With so much talk about today’s consumers and their preference for eCommerce, we often forget to consider which brick-and-mortar retailers are doing well. Today specifically, we’re looking at how Home Depot has cited growth among younger shoppers who apparently enjoy taking on DIY projects.According to a recent article from CNBC, Home Depot reported increases in same-store sales in Q3 on do-it-yourself items like tools, lumber, garden accessories and flooring. Some suspect this is related to more millennials becoming homeowners and taking on improvement projects. The article goes on to cite research supporting that millennial homeowners are even spending more than baby boomers on renovations – those aged 25 to 34 spent an average of $26,200 on home upgrades last year. But it’s not just major improvements – Home Depot is also claiming that they’ve seen an increase in sales from shoppers spending less than $50 too.
So why is Home Depot thriving in the eCommerce age? Part of the reason could be that they’re pretty competitive on promotional pricing and availability compared to Amazon in many of their key categories. According to a Market Track basket analysis, all but one item was priced lower in the home improvement retailer’s circular than on Amazon. Additionally, 42% of the items tracked in the analysis were not even available through Amazon Prime.
While millennials are the demographic group that is most likely to make traditionally in-store purchases via mobile or online, Home Depot’s successful Q3 tells us that home improvement may be one category where they would still prefer to shop in-store. Home Depot also has an advantage over Amazon in the type of expertise their in-store employees can bring to consumers. Personally, I wouldn’t trust Jeff Bezos to help remodel any part of my home.
For more information on different categories as they relate to consumer attitudes and Amazon pricing, review our latest download here.