Lowe's is gaining ground, but it's still playing catch-up, D.A. Combined with DIY, same-store sales grew by nearly 26% in the quarter.
#HOME DEPOT PROLEVEL PRO#
Combined, same-store sales grew 31% in the quarter.Īt Lowe's, growth of pro sales also surpassed DIY sales in the first quarter with gains of more than 30% year over year. Growth of the pro side of Home Depot's business outpaced the DIY side for the first time in a year in the first quarter, which ended May 2, Decker said. It had previously spun off the company.ĭecker said Home Depot anticipates the biggest year-over-year growth numbers will come from pros in the coming quarters, particularly after a year when construction sites shut down, consumers postponed remodels, and DIY projects soared. Home Depot recently added to its pro business with the acquisition of HD Supply, a large distributor of appliances, plumbing and electrical equipment, for about $8 billion. They are obtaining their principal material requirement for a larger job from one of these disparate competitors." "The bigger the pro gets, though, we tend to be more of the fill-in purchase. "An individual contractor or a father-son team, we might have virtually all of their wallet," he said.
With the massive facilities, Decker said Home Depot is chasing larger professionals that only shop with the company on occasion. Each facility can hold a huge amount of inventory, such as a wider array of shingles, and deliver orders directly to a project site. It has doubled down on that with a $1.2 billion supply chain investment, which includes opening a network of flatbed distribution centers like the one in Dallas.įour have opened so far in Dallas, Baltimore, Miami and Newark, New Jersey, and three more are opening later this year in Atlanta, Houston and Tampa, Florida. The home-improvement retailers will have to make sure they have plenty of inventory to take advantage of that demand, even as supply chain challenges - such as congested ports - delay shipments.įor years, Home Depot has positioned itself as a convenient alternative to ordering from specialty suppliers for pros. "In talking to the pro, they all have very strong books of business," Home Depot president and chief operating officer Ted Decker said.
#HOME DEPOT PROLEVEL PROFESSIONAL#
In recent months, executives at both companies have said they are seeing pent-up demand for professional projects as people feel comfortable inviting contractors back into their homes and dine out and travel more instead of ticking off a list of do-it-yourself projects. About 45% of Home Depot's total sales come from pro customers versus about 20% to 25% at Lowe's, according to the companies. Home Depot has historically drawn more of its business from these more lucrative and frequent shoppers, but Lowe's is trying to attract more pros, too. and homeowners spend more time on planes or at parties, the biggest business opportunity is sales growth from home professionals. The pandemic fueled a hot real estate market and a penchant for "nesting," creating tailwinds for Home Depot and Lowe's. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower
Best Debt Consolidation Loans for Bad Credit
0 kommentar(er)
