A home improvement retailer is an organization that offers a wide range of products used in construction and to enhance the appearance of residential and commercial buildings. Examples of such goods include drywall, lumber, flooring, paint, appliances, plumbing fixtures and tools, kitchen and bathroom cabinets, and landscaping materials. These retailers are also able to offer a variety of installation services to their customers.
The biggest names in the home improvement retail space are Lowe’s, Home Depot, and Ace Hardware, with 84 Lumber and Tractor Supply making up some of the smaller competitors. All of these companies are looking to differentiate their offering in the market, and they are focused on delivering on their promises to consumers.
Interest rates are rising and the housing market is cooling, and those factors are keeping people from spending money on do-it-yourself projects during this difficult time. The COVID-19 lockdown has also turned people’s homes into their office spaces, and that trend will likely continue to impact retail sales of home improvement products.
With these factors in play, it’s not a surprise that home improvement retail revenues are down. In fact, it is not expected that the industry will return to increases until late 2024. But there is one area of the market that has held steady in the face of the slowdown: sales by professional contractors.
For many of the home improvement retailers, that means focusing on better serving and incentivizing contractors to shop their stores. This could mean improving the online experience for contractors, or streamlining their ordering process. For example, having an easy-to-use system that enables contractors to order all the supplies they need for their next project in one place can save them time and help keep them profitable.
Another way that some home improvement retailers are improving the experience for professionals is by partnering with distribution channel teams to make it easier for them to access what they need. Offering the right solutions for a contractor can be as important to maintaining share of wallet as it is to attracting new customers.
Whether they are serving pros or doing it themselves, successful brands know that the omnichannel customer experience is key to their success. That’s why they are using data to identify pain points and provide practical solutions.
In a market where large retail chains are stealing sales from each other, winning the trust of customers can be challenging. This is especially true for a niche category like home improvement, where consumers are used to going to local home centers or hardware stores. However, if they want to compete with the big guys, home improvement brands need to do everything they can to provide the best possible customer experience.
Developing and executing the right strategy to sell into home improvement retailers takes a lot of hard work and collaboration with partners. But with the right tools and the right partner, a brand can achieve great results.