Wednesday, 1 January 2025
by BD Banks
Home Depot has had a rough 2024 amid a significant change in consumer behavior.
As home prices in the U.S. remain high, the housing turnover rate remains the lowest in 30 years, and the average 30-year mortgage rate is above 6%, consumers have deprioritized spending on large discretionary home projects such as kitchen and bath remodels.
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The consumer trend contributed to Home Depot’s shrinking sales all year. In the company’s third-quarter earnings report for 2024, it revealed that its comparable sales in the U.S. decreased by 1.2% year over year during the quarter.
Related: Home Depot sounds alarm on customer behavior
In addition, the average amount of money customers spent on each purchase shrunk by almost 1%. This contributed to Home Depot’s net earnings to decline by roughly 4% year-over-year.
Given the current change in consumer behavior, Home Depot expects its comparable sales for the rest of the fiscal year to decline by about 2.5%.
As Home Depot struggles with sales, leadership opted to keep store doors open during a holiday when most retailers are closed.
On New Year’s Eve this year, Home Depot will be open regular hours. However, on New Year’s Day, it will operate between 9 a.m. and 8.pm, instead of its usual 6 a.m. to 10 p.m. hours.
More retail hours:
Home Depot’s New Year’s plans closely mimic Lowe’s, which will also be open regular hours on New Year’s Eve but only between 9 a.m. and 6 p.m. on New Year’s Day.
Other major retailers, such as Costco, Sam’s Club, and Aldi, will close their doors on New Year’s Day; however, on New Year’s Eve, they will be open during limited hours.
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