The Kitchen & Bath Market Index logged its third consecutive quarterly gain, nearing levels not seen since Q4 2019.
By Robert Isler
This year’s fourth-quarter release of the NKBA/John Burns Kitchen & Bath Market Index (KBMI) saw a continuation of the positive trends revealed in Q3. A total of 464 NKBA members across four primary industry segments took part, including those in design, retail, building & construction and manufacturing. In addition to overall benchmark comparisons and those measuring industry health and current and anticipated future conditions, the report delved into sales projections and the pandemic’s continued effects on a number of variables, and also took a deep dive into the latest opportunities and challenges by segment.
The overall index was a 65 out of 100, on the heels of Q3’s 61.9. Anything above 50 indicates expansion. It follows contracting scores in the 40’s range for both Q1 and Q2 of 2020. Measurements of industry health yielded similar results. The 7.1 out of 10 was the highest recorded since the 7.2 from pre-pandemic Q4 2019. Current and future conditions, as rated by members, were also the highest since before the pandemic began. Optimism about the future was particularly strong, with Q4’s index of 72.7 easily eclipsing the 66.9 of Q3 and the 61.9 of Q2.
“The KBMI registered its third consecutive quarterly expansion, nearing levels not seen since Q4 2019.”
Drilling down by segment, retail was the stellar performer, ranking first or tied for first for all four variables. Conversely, design was the poorest performer, ranking last for three of the variables and second-to-last for the fourth, future expectations.
The largest gap by segment was for the overall K&B index. Retail had a score of 71.7, while design came in at 62.1. The sales picture was even more stark. Overall, members reported Q4 2020 sales growth of 4% over the previous quarter. Retail sales doubled the industry average, with robust gains of 7.9%, while design registered a more modest increase of 2.4%. Meanwhile, manufacturing saw sales gains of 5.5%, while building & construction stood at 3.8%.
Looking ahead at full-year 2021, NKBA members expect sales to grow by 10.7% over full-year 2020. The good news is that the outlook is strong for all industry segments. Once again, retail sales leads with a projected gain of 12.1%, followed by manufacturing at +10.6%, building & construction at +10.5% and design at a very respectable +9.4%.
To download the Q4 KBMI report, please click here. The report is included in the NKBA membership and may be downloaded by members at no additional cost. Non-members may purchase the report for $1,995.