Discover the role of independent showrooms in new builds and remodeling as well as current challenges.
By Elisa Fernández-Arias
NKBA’s first-ever Independent Kitchen & Bath Showrooms report highlights pivotal information about the changing role of showrooms in the K&B industry. The report, released during an NKBALive Research Reveal on Thursday, June 22, is available free to NKBA members here.
Below are the top 10 highlights of the report.
- Independent showrooms continue to play an important role.
Independent showrooms are integral in the kitchen and bath industry’s new build and remodeling projects, including DIY and those directed by a designer. - Homeowners are most likely to frequent independent showrooms.
This customer segment generates three times more revenue than industry professionals such as designers, contractors and builders. Homeowners are making K&B purchases for DIY projects and some designer-involved projects. - Independent showrooms face several major challenges.
The first is keeping products current and attracting consumers. The second are factors outside of their control, including supply chain/ product availability, recession, inflation and labor shortages. - Many independent showrooms are evolving.
Within the past two years, 65 percent of showrooms carried new brands, 53 percent remodeled their showroom, 50 percent added or improved their technology, and 40 percent added new product categories. - Technology is key to independent showrooms success.
They are turning to technology to improve the customer shopping experience and to help make their own operations more efficient. In the past two years alone, about 41 percent of showrooms enhanced their monitors/displays, and 30 percent updated their design software/hardware. - Independent showroom sales have remained steady.
Of the independent K&B showrooms surveyed, 70 percent reported 2022 annual sales of over $1 million, while 22 percent noted sales of $5 million or more. - Independent showrooms are positive about the future.
Despite uncertain economic conditions that continue to impact new construction and remodeling, independent showroom dealers project 2023 sales to be on par with 2022 and 2021. - Homeowners frequently turn to independent showrooms.
More than one-third of homeowners visited an independent K&B showroom for ideas and design inspiration. Additionally, seven in 10 homeowners start their K&B remodeling project by consulting with a showroom/store (23 percent), a designer (24 percent), or a builder/contractor (24 percent). - Homeowners want to see K&B products in person before buying.
Two-thirds of homeowners also reported that they upgraded their purchase after learning about product features and functionality as well as available brands. These estimated upgrades reportedly added 31 percent to the cost of products purchased for a full-scale kitchen or bath remodel. - Those who shopped at an independent showroom also made their final purchase there.
Only 6 percent did not. Additionally, two-thirds of the showroom professionals surveyed reported a conversion rate of 50 percent or more, with the median conversion rate being 64 percent.
To download the full report, click here.