Consumer Pulse - Springing into Home Improvements | March 14, 2024

The current state:

Recent earnings reports from Lowe's and Home Depot highlight a complex environment for the home improvement sector. Lowe's Q4 and FY23 earnings showcase a -6.2% decline in comparable sales, attributed to a dip in DIY demand, stagnant Pro sales, and adverse weather conditions, projecting a slight downturn in sales for FY24. Conversely, Home Depot and Lowe's have painted a positive outlook for the home improvement industry despite year-over-year transaction declines, buoyed by inflation-driven price increases. This backdrop sets the stage for our latest Consumer Pulse findings, illustrating how homeowners are adapting to economic uncertainties while pursuing their home improvement ambitions.

How we’re feeling right now:

As we welcome the rejuvenating season of spring, an interesting trend emerges among homeowners. A significant 53% are gearing up for home improvements or repairs in the upcoming months. This initiative reflects a vibrant optimism, yet, 16% remain undecided, pondering over their next move. This wave of home enhancement enthusiasm is detailed in our latest Consumer Pulse report. Here are some highlights that underscore the prevailing sentiment:

• 67% have more ideas for improving their home than they can actually achieve, likely due to various challenges.
• 64% attribute their reluctance to financial limits and worries about potential inflation.
• 38% of home improvement projects focus on interior work, especially painting and bathroom remodels.

Why it matters:

The discerning data from our report not only reflects the homeowners' zest for home revitalization but also uncovers deeper financial and economic apprehensions. For brands and retailers, understanding these dynamics is crucial in tailoring offerings that meet homeowners’ needs while navigating financial concerns and the desire for value-enhancing projects.

Do you want to take the Pulse of your customers? Our Insights team will partner with you to design a study to help you better understand your customers and their problems, and how your brand can win at retail.

Download the full report here: