Global News
Apr 20, 20203 min read

DIY home projects are trending as people stay in.

Isabella Ahmadi

by Isabella Ahmadi

New paint, tools or furniture to transform the house into a comfortable home office – that’s what US consumers are spending their money on, according to new data from Klarna. The trend has been growing stronger since the Covid-19 outbreak.

In the last few weeks, many live a new normal under lockdown. They work from home and spend more free time than usual in their house. Wondering whether people are slacking off on the couch watching their favorite series all day? Well, think twice. Americans seem to have gotten increasingly productive.

New data from Klarna reveals a shift in how consumers spend their money online after the Covid-19 outbreak. Looking at their share of wallet – meaning how spending is divided between different shopping categories – one trend is getting clearer by each week: The home and garden segment is getting increasingly popular.

Creative minds at home

Home improvements are trending now more than ever, with paint, tools and other products intended for home DIY-projects reaching new levels of excitement among Americans. Through the Klarna app, consumers are able to make a purchase at any online retailer – and they seem to be planning plenty of fixing up right now. More time spent at home seems to have inspired people to repair or rebuild pre-existing flaws in the household. 

As a result, home supply stores are seeing substantial success. For five weeks in a row (across March and April), sales volumes have continued to increase. The curve is especially strong in DIY renovations.

Millennials and Gen Xers – both with important purchasing power – seem to be ready to get their hands dirty. These age groups have increased their share of wallet spending on home goods the most, followed by the younger Gen Z generation. 

Setting up home offices

Furniture is also attracting consumers in Klarna’s app. Both big chains and smaller merchants are seeing positive results, according to Klarna’s data. The data seems to be pointing out what impact social distancing has had on people’s buying habits. Now it seems like the times of social distancing are showing in what people buy. For example, new desks are among the items that make it into American homes. With the growing practice of working from home, people might be realizing that they need to improve their home office comfort. It’s just not very ergonomic to work from the sofa table, is it? 

Furniture is more than desks though. While staying at home, there might be a need to get comfortable when relaxing, prompting the purchase of new furniture for the living room. Home appliances are also in high demand. Reports on people stocking up on sanitary products and groceries have flooded media, which might have led to concerns among consumers about storage. A bigger fridge or perhaps an additional freezer could be interesting items for people who eat at home more often. 

Comfort is key

Buying home and garden related goods is definitely a trend on the uptick. The strict stay at home policy for many consumers, has given them an opportunity to check off some items on their home project to-do list.  For Gen Z, electronics such as games and kitchen supplies have also taken an increasingly large share of wallet recently. For Millennials and Gen Xers, the spending has increased since the virus outbreak but remained relatively stable. This suggests that building comfort in everyday communication, entertainment and work from home is key for shoppers at the moment. But after upgrading the home office, planting some flowers and painting the kids’ room – what’s their next move? Stay tuned for more findings on shopping behavior at Klarna’s blog Extra O: Global News.