Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Q1 2021 Index - Home Improvement

by 
Ethan Chernofsky
 on 
April 13, 2021
Q1 2021 Index - Home Improvement

The home improvement and home goods sectors have been among the strongest in retail throughout the pandemic. When COVID initially hit, home improvement leaders like Home Depot and Lowe’s benefitted from essential retail status allowing consumers to embark on DIY projects with their newfound time at home. 

Then, the continued presence of at-home orders gave people even more time to realize what was lacking around the house. Then high levels of migration further contributed with more individuals looking to fully furnish or upgrade new homes. 

The end result was a sector that saw continuous strength throughout the pandemic. But, as more normal patterns of shopping behavior began to return in Q1, could the strength sustain, or will the sector’s strength finally show signs of waning?

We dug into our Q1 Quarterly Indexes to find out.

Ready for the Return of Normalcy?

Visits in Q1 2021 for the sector were up 22% year over year when compared to the same period in 2020. This was actually the largest visit increase over the last four quarters, something that can be attributed to both Q1 not being a normal peak period for the sector, and the comparison to 2020’s dip in March. 

Yet, while year-over-year visits were still growing, there was a continued decline in overall quarter-over-quarter visits. This shows that the sector’s normal seasonality may have remained intact, even while year-over-year growth surged, leading to huge implications for the sector. If normal seasonality continues into the coming months, we could see another quarter of significant year-over-year growth for the space. However, if the last few months fulfilled much of the demand, then the sector’s return could include a year-over-year drop in visits. At this stage though, it feels like madness to bet against the sector, especially when diving deeper into specific brands. 

The Leaders Continue to Perform

Some of the strongest players throughout the pandemic have included Home Depot, Lowe’s and Floor & Decor, and each of these brands saw continued year-over-year growth in Q1. Floor & Decor led the way with a 64% jump, while Home Depot and Lowe’s notched increases of 21% and 22% respectively. 

Yet, for the latter two, there was a quarter-over-quarter decline in visits. Much of this centers around seasonality, but there are significant implications for Home Depot, specifically. In the early months of the pandemic, Lowe’s saw significant visit increases while Home Depot saw much more limited growth. This led to a shift in overall visit share between the two brands, where Lowe’s actually surpassed the typically wider-reaching Home Depot

But, much of the reason for this shift was based on differences in operating procedures between and in regional store distributions. The result is a situation where Home Depot could see an even more demonstrable surge in Q2 than Lowe’s, something that could drive significant impact, especially considering the brand’s continued overall visit lead. 

Rising Players Present Even More Hope

But even if the pandemic’s top-tier performers don’t continue their impressive runs, there’s still reason to believe the sector will outperform as a whole. Brands like Tractor Supply, At Home and HomeGoods, have also surged in the last few quarters, and their relative upside could be enormous. 

For example, HomeGoods saw year-over-year visit growth of 47%, and just a 9% decline on the holiday-driven Q4, indicating that the brand’s strength may actually be increasing. The combination of a home furnishings focus alongside a value orientation is perfectly suited to the current environment. 

Will the coming seasonal peak drive even more success for the home improvement and home goods sector? Can brands like HomeGoods thrive deeper into 2021?

Visit our Quarterly Indexes at Placer.ai to find out.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Crocs’ Footwear Fairytale
Who Attends NCAA Final Four Events?
Eclipse Fever: How Did the (Retail and Hospitality) Stars Align?
Exploring Albertsons Companies’ Grocery Growth
Placer.ai Mall Index: March 2024 Recap – Malls Rise Again
Placer.ai Office Index: March 2024 Recap
Florida Spring Break Break-Up? Travelers Still Love Florida!
Provo-Orem and Ogden-Clearfield Emerging As Utah Hotspots 
Three Formulas for Experiential Retail in 2024
Aldi & Lidl Making The Cut
Texas Suburbs on the Rise
Exploring Luxury Hotel Brands’ Guest Segmentation
The St. Patrick’s Day Effect
How Can JOANN Make a Comeback?
Panera Bread Well Positioned for Possible IPO
Who Will Benefit From Family Dollar’s Downsizing?
Dave & Buster’s and Main Event Entertainment: Food and Fun for Everyone
Darden Brands: Location Analytics and Consumer Behavior
Nike and lululemon: a Strong 2023, Sprinting into 2024
Where Is Retail and Dining Foot Traffic Thriving in Early 2024?
Placer.ai White Paper Recap – February 2024
Three Retail & Dining Chains That May Surprise in 2024
Specialty Discount Chains Rock Retail Therapy
Placer.ai Mall Index: February 2024
Placer.ai Office Index: February 2024 Recap
Ulta Beauty Continues To Shine
First Watch Sails Into 2024
Hibbett Sports and DICK’S Sporting Goods: A Psychographic Analysis
Checking in With Discount & Dollar Stores
Peeking Behind The Curtain: Movie Theaters in 2023 and Beyond
Diving Into Brick-and-Mortar Eyewear
Getting Into Gear: Exploring The Auto Part Industry
Recapping Valentine’s Day 2024 Foot Traffic Trends
Fitness: A Strong Start to 2024
Dutch Bros. Continues To Percolate Visits
Super Bowl 2024: Placer.ai’s Postgame Foot Traffic Analysis
CAVA & sweetgreen Are On the Rise
Hats Off For Off-Price
Who Is Shopping at Malls?
Drilling Down Into Home Improvement
Walmart, Target, Costco & Superstore Space 2023 Recap
Catching Up With Shake Shack and Wingstop
Something To Chew On: Demographic Shifts at Steakhouse Chains
Placer.ai Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance
Placer.ai White Paper Recap – January 2024
Who Shops at Anthropologie and Urban Outfitters?
Three Taco Chains to Watch in 2024
Starbucks and Dunkin’: 2023 in Four Data Points
Who Visits CVS and Walgreens?
Fashionably Frugal: Apparel in 2023
Catching Up With Fast Food
The Grocery Sector in 2023: An End-of-Year Recap
3 Mall & Shopping Center Trends for 2024
Bakery Chains Rising To The Top
Placer.ai and Esri Partner to Deliver Geospatial Analytics
Tampa Tourism Trends
Going For The Green: The Changing Dynamics Of Country Clubs
Christmas Day Dining Recap
Major Urban Shopping Districts – Holiday Season Recap
Placer.ai Office Index: December 2023 Recap
Recapping the 2023 Holiday Shopping Season
Placer.ai White Paper Recap – December 2023
7 Retail & Dining Segments to Watch in 2024
Diving Into Holiday Season Favorites
Super Saturday and Christmas Eve Eve: A Winning Combination
3 Budget Grocery Chains Finishing 2023 On a High Note
Making It In America: International Chicken Chains Bring The Heat
Domestic Tourism at a Glance: A Q3 2023 Roundup
Five Pizza Chains On The Rise
Jewelry Brands Taking Advantage of the DTC Opportunity
Secondhand News: Kids' Thrift Shops
Recapping 2023’s Dining M&As
MetLife Stadium Kicks Off Football Season
Placer.ai Office Index: November 2023 Recap
Small Coffee Chains Brewing Big Success
Placer.ai White Paper Recap – November 2023
Thanksgiving Travel 2023 Recap
Checking in With Nike and Lululemon
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship? 
Three Surprising Holiday Shopping Trends
What’s in Store for Ulta Beauty This Holiday Season?
Best Buy and Department Stores: A Holiday Deep Dive
Discount & Dollar Stores: Strength Toward The End of the Year
The State of Off-Price Retail: Discounts Seal The Deal
Placer Mall Index Recap: October 2023
Placer.ai Office Index: October 2023 Recap
Retail Corridors Ahead of the 2023 Holiday Season
California, Here Gap Comes
Checking in With Home Improvement
Getting Into the Glasses Game: Warby Parker Takes Over
Fitness Positioned for a Strong 2023 Finish
White Paper Recap: October 2023
Coffee Giants Brewing Up Business
Popeyes and Burger King Lead the Way
Diving into Yum!
Looking Ahead to Black Friday 2023