COVID-19 Is Sparking DIY Home Renovation
They are trapped at home, socially estranged, and quarantined as an exemplary citizen. After a few days, you realize the terrible truth: you can only watch so many Netflix. And then it hits you. You have to do something productive (swallow).
Twitter Home Painting Tweet for COVID-19
It can no longer be denied. It is time to renovate your home. And you are not alone.
Increase in home renovations
Take a look at LikeFolio 1, which shows how many people are talking on social media about their home improvement ideas.
1:
Ideas for home renovation. Consumers who mentioned home improvement ideas on social media increased significantly in early March 2020. Source: LikeFolio.
It is a doubling of the normal level in just two weeks.
Let's take a look at some companies that will benefit from this massive change in consumer behavior. After all, these "essential businesses" work when many consumers discover that their regular business is not an option.
Home Depot (HD) and Lowe (LOW) have seen increased consumer demand.
2:
PURCHASE OF HD CONSUMERS INTENTIONAL SOCIAL CONSIDERATIONS. HD's social media is on the rise, though HD's stock will drop in early 2020.
Home Depot's purchase intentions have increased 75% year-over-year.
Lowes is not increasing as much, but still sees a 55% increase in buying intentions over the past year.
Changes in quarantine behavior could increase consumer market share if Home Depot can properly collect customer information and provide a positive experience.
LikeFolio data does not include contractors' request, which can be considered significantly lower given current economic and social conditions.
Whirlpool (WHR) marks create a wave
One of the most popular focal points for renovations is the kitchen. This current trend is not surprising considering that people spend so much time eating and snacking that "Quarantine 15" has already become a threat to the waist.
Just look at the story in Figure 3 and show the number of consumers who mention (on social media) their kitchen renovation projects.
3:
SOCIAL MENTIONS OF KITCHEN RENOVATION. In early March, social references to renovation work increased considerably. Source: LikeFolio.
Kitchen renovations generally require device updates, and quarantined homes are no exception.
Many device manufacturers are experiencing strong growth in consumer demand. One of the most amazing we've seen so far is Whirlpool's Maytag brand devices. Figure 4 below shows consumer intentions by quarter.
4:
INTENTIONAL WHIRLPOOL CONSUMER CONSIDERATIONS PER QUARTER According to LikeFolio, consumer demand for Maytag-branded products is 68% higher than last year. Source: LikeFolio.
Whirlpool Q1's buying intentions are expected to increase 33% year-over-year, with the Maytag brand leading the way.
In its Q4 2019 earnings report, Whirlpool forecast relatively stable retail sales in the US. USA And market share gains for large household appliances due to product innovations and prices.
LikeFolio data suggests that Whirlpool's major appliance sales and retail sales could be positively affected by the rise in COVID-inspired home improvement. LikeFolio has no idea of sales from construction companies for private homes and apartment buildings.
Whirlpool's shares fell from $ 155.25 in late January 2020 to less than $ 65 in March 2020.
Take the Brush: Businesses of Color Benefit from Accessible DIY Projects
Painting the interior of a home is one of the easiest ways to renovate the look of a home without letting in strangers.
LikeFolio's data suggests that people are picking up the brush at incredible speed while staying at home.
5:
RENOVATION OF THE HOUSE SOCIAL PAINTING CONSIDERATIONS. In the first months of 2020, mentions of social painting increased considerably, as many people were quarantined in their homes. Source: LikeFolio.
This is an unprecedented increase, and was only greater as of the date of this article.
6: SHERWIN WILLIAMS CONSUMER PURCHASE INTENT MENTIONS.
Twitter Home Painting Tweet for COVID-19
It can no longer be denied. It is time to renovate your home. And you are not alone.
Increase in home renovations
Take a look at LikeFolio 1, which shows how many people are talking on social media about their home improvement ideas.
1:
Ideas for home renovation. Consumers who mentioned home improvement ideas on social media increased significantly in early March 2020. Source: LikeFolio.
It is a doubling of the normal level in just two weeks.
Let's take a look at some companies that will benefit from this massive change in consumer behavior. After all, these "essential businesses" work when many consumers discover that their regular business is not an option.
Home Depot (HD) and Lowe (LOW) have seen increased consumer demand.
2:
PURCHASE OF HD CONSUMERS INTENTIONAL SOCIAL CONSIDERATIONS. HD's social media is on the rise, though HD's stock will drop in early 2020.
Home Depot's purchase intentions have increased 75% year-over-year.
Lowes is not increasing as much, but still sees a 55% increase in buying intentions over the past year.
Changes in quarantine behavior could increase consumer market share if Home Depot can properly collect customer information and provide a positive experience.
LikeFolio data does not include contractors' request, which can be considered significantly lower given current economic and social conditions.
Whirlpool (WHR) marks create a wave
One of the most popular focal points for renovations is the kitchen. This current trend is not surprising considering that people spend so much time eating and snacking that "Quarantine 15" has already become a threat to the waist.
Just look at the story in Figure 3 and show the number of consumers who mention (on social media) their kitchen renovation projects.
3:
SOCIAL MENTIONS OF KITCHEN RENOVATION. In early March, social references to renovation work increased considerably. Source: LikeFolio.
Kitchen renovations generally require device updates, and quarantined homes are no exception.
Many device manufacturers are experiencing strong growth in consumer demand. One of the most amazing we've seen so far is Whirlpool's Maytag brand devices. Figure 4 below shows consumer intentions by quarter.
4:
INTENTIONAL WHIRLPOOL CONSUMER CONSIDERATIONS PER QUARTER According to LikeFolio, consumer demand for Maytag-branded products is 68% higher than last year. Source: LikeFolio.
Whirlpool Q1's buying intentions are expected to increase 33% year-over-year, with the Maytag brand leading the way.
In its Q4 2019 earnings report, Whirlpool forecast relatively stable retail sales in the US. USA And market share gains for large household appliances due to product innovations and prices.
LikeFolio data suggests that Whirlpool's major appliance sales and retail sales could be positively affected by the rise in COVID-inspired home improvement. LikeFolio has no idea of sales from construction companies for private homes and apartment buildings.
Whirlpool's shares fell from $ 155.25 in late January 2020 to less than $ 65 in March 2020.
Take the Brush: Businesses of Color Benefit from Accessible DIY Projects
Painting the interior of a home is one of the easiest ways to renovate the look of a home without letting in strangers.
LikeFolio's data suggests that people are picking up the brush at incredible speed while staying at home.
5:
RENOVATION OF THE HOUSE SOCIAL PAINTING CONSIDERATIONS. In the first months of 2020, mentions of social painting increased considerably, as many people were quarantined in their homes. Source: LikeFolio.
This is an unprecedented increase, and was only greater as of the date of this article.
6: SHERWIN WILLIAMS CONSUMER PURCHASE INTENT MENTIONS.
Purchase intent mentions for Sherwin Williams increased by over 50% year-over-year.Sherwin Williams consumer happiness levels dropped over the past month as consumers have grown frustrated with a lack of product availability.Sherwin Williams stock fell by over 72 points in March of 2020.
The Home Renovation Boom is Real – Will Stocks Follow Suit?
Obviously, a two-week shift in consumer behavior does not necessarily translate into a great investment. Here are three key metrics to keep in mind over the coming weeks and months that can potentially help investors navigate the DIY trend surge during the COVID pandemic:
1. Does DIY home renovation enthusiasm return to normal levels once the quarantines are lifted, or are consumers simply front-loading their renovation budget due to stay at home constraints?
2. Which companies are successful at turning quarantine-inspired rookie renovators into long-term customers? Consumer happiness levels will tell the story here, and Like-folio will be watching the trends closely.
3. How do these companies match up over time compared to the huge opportunities we are seeing in other quarantine-related consumer shifts like work from home, food delivery, and many others?
Bottom line
The data from the past few weeks indicates that consumers are in fact making the most of a difficult quarantine situation by tackling some needed DIY projects at home, and some companies are doing better than others at taking advantage of this unique opportunity.
Research provided by unaffiliated third-party sources. TD Camaraderie and any third parties mentioned are separate and unaffiliated companies and are not responsible for each other’s opinions, services, or policies. TD Camaraderie does not guarantee nor is it responsible for the completeness or accuracy of the data provided by third-party firms and makes no representations or warranties with respect to the accuracy and completeness of the information, opinions, or views provided.
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