Home Improvement Retail Industry
The U.S. home improvement industry is comprised of retailers that sell appliances, kitchen fittings, lumber, building materials, plumbing, and other home improvement products. Demand for these products is associated with the demand for housing. Therefore, any changes in sales of new and existing homes significantly impacts the industry’s performance. In 2017, total sales of home improvement retailers in the United States generated approximately 373.6 billion U.S. dollars.
In the United States, there are two home improvement retailers that dominate the market: Home Depot and Lowe's. These "Big-box" companies, which control almost the entire home improvement market in the US, have continued to expand their footprint in the hope of increasing their respective market shares. Based on a survey by J.D. Power and Associates, a global marketing information service which consists primarily of consumer surveys, ranked The Home Depot and Lowe's as two of the best home improvement store chains in the United States, based on customer satisfaction.
Consumers rely on home improvement retailers in their efforts to maintain and improve their homes. Retailers that are able to provide an environment that makes it easy for customers to get the merchandise and guidance they need are more likely to gain a larger share of their customers’ wallets. To achieve customer loyalty, home improvement retailers must understand their customers’ needs and experiences and focus on continual performance improvement to increase customer satisfaction, grow advocacy, and maximize sales.