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Consumer Edge's Report on Home & Garden Sector

Consumer Edge, a leader in providing global consumer data-driven insights, has recently published its Q4 2024 Home and Garden Digest. This report marks a notable resurgence in the home and garden industry, recording the strongest quarterly performance since Q3 2022. This upswing is significantly influenced by the recovery of multiple sectors including home improvement, rent-to-own options, and bedding items.

Despite overarching economic concerns related to affordability, the current rise in home prices is boosting homeowner confidence. As such, consumers are increasingly inclined to invest in renovations and upgrades, enhancing their overall home experience. Michael Gunther, Vice President and Head of Insights at Consumer Edge, noted, "Q4 2024 marks the strongest performance in the home and garden industry since Q3 2022, as consumers refocus on their homes amid post-pandemic normalization. Looking ahead to 2025, the industry continues to stabilize, paying particular attention to home improvement retail in the South."

Key Insights from the Digest

The Q4 2024 report reveals crucial trends reshaping the industry landscape. One notable highlight is the rebound in DIY home improvement. Spending in this sector has seen a 1% increase, indicating a reversal of two years of declining investments as the market adjusts to post-pandemic norms. The Southern U.S. notably outperformed other regions, posting a 3% growth in DIY home improvement spending. Leading retailers like Lowe's and Tractor Supply benefited significantly from this trend, with over half of their sales emanating from this flourishing market.

Furthermore, the rent-to-own sector experienced substantial growth, with a 6% increase during the quarter. This shift is largely attributed to Upbound Group's Acima—formerly Rent-A-Center—offering consumers flexible financing options in response to ongoing budget constraints. Simultaneously, the mattress and bedding categories grew by 4%, reflecting a heightened consumer focus on wellness and the quality of sleep. Major retailers such as Mattress Firm and Sleep Number have also expanded their premium product lines, catering to this growing demand. Additionally, direct-to-consumer brands like Helix Sleep and Cozy Earth reported strong sales in their personalized and sustainable offerings.

Challenges Ahead

Nevertheless, the report does not shy away from revealing challenges within certain areas. Companies manufacturing flooring and rugs faced a significant 10% sales drop, showcasing the broader struggles amid a tough macroeconomic landscape. Retailers such as Wayfair and Crate & Barrel's CB2 also faced headwinds, impacting the diversified home furnishings market adversely. Smaller brands, including Grandin Road and Sharper Image, found themselves struggling as well.

Overall, the findings from Consumer Edge's Home and Garden Digest suggest that while the sector is rebounding, understanding the nuances of consumer behavior and market trends will be essential for retailers looking to harness this positive momentum heading into 2025. Consumer Edge stands committed to providing insightful data as businesses navigate this evolving landscape, ensuring they are well-equipped to make informed strategic decisions for future success.

For a deeper dive into these insights, the full Home and Garden Digest by Consumer Edge can be accessed here.