Home Depot is doubling down on its professional customer base as shifting economic conditions weigh on consumer spending in home improvement.
The retailer reported a 1.4% year-over-year increase in US comparable sales for its second quarter of 2025. Yet foot traffic at same-store locations dropped 2.6% during the same period, according to Placer.ai.
Executives said elevated mortgage rates are keeping many shoppers from taking on big-ticket renovations.
“Our customers still tell us that the rate environment is giving them pause on larger remodeling projects that would typically require debt financing,” CFO Richard McPhail told analysts on last month’s earnings call.
Mortgage rates have hovered above 6% this year, dampening home sales and remodeling activity. The National Association of Realtors reported that existing-home sales slipped 0.2% in August, while the median home price jumped 2% from last year to $422,600. “With rates declining recently, sales should get a lift in September and October,” said Ruben Gonzalez, chief economist at Keller Williams, in a statement to TheStreet.
To help offset the slowdown, Home Depot has launched a new Project Planning tool for its Pro customers — contractors, remodelers, and tradespeople who make up a large share of its business.
The platform allows professionals to plan every stage of a renovation through a single supplier, with features such as materials lists, order tracking, delivery scheduling, pricing visibility, and multi-user collaboration.
Mike Rowe, executive VP of Pro, in a press release: “Our Project Planning tool makes it easier than ever for our Pro customers to plan, purchase and monitor the status of their complex projects – all backed by the full power of The Home Depot’s product assortment and expertise.”
“The average Pro works with 10 or more suppliers on a single job. We’re in a unique position to simplify this process and will continue to expand our digital tools to meet the evolving needs of Pros.”
The release comes shortly after Home Depot closed its $5.5 billion acquisition of building materials distributor GMS, aimed at giving contractors broader fulfillment and service options.
Together, the initiatives highlight the retailer’s strategy to capture more professional spending at a time when DIY customers are cutting back.
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