Retail insights for home improvement & DIY

The boom of home improvement and DIY

Home improvement stores are riding a wave of growth – customer spending on DIY projects grew by a staggering 44% between 2019 and 2021(1). Factors such as the rise in working from home, an uncertain financial climate, and long waiting times for tradespeople have all contributed to a boom in paints, DIY tools, building materials, soft furnishings, and more sales.

Many DIY businesses are searching for ways to keep pace with this high demand, so our retail experts have compiled the top four trends to watch out for in this sector.

HOME IMPROVEMENT TREND #1: UNIFIED COMMERCE

The future of home improvement is unified commerce. This is a huge shift in a sector where brick and mortar has traditionally been the norm. The modern consumer now expects hybrid shopping journeys and flawless brand experiences.

Example: British multinational DIY and home improvement retailer B&Q launched its online marketplace in 2022, to put 100,000 new products on sale via third-party sellers and increase their product range by 60%(2).

The future of unified commerce for DIY retailers

The shopping journey is now hybrid, with customers moving between online and offline. DIY stores should be adapting their checkout offering to allow for:

A large catalog of items available to compare and purchase via an e-commerce store
Buy online and pick up in-store (BOPIS) – also known as click-and-collect
Scan as you shop/scan and go
Easy-to-use self-checkouts
Rewards and loyalty schemes, extending to branded apps

The benefits

Delivering a true omnichannel experience will help home improvement businesses stand out in a competitive marketplace and reduce queues in-store, boost productivity for staff, and facilitate better customer service (more on that below…)

HOME IMPROVEMENT TREND #2: STANDOUT CUSTOMER SERVICE

It’s true that DIY and home improvement consumers want flexible checkout options, but that hasn’t reduced in-store visits. Most DIYers will shop for products in the store, even if the final purchase is made online(3). And a study by B&Q recently found that visiting shops was still the most popular way of getting inspiration for home improvement projects(4). Why? The knowledgeable staff that are on hand to help.

Example: According to a 2022 YouGov survey, 69% of DIY store visitors say stores must be connected to customers; 71% of them would rather contact a local manager with a query than a customer service center or HQ. That means store managers are your superpower(5).

The future of customer service for DIY retailers

With a high-quality POS system in place, you can smoothly implement and manage promotions, campaigns and loyalty programs. The system's functionality will allow you to do it faster and easier. As previously mentioned, the reduced hands-on work lessens the risk of errors.

Reports and analytics

Despite the rise of e-commerce, customers shopping for home improvement items want to engage with real people. This could be in-store, over the phone or via an app or chat function online. Retailers looking to deliver outstanding customer service should:

Prioritize personalized experiences, for example by offering the ability to book a consultation with a team member
Make bricks and mortar stores inviting, with clear navigation and friendly staff available to help
Tailor offers and discounts to each customer (based on data such as previous purchase history and demographics)
Invest in technology that allows staff to monitor activity in-storeand identify customers that need help
Give staff and customers access to live, accurate stock levels

The benefits of customer service

Prioritizing customer service equates to loyal customers, and therefore a boost in revenues. Not only that, but positive interactions with employees offer a chance to upsell or cross-sell, as well as ensuring that shoppers take home the right product for the job – reducing the amount of returns.

HOME IMPROVEMENT TREND #3: COMBATING SHRINK & THEFT

Shrinkage can be attributed to a range of activities: fraud, administrative errors and theft being the most common. Unfortunately, in the midst of a cost of living crisis, DIY stores have experienced an uptick in theft and organized crime.

Example: The NRF reported that small electric appliances, mechanic tools, electrical wire, flooring, hardware, plumbing, and branded appliances are some of the most targeted items in the home improvement sector(6).

The future of combating shrink & theft for DIY retailers

Customer experience is a big upside to POS systems, but the employees have a lot to gain as well. Having the system in place will streamline processes, making everyday tasks more practical and less stressful. You can also use the data to benchmark employee and team performance.

Retailers must implement loss prevention solutions> that safeguard against shrinkage, enable employees to work more efficiently, and allow customers to shop safely and conveniently. Below are some starting points:

Onboard a self-service loss prevention solution that uses ML technology to identify fraudulent behavior
Integrate SSLP with existing hardware such as surveillance cameras
Roll out additional security measures such as recoilers, chains, and cords, locked glass cases, and electronic tags
Give staff access to live, accurate inventory levels and conduct regular audits

The benefits of combating shrink & theft

Other than the financial benefits of catching theft, staff will also feel less stressed and customers will enjoy smoother shopping journeys.

HOME IMPROVEMENT TREND #4: SUSTAINABILITY

Consumers are becoming increasingly aware of environmental issues, and are adapting their lifestyles – and homes – to be more sustainable. DIY retailers are seeing more customers shopping for items such as insulation and solar panels to improve their home’s efficiency, and also a rise in popularity of natural materials like wood.

Example: According to the Rated People Home Improvement Trends Report 2023, the most common reason for consumers making green home improvements was saving money on bills and being environmentally conscious(7).

The future of sustainability for DIY retailers

Now you know more about the many benefits of POS systems, including cloud-based ones. What should you think about when choosing a system for your business?

Green living is here to stay, and retailers can capitalize on this by:

Offering a wider variety of sustainable products that use low-impact materials
Introducing transparency into supply chains
Choosing a carbon-neutral POS solution
Providing tips and advice on making homes more sustainable
Offering carbon-neutral shipping and carbon offsetting

The benefits of sustainability

Sustainability is no longer a trend, but a necessity, and home improvement retailers that establish themselves as a green option for consumers will be investing in long-term revenue rewards.

DIY stores: time to spruce up your checkout experiences?

Another aspect of this is the requirements regarding integrations and mobility. The system needs to harmonize with other technical solutions already in place. Also, many organizations have a lot to gain from having a POS system that is accessible for co-workers in the field, e.g. employees out on sales calls or conferences.

Budget and scalability

As technologies, trends, and expectations evolve, adaptation is key. With the home improvement sector expected to surpass the trillion-dollar mark by 2027(8), it’s more vital than ever to level up your checkout experiences.

Hii Retail is a cloud-native Unified Commerce platform built to protect retailers against shrink AND deliver outstanding shopping experiences. Discover it today!