- The specialist said there is “strong” demand within the professional services segment. We were told projects have been booked up “12-18 months” in advance and that this is being driven by contractor shortages and consumers gravitating to home improvement retailers.
- They told us that higher inflation pressures potentially risk categorical shifts, with demand being driven out of higher ticket items and into more opening price-point lines. This is resulting in margin compression, according to the specialist.
“In the early ’90s, Home Depot was built in a recession. That company boomed in a recession and, again, this was all because people were doing things themselves.”
- On Home Depot, the specialist said it was “built” and “boomed” during the 1990s recession because people were taking on home improvement tasks themselves.
- The specialist said headcount reductions are likely. We heard that while sales outlooks remain strong, further labour market pressures on wages and margin targets will contribute to the likelihood of reduced employee numbers.
For more human insights on the North America home improvement market, click on the transcripts below.
Related Transcripts
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