RETAILOBSERVER.COM AUGUST 2020
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he report places the value of the residential K&B industry at
$130.8 billion. The report also includes a consumer study
illuminating the latest attitudes toward remodeling. As hurdles to
home improvement during the crisis, consumers cited fewer resources,
fear of outsiders coming into the home, limited access to industry
professionals, store and showroom closures, less income and fear of
job loss. At the same time there were bright spots, including more free
time, decreasing expenditures in other areas, an opportunity for DIY
work, increased time spent at home and a focus on home projects.
"Our initial 2020 Kitchen & Bath Market Outlook was conducted in
late 2019, before the pandemic hit our members and homeowners in
the U.S. & Canada," said Bill Darcy, NKBA CEO. "Kitchen and bath
spending had been increasing steadily prior to the pandemic, at 9% in
2018 and 4% in 2019. As such, the original report projected a strong
2020, bolstered by an especially bright Q1. While the COVID-19
crisis, unsurprisingly, led to a double-digit decline in spending across
all major categories, we are already seeing signs of positive growth as
shelter-in-place orders are lifted, and we're optimistic about the
industry's long-term health."
NKBA commissioned the highly regarded consulting firm John
Burns Real Estate Consulting (JBREC) to field the study. Selected
highlights of the updated report include:
• As of mid-April, 81% of kitchen and bath remodeling projects were
postponed or canceled, but homeowners said they plan to
reschedule 70% of those projects in 2020 – an encouraging sign.
• Kitchen spending was impacted more than bathrooms, declining by
25% compared to 18% for master bathrooms and 14% for
secondary baths.
• Similarly, medium and large projects suffered the biggest losses,
with spending predicted to decrease by 22% compared to prior
expectations. Spending on smaller projects is anticipated to decline
only 14%.
REVISED 2020 MARKET OUTLOOK
