Among the recent earnings call transcripts of Home Depot and Lowe’s were the following points of interest:
- strong growth in online sales
- increasing sales to DIY consumers
This was not surprising, as millions of US consumers adhered to various stay-at-home orders promulgated by government officials and avoided going out. Furthermore, many consumers opted to use this time spent at home to complete various renovation and repair projects – from painting rooms to installing decks.
While the COVID-19 pandemic was the primary driver of these sales, there’s nothing to suggest that this will be a one-time occurrence. Online sales growth will continue to climb as both homeowners and construction professionals use online platforms to easily and more safely order the building materials they need. Like many grocery stores, Home Depot and Lowe’s both offer curbside pickup, a feature that saves time for busy contractors that is better spent on completing jobs.
DIY construction activity is also expected to rise going forward, even without the spectre of the coronavirus hanging over homeowners’ heads. In addition providing a sense of achievement to those who successfully complete projects, even minor improvements and repairs can enhance the value, efficiency, and beauty of a residence. Indeed, homeowners who successfully accomplish one or more smaller projects while sheltering in place may feel like trying a larger or more ambitious project, such as installing flooring, cabinets, or even a new kitchen or bathroom.
For more information, see The Freedonia Group’s collection of research and analysis on construction and building product industries. Freedonia Custom Research is also available for questions requiring tailored market intelligence.