DIY Home Improvement Retailing - US - November 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
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
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
Market gains expected, but remodeling growth will cool down through 2020
Figure 1: Total US retail sales and fan chart forecast of building material and supplies dealers, at current prices, 2014-24
Figure 2: Total US retail sales and forecast of building material and supplies dealers, at current prices, 2014-24
MARKET PERSPECTIVE
DIFM threatens DIY
Figure 3: Attitudes toward on-demand home services, by generation, September 2019
MARKET FACTORS 
Homeownership rates going in the right direction
Figure 4: Homeownership rate, 2008-18
Changing population dynamics impact homeownership
Figure 5: Homeownership rate, by age of householder, 2007-17
Figure 6: DIY projects undertaken and planned – Any (net), by generation, September 2019
Figure 7: Homeownership rate, by race of householder, 2007-17
Multigenerational living situations on the rise
Home renovation trajectory remains rather steady
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 
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
The Home Depot
Lowe’s
Menards
Figure 9: Retailers shopped, by region, September 2019
Figure 10: Retailers perceptions, by Midwest region, September 2019
Ace Hardware
Figure 11: Ace Hardware, Facebook post, October 2019
True Value
WHAT TO WATCH
Urbanization increases desire for personal expression in the home
Figure 12: The Home Depot, decorating tips video, August 2019
Climate change driving interest in home efficiency and smart tech
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 
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 
Nearly four in 10 consumers are DIY enthusiasts
Figure 14: Home improvement segments, September 2019
Men and adults under 55 most enthusiast about DIY projects
Figure 15: Home improvement segments, by age, September 2019
Enjoyment rather than savings prompts DIYing
Figure 16: Home improvement segments, by household income, September 2019
Don’t overlook the renters
Figure 17: Home improvement segments, by housing situation, September 2019
DIY PROJECTS UNDERTAKEN
Most consumers want to tackle projects themselves
Figure 18: DIY projects undertaken and planned, September 2019
Men dominate the DIY scene, but women aren’t far behind
Figure 19: DIY projects undertaken and planned, by gender, September 2019
DIY enthusiasts are the most proactive
Figure 20: Repertoire of projects undertaken and planned, by DIY enthusiasm, September 2019
REASONS FOR UNDERTAKING DIY PROJECTS
Proactivity drives just as many home improvement projects as necessity does
Figure 21: Reasons for undertaking projects, September 2019
Half of DIY enthusiasts do projects for the sheer enjoyment of it
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
Figure 24: Reasons for undertaking projects, by gender, September 2019
Home efficiency is on the mind of younger consumers
Figure 25: Percentage who undertook a project to make their home more efficient, by age, September 2019
PATH TO PURCHASE
Consumers do their research before buying
Figure 26: Path to purchase, September 2019
Everyone wants to know they’re getting a good deal
Figure 27: Path to purchase related to price savings, by household income, September 2019
Social media provides inspiration for young buyers, especially women
Figure 28: Path to purchase related to social media use, by gender and age, September 2019
METHOD OF SHOPPING 
Nearly half shop online before making a purchase in-store
Figure 29: Method of shopping, September 2019
Preference for shopping in-store increases with age
Figure 30: Method of shopping – nets, by generation, September 2019
High usage of and interest in BOPIS services, but it’s not for everyone
Figure 31: Use of bopis, by gender, September 2019
Most BOPIS users are highly satisfied, but this should be even higher
Figure 32: Satisfaction with bopis, September 2019
Nearly six in 10 BOPIS users buy something else while in-store
Figure 33: Incremental purchase incidence, by gender, September 2019
INFLUENTIAL RESOURCES 
Instructional videos are seen as most helpful
Figure 34: Influential resources, September 2019
Social media is top resource for young DIYers
Figure 35: Influential resources, by age, September 2019
Non-enthusiasts heed the advice of friends and store associates
Figure 36: Influential resources, by DIY enthusiasm, September 2019
Women turn to TV and social media; men rely on websites
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
Figure 38: Share of voice – all devices and formats for The Home Depot versus Lowes, October 2018-September 2019
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 
It’s tough to beat The Home Depot
Figure 42: Retailers shopped, September 2019
Figure 43: Attitudes toward home improvement stores, September 2019
The Home Depot and Lowe’s universally viewed as the go-to leaders
Figure 44: Retailers shopped – Any shopped (Net), by DIY enthusiasm, September 2019
Women favor Lowe’s, mass merchandisers and Amazon more so than men
Figure 45: Retailers shopped – Any shopped (Net), by gender, September 2019
RETAILER DRIVERS
Consumers shop where it’s most convenient
Figure 46: Retailer drivers, September 2019
Bringing the product to the customer
Figure 47: The Home Depot, delivery services video, October 2019
Store associate expertise most important to DIY non-enthusiasts
Figure 48: Retailer drivers, by DIY enthusiasm, September 2019
RETAILER PERCEPTIONS 
Sea of sameness in the home improvement retail category
Figure 49: Retailer perceptions, September 2019
Brands must take a DIY approach to building trust
Figure 50: Retailer perceptions of trustworthiness, by DIY enthusiasm, September 2019
Investing in tech and ecommerce
Figure 51: Retailer perceptions of tech savviness and online shopping experience, by Millennials, September 2019
Building relationships through ethical practices
Figure 52: Retailer perceptions of ethical practices, by generation, September 2019
Men and women view category leaders similarly
Figure 53: Retailer perceptions, by gender, September 2019
INTEREST IN DIY HOME IMPROVEMENT SERVICES
Strong interest in rentals and pre-owned items
Figure 54: Interest in DIY home improvement services, September 2019
Men and women seek guidance in different ways
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
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET
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
APPENDIX – THE CONSUMER 
Figure 59: Home improvement retailers shopped at in past three months and purchased at in past four weeks, April 2018 – June 2019
Figure 60: Monthly impressions - all devices and formats for The Home Depot versus Lowe’s, October 2018-September 2019
Figure 61: Percentage of quarterly impressions – all devices and formats for The Home Depot versus Lowe’s, October 2018-September 2019