Inside the Home Depot playbook
The good thing about the current macroeconomic environment weighing on the home improvement industry is that the tailwinds are more durable than the headwinds.
About Crystal Vision
More than twenty years ago, leaders in the kitchen and bath industry met with the global humanitarian organization World Vision with the idea of reducing waste and equipping families across the nation to live fuller lives.
That was the birth of Crystal Vision—an annual event that recognizes the contributions companies are making to society.
The 2024 event was held Feb. 28, and coincided with KBIS in Las Vegas.
And of course, there’s the headwind of high interest rates.
“Those interest rates are not doing us any favors in terms of their ability or willingness to actually take on the remodel project right now,” she said.
Working against those headwinds, and in favor of home improvement retailing, are the tailwinds formed by aging housing stock and rising home values. More than half of American homes (53 percent) are 40-or-more years old. “All of those homes need repair and probably a lot of those need a good touch up and a great remodel” she said.
Meanwhile, the American home market value increased 46% since 2019—that adds up to $15 trillion. “So our most valuable asset is just getting much more so,” she said.
In these crosswinds, Home Depot is taking some pages out of what Hudson calls a “very classic playbook.”
She described three chapters:
First chapter: product authority.
Product authority, she explained comes through offering such things as quality products, the right brands, and great innovation. In the kitchen and bath area, one example of functional innovation is in the area of water conservation.
Product authority also leans into design trends, what Hudson called “our industry superpower.” Speaking to a room with large representation of Kitchen & Bath Industry Show (KBIS) attendees, Hudson said, “All of you who were here seven years ago, we were looking at a sea of white and gray. And now it's matte black and pops of color. And the great wood tones are back. We need to lean into that.”