Household Budgets—Growth in real disposable income is expected to slow in the medium term, limiting the potential upside for discretionary home improvement purchases.
Raw Material Prices—Since falling sharply in 2015, raw material prices have risen steadily the past two years. These higher prices have increased costs for retailers, weighing on profitability.
Omni-Channel Approach—Home improvement retailers continue to benefit from an omni-channel approach that allows customers to seamlessly transition to different selling channels. The improved customer experience is encouraging consumers to frequent improvement stores.