Home Depot Business Remains Strong Despite Economic Turmoil

Home Depot still maintains a healthy customer base despite economic concerns.

Home Depot still maintains a healthy customer base despite economic concerns.

Ongoing concerns of inflation have done a number on numerous businesses throughout the United States, both corporate and retail. Customers have been more reluctant to spend money as concerns mount about the state of the economy in the present and near future. However, there is one chain that has weathered the last few years seemingly undaunted: Home Depot.

At the height of the COVID-19 pandemic, when many people remained at home in isolation, Home Depot saw a surge in patronage as interests rose in home DIY projects. Apparently, this interest has not yet cooled, and with contractors returning to work, Home Depot has amassed a steadfast customer base of both professionals and hobbyists that keep it going through difficult times.

“Our consumer, our customer, pro and DIY have been resilient,” Home Depot CEO Ted Decker told CNBC’s Jim Cramer.

“Our customer tends to have strong income. They tend to be homeowners. And guess what, they’re spending more time in that home, and that home’s aging,” Decker said.

According to Decker, the only part of Home Depot stores that has seen some sagging in sales is the seasonal aisle. “It’s hard for us — is that a demand signal because of the weather? We had a tough spring,” Decker said. “Or is it a reaction to pricing or an uncomfort level with the economy? It’s hard to tease that out.”

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