Home Improvement on a Winning Streak
The pandemic continues to boost sales for home improvement retailers as consumers spend much of their time at home. Total retail sales in the category were up 11% in July 2020 year over year according to the Department of Commerce (see chart), and consumer spending in the home category soared in April 2020 after stimulus checks were deposited.
Remaining open as essential retailers during the lockdown helped propel sales. The home improvement sector also saw increased demand due to consumers taking on more home improvement projects: 73% of consumers started a home or garden project in the second quarter, up from 56% who did so in 2019, the organization says.
Home Depot reports second-quarter net sales were up 23.4% to $38 billion. The home improvement retailer also reports its net income increased 24.5% year over year to $4.3 billion. It saw increased adoption of its fulfillment options—more than 60% of online orders were fulfilled at the store. Home Depot’s digital platforms grew almost 100% during the same period.
Lowe’s reports net sales of $27.3 billion, a 30% increase from the same quarter in 2019. Lowe’s aims to invest half a billion dollars each year from 2019- 2021 to transform the technological makeup of its business. Those efforts are impactful, as the retailer reports a 135% year-over-year increase in website sales from the same period in 2019.