Welcome to The Week in Retail, a weekly round-up for marketers from Quad Insights that covers the latest must-know news surrounding the retail space.
Home Depot unveils content hub for new homeowners
In an attempt to address new homeowners’ apprehension around home improvement and maintenance projects, this week The Home Depot launched its New Homeowners Hub, an online content destination designed to provide first-time and future homebuyers with the knowledge and tools they need to “confidently turn their first house into a home,” Home Depot CMO Molly Battin said in a press release. As Retail TouchPoint’s Alicia Esposito notes, “the online hub helps bring Home Depot’s expertise directly to customers via their digital devices,” while “virtual workshops provide expert, step-by-step guidance on projects like how to paint a room, replace light fixtures, install a faucet or replace a garbage disposal.”
The company’s move follows a survey it conducted in partnership with business intelligence company Morning Consult to understand the mindset of millennial and Gen Z homeowners. While 80% of new homeowners or potential homebuyers born between 1981 and 2005 revealed that they’re interested in doing renovations and repairs as well as design and décor projects, less than a third feel confident taking on such projects.
• “Inside Home Depot and Behr’s multi-generational content strategy” (Digiday)
• “How Home Depot and Lowe’s are responding to diminishing foot traffic and demand” (Modern Retail)
Luxury resale holds its own in 2023 despite recession concerns
Luxury resale is alive and well, with demand for pre-owned luxury bags in “fair condition” up 130% this year while the pre-owned luxury bag category itself is up 265% overall, according to a report released by online marketplace The RealReal (TRR). The annual Luxury Resale Report looks at the state of luxury resale, breaking down the shopping and consignment behaviors of TRR’s more than 33 million members. Overall, 2023 results indicate that consumers are still spending, with average order values up for every generation. “Rumblings about a recession haven’t stopped luxury sales,” writes Catie Pusateri of Fashionista. “Instead, The RealReal noted how its consumers are making fewer, yet more expensive purchases.”
The report also reveals top brands, with Gucci No. 1 across all demographics, followed by Louis Vuitton.
• “Shoppers trading down on luxury second-hand purchases: Report” (Yahoo Finance)
Tractor Supply Co. opens applications to small business suppliers
On Monday, Tractor Supply Co. opened applications for its “Growing Life Out Here” Open Buying Days event, an initiative focused on supporting local businesses and cultivating rural innovation by giving entrepreneurs the opportunity to sell their wares at Tractor Supply stores. The rural lifestyle retailer is seeking products in categories including lawn and garden, hardware and tools and home décor. Submissions will be assessed based on criteria including “innovation, quality, market fit and potential impact on rural communities.”
With the initiative, Tractor Supply joins an increasing number of large retailers looking to diversify their supplier pools. Last month, Walmart opened applications for its 10th annual Open Call event aimed at diversifying the retail giant’s U.S.-made supplier pool, while Target has sought to diversify its suppliers through initiatives such as Target Plus, which focuses on diverse third-party sellers.
Etsy debuts baby registry as baby products market is expected to surge
In response to growing interest in baby products among consumers, Etsy has launched a baby registry where current and expecting parents can select nursery and infant items offered by the online marketplace’s thousands of artisans and sellers.
In a statement announcing the launch, Etsy noted that over the past six months shoppers have searched for a baby item on its site every second, helping drive an 80% increase in searches for handmade toys and a 36% increase in searches for vintage baby clothes. As Trendhunter’s Kanesa David notes, “The integration of baby registries into platforms like Etsy provides a disruptive innovation opportunity for handmade and small business product sellers.”
The baby product market is projected to reach $352.65 billion by 2030, according to a Grand View Research reportfrom February 2023.
• “Etsy debuts baby registry” (Retail Dive)
• “Alphabet’s Wing partners with Walmart for drone deliveries in Dallas” (The Verge)
• “Lowe’s beats the Street; CEO to hand out $100M+ in bonuses” (WRAL TechWire)
• “Dollar General opens first dual distribution center” (Supermarket News)
• “Target expands private-label Good & Gather brand with food for babies, toddlers” (The Business Journals)
• “Wakefern to Expand Simbe Robotics in ShopRite Stores” (Store Brands)
• “Shein strikes deal with fast-fashion retailer Forever 21 that will expand reach of both brands” (CNBC)
• “Look Past the Retail Doom and Gloom. There Are Still Some Winners.” (Barron’s)