Page 50 - HW December 2020

global eyes
US DIY chains
riding wave of home improvement
JUDGING BY THE latest results for Q3 FY2020, both the DIY big barns and smaller operators are benefitting from Americans tending to their homes.
Indeed, according to GlobalData research, some 70% of American consumers took on at least one home or garden project during the third quarter, compared to 51% during the same period last year.
Home Depot’s “outsized demand” – Mid November, Home Depot reported Q3 sales of US$33.5 billion, +23.2% on the previous year, with US comparable sales +24.6%.
Q3 was “another exceptional quarter for The Home Depot as we saw the continuation of outsized demand for home improvement projects, which has led to sales growth of more than $15 billion through the first nine months of the year,” says Craig Menear, Chairman and CEO.
The CEO also highlighted payback from the retailer’s digital investments with Q3 digital sales +80% and as much as 60% of online orders fulfilled through a store.
www.homedepot.com
Digital pays off for Lowe’s – At the same time, Lowe’s reported Q3 sales of US$22.3 billion, +28.3% on last year, with US comparables +30.4% and, of particular note, online sales +106%.
Marvin Ellison, Lowe’s President and CEO, says: “Strong execution enabled us to meet continued broad-based demand, as we delivered over 15% growth in all merchandising departments, over 20% growth across all geographic regions and triple-digit growth online.
“We continued to invest in the future growth of the company, including a $100 million investment in the quarter as part of an ongoing effort to reset the layout of our US stores...
With some way to go before the
company is fully reset, he continues: “Our omni-channel transformation continued in the third quarter with further investments in Lowes.com and our supply chain.
“I remain confident that we are making the right strategic investments to deliver sustainable, long-term growth.”
www.lowes.com
Ace shows small can be beautiful too
– Ace Hardware reported record Q3 revenues of US$2 billion, +30.7% over last year, with US comps +28.9%. Net income reached a record $98.7 million (+63.1%) and online orders smashed it at +221% on last year.
www.acehardware.com
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48 NZHJ | DECEMBER 2020/JANUARY 2021
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