Once a potential customer sets foot in a store — whether it’s a brick-and-mortar establishment or a virtual shop — an opportunity presents itself. It’s the opportunity to not only help them find and buy the items on their shopping list but also to motivate them to make a few extra purchases along the way.
To that end, home improvement retailers must be invested in increasing product-category reach within their establishment, both to aid their bottom line and to improve the overall customer experience. One way to do so is by encouraging cross-category purchasing.
As a manufacturer, you have a part to play in achieving this goal, which benefits your brand as well as the retailers you partner with. The goal is to create opportunities for DIY homeowners and pros to purchase products from multiple categories in a single shopping trip to a specific retailer.
Encouraging cross-category shopping — and making it simple, convenient and intuitive — benefits both shoppers and retailers.
According to data from our 2024 Home Improvement Retail Selector Study, the type and variety of products that a retailer supplies is a strong motivating factor for customers when choosing where to shop—and this driver has been steadily on the rise since 2016. It’s especially true for home centers and specialty stores.
Customers want to shop at locations that give them access to a great selection of products. Additionally, one-stop shopping was a reason for purchasing from a specific retailer for 3 in 4 customers in 2024. So while retailers are driving basket size, they can also satisfy these customer needs and respond to the motivating factors behind their retailer selection.
There are the two overarching strategies that support cross-category purchasing for home improvement retailers:
Displays and promotional merchandising strategies are typically short term, specific, and often seasonal. A retailer might have a display encouraging homeowners to get their yard ready for the spring that includes an array of essentials for outdoor projects, from tools to materials and accessories.
You could bundle together items related to a specific project, with a total amount that is lower than what retail customers would spend buying each product individually. Or you could run a promotion where shoppers who buy an item, such as hand tools or power tools, receive a discount on complementary items, like hardware or other building materials.
Additionally, a retailer could run a brand-wide promotion that motivates shoppers to purchase add-ons from the same manufacturer, creating more visibility and awareness around what that brand has to offer or driving customers to try a new product from a new (or familiar) brand.
Category-adjacencies, on the other hand, require more long-term strategizing. They can affect the layout, flow, and product placement within a store on a macro level, which supports how the retailer performs among market competitors over time.
You’re thinking about what type of projects your customer might be completing, and what products they’ll need in the process — especially the ones that might not be top-of-mind. When customers are exposed to these products while shopping for the ones already on their list, they might be motivated to add them to their basket, thus driving basket size. For example, you’d want your lumber products to be located near various tools and hardware typically used for building projects. But there’s also a good chance shoppers would consider getting their paints and finishes from the same retailer if properly motivated.
It can be helpful to understand homeowners’ purchasing preferences and behaviors, including what types of products they purchase, purchase motivators, shopping preferences, and other important market dynamics. By identifying and analyzing the primary factors that influence homeowners’ decisions when choosing retailers and building products, you can gain insight into opportunities for increasing cross-category purchasing.
Both category-adjacencies and cross-category displays and promotions require an understanding of specific product categories and subcategories for home improvement and construction, and data on which ones are cross-purchased most frequently. This enables you to effectively evaluate adjacencies, assortments, and promotions and test various merchandising strategies aimed at increasing cross-category purchasing and boosting customer satisfaction.
Here are a few notable data points from our 2024 Home Improvement Retail Selector Study to inform future strategizing for manufacturers and retailers:
In 2024, nearly one-third of shoppers purchased paint and/or paint accessories in addition to another category in the same trip.
This is an ongoing trend supported by findings from across HIRI research, and it is consistent across product categories, with the lawn and garden category being the only exception.
For example, two-thirds of people purchasing ceiling/floor materials, as well as wall/window coverings, also purchased paint and associated accessories. While there’s been a small decline in the percentage over the past couple of years, it’s still an important trend among home improvement shoppers.
Hardware and building materials also have a high rate of being bought in addition to other products in different categories in a single trip. In particular, hardware has a high association to products in the lumber, wall/window coverings, building materials, and hand tool categories. Building materials have the highest crossover with hardware and lumber.
For example, in 2024 about half of the customers who purchased lumber materials also purchased products from the paint, hardware, and building materials categories.
There is a connection between power tools and accessories and the hand tools category, with more than 40% of people shopping for products in the first category also making purchases in the latter. It’s important to track what kinds of requests customers make when they’re in the store searching for a particular product.
You can encourage your store associates to pickup on these cues from customers and pass that feedback along for questions such as,
Approximately 45% of shoppers purchasing HVAC materials also bought products in the electrical and lighting category.
Knowing that connection could give retailers insight for intentional and effective category-adjacencies within their store layout. You also might consider running promotions where shoppers can get multiple products in a package or bundled together.
Both kitchen and bathroom remodeling products have a high rate of cross-category purchasing with plumbing products. About 40% of customers shopping in the bathroom and kitchen remodeling categories also make purchases in the plumbing category.
The same goes for individuals shopping for major home appliances. Individuals are looking to knock out their shopping list for various home improvement projects in a single trip, when feasible.
While paint and painting accessories have a high potential for cross-category purchasing, research shows that outdoor living products are on the opposite end of the spectrum.
Outdoor living products are less frequently paired with other product purchases during a single shopping trip. Customers seem to have a narrower shopping lens when they come in with this intention.
Retailers face challenges motivating them to buy from other product categories at the same time, but there also may be opportunity there to implement more tailored merchandising strategies.
Across almost all product categories, customers tend to choose a retailer based on them having a great selection of products as opposed to wanting a particular brand. That means if a retailer is intentional about how they stock and the options they provide customers, they can draw in customers — and satisfy their needs for items from complementary product categories.
The two notable exceptions, by slight margins, are major home appliances and power tools. Customers are a little more likely to choose a retailer if they know they carry the brand of home appliance and the brand of power tool they want.
HIRI’s Home Improvement Retail Selector Study—available to HIRI members — will help you understand the purchasing dynamics of consumers across a variety of home improvement product categories. Additionally, you’ll gain insight into how those dynamics have changed recently, compared to prior years, and how you can utilize current trends to your advantage.
This study is just one of several dozen research studies conducted annually by the Home Improvement Research Institute on behalf of members. Not yet a member? Then you’re missing out on unlimited access to one million dollars worth of home improvement specific market research. Simply schedule a consultation to learn more.
HIRI members have exclusive access to ~$1M of annual research, which covers Channel, Product, Project, and Market Size activity for both Homeowners/DIYers and Contractors. HIRI is the best source of secondary home improvement information. To leverage HIRI data ensures your organization has a strong, foundational comprehension of the industry and dynamics impacting it.