Home improvement stores Lowe’s and Home Depot are sounding the alarm about the United States economy as both companies are seeing decreased shopping activity in-store.
According to the Street, Lowe’s reported a drop in both sales year-over-year and the number of transactions. Home Depot also reported a dip in sales over the first four months of the year.
Lowe’s and Home Depot leadership are blaming high mortgage rates for the numbers. If interest rates are high and homes aren’t selling, then people aren’t going to Home Depot and Lowe’s to buy the stuff they need to complete household projects.
Home Depot CEO Ted Decker said in May that homeowners are still doing small projects to keep their current homes in good repair. They’re not splurging on big home improvement projects at the moment.
One potential way for both companies to remain competitive is to import fewer goods from China.
Affordability is top of mind for many U.S. consumers as the Trump administration’s trade wars continue to rage. Although the administration paused the tariffs from going into effect, financial markets are responding negatively to the uncertainty. Many households are girding for a potential recession as a result.
Internet culture is chaotic—but we’ll break it down for you in one daily email. Sign up for the Daily Dot’s web_crawlr newsletter here. You’ll get the best (and worst) of the internet straight into your inbox.
