State of the Home Goods Industry
Growth of home goods industry is starting to slow
The home category won big during the pandemic, with both multi-category generalists and home-focused retailers reporting record sales.
This continued into 2021. Looking at the top 30 pure-play furniture retailers, YipitData found consistent year-over-year GMV growth. However, in both March and April 2022, year-over-year GMV had declined in the category.
Home Goods* GMV vs. YoY Change in GMV
United States | January 2021 - April 2022
*GMV of 30 leading pure play retailers
Rising costs are leading to higher average order values
While customers aren’t ordering more home goods products more frequently, they are spending more money.
Average order frequency remained relatively flat from January 2020 to April 2022, with consumers ordering home goods about 1.3 times a month. Though average order value across leading home brands increased 18% YoY, reaching over $900 an order in April 2022.
Average Order Value vs. Average Order Frequency
United States | January 2020 - April 2022
Lower-income consumers are beginning to spend less
As these costs rise, however, lower-income consumers are beginning to spend less on home goods.
Share of sales from consumers earning between $41,000 - $60,000 have declined the greatest at two percentage points year-over-year. In the first four months of 2022, this income group accounted for just 10.8% of total home GMV.
This may signal the beginning of what many are predicting will be decreased consumer spending in non-essential, discretionary goods like home.
Share of Home Goods GMV by Income Levels
United States | January 2020 - April 2022
Source: Proprietary email receipt data, card transaction data.
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