Home Improvement Market Declines as Economic Pressures Shift Consumer Spending
US: The home improvement market is facing a downturn due to shifting economic conditions, rising borrowing costs, and inflationary pressures. Home Depot, a major retailer in the industry, has reported a decline in profits, with net income dropping to $4.56 billion in Q2 2024, down from $4.66 billion the previous year. CEO Ted Decker attributed the decline to "higher interest rates and greater macroeconomic uncertainty," leading to postponed renovation projects and reduced consumer spending.
Home Depot, a corporation that specializes in the retail sale of home improvement products in the US, now expects a 3% to 4% decrease in comparable sales for the year, marking the seventh consecutive quarter of negative growth. Despite the challenges, the company's acquisition of SRS Distribution is anticipated to boost total sales by 2.5% to 3.5%.
While Home Depot faces declines, the global ceramic sanitary ware market is projected to grow by USD 25.01 billion from 2024 to 2028, driven by increased spending on bathroom remodeling and the rising popularity of eco-friendly bio-toilets. Bathroom and kitchen renovations continue to trend, with high-tech appliances, vinyl flooring, and vibrant color schemes gaining popularity. The home improvement market is undergoing significant transformations, reflecting broader economic and consumer trends.
Source: The Pinnacle Gazette