2. Home Improvement Market Looks Sharp
According to the North American Retail Hardware Association (NRHA), total US home improvement sales totaled $373.6 billion for 2017, a 4.5% increase from Total sales for 2018 are forecast to increase another 4.7% to $391.2 billion.
Total sales are not expected to increase at quite the same pace during 2019, 2020 and 2021, bit the compound annual growth rate (CAGR) 3- year average will be 4.2%.
In spite of positive economic factors, such as a strong housing market and lower unemployment, higher home prices and bad weather have negatively affected home improvement sales, making home ownership more difficult for some consumers.

3. Store Sales Metrics with Good Optics
During 2017, hardware stores experienced a same-store sales increase of 3.6% YOY. Employee productivity achieve a new record of $176,657 in sales per employee and the largest average transaction size of $22 and average sales/square foot of $188.
Home centers had record sales per customer, at $96 per average. Their total operating expense decreased for the fifth year in a row. They generated $607 in sales per square foot and $84,303 in sales per employee.
Year-over-year sales increase was the most during May at 11.5%, followed by August at 9.8% and January at 8.6%.

4. Housing Market Opportunities and Challenges
The 2018 National Housing Forecast from Realtor.com predicts a slower US market than during 2017, due to low inventory and rising mortgage rates. New home starts are predicted to increase 3.0%, new home sales, 7%, and existing home sales, 2.5%.
Inventory is forecasted to increase by fall 2018, however, and declining home appreciation will improve affordability. Millennials are projected to account for 43% of homebuyers obtaining a mortgage by the end of 2018, compared to 40% for 2017.
Southern cities will experience the largest growth rates, with Tulsa, OK (7.5%), Little Rock, AR (7.0%), Charlotte, NC and Dallas-Ft. Worth (6.0% each) the top markets. The newly passed tax reform law may depress home values as much as 10%.

5. Customer Market Segments
According to Kantar Retail, most home improvement spending is from households with adults 55 and older, however, more than 40% of Millennials visited a home center or hardware store during any 4-week average period during 2017, a third were renters.
A growing market is the DIFM, or “do-it-for-me” market. It consists of older Baby Boomers and younger customers who do not have the skills or time to do projects themselves. Some retailers are offering handyman services to generate extra revenue.
Those Millennials who are buying homes are purchasing “fixer-uppers,” which are more affordable. The most-numerous search terms in DIY were for wallpaper, followed by cabinet hardware, power washer, router bits and milter saw, according to Hitwise.

6. Feathering the Nest
More than half (59%) of homeowners Harris Poll surveyed said they planned to spend money on home improvements during Of those, 42% planned to spend $5,000 or more and 23% planned to spend $10,000 or more.
Homeowners intended to pay for their home improvement projects from savings (60%), credit card (29%), home equity line of credit (9%), home improvement loan (7%), by liquidating or tapping into investments (6%) and from other sources (14%).
Homeowners in the West had the most planned projects at 64%, followed by 61% in the South and 56% in both the Midwest and Northeast.

7. Biggest Spenders
According to the 2017 HomeAdvisor True Cost Report, 37% of homeowners plan to spend less on home improvement than they did during 2016, 35% the same amount and 28% plan to spend more, but the amount spent per homeowner increased 60%.
People who have been in their home 5 years or fewer (personalizers) spend the most, at $5,744, followed by 11–20 years (refreshers) at $5,401, 20 or more years (fixer-uppers) at $5,048 and 6–10 years (maintainers) at $3,853.
The rate of turnover (homes changing ownership) drives home improvement twice; once when the seller is fixing the home to sell it and again when the new owners want to improve it or make it uniquely theirs.

8. Advertising Strategies
Market your DIFM handyman and installation services to older customers and younger people who do not have the skills and/or time to do the project with workmanship guarantees.
Offer classes on how to install smart home products, such as thermostats, as well as cabinets and laying tile. Offer refreshments during breaks to attract younger customers.
Distribute coupons with local realtors to attract new homebuyers and sellers.

9. New Media Strategies
Record various “how-to” videos on common home upgrades. Research shows that YouTube is a major source of home improvement-related traffic, so post there and your Website.
Offer augmented-reality apps, so homeowners can see how their homes will look with different paint, wallpaper, floorcoverings, window treatments, etc.
Offer a major incentive for customers to download your app. Then, send push notifications to their mobile device when they enter the store for promotions based on the projects that interest them, plus seasonal promotions.