Home and garden specialist retailers suffered from double-digit sales declines in 2020 as pandemic-induced restrictions meant prolonged store closures. Home improvement and gardening stores was considered to offer an essential service during the second wave, and therefore, the channel did not experience such a significant drop in sales compared to homewares and home furnishing stores, with these outlets closed for a longer period and therefore suffered deeper losses.
Alongside declining sales due to store closures during the lockdowns, Israelis spent prolonged time at home, with many continuing to work remotely or as part of hybrid measures even as restrictions eased. Many consumers used the time to upgrade their homes and attempt some renovation projects themselves, thereby driving up demand for home-related products.
IKEA regained its leadership of home and garden specialist retailers in 2021 in value share terms, with Home Centers dropping back to second position. While classed as non-essential during the first wave of the pandemic, store closures forced IKEA to make some redundancies while outsourcing other employees to the IDF (Israel Defense Forces).
Home and garden specialist retailers is predicted to make a full recovery to pre-pandemic levels in value sales terms (at constant 2021 prices) by 2023. The channel will be supported by local consumers continuing to invest more in their homes in line with improving disposable incomes, and a greater emphasis on the home as a hub, especially as many employees are likely to continue to work from home for part of the week due to hybrid measures.
Despite the optimistic outlook for home and garden specialist retailers in Israel overall, demand for home improvement and gardening, and homewares and home furnishings online is expected to remain dynamic with both product categories via e-commerce predicted to outperform sales growth through store-based specialists over the forecast period. Therefore, it will become imperative for retailers that want to expand their consumer reach over the forecast period to attempt to balance a productive online platform and a physical store that offers specific value to consumers, such as a more entertaining and immersive experience.
Leading home and garden specialist banner IKEA launched a new kitchen concept store in Petah Tikva in mid-2021 as part of its expansion plans in the country. The new store named IKEA KITCHENS covers 500 sq m, and is located near the large shopping centre on Yitzhak Rabin Street 1.
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Understand the latest market trends and future growth opportunities for the Home and Garden Specialist Retailers industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This is the aggregation of homewares and home furnishing stores and home improvement and gardening stores. Business-to-business sales are excluded.See All of Our Definitions
This report originates from Passport, our Home and Garden Specialist Retailers research and analysis database.
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