E-Commerce Up Significantly in Home Improvement Channel
May 11, 2017,
PORT WASHINGTON, N.Y.—Online sales of home improvement products that span everything from plumbing and hardware to storage and décor, have grown 41 percent in the 12 months ending March 2017, reports The NPD Group.
The e-commerce home improvement market reached $10.9 billion in sales for the year, according to NPD’s receipt mining service, Checkout Tracking.
With the exception of outdoor living, online sales of each major segment of the home improvement market grew in that time period, and almost every category tracked within those segments experienced double-digit online dollar growth, NPD said. The fastest growing categories last year were plumbing pipes and fittings, light bulbs and ceiling fans. The categories with the largest online sales gains were home décor, light fixtures and lamps, and area rugs.
Millennials are a driving force behind this online growth, with the younger segment growing at the fastest pace, and the older portion accounting for the largest share of dollar gains. However, Gen X and the Baby Boomer generation are also very active in online home improvement spending, representing almost two-thirds of industry sales for the year, the market research company said.
“Without a doubt, e-commerce will continue to gain importance for the home improvement industry,” Derochowski said. “The current demographic changes are driving increases in the number of people entering life stages that are important to home improvement categories, from first-time home-buyers to downsizing empty-nesters, the industry is in a prime position to help consumers today and develop new shopping habits that will last for decades to come.”
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