Posted by: Diane Capuano
Consumers’ uncertainty and lack of trust in the overall economy continues to hamper a potential recovery for paint and decorating stores. Third-quarter sales results reflect a low level of consumer confidence that has persisted throughout the year.
As a result, sales at independent paint and decorating outlets remain below 2009 levels for the first three quarters of 2010. With the exception of one region — the Northeast, which posted a moderate gain of 2.0 percent in the third — all regions of the U.S. were still below last year’s results for the third quarter. Overall, sales dropped 1.8 percent nationwide and 4.9 percent in Canada.
Year-to-date results also are down from the previous year. Nationally, sales are lagging 1.3 percent behind last year through the first nine months of 2010. Again, the exception is the Northeast, which has posted a 3.4 percent gain in sales from one year to the next. Canadian sales results are down 4.6 percent through the first three quarters of this year.
The window coverings category is the only product group showing a positive sales performance in comparison to last year — at least in the U.S. However, window coverings are still lagging behind last year’s sales results in Canada.
New housing starts remain sluggish, though existing home sales are recovering a bit. Sales of existing homes had plunged after expiration of the federal tax credit last year, but are slowing climbing back up, which may be a positive indicator for paint and decorating stores as they wind their way toward 2011.
Paint and decorating market sales figures come from the quarterly Pulse Report, which is a product of the PDRA Market Research Center. Click here for a full report.
Tags: Paint Industry Research