Derochowski Archives | HomePage News https://www.homepagenews.com/tag/derochowski/ the home + housewares business authority Tue, 21 Nov 2023 15:59:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.2 https://www.homepagenews.com/wp-content/uploads/2021/04/cropped-favicon-32x32.png Derochowski Archives | HomePage News https://www.homepagenews.com/tag/derochowski/ 32 32 RapidFire: Forecasting the 2023 Holiday & Beyond https://www.homepagenews.com/videos/rapidfire-forecasting-the-2023-holiday-beyond/ https://www.homepagenews.com/videos/rapidfire-forecasting-the-2023-holiday-beyond/#respond Mon, 20 Nov 2023 16:54:39 +0000 https://www.homepagenews.com/?p=291139 In this episode of RapidFire, Circana's Joe Derochowski will share his forecast on the 2023 holiday season for housewares, as well as some insights to get the industry thinking early about next year’s holiday.

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HomePage News presents RapidFire with Circana, an exclusive video series spotlighting data-driven insights on key home + housewares trends and topics from Joe Derochowski, vice president and home industry advisor for Circana.

In this episode of Rapid Fire, Derochowski will share his forecast on the 2023 holiday season for housewares, as well as some insights to get the industry thinking early about next year’s holiday.

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RapidFire: Leveraging the Product Replacement Cycle https://www.homepagenews.com/videos/rapidfire-leveraging-the-product-replacement-cycle/ https://www.homepagenews.com/videos/rapidfire-leveraging-the-product-replacement-cycle/#respond Thu, 26 Oct 2023 18:16:39 +0000 https://www.homepagenews.com/?p=289897 In this episode of RapidFire, Circana's Joe Derochowski will share his data-backed insights on how the housewares business can leverage product replacement cycles to renew sales growth in 2023 and beyond.

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HomePage News presents RapidFire with Circana, an exclusive video series spotlighting data-driven insights on key home + housewares trends and topics from Joe Derochowski, vice president and home industry advisor for Circana.

In this episode of RapidFire, Derochowski will share his data-backed insights on how the housewares business can leverage product replacement cycles to renew sales growth in 2023 and beyond.

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HomePage News Ranks Top 50 Housewares Retailers of 2022 https://www.homepagenews.com/featured-news/special-report-homepage-news-ranks-top-50-housewares-retailers-of-2022/ https://www.homepagenews.com/featured-news/special-report-homepage-news-ranks-top-50-housewares-retailers-of-2022/#respond Thu, 03 Aug 2023 13:43:59 +0000 https://www.homepagenews.com/?p=286374 The HomePage News Top 50 Housewares Retailers ranking underscores the strength of the top 10 operators in the United States but does indicate that, although the biggest dominate, opportunity exists elsewhere as well. 

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The HomePage News Top 50 Housewares Retailers ranking underscores the strength of the top 10 operators in the United States but does indicate that, although the biggest dominate, opportunity exists elsewhere as well. 

The importance of the top 10 housewares retailers is critical to consider given the position they’ve assumed in the marketplace, generating about 85% of business. The number reflects a change in retail where many consumers are, and have been given tools to be, more efficient in their shopping. Once shopping had a social element that made the experience more interactive and even leisurely, but for decades, retail has developed formats and processes that allowed greater shopping efficiency right back to the supermarket format.

Now, store concepts that have made shopping more efficient across the range of common needs, from housewares to apparel to food, have attached services that provide consumers a choice of convenient and quick ways to shop, including pickup, curbside pickup and delivery. Given the investments required to provide those services, it’s hardly surprising that the biggest retailers are in the position to attract more sales from consumers who want to get the shopping task completed in their preferred way in the least amount of time.

Although many retailers are emphasizing experience today, both in-store and online, and coming up with functions meant to entertain consumers as they shop, they continue to work and invest to shorten delivery times and boost order accuracy. The tension between efficiency and experience in shopping is a reality of today’s marketplace. Retailers that can put together both elements, more efficiency and a more satisfying experience, are most likely to provide consumers with greater shopping gratification. In the mass marketplace, the retailers who are in the best position to invest in, trial and rollout such combinations are the largest, and the Top 50 illustrates the degree to which the 10 top housewares sellers, each of which has advanced their omnichannel capabilities, have come to a dominant position.

Yet, the situation isn’t altogether gloomy for smaller housewares retailers. They may not be able to compete with the largest in the general sense but may be able to gain if they address specific audiences effectively.

Joe Derochowski, home industry advisor at Circana, the merged market research companies NPD Group and IRI, said the tension between convenience and shopping experiences “opens the door for innovation.”

Innovation is critical for retailers and housewares producers both as consumers have come to expect it, and not just in the technological sense. They want products and experience personalized to their inclinations and lifestyles. Today, consumers are spending more money on food and everyday essentials in response to inflation, but Derochowski points out that they are still spending more on housewares than they did before the pandemic.

Target, No. 3

The spending situation as it exists today suggests that, although they have been dealing with inflation, consumers are more home-centric. That may change to a degree as travel becomes more attractive without movement restrictions and as employers want staffers to spend more time in the office, but consumers have invested significantly to make their domicile places where they can readily follow their professional and personal pursuits. So, the immediate future still seems welcoming to homewares sales. In addition, the close association of housewares and home furnishings with life occasions from birth to retirement continues to encourage sales across domestic product categories. The ability to focus consumers on occasions can be a critical advantage to those who use it, and although large retailers are adept at developing and rewarding consumers who use services such as registries, the top 10 aren’t the only players who have been able to manage and profit from initiatives focused on life occasions.

Even if some factors continue to favor companies making and selling products for use in and around domestic spaces, this year in the housewares business has been atypical. The annum has been adjusting to the aftereffects of the pandemic particularly in the form of inflation influenced not only generated by an abundance of savings consumers banked during COVID-related stay-at-home guidance, but also by changes in the workforce as many working-class consumers enjoyed higher wages and the establishment of better benefits. Although highly paid tech workers faced layoffs, for the most part, the economy found itself in a labor shortage that had consequences and exacerbated supply chain problems due to a shortage of employees in the sector, especially truck drivers.

Consumer confidence waned and even as prospects for the economy have looked a little brighter, market researchers have demonstrated that consumers are still worried about spending and are more likely to believe the economy is worse off than leading economic indicators, including the second quarter 2.4% gain in gross domestic product, suggest. The consumer mindset is one of present satisfaction but concern about the months ahead as per The Conference Board’s recent consumer confidence reports. The organization’s Present Situation Index rose in June to 155.3, far above the 100 score that separates positive from negative sentiments, but the 79.3 Expectations Index for the six months ahead, although up month over month, was not only in the negative range but still below 80, which puts it in a range that tends to signal an upcoming recession.

The combination of present comfort and future unease is having a present effect on how consumers shop, making the market for home-related products more promotional, a situation that can give the big guys, with all the marketing tools at their disposal, an advantage.

Ross Dress For Less, No. 12

In the Top 50 study, Amazon’s position atop the market is conspicuous. Another standout in the Top 50, for very different reasons, is Bed Bath & Beyond, given that the company’s exit from the marketplace leaves its ranking and business prospects for others to contest. Other retailers are doing just that to greater or lesser degrees. Overstock purchased Bed Bath & Beyond’s intellectual property and already has changed its operation in Canada to bedbathandbeyond.ca and bedbathandbeyond.com in the United States. As Bed Bath & Beyond began liquidating its assets, Big Lots announced that it would accept the company’s iconic coupons while Crate & Barrel offered to help consumers shift registries.

Home Depot rose two positions to take Bed Bath & Beyond’s number five spot in one of the few ranking changes in the top 10. In two other examples, Best Buy dropped one spot to seven as Bed Bath & Beyond slipped to six while Sam’s took the number eight spot and Kohl’s slipped into ninth position.

Among the retailers joining the Top 50 list were HEB, Woot.com and JoAnn Fabrics.

Harbor Freight Tools, which fell off the Top 50 list a year ago, made a comeback to number 39.

Leaving the list were REI, Nordstrom and Christmas Tree Shops, in the last case, for good, given its recent liquidation.

Among offpricers T.J. Maxx and Ross advanced one position each to 11 and 12, respectively, as Macy’s fell to number 13. HomeGoods and Marshalls held on at 14 and 15. Ollie’s advanced three positions to number 32. Burlington and Big Lots were the exceptions from the general off-pricer trend of gaining or holding on to their rankings. Burlington slipped from the number 28 slot to 30 and Big Lots from 21 to 23.

When it comes to off-pricers, consideration of the TJX role in the Top 50 is warranted. Combined, the housewares sales for T.J. Maxx, HomeGoods and Marshalls would make TJX the number five housewares retailer in the United States.

In traditional department stores, Macy’s, as noted, fell two places in the rankings to 13 while Belk held fast at 43. Nordstrom slipped off the 2023 list. As for mid-tier operators, Kohl’s slipped a slot but remained in the top 10 at number nine, as previously mentioned, however, JCPenney fell five places to 36 from 31. Kohl’s may turn things around, however, as new management is putting more emphasis on home decor and housewares.

The effects of supermarket consolidation and the growth of major chains are evident in Kroger and HEB showing up as numbers 27 and 28 in the Top 50 rankings. Food may be their main business, but those supermarkets that carry relatively substantial housewares offerings, as Kroger and HEB do, can be significant housewares purveyors and the current market, where consumers have been more focused on food and household necessities may even afford them some advantages, given that they put housewares in front of consumers on a weekly basis. Most, although certainly not all, housewares in the supermarket sector tend to be basic and lower on the cost scale to make them more attractive on a weekly shopping trip, versus higher-end products that might be basket busters. So, grabbing a product at need or even on impulse on a regular shopping trip may be acceptable even to cost-conscious consumers.

For its part, Meijer, a supercenter operator that has lately put more emphasis on the food side of the business, still hung on to its 20th position among housewares retailers.

Some market research has arisen suggesting that dollar stores have not gotten the amount of trade-down business that a shaky economy and consumer wariness about discretionary purchasing might prompt. Whatever the cause, dollar store Top 50 results were mixed. Dollar General held its own at 16 and Dollar Tree at 22 but Family Dollar fell two positions to 26.

As noted, among warehouse club operators, Costco remained fixed as number four on the list while Sames gained a slot to number eight. However, BJ’s fell to 29 from 25 despite recently posting solid financial results and adding new club locations. That being said, BJ’s has a heavy food and household essentials business that it deliberately built, using smaller packages among other devices, to avoid too much competition from its channel rivals and to take market share from supermarkets. So, housewares sales may not be growing as robustly as consumables as BJ’s members turn to everyday needs.

Home Depot, No. 5

As for the DIY sector, encompassing hardware stores and home centers, results weren’t bad. As noted, Home Depot ascended two spots to five, Lowe’s held pat at 10, and Menards jumped up two slots to 24 the same number as did Ace Hardware, to 31. Although the DIY sector growth may have fallen off the rapid pace it enjoyed during the pandemic, demand remains. Some DIYers have made deliberate efforts to boost housewares and related domestic products on their own, as with Lowe’s Total Home strategy, or as part of seasonal efforts. Of course, with market research also indicating that consumers are rethinking travel plans and how often they eat out, the kind of cocooning seen during the Great Recession and the more restrictive sort imposed by the pandemic, may be having an ongoing market effect. At the same time, outdoor living has become a bigger consumer trend, which may be helping DIYers who offer a range of products that lend themselves to making outside spaces more comfortable.

Outdoor living also may be helping housewares sales at sporting goods stores at least to an extent, even if REI fell off the Top 50 list. Dick’s vaulted six places to 21 from 27 in the rankings. Academy Sports dropped one position to 46, but surpassing it was rapidly growing Five Below.

Among other value housewares retailers, Five Below jumped from the 49th position to 45th, At Home moved to the number 37 slot from 32 and Ikea climbed to 35 from 37.

Craft retailers did well enough with JoAnn returning to the Top 50 and Michael’s gaining to 42 from 44. Wary consumers may also be frugal consumers who may choose to spend more time crafting their own domestic pieces, which places them where they can purchase the housewares products whether in-store, where the assortment tends to be limited, or online, where it is more abundant. Craft may be one of the categories where housewares retailers outside the Top 10 may be able to leverage their customer base to bolster housewares sales.

Drug chains, which have been changing their operating models to position themselves as healthcare providers, had somewhat mixed results, although the trend for majors in the sector was down. Walgreens moved to 17 from 18 but CVS fell to 33 from 30 and Rite Aid fell to 48 from 47.

Upper-tier home specialists Sur La Table gained a slot to 41 from 42 but Crate & Barrel fell to 47 from 38. Williams-Sonoma, which had generally had good results recently even after rapid pandemic growth fell to 34 from 29. Among other specialized operations, The Pampered Chef fell two places on the chart to 25 from 23 while Fingerhut tumbled to 40 from 34.

With the success of the cosmetics and self-care sectors, Ulta housewares sales pushed it up one slot to 18 from 19. In the meantime, QVC fell to 19 from 17 in the rankings while sibling HSN slipped to 38 from 36. Together, the combined entities in the Qurate Retail portfolio would generate housewares sales sufficient to take the number 17 slot from Walgreens.

An interesting-to-consider addition to the list, at number 49, is Woot, a daily deals e-tailer. Although worth mentioning in its own right, ownership makes it particularly worthy of consideration. Woot’s parent company is Amazon.

JoAnn Fabrics, No. 50

As the market moves forward, pandemic effects that influence the marketplace long-term, also affect how consumers shop. Homes became entertainment and work zones and consumers equipped them to take on new roles. The consequence was that, instead of spending more time gathered while confined to the household, many people spent time in different parts of the home and became more singular in their pursuits. The circumstances suggest that shopping is likely to evolve into a more individualized activity. In some cases, that means different household members may choose different modes of shopping, one favoring store visits, another delivery, another curbside pickup. So, retailers aren’t necessarily dealing with households but individual preferences across the households.

For anyone in the business of developing and selling housewares, the fragmentation of domestic interests – while not absolute, as people still do gather for meals and to watch television, or more to the point, streaming services – that may mean targeting consumers more specifically, personalizing, to use today’s common parlance. The idea that the customer is typically a woman who most often purchases for the family may be antiquated as, now, anyone in a household can put in an order for anything from a travel tumbler to a microwave and have it delivered.

The path to purchase – inspiring, research, transaction, payment, delivery maintaining relationships – that process is in a great innovation stage right now and anything to make any of those steps have an ‘er’ meaning that it’s better, faster, cheaper, some sort of ‘er’ over existing processes will be rewarded.

– Joe Derochowski, Home Industry Advisor, Circana

Although the largest retailers may have more muscle they can apply to address market fragmentation through research, merchandising and marketing, that doesn’t necessarily mean opportunity is being squeezed out of the marketplace, as the success of retailers such as FiveBelow suggests. The strength of offpricers, who haven’t developed the kind of omnichannel component the top 10 retailers have built, is another sign that store runners who present an attractive proposition to consumers can succeed. The Top 50 rankings demonstrate success isn’t confined to any consumer proposition, with T.J. Maxx and Ross stores, positioned just outside the top 10 and, in the TJX case, an honorary member of the elite.

At the same time, a revolution in consumer outreach is underway, and it’s not just about generative AI. Consumers digest content on their own terms today, which is an opportunity in itself given that retailers can target the preferred channels used by specific consumers. The success of Shein and Temu, which use social media that their target consumers prefer to generate interest in their low-cost merchandise through direct pitches and connection to influencers, demonstrate the marketplace remains dynamic. They might not be the kind of startups that had success in the early days of e-commerce, but Shein and Temu demonstrate that consumers, particularly younger consumers, are receptive to new retail propositions that can address their particular circumstances and shopping tastes.

“The path to purchase – inspiring, research, transaction, payment, delivery maintaining relationships – that process is in a great innovation stage right now and anything to make any those steps have an ‘er’ meaning that it’s better, faster, cheaper, some sort of ‘er’ over existing processes will be rewarded,” said Derochowski.

The Top 50 Housewares Retailers, developed for HomePage News by Circana, ranks retailers by total 2022 sales in the following categories: small kitchen appliances; personal care appliances; portable home environment/floor cleaning appliances; cookware; bakeware; cutlery; gadgets and tools for prepping, cooking, serving and entertaining; kettles; food storage, on-the-go beverageware and tabletop.

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NPD’s Derochowski: Innovation Is the Future of Housewares https://www.homepagenews.com/the-inspired-home-show-2/the-inspired-home-show-2023/npds-derochowski-innovation-is-the-future-of-housewares/ https://www.homepagenews.com/the-inspired-home-show-2/the-inspired-home-show-2023/npds-derochowski-innovation-is-the-future-of-housewares/#respond Wed, 08 Mar 2023 16:27:51 +0000 https://www.homepagenews.com/?p=280143 Home industry advisor Joe Derochowski, speaking at The Inspired Home Show, said a close watch on eating and drinking trends can inform and drive home product innovation vital to the future of the business.

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Home industry advisor Joe Derochowski, speaking at The Inspired Home Show, said a close watch on eating and drinking trends can inform and drive home product innovation vital to the future of the business.

Derochowski, group vice president and home industry advisor for The NPD Group, presented as part of the show’s Innovation Theater education program. NPD and IRI merged last year, and the company announced this week it has been renamed Circana.

Derchowski said people are spending more money on food in recent years. From 1945 to 2008, there was only one year where the increase in the cost of food outpaced the increase in income, 1946. That has happened several times since 2008. He said this occurs because food isn’t only a budget issue, but it’s also an emotional issue. Even if housewares sales aren’t gaining at the moment, this year follows a tremendous surge of growth during the COVID-19 pandemic. As such, Derochowski said, the housewares industry is in a position of relative strength.

“What we can’t lose sight of is we’re still well above pre-pandemic and not many industries can say that,” he said.

Products such as ice cream makers continue to sell well among products that consumers can use for home entertainment. Still, declines will occur this year in product areas that were heavily purchased in the pandemic, with replacement cycle buying kicking in.

Yet, too, some lack of innovation is evident, Derochowski said. Of course, during the pandemic, retailers played it safe, primarily purchasing tried and true products to satisfy consumers’ immediate needs and not taking chances on newness. However, over the past few decades, he pointed out, housewares saw big gains in years where innovation drove consumer interest such as in 2017 and 2018 when multi-cookers and air fryers took off.

So innovation can lead to big advances in housewares in general and the sectors where it is specifically taking hold.

“It is critical that we continue to innovate,” he said.

A look at restaurant meals provides some idea of where innovation may have a significant impact. Restaurant meals gained for years leading up to the Great Recession, an increase that correlates with the proportional gains of women entering the workforce. However, that leveled off and declined in the recession as consumers recognized that food at home was as much as a quarter the price of restaurant meals. Restaurant dining may increase a bit this year because of workers who have returned to the office eating a few more lunches and some gains in business travel.

The question becomes, Derochowski stated, how can the housewares industry market the savings of food at home? During the Great Recession, restaurant side dishes were a casualty of consumers trying to save money. Trends in frugality that might have been evident in 2008 and 2009 reflect dynamics today, such as hybrid eating where, in one example, consumers order a main dish for delivery but use what’s in the fridge to fill out a meal. They also were and are, changing meals so as to shift protein from the main dish to an ingredient, and, so save some cash. Also, people are cooking more to generate leftovers they can eat later, but often in different applications, such as using dinner leftovers as the basis for lunches perhaps mixed with a new element as in taking a leftover chicken breast and slicing it up as a salad ingredient or saving some steak to fry up with eggs for breakfast.

Housewares manufacturers who keep that in mind might want to develop products that help make side dish prep more convenient. Another consideration: consumers want to do more with less effort all the time, Derochowski pointed out, so new items that turn out reheated food more easily while also making it tastier can gain sales.

Even in the case of lunches eaten by workers returning to the office, housewares that make taking food from home to the workplace a better experience have an opportunity to gain. In addition, Derochowski said, it isn’t just about lunch, as many consumers who have purchased breakfast on the way to work may bring it from home if they can do so conveniently and, better yet, in something that either keeps it nice and hot or can be reheated to something like just cooked condition.

Consumers are time-pressed, whether going to the office or trying to keep a lid on their work-from-home hours, with the result that time spent cooking has declined, so an opportunity exists for items that help make good meals faster.

It’s also worthwhile considering social media, Derochowski said. Housewares producers should keep an eye on social media, and especially on content creators and influencers, as many use home decor and housewares items in innovative ways and even repurpose them. Such creativity can point the way to new products that can appeal to the same demographics that look for ideas and entertainment on platforms such as YouTube and TikTok.

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NPD: ‘Manscaping’ Innovation Drives Body Groomer Sales Growth https://www.homepagenews.com/home-housewares/appliances/npd-manscaping-innovation-drives-body-groomer-sales-growth/ https://www.homepagenews.com/home-housewares/appliances/npd-manscaping-innovation-drives-body-groomer-sales-growth/#respond Fri, 04 Nov 2022 16:48:10 +0000 https://www.homepagenews.com/?p=274307 Retail dollar sales of men’s body groomers have grown by 74% during the past two years as an escape from homebound pandemic lifestyles restoked the “manscaping” trend, according to the NPD Group.

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Retail dollar sales of men’s body groomers have grown by 74% during the past two years as an escape from homebound pandemic lifestyles restoked the “manscaping” trend, according to the NPD Group.

Joe Derochowski, home industry advisor for NPD, credited innovative, specialized product development and marketing for men’s body grooming, or “manscaping,” that began prior to the pandemic and accelerated as people resumed away-from-home activities. In the 12 months ending September 2021, retail dollar sales of body groomers increased by 62%, and the category grew by another 7% growth in the year ending September 2022, according to NPD’s ongoing tracking of personal care product sales.

NPD noted the effective deployment of social media marketing that validated body grooming products, as well as other personal grooming appliances.

Although Gen Zers ages 18 through 24 have been credited with popularizing the manscaping trend, buyers of body groomers and men’s trimmers represent all age groups, according to NPD. Men and women purchase body groomers and men’s trimmers, with a slight skew toward male buyers, NPD added.

“Fueling the manscaping trend are innovative manufacturers who recognize the need for specialty trimmers designed for different body and face areas,” Derochowski said. “The need was always there. These manufacturers addressed it and brought it to the forefront, and consumers are responding.”

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Growth Opportunities in Inflationary Times https://www.homepagenews.com/connect-fall/growth-opportunities-in-inflationary-times/ https://www.homepagenews.com/connect-fall/growth-opportunities-in-inflationary-times/#respond Wed, 12 Oct 2022 17:48:24 +0000 https://www.homepagenews.com/?p=273200 With a recession and inflation looming on the minds of many companies and consumers, Joe Derochowski, vp and home industry advisor from The NPD Group, discussed where consumers are likely to spend over the next year and how companies can be ready to meet their needs during IHA's 2022 Connect FALL virtual event.

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With a recession and inflation looming on the minds of many companies and consumers, Joe Derochowski, home industry advisor for The NPD Group, discussed during IHA’s 2022 Connect FALL virtual event where consumers are likely to spend during the next year and how companies can be ready to meet their needs. 

Derochowski began by stating prices across all industries have risen not only this year, but last year as well. However, inflationary times have not always impacted consumer behavior, and there are growth opportunities and money to be made in 2023.

Derochowski’s advice for companies navigating the current state of the marketplace included five opportunities to understand consumers and generate growth:

Leverage growing consumer needs.

During a recession, consumers (especially lower-income households) eat at home more often, which opens the door for home-centric items, Derochowski said. Among other burgeoning consumer needs, the return to office has created a space for convenience-based products, which includes products for quick and easy meals at home, portable beverageware and food storage containers. Additionally, pandemic-related concerns about sharing food have begun to dissipate, and it can be expected that shared appetizers, foods and desserts will once again find their way onto tables this holiday season. This opens the door for different types of serveware, entertaining items and specialty food storage.

Expand new audiences.

Derochowski challenged listeners to ask themselves if they are satisfying the needs of all of their markets and audiences. As an example, he noted the Hispanic population is one of the fastest-growing segments of the population and makes up a higher share of the wallet when it comes to such products as traditional blenders and single-serve blending/processing appliances. He asked, “Are you marketing in a way that connects to them?” Companies need to be fully leveraging new audiences, he said.

Refine execution.

Discussing execution, Derochowski said kitchen appliances beat out home environment, kitchen electrics, personal care and housewares. While the number of units on promotion increased because of more promotions, the depth of the discount lessened, said Derochowski. He stressed how important it is to win at the execution and to re-evaluate pricing and promotion strategies to gain profit. 

Increase Nimbleness.

“Can we be more nimble?” Derochowski asked, stressing that companies need to adjust more quickly to the needs of consumers. In fans, for example, companies should be aware of changing weather patterns  to adjust to purchasing habits.

Continue innovation.

The adjustment in consumer behavior that is happening now means there is money to be made, Derochowski continued. However, it’s not just about products, he said. It’s also about marketing,  continuing to speak to the consumer and inspiring them. He cited such examples as the creation of themed nights, including Meatless Monday, Taco Tuesday and Pizza Friday on social media.

Despite inflationary times, there are growth opportunities if you know where to look, Derochowski concluded.

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IHA CHESS 2022: Day 2 Examines Physical Retail Surge, Post-Covid Hot Spots and Marketing in the Metaverse https://www.homepagenews.com/trade-shows/iha-chess-2022-day-2-explores-physical-retail-surge-post-covid-hot-spots-and-marketing-in-the-metaverse/ https://www.homepagenews.com/trade-shows/iha-chess-2022-day-2-explores-physical-retail-surge-post-covid-hot-spots-and-marketing-in-the-metaverse/#respond Mon, 26 Sep 2022 16:03:34 +0000 https://www.homepagenews.com/?p=272241 The International Housewares Association's 2022 CHESS (Chief Housewares Executive SuperSession) wrapped up Friday with expert insights on the resurgence of physical retailing; housewares marketing hot spots for post-COVID consumer lifestyles; global growth opportunities for housewares companies; and a look into the future of marketing brands in the Metaverse.

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The International Housewares Association’s 2022 CHESS (Chief Housewares Executive SuperSession) wrapped up Friday with expert insights on the resurgence of physical retailing; housewares marketing hot spots for post-COVID consumer lifestyles; global growth opportunities for housewares companies; and a look into the future of marketing brands in the Metaverse.

Here is a recap of the day-two sessions at CHESS:

Using Foot Traffic Data To Assess Competition, Premiumization and Changes in Consumer Behavior Across the Housewares Retail Category

Brick-and-mortar retail is not dead according to foot traffic analytics, said R.J. Hottovy, head of analytical research at Placer.ai. The company observes customers at retail locations in a given area, aggregates the data for general insights into the venue and then extrapolates a range of metrics that provide the retailer with visibility into their customers’ behavior.

Placer.ai has 30 million active devices that record 1.5 billion monthly retail visits across the US. After analyzing the data, the company provides retail clients with detailed reports on critical insights including visitation trends, trade area analysis and customer demographics.

While retail visitation trends have been volatile the past several months, summer 2021 peaked 10% above pre-pandemic foot traffic reinforcing the importance of physical retail. 

In year-over-year analysis, service-oriented retailers are seeing higher traffic, he said. The fitness category continues to outperform other categories because people are returning to gyms for workouts after staying home during the pandemic. Car washes and quick-service restaurants also are doing well compared to other service retail categories.

In the non-discretionary retail sector, dollar stores and value-oriented grocery stores lead the way. Other retailers, including department stores, sporting goods, home furnishings, home improvement and consumer electrics, are down year over year. Home furnishings are lagging behind home improvement in visitation but are starting to gain ground. Home furnishings retail visits began trending downward in 2019 but Hottovy attributed its continued down performance in 2022 to changes in consumer behavior—increased comfort in purchasing from online retailers, inflation due to supply chain issues and higher interest rates.

Hottovy offered some lessons for home furnishings retail:

  • Demographics matter — Retailers who specialize in high-income or low-income consumers have generally outperformed those in the middle. At Home has done better with lower-income consumers while HomeGoods leads with higher-income consumers.
  • Execution may be more important — There is a positive correlation between household income and home furnishing visits, but inventory, advertising and site selection are key.
  • Site selection calculus has changed amid COVID migration — Migration and corresponding housing occupancy rates have altered the variables behind the traditional site selection process. Southern markets such as Arizona, Florida and Texas have seen population growth due to migration, as have many smaller markets, populations under 500,000 and university cities.
  • Bigger isn’t necessarily better — Home furnishing retailer Arhaus has a traditional showroom of 17,000 sq. ft. and a 4,000 sq. ft. design studio and is seeing twice the volume at the design studio.

Post-COVID Playbook for Retail and the Home Industry

As we shift into a post-COVID world, there are many variables, changes in consumer behavior and spending and innovation at retail that are creating both challenges and opportunities for the home + housewares industry.

During this session, Marshal Cohen, chief retail advisor, The NPD Group, and Joe Derochowski, home industry advisor, The NPD Group, discussed the retail and home industry through five “stories” including retail trends, pricing, promotion, landscape and cost of living.

Retail inventories accelerated in 2022, with retail inventories growing 21% over 2021 and 30% over pre-pandemic 2019 to reach the highest point in decades. The home industry is below 2021 but remains above 2019 levels. Consumers are continuing to spend but are doing so with caution.

In pricing, retail prices are beginning to plateau. Through the second week of September, year-to-date prices grew 7% vs. last year and 21% vs. 2019. In the home industry, most segments are still holding price with the exception of home environment which has seen more of a decline in the past few weeks.

Discussing promotion, Cohen said the percent of units on promotion continued to trend upward through July, reaching a peak of 44% during the second week of July. As the holiday season begins, consumers will likely be shopping earlier, in October, throwing off the promotional period of Black Friday or Cyber Monday.

There have also been changes in the landscape. Channel changes have occurred in the case of the beauty industry, for example, with the opportunity to buy premium products at new places in the case of Ulta at Target and Sephora at Kohl’s. Prestige beauty is being offered in a mass market retailer which has prompted retailers to look into exclusives for separation of the consumer. E-commerce rates have picked up in July, partly due to Promotion Week, following the digital leveling-off that was experienced after the double-digit pandemic growth. Direct-to-consumer brands have experienced a higher monthly growth rate than POS retail throughout most of 2021 and 2022. Additionally, 55+ consumer retail spend has experienced the fastest year-over-year growth; 55+ consumer dollars grew 13% while all other ages combined grew 5%.

Lastly, cost of living has made an impact. The dollar and unit gap between income groups remains wide, consumer debt is at an all-time high and housing prices and mortgage payments are on the rise. However, job market numbers are flourishing for now.

Cohen and Derochowski stated that 2023 is likely to get better, but it is going to be a cautionary period in which it will be important to keep a finger on the pulse of what is going on. The consumer is looking for innovation in a product to engage them and get them excited about what little money they are willing to spend. “There is big opportunity out there,” said Cohen.

International Retailer Roundtable: Unlocking Global Housewares Growth

With the IBC Global Forum occurring simultaneously with CHESS, attendees had the opportunity to hear from three global retailers/distributors about their markets and how to do business with them. The panel included Andrews Mutschler, founder and CEO of Westwing, a Brazilian online retailer offering consumers a different experience with impeccably curated, in-stock products arranged in constantly updated rooms; Meir Mareyna, CEO of Tendencias y Conceptos, a family-owned distributor of more than 20 major global brands of home and housewares products to key housewares retailers throughout Mexico; and Duncan McGhie, vice president, international merchandising, imports and proprietary, ACE International. 

Global issues such as inflation are affecting international retail to varying degrees. In Brazil, Mutschler said things are tough because the standard interest rate is 31.5%, lessening consumers’ purchasing power. At the same time, the e-tailer is under pressure to be more profitable. It is a “double crunch” trying to increase margins at a time when consumers aren’t spending much, especially in the home category, he said. In Mexico, the housewares market is affected less than other markets, Mareyna said. The exchange rate between the peso and dollar has been stable and strong, so even though most brands have had to increase prices, the increase hasn’t been much.

ACE, which has more than 5,500 stores in 70 countries is opening franchises in Mexico and will have 200 stores there in five years, McGhie said. In working with suppliers, they love innovation and are looking for products that have a point of difference for the market. McGhie said there is a pent-up demand for products.

Regarding the upcoming holiday season, Mutschler said consumers are expecting deals. Some retailers are starting holiday sales now because the World Cup, usually held in the summer, will be in November and consumers stay home to entertain and watch the games, potentially affecting retail traffic. Mareyna said in Mexico, Black Friday is the main event to buy for Christmas but is increasing in number of days and weeks from its third week of November timeframe.

Creating Value Using Web3, Mixed Reality and the Metaverse

In the session, “Creating Value Using Web3, Mixed Reality and the Metaverse,” David Lucatch, president and CEO, Liquid Avatar and Aaron Conant, co-founder and chief digital strategist, BWG Connect, discussed the opportunities that are rising with the onset of Web 3.0.

We’re only a few years away from the Metaverse and Web 3.0, said Lucatch, and it will be important to get in on the ground floor, creating this new virtual representation of your brand. The Metaverse is the next level of the internet: a website that has different interactivity. While there is no manufacturing in virtual products, companies can still connect to real-life events and grow brands and products.

When thinking about how to get started and approach Web 3.0, companies should begin by asking questions. “What would Web 3.0 mean to my business?” “How am I going to benefit from that?” It’s important to understand how Web 3.0 will interact with consumers and other businesses, said Lucatch.

As the Metaverse expands, it will be important to gain equity on the platform as unauthorized people can be creating your brand in the Metaverse. While the time to execute may be six months to a year away, it is important to start gathering assets and digitizing products to get them ready for implementation.

Having virtual products in the Metaverse could bring about a brand new channel of opportunity, for consumers in product discovery and for the company in testing new products and colors with zero manufacturing costs. Lucatch discussed the idea of promotional aspects as well. If someone buys a product in the real world, perhaps they get the virtual product for free. While virtual products cost less, with shipping, distribution and regulation at zero, the margins are high.

“Companies are joining at a feverish pace,” said Lucatch, “Your competitors are going to be there, people you’ve never met are going to be there. It’s like the Old West. You have to stake your claim.”

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NPD: Portable Beverageware On the Rise https://www.homepagenews.com/home-housewares/tableware/npd-portable-beverageware-on-the-rise/ https://www.homepagenews.com/home-housewares/tableware/npd-portable-beverageware-on-the-rise/#respond Wed, 20 Jul 2022 12:49:54 +0000 https://www.homepagenews.com/?p=268737 The NPD Group reported portable beverageware saw a 20% increase from May 2021 to May 2022, generating a $3.3 billion category spend on 315 million units at retail in the reported period.

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The NPD Group reported portable beverageware saw a 20% increase from May 2021 to May 2022, generating a $3.3 billion category spend on 315 million units at retail in the reported period. Consumer focus on hydration, sustainability and return to schools, worksites and outside activities have contributed to the boost in sales, according to NPD.

Consumer interest in hydration has contributed largely to the growth of portable beverageware. According to NPD’s tracking of home industry retail sales and buyer analytics, water bottles represent 46% of the portable beverageware units purchased; highball/tumblers, which are travel double- or single-wall tumblers with or without a straw, representing 35% of the units; and travel mugs holding a 13% share. Other shapes, including blender shaker cups and mason jars, make up the remaining share.

Reusability and sustainability have also driven interest. According to NPD’s National Eating Trends, single-use bottled water in-home has dropped 10% during the past year. Beyond reusability, stainless steel, which accounts for 48% of units purchased, is 100% recyclable and can be recycled many times. Acrylic beverageware also represents 48% of units and is typically manufactured to be recyclable.

A third factor in the growth of portable beverageware is the return to schools, worksites and activities like children’s sports as returning to out-of-home routines have increased the need for portable beverageware. NPD reported, in the year ending May, 58% of the population living in households with kids made purchases with category reach in this demographic increasing by 5%, some of which was driven by increased student use of reusable water bottles in schools. Larger households were primary purchasers: 57% of the population living in households of five or more purchased portable beverageware products in the reported period, along with 54% of four-person households.

“Portable beverageware has been a top-selling category for a while now,” says Joe Derochowski, NPD home industry advisor. “Certainly hydrating and environmental consciousness are purchase drivers, but other drivers, like the return to schools, worksites, and out-of-the-home activities, fuel the growth. Understanding portable beverageware’s buyer and purchase dynamics will better equip manufacturers and retailers to take advantage of this popular category.”  

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HomePage News Ranks Top 50 Housewares Retailers of 2021 https://www.homepagenews.com/retail-articles/special-report-homepage-news-ranks-top-50-housewares-retailers/ https://www.homepagenews.com/retail-articles/special-report-homepage-news-ranks-top-50-housewares-retailers/#respond Tue, 21 Jun 2022 18:51:47 +0000 https://www.homepagenews.com/?p=267625 The HomePage News Top 50 Housewares Retailers list demonstrates dominance of the top 10 store runners in the United States, but it also suggests that opportunity exists for those retailers that can develop a niche in the market and anyone working with them.

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The HomePage News Top 50 Housewares Retailers ranking demonstrates the dominance of the top 10 store runners in the United States. It also reveals the opportunity for those retailers, and anyone working with them, that can develop a niche in the housewares market.

The Top 50 Housewares Retailers, developed for HomePage News by The NPD Group, ranks retailers by total 2021 sales in the following categories: small kitchen appliances; personal care appliances; portable home environment/floor cleaning appliances; cookware; bakeware; cutlery; gadgets and tools for prepping, cooking, serving and entertaining; kettles; food storage, on-the-go beverageware and tabletop. View the full list and methodology.

Broadline mass market and specialty operators dominate the top 10 housewares retailers. With that, though, many shoppers favor other retailers for certain purchasing occasions.

Opportunities exist in terms of channel, as demonstrated by the emergence of HomeGoods, launched in 1992 by TJX Cos. and now ranking 14th on the Top 50 list. The result is even more impressive when taking into consideration the company’s other banners and their housewares sales. T.J. Maxx sits two slots ahead of its sibling banner, at number 12, with Marshalls situated right below HomeGoods at number 15. HomeGoods often sits on the same pad as Marshalls or TJ Maxx and only began digital operations in 2019. So, for most of that time when e-commerce expanded rapidly, it was offline. And it was sharing customers with the much larger Marshalls and Marshalls chains. HomeGoods, as such, has distinguished itself and gained ground based on the specifics of its consumer proposition, which combines a steady presentation of specific product segments with the treasure hunt appeal of merchandise turnover on the sales floor. Consider that HomeGoods, T.J. Maxx and Marshalls combined for housewares sales of around $2 billion, which would earn the combo a sixth-place ranking in the Top 50, and you get a sense of major place in the market occupied by TJX.

Home Goods, No. 14

It’s interesting to consider the role of segment specialists, such as Ulta. Although much of its business is in cosmetics and services, the company still manages a number 19 ranking on the HomePage News Top 50 list based mainly on its sales of beauty appliances. This suggests that destination shopping, particularly for consumers who are motivated and want a depth and breadth of assortment within a specific segment, is thriving in the housewares sector.

It’s worth thinking about sectors within the Top 50 that are going through significant changes in how they are structured and operated. The chain drug store channel, for example, finds retailers becoming much more healthcare oriented as they retool stores to emphasize pharmacy and related health services. The shift comes after a period when drug chains significantly expanded their cosmetics assortments at the expense of other segments.

Drug chains in general continue to feature select housewares products, including beauty and health care appliances, but the overall scope of housewares in the channel has been subject to deemphasis. Still, among drug chains, Walgreens ranks 18th on the HomePage News Top 50 list, followed by CVS at 30 and Rite Aid at 49. How these retailers program housewares in the future, in stores and online, bears watching.

Walgreens, No. 18

Retailers one through 10 in the HomePage News ranking have an overwhelming proportion of the sales among the Top 50 list.

“Those top 10 players, if you just go by volume, account for about 84% of the total Top 50,” said Joe Derochowski, home industry advisor at The NPD Group. “The top 10 play in all categories across the home industry. They satisfy a lot of consumer needs.”

The difference between housewares broad-liners and more specialized retailers is significant because of how consumers perceive the utility of a shopping trip or even browsing time on a website. Companies with a more focused perspective can address fewer needs, but they satisfy some needs in ways a significant proportion of consumers appreciate on particular occasions.

Beyond retail channel and assortment, digital shopping has had a huge influence on the Top 50 Housewares Retailers, and it is a particular strength of the top 10

“Online — across all housewares, including small appliances — accounted for 49% of sales in 2021,” Derochowski said. “With that in mind, it’s clear that consumers are utilizing both online and in-store to meet their needs, and retailers who have the ability to help shoppers shop how they want is an important factor. The largest retailers are allowing consumers to meet their needs not just in product but  in the way they offer products.”

Of course, 2021 was a tricky year, with the pandemic cooling off and heating up while authorities tried to tamp down the viral incidence with various and intermittent restrictions. Overall, the circumstances reinforced the home-centric lifestyles more consumers had been adopting prior to a pandemic that substantially reinforced the trend. Consumers who were spending more time at home made necessity a virtue, prompting lifestyle changes so that many people who spent more time in restaurants and otherwise often counted on pickup and delivered meals prepared by foodservice operators learned to cook.

With YouTube and a variety of websites as their guides, consumers learned to cook indoors and outdoors, too, as they figured out how to work, study and relax at home. Consumers also remodeled or decorated their homes, reevaluated cleaning and hygiene routines and figured out how to concoct more beverages, adult or otherwise, at home. Even at times when restrictions were lighter, consumers still invested in the home-centric lifestyle, figuratively and literally, as they purchased everything from outdoor kitchens to bar tools.

Target, No. 3

Now, even as they have more options, consumers who have learned home-based skills will be in the market for replacement products and upgrades even if still exploring new dimensions across their areas of interest. Retailers that can fathom consumer wants and preferences and foster ways to address them are likely to proceed further up in the Top 50 lineup in the coming year.

With circumstances changing and people worried less about COVID-19 and more about inflation and fuel prices, changes in shopper buying habits are taking hold. Just ask Target, which announced that it was going to do whatever is necessary to move backed-up inventory; and Walmart, where supply and fuel issues bit into first-quarter results; and Amazon, where the head of its consumer business left amid concerns about overbuilding and overstaffing.

The short-term problems might be amended quickly, but greater change is in the offing. According to the Edge by Essential 2022 United States Retail Landscape and Go-to-Market Planning Report, Amazon by 2024 will overtake Walmart in U.S. sales. In addition, Amazon is expected to add more than $294 billion in U.S. revenue between 2021 and 2026. By 2026, the market researcher predicts that the top three retailers in the U.S. will be Amazon, Walmart and Costco, with 14.9%, 12.7% and 4.4% market share, respectively.

Amazon already has overtaken Walmart as the top housewares retailer, and by a large margin, as demonstrated by the HomePage News Top 50.

Looking Back

To draw some comparison, the current HomePage News Top 50 can look back at the HomeWorld Business Top 50 published in 2020, which covered the first six months of the year as a way of illustrating how the COVID-19 pandemic hit housewares retailing. The methodologies between the two rankings are similar enough that some interesting observations can be drawn — among them that the housewares sales gap between Amazon and Walmart has become much greater.

In the HomeWorld Business study, Walmart’s sales of $5.25 billion are about a quarter less than Amazon’s $7.22 billion. In the HomePage News Top 50, factoring full-year 2021 housewares sales, Walmart’s sales are about 44% lower.

Walmart Announces Partnership With Green Dot Bank

Walmart, No.2

In both readings, Amazon and Walmart revenues constituted approximately 55% of total sales. Meanwhile, the leading 10 in the half-year 2020 ranking equals 80% of the total, versus 84% in the full-year 2021 HomePage News top 10.

The strongest players in both rankings include Target, Costco, Bed Bath & Beyond, Best Buy, Home Depot, Lowe’s, Sam’s Club, Kohl’s and Macy’s, despite the companies taking different paths over the past couple of years.

The Pampered Chef fell significantly from a ranking of 11 for the first half of 2020 to 23 for all of 2021. Dollar General, although it has had fairly good fortunes lately, was among those retailers turning more to everyday needs recently and simply got passed by fast-gaining off-pricers T.J. Maxx, Ross, HomeGoods and Marshalls.

Ulta, No. 19

Ulta made a big move from 37 in the first-half 2020 ranking to 19 in the full-year 2021 list. Walgreens, CVS and Rite Aid slipped a bit. JCPenney gained a few points as it put more focus on housewares. Tractor Supply, Staples, Zulily, the Navy Exchange, Harbor Freight, Sears and Rural King fell off from one list to the next while Five Below, REI, Christmas Tree Shops and Academy Sports entered. Another entrant, At Home went from unranked among the top 50 in 2020 to 32 in 2021. Kroger supermarkets went from unranked in the 2020 list to number 42 even as its Fred Meyer division slipped a few slots to 40. Taken together, Kroger and Fred Meyer would have pushed Williams-Sonoma one back from its number 29 slot.

In some other callouts, Wayfair slipped from 27 for the first half of 2020 to 41 for all of 2021. Burlington, like other off-pricers, made gains from 35 to 28. BJ’s slipped from 18 to 25, which may reflect its positioning as the warehouse club emphasizing food and household needs. For all its recent success. Williams-Sonoma held fairly steady among the 2020 and 2021 top 50 housewares retailer rankings.

Looking Ahead

The HomePage News Top 50 demonstrates the power of major retailers with a broad housewares assortment to dominate the market. It also shows that a variety of approaches can win audiences of sufficient size and loyalty to build major businesses in the category. Right now, the market is in transition with economic, political and lifestyle upheavals prompting consumers to reconsider their own shopping and spending habits. On top of that, web-based services are becoming more widespread and diverse, facilitating interaction between retailers and their customers. Times call for retailers to rethink their approaches to housewares with a thorough consideration of how to address shopper evolving shopper needs.

“We just went through a tumultuous time and are getting to a place where disruptions are becoming more normalized,” NPD’s Derochowski said. “Because of that, it’s incumbent on all retailers to think about what is their role and purpose in our lives.”

Derocgowski added retailers who want to retain pandemic gains or even make new ones have to analyze their approaches to product assortments as they address different life moments in a way that emerging consumer lifestyles dictate.

Retailers and the suppliers who work with them have to consider what needs they want to address as the consumer approaches another new set of circumstances in an environment still shaken up by COVID-19 and all the disorder in personal lives and the economy it has caused. Retailers have to make a commitment to innovation as they try to understand the evolving consumer mindset, which is likely to be the foundation for the rest of the decade.

It’s amazing what [retailers] have done over the last couple of years. Now it’s essential they figure out their role in the lives of consumers, investing in innovation. They have to continue with innovation to meet consumer needs, to make processes easier and better. It’s critical to work with manufacturers, to figure out what consumer needs are now and how to solve them. We have to continue the incredible work that has happened over the past couple of years and innovate as much as we can.

– Joe Derochowski, Home Industry Advisor, The NPD Group

Retailers also can’t go it alone.

“The relationship between retailers and vendors has to be collaborative,” Derochowski said. “It has to become stronger with more collaboration and innovation to solve consumer needs. This is a very important time for retailers and manufacturers, who are coming together.”

Kids’ away-from-home activities are returning, and people are getting out at sports and other events. In the meantime, adults are returning to the office but with new concerns about what they need to do to protect their health. Home, especially as it has transformed during the pandemic, is still a refuge but one where consumers want to invite more friends and family. Supply chain disturbance and inflation might be shifting consumer priorities, but that has the potential to make home an even more important safe haven where folks can mitigate costs while maintaining their lifestyles.

Derochowski said the shift in how consumers are approaching work and play now should be top of mind for anyone who wants to sell more housewares. Retailers have shown innovation and agility through the pandemic and need to build on the skills and knowledge they’ve developed.

“It’s amazing what [retailers] have done over the last couple of years,” Derochowski said. “Now it’s essential they figure out their role in the lives of consumers, investing in innovation. They have to continue with innovation to meet consumer needs, to make processes easier and better. It’s critical to work with manufacturers, to figure out what consumer needs are now and how to solve them. We have to continue the incredible work that has happened over the past couple of years and innovate as much as we can.”

Methodology

The HomePage News Top 50 is derived from The NPD Group’s Checkout service, which offers robust data for tracking and improving performance across all channels plus buyer analytics to help businesses keep current customers and win new ones. Over 150,000 actively engaged buyers, the largest omnichannel panel focused on general merchandise and food service, provide NPD with receipt-based information on their in-store and e-commerce purchases. With comprehensive data from the same consumers over time, Checkout illuminates trends in behavior including migration to shopping online by category and consumer demographics. Buyer analytics deliver insight into most valuable customers, brand loyalty, brand leakage/lift, brand launches, and more, according to NPD.

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RapidFire: Inflation & The Housewares Opportunity https://www.homepagenews.com/videos/rapidfire-inflation-the-housewares-opportunity/ https://www.homepagenews.com/videos/rapidfire-inflation-the-housewares-opportunity/#respond Thu, 02 Jun 2022 16:07:21 +0000 https://www.homepagenews.com/?p=266925 In this episode of RapidFire, Joe Derochowski of The NPD Group reveals how inflation is impacting housewares pricing and consumer spending; and how the industry can respond for the back half of 2022 and beyond.

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HomePage News presents RapidFire with NPD, an exclusive video series spotlighting data-driven insights on key home + housewares trends and topics from Joe Derochowski, home industry advisor for The NPD Group.

In this episode, Derochowski reveals how inflation is impacting housewares pricing and consumer spending; and how the industry can respond for the back half of 2022 and beyond.

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