The Home Improvement Boom: Evolving Consumer Behaviors in a Post-Pandemic Era

Shopper Insights

Sep 5

During the pandemic, home improvement projects surged. However, as noted in YipitData’s 1H23 State of the Home Improvement Report, consumer behaviors have since recalibrated and subsequently transformed the industry. While GMV sales growth has slowed to 2-3% in 1H23 vs 23.5% in 2021, the industry’s outlook still remains positive with 1H23 amassing an impressive $220 billion in sales, showcasing resiliency amidst evolving dynamics.

The most striking transformation in the home improvement industry has been the surge in online sales. While the pandemic acted as a catalyst, the purchasing behavior stuck. In 2019, online sales represented 24% of the total home improvement market. In 2023 this figure soared by an impressive 13 pp to 37%, over ⅓ of all sales.

As consumers increasingly favor the convenience of online shopping for their home improvement needs, a unique opportunity has emerged for generalists with a strong presence in e-commerce. While industry specialists like Home Depot and Lowe's continue to maintain their dominance, they are facing intensifying competition from generalist giants like Amazon, Walmart, and Costco. Generalist market share rose from 35% in 2019 to 42% in 2023.

Across all home improvement retailers, Home Depot is the industry leader, holding on to 27.6% of market share. Closely following is online-only retailer, Amazon, at 25.0% market share, followed by specialty retailer Lowe’s, at 18.4%. These top three retailers have a stronghold in the industry, and comprise over 70% of sales of the total home improvement market.