postpandemic

Do-It-Yourselfers Will Continue to Fuel Home Improvement Market Post-Pandemic, Reports NPD

PORT WASHINGTON, N.Y., Sept. 28, 2020 /PRNewswire-PRWeb/ — The popularity of do-it-yourself (DIY) home improvement projects in the U.S. during the pandemic is a trend that will continue with more than 40% of consumers indicating having post-pandemic DIY home improvement plans. According to new insight on the home improvement market from The NPD Group’s Checkout information, approximately one in ten consumers have taken on home projects they would have hired professional services for pre-pandemic, including cleaning, landscaping, maintenance, repairs, and even remodeling.

Through the pandemic, while most brick-and-mortar channels experienced declines in purchases due to COVID-19, the home hardware store channel has benefited from the consumer’s increased focus on their living spaces, and personal interest in taking on some new projects. With 11% more purchases than last year, home hardware stores were the second fastest growing channel in the first seven months of 2020.

“House-bound in March, consumers noticed opportunities to make their personal spaces more livable as they not only provided shelter, but became office space and schoolrooms for many,” said Shay Krafft, NPD’s president of U.S. home improvement & major appliances. “Home hardware stores were able to remain open and support the needs of the consumer, both in-store and online.”

This increased interest in DIY projects during the pandemic accelerated home improvement market performance in several ways. Across five key home improvement segments of lawn and garden, tools, paint, kitchen and bath, and hardware, both online and in-store purchase methods exhibited double-digit growth in the seven months ending July 2020. Seasonally, industry sales that typically peak in June peaked a month earlier this year, with 48% more sales in May 2020 than in 2019. The amount spent in the average home improvement shopping trip also increased 10% during the pandemic when compared to 2019.

“The

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Oppenheimer downgrades Home Depot, Lowe’s on a ‘post-pandemic reset’ in home improvement retail

On Friday, Oppenheimer downgraded both Home Depot and Lowe’s to perform from outperform and lowered their price targets marginally. The firm disclosed that it still finds both companies favorable in the intermediate to longer-term stance, as shifts in consumer demands in the real estate and home improvement space are going to continue to fluctuate. Yahoo Finance’s Final Round panel break down the firm’s call and discuss the details.

Video Transcript

MYLES UDLAND: All right, welcome back to The Final Round here on Yahoo Finance. Time now for our call of the day. And today, we’re talking about Oppenheimer’s latest shares of Home Depot and Lowe’s, the firm downgrading both stocks to perform from– outperform. So overall, basically, kind of, I guess, pulling back maybe on these two names and saying that the boom we saw in the home improvement space during the early part of the pandemic is likely to cool or at least create some sort of challenge for these businesses, you know, in the months ahead.

And I think it’s interesting to see this call Seana in the context of maybe some of the tech analysts, who we’ve talked about a lot, continuing to chase stocks higher or to try to back into why some, you know, pie in the sky valuation actually makes sense. And here we have an analyst saying, yeah, look, a lot of great things about home building, great trends going forward. But the rush that we saw into these kinds of names and into their business through June and July they don’t see as quite as durable and quite as convincing, at least over the near-term.

SEANA SMITH: Yeah, Myles, because of that, because of that theory, because of their reasons as to why they’re making this call, I think a lot of

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