Recently, the North American Hardware and Paint Association (NHPA) hosted a webinar focused on the 2020 Market Measure report, the annual overview of the forces and factors affecting the home improvement marketplace.
Sponsored by Epicor, the webinar gave independent home improvement retailers and analysts from across North America the chance to reflect on the drastic shifts the channel has seen throughout the year and indications of how the market may move next.
You can stream a recording of the webinar above, and explore key takeaways from the report below to help you strategize for success in 2021 and beyond. For more information on the 2020 Market Measure report and the wealth of resources available to independent home improvement retailers, visit NHPA online.
4 Takeaways From the 2020 Market Measure Report
Home improvement sales strength is expected to continue.
Estimates from NHPA show the home improvement marketplace could grow 12 percent from 2019 sales to end the year roughly around $457 billion. Sales could dip in 2021 compared to the highs of 2020, and NHPA data shows roughly 43 percent of independent retailers are budgeting for lower sales in 2021. However, the trend of nesting at home observed in 2020 is likely to continue, and from 2019-2024, NHPA estimates the home improvement industry will see compound annual growth of 4.6 percent.
Pro sales could be a critical factor in 2021.
Home improvement centers and hardware stores saw sharp sales increases in 2020, while lumberyards saw a modest 4 percent drop in 2020 sales. That story could be flipped in 2021, as many pro and commercial projects get back on track. NHPA estimates lumberyards could see an average sales increase of 9 percent by the end of 2021.
Store count held steady for independents.
As DIY sales rose sharply in the first half of the year, store counts for various home improvement segments remained steady. NHPA estimates show hardware stores, home improvement centers and lumberyards all experienced a rate of closure smaller than 1 percent. Strong sales throughout 2020 may have temporarily delayed some owners’ plans to consolidate or sell business.
Economic factors could stabilize throughout 2021.
The webinar also included insights from Jim Robisch of market research firm The Farnsworth Group. In reviewing the economy as a whole, certain factors could stabilize and lead to a solid foundation for retailers. Notably, lower unemployment rates, higher consumer confidence and a new generation of people buying homes could provide independent home improvement retailers with a solid base to begin a new year.
There’s much more to unpack in the 2020 Market Measure report webinar. Stream the video above and contact NHPA today to learn more about how the association can help your business reach new heights in a new year.