Expect the supply chain to remain in disarray for at least another eight months. Nor will inflation go away any time before that, though it will likely start to ease into 2023. These were just some of the predictions shared by Mark Herbek, executive director, home improvement, at the Cleveland Research Co. He spoke to some 900 home improvement executives from around the world at the eighth DIY Summit, being held this week in Copenhagen, Denmark.
Herbek noted that home improvement retail was up 35 percent in the U.S. over two years under COVID (comparable to growth in Canada, according to Hardlines). Out-of-stocks continue to run as high as 25 percent and this will extend the home improvement cycle as people push out projects until product is available. “But more dollars will be chasing fewer products and this is resulting in staggering inflation.”
While online sales continue to stay relatively healthy, in-store traffic has flattened, compared with pre-COVID rates. “We are past the peak in the U.S. We are now seeing a declining environment.” He said that it has taken from 10 to 17 months historically for this cycle to recover.
