We just wrapped up the 5th Home Improvement eRetailer Summit. As a safety precaution, the Summit was an online-only affair. The presentations and panel discussions touched on a host of topics that included distribution and brand management, best practices to reduce shortages and delays, and lessons learned during the health crisis.

While last year showed huge surges in online sales due to the pandemic; all signals point to ongoing growth in online sales of home improvement products in a post-pandemic world.

Here’s 5 Takeaways:

1. It’s always Day 1 when operating in an ecommerce environment -

In the discussion about online retail, digital is very fluid and each day is new. “It’s always Day 1 when operating in an ecommerce environment,” said Jimmy Barber, VP at OneStone, our marquis sponsor of the Summit.

2. It’s by the numbers, data and analysis -

Joe Derochowski, Vice President with NPD Group, shared his organization’s latest data on consumer trends, shopping trends, and home-improvement trends. Derochowski stated that demographic markers—such as when people are marrying, buying homes, and retiring—favor home improvement purchases. “The population is hitting key life moments driving the growth of the home-improvement industry.” Derochowksi also identified various factors during the pandemic that has been driving home-improvement spending, ranging from “boredom and stress” and “working from home” to “craving outdoors.” One new trend cited was expanding the garage space for entertainment and play within social distancing guidelines.

Over the past year, the online share of total sales exploded across virtually all retail categories. But online purchases of such products as vanities or faucets seem more aspirational than urgent. And in the five home-improvement categories that NPD analyzed, sales at bricks and mortar stores also grew, and those stores continued to capture a higher percentage of impulse purchases. These findings led Derochowski to conclude that home improvement retailers must do a better job at “connecting the dots” for consumers by marketing specific projects with products, and perhaps even providing online project instruction.

NPD also found that:

Adults 55 or older index higher for home-improvement purchases and online sales growth, whereas in-store sales growth is led by the 25- to 34-year-old cohort.
Every Census region in the country saw increases in online sales last year. “Your marketing agility is critical,” said Derochowski.
The online buyer penetration for NPD’s home-improvement product group was 37% last year, 8 percentage points higher than in 2019.
While in-store spending is three times higher versus online, and purchasing frequency is four times higher, the spend per occasion is bigger for online—$40 vs. $25 for in-store—in part, said Derochowski, because online purchases are usually plan.

3. Relationships matter - now more than ever -

Indeed, one of the event’s big takeaways was how relationships played a major part in keeping online and hybrid retailers above water during a pandemic that nearly submerged the industry’s supply chain.

Relationships in business are always important but during the pandemic many of the retailers and suppliers participating in panels said that relationships related specifically to product accessibility, surcharges, and vendor confidence in the retailer’s ability to make it to post-pandemic times. Specifically:

Product Accessibility – vendors had to decide who they supply the “available” product.
Penalties and Charges – if you didn’t have a relationship with the vendor most likely you were incurring surcharges.
Vendor Confidence – vendors shipped to who they thought would be around post-pandemic.
The clear message here is if you don’t have and/or nuture deep relationships with your partners, please start building them now! Forging long-lasting relationships between retailers and their customers and suppliers is now imperative to successful expansion.

The pandemic showed that you never know when you might need them!

Talking relationships, the Summit’s second day highlighted one-to-one supplier/retailer meetings. Steve Wright, VP of Sales at Columbia Aluminum Products said “the one-on-one lightening rounds were an exceptional touch: 15 minutes, quick introductions, cut straight to the chase, establish mutual interest, and follow-up meetings as appropriate. Super useful, saving thousands of dollars and time vs. traditional on-site sales calls.”

4. It’s not hyperbole – words are important -

There were common words that became themes with many of the speakers using words like “adjust,” “trust,” “efficiency,” and “supply chain diversification.” These words, will surely carry forward into our future online business planning.

5. eCommerce is getting attention in the board room -

As the pandemic limited in-store shopping and forced consumers to buy online, retailers and their supply chains were under new pressures to deliver. Clearly, online retailers experienced growing pains during the pandemic. While brick and mortar stores still retain the lion’s share of retail sales, it is no longer viable to ignore the encroachment of online transactions. More companies are having discussions about ecommerce, and ramping up for the first time with real investments in their online sales, marketing and logistics departments with an eye toward future growth.

In wrapping up the 5 Takeaways from the Home Improvement eRetailer Summit earlier this month; overall, every point positively indicates deeper market penetration of online into total home improvement industry sales. I hope you enjoyed the 5th Home Improvement eRetailer Summit wrap-up. Enjoy using the relevant takeaways. Looking forward to seeing you in person in 2022!

Sonya Ruff Jarvis, is the Managing Member of Jarvis Consultants and the Founder of the eRetailer Summit and JC Event Group. An expert in her field, Sonya has been published in numerous retail industry b-to-b publications. Sonya shares her experiences in her book series Mindful Minutes: A Marketer’s Journey Through Business. In addition, Sonya collaborated in publishing an anthology, Mentoring Moments: 14 Remarkable Women Share Their Breakthroughs to Success. Purchase Sonya’s books here.

Sonya has a M.B.A. in Marketing. She is married and has a daughter.

Follow Sonya on twitter at @jarvisconsult or @eretailersummit