Sales of Homeware and Decor Category Growth Driven by the Hot Housing Market
By Fusion Team
The considerable growth in homeware and decor continued into April as Canadians who were stuck at home, or moved into a new home, look to enhance their surroundings.
Linked to this, Omni-channel sales of homeware and decor categories grew by nearly 40% to the end of April* with the lion’s share of that growth taking place in the online channel. It is important to note that if a retailer’s sales grew, but grew by less than 40% in these categories, the retailer in fact gained fewer customers than their competition and lost market share.
The year over year sales increase in April* was driven by three key factors:
Although unemployment benefits such as EI and CERB declined for many in April it was more than made up for by increased wages and people finding employment, providing Canadians with more spending power.
Markedly more people moved in April compared to the same period last year when property purchases were fell dramatically due to COVID public health measures; moving house is a major contributor of purchases in the homeware and decor categories.
Stuck at home and restricted from spending money in other areas (e.g. travel, entertainment, apparel, etc.) customers are funneling more of their discretionary spend into categories focused on making their homes more habitable.
Through May and June, Fusion’s forecast is for homewares and decor categories to continue its strong growth as economic factors improve, housing markets stay hot, and governments only gradually begin to lift restrictions on other activities that compete for share of wallet with these categories. From a technical point of view, it is important to note that the category is rolling over a COVID dip in sales from last year.
For a comprehensive understanding of your category, its dynamics, and competitors, contact the team at Fusion. We’re always happy to talk: firstname.lastname@example.org / +1 (866) 398–9927