by Freedonia Industry Studies
January 21, 2021
The release of the December retail sales report showed that sales by building materials and garden equipment and supplies dealers rose modestly in the month. While this was a bright spot compared to retail sales as a whole, many expected that the segment – which had been a pillar of strength throughout the year – would have shown stronger gains.
However, a closer look reveals a number of reasons while sales were not higher:
That said, retail sales at building materials and garden equipment and supplies dealers did rise in December, bolstered by:
Home improvement activity has remained strong. According to The Freedonia Group’s National Online Consumer Survey (conducted November – December 2020), 39% of respondents said they were currently undertaking home improvement projects because of the coronavirus pandemic (in what is often an off-season for home improvements through the holiday season), while 32% indicated they were delaying home improvement projects because of the pandemic.
Going forward, many believe that the momentum of 2020 will carry over to 2021 and that building materials retailers will continue to post strong sales numbers. Freedonia Group will continue to monitor retail sales in this market segment – and others – to gauge how the economy will fare in the upcoming year.
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.