Average order value rises amid inflation in home goods

Average order values (AOV) have increased across all top 10 retailers in YipitData’s 2Q22 Home Goods Index: Pure Players, with the exception of Ikea. Restoration Hardware, for example, saw a 47% increase in AOV between H1 2020 and H1 2022. The brand’s AOV is now over $1,200.

Average Order Value, Top 10 Retailers
United States, Online and Offline Sales | January 2020 - June 2022

Average order value of top ten home goods retailers by month

However, average order frequency (AOF) or how often a consumer is purchasing from a brand every month has remained relatively stagnant over the last two years. On average, home goods consumers order from a retailer 1.3 times a month. Only AOV has increased significantly – up 18% YoY across leading home brands and retailers – and peaked at over $900 in May 2022.

Average Order Value vs. Average Order Frequency
United States | January 2020 - June 2022

AOV has grown while AOF has remained relatively stagnant in home goods

This may suggest that the rising costs of goods amid inflation have forced all consumers to spend more on similar products. Alternatively, it may also highlight a shift where higher-income consumers are still purchasing home products, while lower-income consumers are pulling back. 

Consumers earning $100K or less have seen the greatest decline in their share of home goods sales of any income group. In June 2022, the share of sales from under $60K income earners fell 4pp YoY, whereas the share of sales from consumers with $151K+ income grew 6pp YoY in the same month.

Share of Home Goods GMV by Income Level
United States | January 2020 - June 2022

In June 2022, share of sales from under $60K income earners fell 4 ppt YoY whereas share of sales from consumers with $151K+ income grew 6ppt YoY in the same month.

Sources: Email Receipt Data, Transaction Data

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