Home Depot sees worrisome shift in consumer behavior

According to the Securities and Exchange Commission, in 2025 Home Depot was the world’s largest home improvement retailer by net sales (SEC) filing.

The retailer reported At the end of Fiscal Year 2025, sales were $164.7 billion, an increase of 3.2% compared to 2024.

Because of the company’s size and reach—it serves both DIYers and professionals and sells products in every category from hardware to seasonal decor—trends in its sales often reflect broader trends in the economy and housing markets.

That’s why the recent change in shoppers’ behavior is particularly worrying.

Home Depot’s latest innovations 10-K filing It reveals that while the retailer experienced an increase in big-ticket sales, device sales saw a significant decline.

In Q4 Fiscal Year 2025, large ticket transactions of $1,000 or more increased 1.3% compared to last year. However, device sales have been declining steadily for the past three years, accounting for only 8.5% of the company’s total net sales in 2025; This figure is lower than 8.8% in 2024 and 9.1% in 2023.

Data shows that rather than spending money on optional items like a new dishwasher or high-end refrigerator, shoppers are spending money on repair and maintenance categories like plumbing and electrical.

This seems to indicate a consumer base that is cautious about the direction of the economy. They are willing to spend on basic necessities, but they are not so willing to spend money on unnecessary upgrades.

“[Consumer uncertainty] “That’s still the number one reason why people tell us that our customers are definitely not investing in big projects,” Home Depot CEO Ted Decker told investors on the company’s Q4 2026 earnings call.

“[It] “It includes everything from consumer confidence and sentiment, the business picture, overall, price levels and affordability in the economy,” he continued.

It’s not just discretionary spending that’s slowing down, either. Home Depot’s filing also reveals that homeowners are spending less on foundation improvements and remodeling projects.

“You’ve heard us talk before about cumulative underspending on home renovations,” Decker told investors. “We used some third-party consultants who said the amount of money people are spending on aging homes is $22 billion today.”

The lower spending is seen in categories such as bathrooms, which saw a 0.2% decrease compared to the same period last year, flooring, which fell 0.4%, and kitchens and blinds, which saw a 0.1% decrease compared to the same period last year.

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Annual spending on improvements and maintenance of owner-occupied homes is expected to decline further in 2026, according to Harvard University’s Joint Center for Housing Studies.

“The Leading Indicator of Remodeling Activity predicts that year-over-year growth in home renovation and repair spending will be 2.9 percent at the beginning of this year, then growth will slow to 1.6 percent by the end of the year.” A report from the research center dated January 2026 stated:.

Both the Housing Joint Center and Home Depot agree that this decline in essential spending is also tied to the negative economic outlook.

“Our customers tell us they are concerned about general economic uncertainty. inflation“Business concerns are rising and financing costs are rising,” Home Depot CFO Richard McPhail said during the February investor call.

Larger housing market trends have also had a significant impact on Home Depot shoppers.

“Housing turnover has remained at historic lows since 2023, significantly reducing demand for home buying and selling-related projects and other purchases,” McPhail said during the investor call.

“The turnover obviously helps people fix things up before they sell, and the new homeowner changes the house to whatever they want,” Decker said. “It also has an impact on people who are thinking about moving and are looking forward to repairs rather than the replacement cycle.”

There appear to be some signs that the tide on the housing market is starting to turn, at least in some corners of the country. Laura Grace Tarpley from TheStreet Redfin’s review was recently included We think we’re finally in a buyer’s market.

Although the data confirms this, consumers are not yet fully confident that the change will continue, and this is reflected in their spending.

“As we look to fiscal 2026, we anticipate these pressures will continue as we have yet to see a catalyst for an increase in housing activity,” McPhail told investors.

Related: Lowe’s takes on Home Depot with improved shopping experience

This story was first published by . Street First appeared on April 2, 2026 Retail section. Add TheStreet at: Preferred Source by clicking here.