High inflation in the United States has impacted consumption, but demand for such products has surged!

As inflation in the United States intensifies , consumers begin to reduce their daily spending, but the demand for home improvement products remains very high. In the second quarter of this year, sales of many home improvement retailers in the United States achieved breakthrough growth.

According to the latest financial report released by Home Depot , the company 's sales in the second quarter reached 43.8 billion US dollars, a year-on-year increase of 6.5%. It is worth noting that Home Depot's online sales soared by 12%, and the downloads, traffic and sales of the application were very high .

Home Depot also saw very high demand for big-ticket items over $1,000, with transactions increasing 11.6% year -over-year .

Home Depot CEO and President Ted Decker said the company achieved its highest quarterly sales and earnings in history, reflecting continued strong consumer demand for home improvement products.

Another home furnishing retailer, Lowe's, had total sales of $27.5 billion in the second quarter of this year, a slight decrease from the same period last year, but its net profit of $3 billion was the same as the same period last year.

And from the perspective of consumer groups, the order amount from home contractors and home improvement personnel has achieved double-digit growth. According to statistics, more than 23% of home improvement professionals currently choose to buy goods at Lowe's.

Lowe's CEO Marvin Ellison said that despite the continued uncertainty in the current U.S. macroeconomic environment, many consumers are willing to spend more money on home improvement.

In terms of hot-selling categories, Home Depot and Lowe's financial reports show that sales of building materials, pipes, wood products, paints and other products are very high. However, sales of seasonal products such as outdoor grills, patio furniture, lawn mowers and fertilizers have declined.

The demand for home improvement, which had been suppressed by the pandemic in the past two years, has begun to be released this year. At the same time, rising housing prices have also driven the growth in demand for home improvement.

Richard McPhail, chief financial officer of Home Depot, said that the nearly 40% increase in U.S. home prices over the past two years has effectively changed the balance sheets of North American homeowners. When homeowners see their homes appreciate in value, they are more likely to invest more in them.

Appreciated home prices can also allow for larger home equity loans, which homeowners often use to finance renovations.

Bradley B. Thomas, an analyst at KeyBanc , pointed out that Home Depot regards housing prices as one of the most important indicators of home improvement demand. According to statistics, the average price of homes sold in the United States in July was nearly 11% higher than the same period last year .

As housing prices rise, the demand for home improvement will also increase , and the market opportunity for home improvement products has arrived.

US e-commerce market

Home Improvement Products