Who knows more about changes in consumer housing preferences than The Home Depot—the 400,000+ employee, $110 billion per year home improvement retailer? In this podcast Jordan Broggi from The Home Depot shares what the company has learned from their recent 23% surge in revenue!
Since buyers are paying cash for virtually all of their home improvements, the surge in The Home Depot spending has very little to do with low mortgage rates. The surge is about having a better home. Jordan tells us that consumers now look at their home quite differently. Home is where they:
- work and need an office that suite their particular needs
- have dinner with family and friends, perhaps in their yard
- go to school
- spend A LOT OF TIME!
Speaking of time, consumers now have far more time to finish those long overdue housing improvements. Many also have the income, thanks to the tremendous government support that pushed disposable personal income up significantly.
Time + money is a great recipe for DIY home improvement spending, with home improvement retailers and all of their suppliers as the main beneficiaries.
Jordan also discusses the impact of global supply chain disruptions, particularly as it relates to lumber, and the acceleration of online shopping. While The Home Depot has officially suspended forward guidance on revenue and profit growth, he also notes that consumers are sure showing a lot of confidence with their spending. Consumer confidence is clearly an important indicator of future growth.
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