Table of Contents
Executive Summary
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- The DIY consumer
- What we see
- Retailers shopped
- What we see
- Path to purchase
- What we see
- Retailer priorities and opportunities
- What we see
- What it means
The Market – What You Need to Know
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- Improvement expected for the market, but at a tempered pace
- On-demand culture supports DIFM market
- Homeownership rates slowly rising
- “Fixer-upper” mentality fuels the market
Market Size and Forecast
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- Market gains expected, but remodeling growth will cool down through 2020
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- Figure 1: Total US retail sales and fan chart forecast of building material and supplies dealers, at current prices, 2014-24
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- Figure 2: Total US retail sales and forecast of building material and supplies dealers, at current prices, 2014-24
Market Perspective
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- DIFM threatens DIY
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- Figure 3: Attitudes toward on-demand home services, by generation, September 2019
Market Factors
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- Homeownership rates going in the right direction
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- Figure 4: Homeownership rate, 2008-18
- Changing population dynamics impact homeownership
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- Figure 5: Homeownership rate, by age of householder, 2007-17
- Figure 6: DIY projects undertaken and planned – Any (net), by generation, September 2019
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- Figure 7: Homeownership rate, by race of householder, 2007-17
- Multigenerational living situations on the rise
- Home renovation trajectory remains rather steady
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- Figure 8: NAHB Remodeling Market Index, 2010-Q2 2019
- Home buying attitudes reflect “fixer-upper” mentality
- Uncertainties about the economy could cause pullback on spending
Key Players – What You Need to Know
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- Leading retailers working off similar blueprints
- Menards’ value play may not be enough to effectively compete
- Urban dwellers look to maximize and personalize their living space
- Home efficiency products gaining popularity
Key Retailer Initiatives
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- The Home Depot
- Lowe’s
- Menards
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- Figure 9: Retailers shopped, by region, September 2019
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- Figure 10: Retailers perceptions, by Midwest region, September 2019
- Ace Hardware
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- Figure 11: Ace Hardware, Facebook post, October 2019
- True Value
What to Watch
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- Urbanization increases desire for personal expression in the home
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- Figure 12: The Home Depot, decorating tips video, August 2019
- Climate change driving interest in home efficiency and smart tech
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- Figure 13: Home depot Facebook ad featuring smart thermostats, July 2019
- Wellness trends infiltrate the home improvement market too
The Consumer – What You Need to Know
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- Majority of consumers are not enthused about the category
- Path to purchase can be lengthy; instructional videos help
- No retailer is immune to outside competition
- Not all home improvement stores are the same, but many shoppers see it that way
- High interest in rental services and the pre-owned market
The DIY Consumer
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- Nearly four in 10 consumers are DIY enthusiasts
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- Figure 14: Home improvement segments, September 2019
- Men and adults under 55 most enthusiast about DIY projects
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- Figure 15: Home improvement segments, by age, September 2019
- Enjoyment rather than savings prompts DIYing
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- Figure 16: Home improvement segments, by household income, September 2019
- Don’t overlook the renters
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- Figure 17: Home improvement segments, by housing situation, September 2019
DIY Projects Undertaken
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- Most consumers want to tackle projects themselves
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- Figure 18: DIY projects undertaken and planned, September 2019
- Men dominate the DIY scene, but women aren’t far behind
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- Figure 19: DIY projects undertaken and planned, by gender, September 2019
- DIY enthusiasts are the most proactive
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- Figure 20: Repertoire of projects undertaken and planned, by DIY enthusiasm, September 2019
Reasons for Undertaking DIY Projects
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- Proactivity drives just as many home improvement projects as necessity does
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- Figure 21: Reasons for undertaking projects, September 2019
- Half of DIY enthusiasts do projects for the sheer enjoyment of it
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- Figure 22: Reasons for undertaking projects, September 2019
- Figure 23: The Home Depot, DIY project ideas screenshot, October 2019
- Women view DIY projects as a creative way to express themselves
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- Figure 24: Reasons for undertaking projects, by gender, September 2019
- Home efficiency is on the mind of younger consumers
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- Figure 25: Percentage who undertook a project to make their home more efficient, by age, September 2019
Path to Purchase
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- Consumers do their research before buying
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- Figure 26: Path to purchase, September 2019
- Everyone wants to know they’re getting a good deal
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- Figure 27: Path to purchase related to price savings, by household income, September 2019
- Social media provides inspiration for young buyers, especially women
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- Figure 28: Path to purchase related to social media use, by gender and age, September 2019
Method of Shopping
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- Nearly half shop online before making a purchase in-store
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- Figure 29: Method of shopping, September 2019
- Preference for shopping in-store increases with age
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- Figure 30: Method of shopping – nets, by generation, September 2019
- High usage of and interest in BOPIS services, but it’s not for everyone
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- Figure 31: Use of bopis, by gender, September 2019
- Most BOPIS users are highly satisfied, but this should be even higher
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- Figure 32: Satisfaction with bopis, September 2019
- Nearly six in 10 BOPIS users buy something else while in-store
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- Figure 33: Incremental purchase incidence, by gender, September 2019
Influential Resources
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- Instructional videos are seen as most helpful
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- Figure 34: Influential resources, September 2019
- Social media is top resource for young DIYers
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- Figure 35: Influential resources, by age, September 2019
- Non-enthusiasts heed the advice of friends and store associates
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- Figure 36: Influential resources, by DIY enthusiasm, September 2019
- Women turn to TV and social media; men rely on websites
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- Figure 37: Influential resources, by gender, September 2019
- Digital advertising strategies: The Home Depot versus Lowe’s
- Social media is an integral part of both retailers’ online media mix
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- Figure 38: Share of voice – all devices and formats for The Home Depot versus Lowes, October 2018-September 2019
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- Figure 39: Impressions by device for The Home Depot versus Lowes, October 2018-September 2019
- Figure 40: The Home Depot, Facebook post, October 2018
- Figure 41: Lowe’s, YouTube mobile video ad, March 2019
Retailers Shopped
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- It’s tough to beat The Home Depot
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- Figure 42: Retailers shopped, September 2019
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- Figure 43: Attitudes toward home improvement stores, September 2019
- The Home Depot and Lowe’s universally viewed as the go-to leaders
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- Figure 44: Retailers shopped – Any shopped (Net), by DIY enthusiasm, September 2019
- Women favor Lowe’s, mass merchandisers and Amazon more so than men
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- Figure 45: Retailers shopped – Any shopped (Net), by gender, September 2019
Retailer Drivers
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- Consumers shop where it’s most convenient
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- Figure 46: Retailer drivers, September 2019
- Bringing the product to the customer
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- Figure 47: The Home Depot, delivery services video, October 2019
- Store associate expertise most important to DIY non-enthusiasts
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- Figure 48: Retailer drivers, by DIY enthusiasm, September 2019
Retailer Perceptions
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- Sea of sameness in the home improvement retail category
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- Figure 49: Retailer perceptions, September 2019
- Brands must take a DIY approach to building trust
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- Figure 50: Retailer perceptions of trustworthiness, by DIY enthusiasm, September 2019
- Investing in tech and ecommerce
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- Figure 51: Retailer perceptions of tech savviness and online shopping experience, by Millennials, September 2019
- Building relationships through ethical practices
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- Figure 52: Retailer perceptions of ethical practices, by generation, September 2019
- Men and women view category leaders similarly
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- Figure 53: Retailer perceptions, by gender, September 2019
Interest in DIY Home Improvement Services
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- Strong interest in rentals and pre-owned items
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- Figure 54: Interest in DIY home improvement services, September 2019
- Men and women seek guidance in different ways
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- Figure 55: Lowe’s Facebook post promoting in-store workshops, August 2019
- Figure 56: Interest in DIY home improvement services, by gender and age, September 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 57: Total US retail sales and forecast of building material and supplies dealers, at inflation-adjusted prices, 2014-24
- Figure 58: Percent of young adults living in parental home, by age and gender, 2008 and 2018
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Appendix – The Consumer
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- Figure 59: Home improvement retailers shopped at in past three months and purchased at in past four weeks, April 2018 – June 2019
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- Figure 60: Monthly impressions - all devices and formats for The Home Depot versus Lowe’s, October 2018-September 2019
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- Figure 61: Percentage of quarterly impressions – all devices and formats for The Home Depot versus Lowe’s, October 2018-September 2019
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