 months, by age, February 2007
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- Figure 32: Number of DIY retailing projects in last 12 months, by Income, February 2007
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- Figure 33: Number of DIY retailing projects in last 12 months, by race/ethnicity, February 2007
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- Figure 34: Number of DIY retailing projects in last 12 months, by household size, February 2007
- DIY product purchase overview
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- Figure 35: Types of home improvements products purchased, May 2005-June 2006.
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- Figure 36: Types of home improvements products purchased, by who completed them, May 2005-June 2006.
- Types of home improvement purchases made by homeowners
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- Figure 37: Types of home improvements products purchased, by race/ethnicity, May 2005-June 2006
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- Figure 38: Types of home improvements products purchased, by age, May 2005-June 2006
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- Figure 39: Types of home improvements products purchased, by household income, May 2005-June 2006
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- Figure 40: Types of home improvements products purchased, by size of household, May 2005-June 2006
- Amount spent on home improvements
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- Figure 41: Total home improvement expenditures, May 2005-June 2006
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- Figure 42: Total home improvement expenditures, by home ownership status, May 2005-June 2006
- Number of visits to purchase DIY products by retail channel
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- Figure 43: Store types for DIY project purchases in the past year, by age, February 2007
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- Figure 44: Store types for DIY project purchases in the past year, by income, February 2007
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- Figure 45: Extent of involvement in DIY projects, by race/ethnicity, February 2007
- Products purchased at different retailers
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- Figure 46: purchasing of DIY projects in the past year, by type of retailer, February 2007
- Which home improvement stores have consumers shopped most recently
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- Figure 47: Specific home improvement retailers shopped in previous three months, May 2005- June2006
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- Figure 48: Specific home improvement retailers shopped in previous three months, by gender, May 2005-June 2006
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- Figure 49: Specific home improvement retailers shopped in previous three months, by home ownership status, May 2005-June 2006
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- Figure 50: Specific home improvement retailers shopped in previous three months, by region, May 2005-June 2006
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- Figure 51: Specific home improvement retailers shopped in previous three months, by incidence of purchasing first home, new home, or moving in the last 12 months, May 2005- June 2006
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- Figure 52: Specific home improvement retailers shopped in previous three months, by incidence of remodeling, May 2005-June 2005
The Consumer—Attitudes and Opinions towards DIY
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- Summary of findings
- Preferences and opinions related to retailer qualities
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- Figure 53: Preferences and opinions about DIY retailers and undertaking DIY projects, by age, February 2007
- Barriers to taking part in how-to-workshops for DIY projects
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- Figure 54: Barriers to taking part in how-to-workshops for DIY projects, by gender, February 2007
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- Figure 55: Barriers to taking part in how-to-workshops for DIY projects, February 2007
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- Figure 56: Barriers to taking part in how-to-workshops for DIY projects, by race/ethnicity, February 2007
- Factors weighed when selecting DIY locations
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- Figure 57: Priorities when selecting retailer, by gender, February 2007
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- Figure 58: Priorities when selecting retailer, by race/ethnicity, February 2007
- Extent of involvement in DIY projects
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- Figure 59: Extent of involvement in DIY projects, by gender, February 2007
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- Figure 60: Extent of involvement in DIY projects, by age, February 2007
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- Figure 61: Extent of involvement in DIY projects, by race/ethnicity, February 2007
- Reasons for not embarking upon a DIY project
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- Figure 62: Reasons for not embarking upon a DIY project in the past year, by gender, February 2007
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- Figure 63: Reasons for not embarking upon a DIY project in the past year, by age, February 2007
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- Figure 64: Reasons for not embarking upon a DIY project in the past year, by household income, February 2007
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- Figure 65: Reasons for not embarking upon a DIY project in the past year, by race/ethnicity, February 2007
- Internet usage to seek DIY information and make purchases
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- Figure 66: Internet usage relating to home improvement, by household income, February 2007
- Media used to learn about DIY projects
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- Figure 67: Media used to learn about DIY projects, by gender, February 2007
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- Figure 68: Media used to learn about DIY projects, by race/ethnicity, February 2007
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- Figure 69: Media used to learn about DIY projects, by household income, February 2007
Future and Forecast
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- Future trends
- Overall growth to slow through 2012, but still positive
- Home centers continue to develop growth strategies, driving reconfigurations in the market
- Smaller retailers differentiate themselves through service, marketing and product offerings
- Environmentally-friendly products and practices and green building trends
- Hispanic DIYers will help fuel future growth
- Aging Baby Boomers and emerging, younger homeowners
- Market forecast
- Retail home channel
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- Figure 70: Forecast of total U.S. retail home channel sales, at current and constant prices, 2006-11
- Forecast factors
Appendix: Trade Associations
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