Will work from home rules change customer behaviour?

Higher income households have been increasingly engaging in the automotive aftermarket on the DIY side, driving significant growth in this sector. However, as many are forced to return to the office, an industry expert warned that this could have an impact on the aftermarket.

At last year’s AAPEX, Nathan Shipley, executive director and industry analyst with Circana’s automotive aftermarket practice, highlighted that households making more than $100,000 increased their spending 30 per cent from the previous year. The number of buyers — people actually shopping — was up 14 per cent and the amount each buyer spent was up 16 per cent.

One of the key reasons for this shift is the rise in work-from-home arrangements.

“That work-from-home percentage has been at 50 per cent now for two-plus years,” Shipley explained during the general session, Aftermarket Outlook 2025.

In Hamilton, Ontario, city councillors recently called for municipal workers to be in the office more days per week. Leading Canadian banks have told staff to prepare to be in the office at least four days a week — some are requiring five days.

Initially, it was expected that the automotive aftermarket might suffer due to reduced driving during the pandemic.

“Logic would tell you: If we’re shutting the world down and no one’s going anywhere, that the automotive aftermarket might not fare so well, right? That was kind of the logic: If no one’s driving, it doesn’t make sense. People aren’t going to be doing anything with their cars.”

However, the reality turned out to be different. People began buying accessories and engaging in DIY car maintenance as a way to occupy their time.

“It was people looking for something to do, and [saying], ‘Hey, let’s just go mess with the car outside the driveway. Let’s go change the oil. Let’s go do a detail job.’ Whatever it is,” Shipley said.

This trend was particularly pronounced among higher income households who were no longer commuting to an office five days a week. These activities drove the increase in sales in the automotive aftermarket.

Shipley pointed out that this behaviour kept these consumers as auto care customers.

“If people are going to the office a couple of days a week, people don’t feel the need to buy a new car; they’re not commuting as often so they still have time on their hands to work on their vehicles or visit their local shop,” he said.

But more companies are bringing their staff back to work more often, and a full-time return to the office for many is possibly on the horizon.

“As more companies implement stricter back-to-work rules and want people in the office up to five days a week, what impact will this have on the aftermarket?” he asked.

Increased commuting could lead to higher demand for new, more reliable cars and a decrease in DIY activities.

“If all of a sudden we’re seeing white collar employees having to go to offices more, if they’re commuting more, does it mean that now that maybe they’re considering buying a newer car — a more reliable car? Do they not have as much time to do DIY, so they’re going back to the dealership instead to have oil changes done, etc.?” Shipley wondered.

Despite these potential challenges, the current trend shows that higher income households have been a significant driver of business for the automotive aftermarket.

“Up until this point, this higher income group has been one that’s been driving a lot of business for us,” Shipley said.