![]() Ellison noted lumber prices have fallen through the floor as supply and demand have finally rebalanced after years of supply chain constraints. Lowe’s said sales at stores open at least a year fell 4.3% in the past quarter. Consumers are pausing large-scale projects until economic conditions stabilize,” he said. “Year-over-year project completions are up 1.8% in the first quarter of 2023 on a year-over-year basis, decelerating from 6.5% in the fourth quarter of 2022. Some have paused large-scale projects, while others are shifting towards smaller, lower-cost projects, he said.Īmong the trends he’s observed: Consumers are downgrading brand names in favor of lower prices, they’re using factory-made cabinetry as opposed to custom carpentry and buying less expensive countertops.ĭarcy said project completions are beginning to waver. “This has been unhelpful to Lowe’s, although arguably the burden falls more on Home Depot as movers tend to undertake heavier and more serious DIY, which traditionally favors Lowe’s larger rival,” he said.īill Darcy, CEO of the National Kitchen & Bath Association, said homeowners are nervous about the economy. Why retail theft is soaring: inflation, the economy - and opportunity The Target logo is displayed on shopping carts at a Target store on Februin Southgate, California. On the consumer side, a slowing housing market is dragging down the number of people undertaking projects, Saunders said. “Lowe’s is suffering from a case of the home improvement blues,” said retail expert Neil Saunders, managing director at Global Data, in a note Tuesday. The end of a protracted robust investment by homeowners in DIY home improvement projects during the pandemic has forced Lowe’s and rival Home Depot to look for ways to offset a business slowdown. That optimism also hinges on pursuing a different customer, where having rural stores “gives us an opportunity to drive sustainable profit growth due to the much lower expense base,” said Ellison. “We remain optimistic about the medium-to-long-term outlook for home improvement.” “We are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases,” said Ellison. Home Depot hits the brakes: Three-year robust sales run ends amid pull back on home improvements ![]() (Photo by Tim Nwachukwu/Getty Images) Tim Nwachukwu/Getty Images Workers at the northeast Philadelphia Home Depot branch filed a petition to unionize with the National Labor Relations Board on September 19, with 274 employees seeking representation. PHILADELPHIA, PENNSYLVANIA - SEPTEMBER 22: A general view of the Home Depot branch on Septemin Philadelphia, Pennsylvania.
0 Comments
Leave a Reply. |