Presentation - Home Improvement Research Institute

Transcription

Spring Outlook
Kantar Retail's First Take on Home Improvement's Crucial Season
Laura Kennedy, Director
April 2016
HIRI Webinar
© Kantar Retail 2016
Copyright © 2016 Kantar Retail. All Rights Reserved.
501 Boylston St., Suite 6101, Boston, MA 02116
T:
+1 (617) 912 2828
howard.zimmerman@kantarretail.com
No part of this material may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photography, recording, or any information storage and retrieval system now
known or to be invented, without the express written permission of Kantar Retail.
The printing of any copies for backup is also strictly prohibited.
Disclaimers
The analyses and conclusions presented in this seminar represent the opinions of Kantar Retail. The
views expressed do not necessarily reflect the views of the management of the retailer(s) under
discussion.
This seminar is not endorsed or otherwise supported by the management of any of the companies
covered during the course of the workshop or within the following slides.
3
Kantar Retail, a WPP/Kantar Company
Kantar Retail Specializes in 3 Main Areas to
Help Our Clients Win at Retail
We Are
The Retail and Shopper Specialists
Our Purpose
We help you sell more effectively and
profitably
How We Do It
We connect a world class set
of retail and shopper capabilities and
assets with pragmatic,
solution-orientated people
to grow client businesses
Our Focus Today
Spring Outlook: Today’s Agenda
Our Forecast for Spring Sales
Shoppers’ and Retailers’ Approaches to the Season
Takeaways for Home Improvement Suppliers and Retailers
4
5
Quarterly View: Home Improvement
Warmer than average winter weather in Q1 may lift growth more than expected
Building Channel: Quarterly Retail Sales Breakdown*
Estimated Q1 2016 vs. Forecasted Q2 & Q3 2016
Source: U.S. Department of Commerce, Kantar Retail analysis
*NAICS codes 4441, 44411, 44413, and combined 44419 & 44412 in that order. Represents calendar quarters using actual
data through January 2016
¹ NAICS 4441 includes brick and mortar sales at home centers, building specialists, hardware stores & paint specialists.
²Home center channel (44411) estimated by Kantar Retail. Home center channel is brick-and-mortar sales at Home Depot,
Lowes, Menards, and other home improvement centers.
One in Five Shoppers Plans to Spend More on Home
Improvement This Spring
What Shoppers Plan to Spend on Home Improvement Versus the Previous Year
(among all shoppers)
48%
50%
March 2015
March 2016
31%
21%
30%
20%
A lot/a little more
Source: Kantar Retail ShopperScape®, March 2016
The same amount
A little/a lot less
6
A Higher Share of Younger Shoppers Say They’ll Spend
More Than Last Year
What Shoppers Plan to Spend on Home Improvement in 2016, versus 2015
(among all shoppers)
Gen X
50%
30%
Gen Y
20%
A lot/a little more
About the same
Green arrows indicate a significantly greater percentage versus all shoppers (at a 95% confidence level)
A little/a lot less
7
8
Paint, Plumbing Projects Are at the Top of the List
New flooring and organization are higher priorities this year
Types of Home Improvement Projects Shoppers Will Be Spending on This Spring (Top Ten)
(Among all shoppers)
Paint or faux finish an interior room
Minor plumbing (e.g., replace a faucet)
Install new carpet, flooring, or tile
Minor electrical (e.g., install a ceiling fan or light fixture)
Install new window treatments (e.g., blinds, curtains, drapes)
Paint exterior of residence
Install organization/storage system
Renovate a bathroom
Make energy-efficient upgrades (e.g. install programmable
thermostats, replace/add insulation, etc.)
Build a deck or patio
Green arrows and bolded text indicate a significantly greater percentage versus last year (at a 95% confidence level)
March 2016
18%
12%
11%
10%
9%
9%
9%
8%
6%
5%
At Retailers This Spring, Balancing Product and Solution
Capitalizing on traffic from a strong consumer, driving value
Value
9
Value Through Solutions at Lowe’s
Though low price messages and savings elevate again
Messaging encourages
projects: “Spring to
Action,” “Build One This
Weekend”
Source: Kantar Retail store visits
10
Driving Traffic Through Item Focus at Home Depot
But online, more tools to encourage projects
Online, value through tools
and promises of ease
Elevated
cleaning
supplies,
targeting
Pro
Source: Kantar Retail store visits, Home Depot emails
11
Menards Maintains Product Emphasis, Treasure Hunt
Cleaning, consumables still a major priority
Source: Kantar Retail store visits, Menards emails
12
Amazon Remains Zeroed in on the Item
13
Home Services could be a game-changer
How-to
videos
featured
within the
“Spring
Event”
Home
Services
now in 25
cities
Spring Outlook: Takeaways
Weather willing, look forward to a strong few quarters for
home improvement, especially at the big boxes.
Shoppers across the board are feeling positive about spending more this
year. Keep in mind how different cohorts are approaching projects, and
work to orient solutions toward those lifestyle needs.
Drive brand while also enhancing the basket.
Messages around brands and product quality will help add value beyond
price as retailers look to drive traffic to the store. But be proactive to help
retailers craft solutions to help build the basket once shoppers are there.
Online engagement will become an increasingly important
tool to round out the home improvement experience.
Note the value of online and especially mobile to deepen relationships with
shoppers, and to add to the resources a retailer can offer on a category or
project basis.
Source: Kantar Retail research and analysis
14
Kantar Retail
Home Improvement Workshop
May 18, 2016 Atlanta, GA
Kantar Retail is forecasting growth of at least 4% in the home center channel in 2016, which is faster than the overall
retail marketplace for the fifth straight year. Still, potential challenges lurk for big-box home improvement retailers,
including the shifting makeup of their shopper base to the influence of less-prominent players. In light of these
developments, suppliers and retailers must find innovative ways to approach traditional channels while adapting to new
sources of growth.
You’ll walk away from this Workshop with insights into:
•
The shopper’s path to purchase and how to stimulate sales
•
The gaps in retailers’ digital integration and where suppliers can
gain advantages
•
New opportunities for consumables makers to form partnerships
with home centers
•
How pro shoppers are evolving and what they prioritize in
multichannel shopping
Featuring Kantar Retail’s
&
Nicole Santosuosso, Associate Analyst
Doug Hermanson, Principal Economist
Kantar Retail
Home Improvement Workshop
May 18, 2016 Atlanta, GA
Attention
HIRI Members Special Event Pricing for Kantar Retail’s
Home Improvement Workshop:
•
$1400 per person (reflects $250 savings off of List Price!)
•
Register at:events@kantarretail.com
•
When registering, mention that you are a HIRI Member
to ensure the special rate is applied
Featuring Kantar Retail’s
&
Nicole Santosuosso, Associate Analyst
Doug Hermanson, Principal Economist
17
Kantar Retail: Home Improvement Insights
Product Offer Segments: A variety of online and in-person ways to connect to
KR thought leadership on the home improvement channel and key players
Syndicated(KR iQ)
Research & Insights
KR Content Expert Engagement/
Experiential Content Platforms
Client-Specific
Solutions
For further information please refer to
KantarRetailiQ.com
Contacts:
Laura Kennedy
Director, Retail Insights
Christine Ojile
Sr. VP Client Development
T: +1 (617) 912 2851
laura.kennedy@kantarretail.com
O: +1 617 912 2886
M: +1 913 206 8160
@laurawk_KR
@kantarretail
christine.ojile@kantarretail.com

Presentation - Home Improvement Research Institute

Transcription

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