After a pandemic-driven frenzy to revamp the home in 2020, the home goods sector is still strong in 2021, albeit at a more subdued pace. Consumers focused on refreshing décor and invested in higher quality and premium products even as vaccines allowed some to return to in-person work or invest in travel and activities outside the home. Consumers like the ability to shop for the home from the convenience of their home. Pandemic-related takeaways like mobile-friendly websites and apps, in-home services and omnichannel flexibility remain important to shoppers.

Inflation was and continues to be a challenge. In 2021, inflation jumped 6% over 12 months through January 2022, significantly higher than the Federal Reserve’s 2% target. Annual inflation abated for the first time in April 2022, but the Consumer Price Index grew 8.3% (or 6.2% without food and energy), according to Bureau of Labor Statistics. Prices are steeper and the home goods sector was not immune. However, while people bought at a less frenzied pace compared with 2020, shoppers still invested in their homes — and at a higher ticket price.

U.S. ecommerce growth has ebbed as in-store spending has remained strong, according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures released on May 19, 2022. Online sales grew in the U.S. 5% year over year in the first quarter 2022. But that growth accompanied an 11% increase in prices during the same period, according to a report by technology vendor Salesforce Inc.