Home Goods Demand: Will It Sustain?
The coronavirus pandemic led to a sharp increase in demand for home goods via online retailers - demand that has continued to exist across major home goods retailers. Between Q1 2020 and Q1 2022, Amazon saw an 84% increase in GMV in the home category - the most of any retailer. Overstock saw the second highest growth, with GMV increasing 55% between Q1 2022 and Q1 2020.
Monthly GMV Across Home Goods Retailers
January 2020 - March 2022
While demand has clearly increased since 2020, can retailers sustain the gains they saw in the first year of the Pandemic?
While all retailers saw huge growth in GMV in the first few months of 2021, lapping the beginning of the COVID pandemic, not all have been able to sustain that growth. In fact, after April 2021, only Amazon Home has consistently seen continued YoY growth in GMV. Target has fared the worst, with GMV decreasing 20% YoY in Q1 2022.
YoY Change in Monthly GMV
January 2021 - March 2022
What categories are driving Amazon’s strong growth in the home category?
Kitchen & Dining is the largest home category, accounting for over 30% of all GMV in Q1 2022. Furniture is the second largest - it accounts for about 12% of home GMV. The pandemic also led to strong growth in the furniture category - the category saw the second largest growth in GMV (after Home Decor) between Q1 2021 and Q1 2022. However, growth in the largest categories has stalled in the last couple of months, with Kitchen and Dining and Furniture both only seeing 12% YoY growth in GMV in Q1 2022. Although relatively small, Bath was the fastest growing Home sub-category on Amazon in Q1 2022, growing GMV by 40%.
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