JANUARY 2021 RETAILOBSERVER.COM
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• Despite strong remodeling interest, consumers are still more price-
conscious than they were pre-COVID, with designers especially
noting smaller budgets. Customers are leaning toward smaller-scale
remodels and temporary solutions that are low-cost and largely DIY.
Each sector of the kitchen and bath market faces unique challenges
and opportunities:
• Perhaps unexpectedly, given the COVID-19 restrictions, retail sales
foot traffic rose 8% in 2020 over 2019. With much of the foot traffic
driven by DIYers, the increase in foot traffic has not necessarily led
to increased revenue.
• In response to a heightened demand for products, especially
appliances, manufacturing sales increased 5.8% YOY in Q3,
despite some COVID-19-related disruptions and difficulties finding
qualified labor to meet ramped-up production needs. Manufacturers
also rated the KBMI highest of any sector, at 67.7. The majority
(55%) of manufacturers are back to operating at 100% or more of
their normal workforce, with 14% employing more workers than
pre-COVID.
• Lower price points and cutbacks in discretionary design services
have propelled homeowners to DIY projects – but designers are
seeing marked improvement in Q3, with more than half (57%)
reporting higher bids in the last quarter than Q1 and Q2. Additionally,
39% reported no canceled or postponed projects in Q3.
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