NPD: Promotions Boost Home Improvement Biz
PORT WASHINGTON, N.Y.-There is growth potential in the near future for the home improvement channel, according to The NPD Group, but it lies in the hands of manufacturers and retailers.
"In order to grow their share in the home improvement environment, manufacturers and retailers need to look toward innovation, and the basics of effective and efficient merchandising to uncover the opportunities, including deploying the promotional deals consumers want," said Kevin Gilbert, director of the market research firm.
According to NPD's Consumer Tracking Service, in August 2011, nearly three quarters of consumers strongly agree that coupons and special deals are the deciding factors when it comes to purchasing home improvement products. That number has increased over the past year.
"E-commerce is an increasingly important aspect of today's home improvement marketplace. As the popularity and value of online shopping increases, manufacturers and retailers need to make sure they are part of the trend in order to capture consumers," said Gilbert.
Online sales of home improvement products have grown 16 percent in the 12 months ending August 2011 according to NPD. In addition, 39 percent of home improvement sales were researched online beforehand.
While overall sales of home improvement products are still showing declines year over year, there is subtle growth emerging in some categories, NPD said. They include the lighting and electrical category, fans, hand tools, and lawn and garden products.