Home Improvement is waning, but settling higher vs. pre-covid levels: +9% vs. 2019.
This is in line with other trends we track, exhibiting significant increases vs. 2019:
Urban Exodus: +20%
Buying a Home: +20%
Building a Home: +18%
In fact, mentions of Urban Exodus (leaving the city for a more rural area) are showing momentum, increasing +7% QoQ. All of these trends serve as tailwinds for companies selling home goods. From a company perspective, there are a couple of interesting things happening.
Last year, we recorded massive upticks in demand for digital-heavy home goods providers: Wayfair, IKEA, and even HOME who deployed a well-received Buy-Online-Pickup-In-Store strategy.
As localities reopen, we'reseeing significant strength out of Home Depot and Lowe's specifically. The omnichannel approach is working, and the expansive physical presence is now working to each company's advantage.
Wayfair demand growth is slipping. While International sales are increasingly important for the company, domestic sales comprise the largest percentage of revenue.
Williams-Sonoma Demand is waning on a QoQ basis, but it is gaining in Consumer Happiness levels. Sentiment has actually improved +6% QoQ.
From a Happiness perspective, Restoration Hardware stands far above peers. Sentiment is more than 80% positive and +9% higher YoY. This company provides a superior experience for its key segment of loyal consumers.
IKEA and HOME are relatively neutral. We would like to see demand a bit stronger out of HOME, considering they DO boast an omnichannel strategy and are severely underperforming Lowe's and Home Depot.
We've got a close eye on this trend and the relevant players in the space beyond the seasonal summer months.