As millennials step into becoming homeowners, Home Depot sees them ringing up more do-that will-yourself projects at its stores.
The retailer on Tuesday reported an impressive increase in same-store sales, fueled by more shoppers spending on items such as tools, lumber, garden accessories along with flooring. Hurricanes Harvey along with Irma, along with some U.S. wildfires, also boosted sales of recovery materials.
Home Depot cited growth among its professional customers, although that will’s also calling out bright spots with younger shoppers who prefer DIY. To be sure, winning millennials over the competition will be key to Home Depot’s future, since those shoppers represent a larger proportion of the U.S. population.
along with when millennials become homeowners, they’re spending more for renovations than baby boomers, according to an annual survey through Houzz & Home. The study found that will the 25-to-34-year-old age group spent an average $26,0 in 2016 on home upgrades, up 7 percent year-over-year.
“We’ve seen a sequential improvement within the modest ticket quarter-over-quarter … tickets below $50, which have a tendency to lean more towards the DIY,” Edward Decker, Home Depot’s executive vice president of merchandising, said on a call with analysts along with investors.
During the fiscal third quarter, Home Depot’s average shopper spent $62.84, up through $59.78 a year ago. Transactions under $50, which make up 16 percent of Home Depot’s total sales, were up 2 percent. Transactions over $900, which account for 22 percent of sales, climbed 12 percent.
“The types of projects that will [millennials are] going to engage in are very similar to any brand-new homeowner, along with in research we see that will the millennial will be showing an interest to be DIYers,” said Bill Lennie, executive vice president of Home Depot’s outside sales along with service division.
Despite some analysts’ fears, the housing market’s multiyear recovery doesn’t look to be slowing down anytime soon, especially with millennials on board.