Shopping for Home Décor - US - July 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Home furnishings retailers are not the most shopped for décor
Figure 1: Retailers shopped, April 2018
Interest in brand names and expert consultation is low
Figure 2: Attitudes toward home décor, April 2018
The opportunities
Decor shoppers don’t need a specific reason to buy
Figure 3: Reasons for buying home décor, April 2018
Appealing to consumers throughout various living stages
What it means
THE MARKET – WHAT YOU NEED TO KNOW
A healthy outlook
Optimistic market factors and diverse needs support positive sales
MARKET SIZE AND FORECAST
Positive, consistent growth expected to continue
Figure 4: Total US retail sales fan chart forecast of home decor, at current prices, 2013-23
Figure 5: Total US retail sales of home décor, at current prices, 2013-23
MARKET FACTORS 
Various life stages could result in diversified living situations
Figure 6: Households, by detailed type, 2017
Home ownership remains consistent, indicating optimism for the category
Figure 7: Homeownership Rates for the United States: 2014 to 2018
Figure 8: Number of households, by race and Hispanic origin of householder, 2007 and 2017
College enrollment is on the rise, representing new opportunities for retailers
Increased connectivity could encourage more online shopping
Figure 9: Devices used to access the internet, December 2017
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Stylish and affordable décor collections keep shoppers coming back
Consumers shy away from traditional décor stores
Changing where, how and why consumers purchase home decor
WHAT’S WORKING?
The top sought styles
Figure 10: TURF analysis – Styles, April 2018
New collections and expansions could keep shoppers frequenting certain channels
Figure 11: Target Hearth & Hand email campaign, November 2017
Figure 12: Target Opalhouse email campaign, April 2018
Figure 13: At Home direct mail, March 2018
WHAT’S STRUGGLING?
Traditional home furnishing retailers are no longer favorites
Figure 14: Retailers shopped, April 2018
Figure 15: CB2 x Fred Segal email campaign, May 2018
WHAT’S NEXT?
Other channels and retailers explore entry into the category
Giving shoppers new reasons to shop and treat themselves
Figure 16: Wayfair Way Day email campaign, April 2018
Next-level decorating
Evolving the online shopping experience
Figure 17: Attitudes toward home décor shopping – Cluster analysis, April 2018
Evolving with consumers’ living situations
THE CONSUMER – WHAT YOU NEED TO KNOW 
Consumers are making a variety of purchases, with many outside of traditional retailers
Consumers look to peers and retailers for inspiration, with a focus on classic and modern styles
Shoppers are buying to refresh, replace and reward
Most consumers see the importance of home style
ITEMS PURCHASED
Accent items are top purchases
Figure 18: Items purchased, April 2018
Young adults look to elevate their spaces with small purchases
Figure 19: Items purchased, by select demographics, April 2018
Single women demonstrate enthusiasm for décor across categories
Figure 20: Items purchased, by gender and marital status, April 2018
Parents are top purchasers of seasonal decor
Figure 21: Items purchased, by parental status by gender, April 2018
RETAILERS SHOPPED
Value-based retailers are most shopped
Figure 22: Retailers shopped, April 2018
Younger shoppers head to mass, while older consumers seek tradition
Figure 23: Retailers shopped, by generation, April 2018
Men are shopping for décor online
Figure 24: Retailers shopped, by select demographics, April 2018
Black and Hispanic shoppers seek value
Figure 25: Retailers shopped, by race and Hispanic origin, April 2018
INFLUENCE AND INSPIRATION
Peers, retailers and traditional media are most influential
Figure 26: Influence and inspiration, April 2018
Men turn to peers, while women look to retailers for inspiration
Figure 27: Influence and inspiration, by gender, April 2018
Traditional media inspires older shoppers while younger generations influenced by emerging media
Figure 28: Influence and inspiration, by generation, April 2018
Hispanic shoppers find inspiration in many places
Figure 29: Influence and inspiration, by Hispanic origin, April 2018
STYLE
Shoppers’ style split between classic and modern
Figure 30: Style, April 2018
Figure 31: Target e-mail campaign, May 2018
Figure 32: Walmart e-mail campaign, May 2018
Figure 33: Marshalls e-mail campaign, July 2017
Figure 34: Wayfair e-mail campaign, May 2018
Young men show interest in a variety of styles
Figure 35: Style, by gender and age, April 2018
Location and living situation could influence style preferences
Figure 36: Style, by area and housing situation, April 2018
Hispanics seek modern styles, Black shoppers prefer a variety
Figure 37: Style, by race and Hispanic origin, April 2018
REASONS FOR BUYING HOME DECOR
Refreshes, rewards and replacements are top reasons for purchase
Figure 38: Reasons for buying home décor, April 2018
Women reward, men replace
Figure 39: Reasons for buying home décor, by gender and age, April 2018
Young renters have more reasons to buy
Figure 40: Reasons for buying home décor, by select demographics, April 2018
Multicultural shoppers more impulsive than others
Figure 41: Reasons for buying home décor, by race and Hispanic origin, April 2018
ATTITUDES TOWARD HOME DÉCOR SHOPPING
The home is a reflection of one’s style, and most are willing to invest in quality
Figure 42: Attitudes toward home décor shopping – Net any agree, April 2018
Hispanics consumers prioritize their home style and are willing to invest
Figure 43: Attitudes toward home décor, by Hispanic origin, April 2018
Most consumers’ attitudes either practical, concerned with quality or enthusiastic
Figure 44: Cluster analysis – attitudes toward home décor, April 2018
Figure 45: Cluster analysis – Attitudes toward home décor, April 2018
Practical Purchasers
Figure 46: Profile of practical purchasers, April 2018
Quality Concerned Shoppers
Figure 47: Profile of quality concerned shoppers, April 2018
Modern and Trendy Enthusiasts
Figure 48: Profile of modern and trendy enthusiasts, April 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Direct marketing creative
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 49: Total US retail sales of home décor, at inflation-adjusted prices, 2013-23
Figure 50: Number of households, by area of residence, 2007 and 2017
Figure 51: Single-person households, 2007-17
APPENDIX – THE CONSUMER 
Figure 52: Repertoire of shopping for home décor, by select demographics, April 2018
Figure 53: Retailers Shopped, in-store versus online, April 2018