2. Expanding Markets, Expanding Revenues
According to the North American Retail Hardware Association (NRHA), all US home improvement sales totaled $358.2 billion for 2016, a 5.9% increase from 2015’s total of $338.6 billion.
Retail sales, specifically, increased 5.2% for 2016, from 2015’s total of $332.6 billion to 2016’s total of $350.0 billion.
The Joint Center for Housing Studies of Harvard University’s Leading Indicator of Remodeling Activity (LIRA) reported a 6.9% increase in homeowner improvement and repair expenditures for 2016, to a total of $297.1 billion.

3. 2017 To Provide More of the Same
According to the NRHA October 2016 survey of independent home improvement retailers, 55% stated their sales increased during 2016, compared to 2015, and 10% described their sales increases as “significant.”
Of those responding to the survey, 71% said they expect their sales to increase during 2017, which LIRA data support, as it forecasts approximately a 6.8% increase in homeowner improvements and repairs spending for 2017, of $317.0 billion.
May and June were the peak months for home improvement sales during 2016, at $34.8 billion and $34.4 billion, respectively; however, sales for March through August were at least $30 billion every month.

4. Housing/Remodeling Markets Remain Active
The 2017 National Housing Forecast from Realtor.com indicates that the US market will slow relative to 2016, but new home starts are predicted to increase 3.0%, new home sales 10% and existing home sales 1.9% to 5.46 million.
The recent robust building of multifamily housing has increased inventory, which is forecast to increase rents by only 1.5% during 2017, and will moderate additional construction. This may also moderate sales at home centers and lumber yards.
According to Metrostudy’s Residential Remodeling Index (RRI), the total number of remodeling projects of a minimum of $1,000 will increase 9.9% from 2016 through 2019, which will generate 12.6 million jobs, a 5.1% increase from 2015.

5. From Consumers’ Perspective
Of those homeowners who participated in the survey for HomeAdvisor’s 2016 True Cost Report, the number who plan more home maintenance doubled and the number planning a major home improvement project increased more than 5%.
The report also revealed that Baby Boomers had the highest average home improvement spending during 2016, at $7,842, with Millennials second at $6,063 and Gen Xers third at $3,723.
In what may be a reflection of improved employment and increasing wages, 92% of homeowners’ 2016 home maintenance projects and 81% of their home improvement projects were paid with cash.

6. Flip to Win, Fix to Make It Your Own
According to a December 2016 Wall Street Journal article, “the number of investors who flipped a house during the first nine months of 2016 reached the highest level since 2007” – and flippers are a prime market for home improvement/hardware retailers.
Big banks are more willing to provide credit lines to lenders that specialize in home-flipping loans and the amount of those loans were approximately $48 billion for 2016.
Although most recent homebuyers (51%) planned to purchase a home that didn’t require major renovations, 25% who thought they could purchase a move-in ready home actually bought a fixer-upper.

7. The Aging-in-Place Movement
According to two 2016 HomeAdvisor surveys, 61% of homeowners 55+ said they plan to remain in their homes, as 68% said they feel independent in their homes; 66%, conveniently located; 66%, feel safe in their homes; and 58%, neighborhood familiarity.
Although millions of older Americans want to “age in place,” 78% have not yet made an aging-related renovation, because they don’t think they need it – yet.
Only 19% of homeowners 55+ have considered installing smart-home technology, but 67% think it would be helpful as they age. Home improvement/hardware stores have an excellent opportunity to introduce these technologies to a ready-made market.

8. Advertising Strategies
Stores can advertise/promote an Impulse Buy Weekend by creating special displays of everyday items, such as flashlights, that are often overlooked in their typical location and providing a discount for buying 5 or more impulse buy items.
Another possible weekend promotion is to feature a display of locally sourced products that may or may not relate to home improvements. Schedule some of the people creating these items to appear with their products in-store to answer customer questions and offer tips.
Millennials and Baby Boomers are attracted to smart-home technology products for different reasons. Assign a sales associate to become the store’s “expert” of these products and create a special display where he or she can show customers their benefits.

9. New Media Strategies
With the Trump administration focused on manufacturing more products in the US for US consumption, use social media to feature the store’s made-in-America products and share the backstories of the companies manufacturing these products.
To appeal to the many Baby Boomers that want to age-in-place, create a series of social media posts, especially videos, that feature home-safety and smart-home products, showing where and how to add them in the homes and their many benefits.
Find a successful house-flipper in the community and help him or her create social media content (videos preferably) with tips about becoming a flipper, and then offer an online coupon for a tool or product that a new house-flipper will need.