Average order value rises amid inflation in home goods

Average order values (AOV) have increased across all top 10 retailers in YipitData’s 2Q22 Home Goods Index: Pure Players, with the exception of Ikea. Restoration Hardware, for example, saw a 47% increase in AOV between H1 2020 and H1 2022. The brand’s AOV is now over $1,200.

However, average order frequency (AOF) or how often a consumer is purchasing from a brand every month has remained relatively stagnant over the last two years. On average, home goods consumers order from a retailer 1.3 times a month. Only AOV has increased significantly – up 18% YoY across leading home brands and retailers – and peaked at over $900 in May 2022.

This may suggest that the rising costs of goods amid inflation have forced all consumers to spend more on similar products. Alternatively, it may also highlight a shift where higher-income consumers are still purchasing home products, while lower-income consumers are pulling back.

Consumers earning $100K or less have seen the greatest decline in their share of home goods sales of any income group. In June 2022, the share of sales from under $60K income earners fell 4pp YoY, whereas the share of sales from consumers with $151K+ income grew 6pp YoY in the same month.

Sources: Email Receipt Data, Transaction Data

‍