Research firm points to garage as opportunity
Port Washington, N.Y.-based NPD Group pointed to garage storage as a home improvement category somewhat immune to the housing downturn, as well as an opportunity for home improvement retailers.
“Garage storage is somewhat immune to the current housing market downturn,” said Mark Delaney, director of NPD Group’s Home division. “It’s not like the kitchen category. Consumers who plan on redoing their garage are doing so, regardless of what the housing market is doing.”
Some of the garage storage findings from NPD Group include:
• Warehouse home centers took the lion’s share of dollars at 47 percent in the garage and storage sector. Mass merchants followed at 32 percent and department stores at 5 percent.
• The garage storage segment attracts mostly high-income male shoppers.
• During the 12 months ending October 2007, men accounted for 64 percent of the dollar share in the garage storage and organization sector.
NPD Research is based on monthly tracking of 30,000 opt-in respondents in 70 categories.
“Areas ‘outside’ the home are getting more attention and are benefiting from the trend in making visual statements out of previously simple spaces. Garage storage is one of those areas that has evolved from simple products like bike racks and tool hooks into a race to build the ultimate ‘man cave’ complete with refrigerators and flat-screen TVs,” said Delaney.
While women account for only 36 percent of the dollar share in the garage storage and organization sector, “NPD consumer research shows that women mainly shop for home improvement items within mass merchants, where items generally sell for less. Women might become a bigger piece of the pie if mass merchants begin to carry more aspirational items or if department stores and warehouse clubs adjust their marketing efforts to appeal better to women,” said Delaney.
“Garage storage is an up-and-coming category that seems somewhat recession-proof. Retailers looking to attract a higher income consumer should consider expanding their assortment in this area,” added Delaney.