May 30th, 2023, Lesley Simeon
The Home Depot has lowered its outlook for 2023 after sales fell by 4.5% in Q1 2023 and total revenue for the quarter dropped 4.2% YoY to $37.3 billion. In addition to a ‘steep drop’ in lumber prices and ‘weather-related challenges’, the retailer also cited changing consumer spending habits noting that consumers are taking up smaller home improvement projects and are cutting down on ‘big ticket’ and discretionary purchases given higher interest rates and inflation.
We look at YouGov data to see how the retailer has been performing in recent years.
According to YouGov BrandIndex - which tracks consumer sentiment towards thousands of brands daily - The Home Depot’s brand health has dipped since 2019. The brand’s Index metric - which is a measure of overall brand health taking into account perceptions of Value, Satisfaction, Reputation, Recommend, Quality and Impression - has slipped from a net score of 44 in 2019 to 39 in 2023. Its Current Customer score remained mostly unchanged in the observation period.
The brand’s Consideration, Value and Recommend scores have all dipped since 2019. Its Consideration score - which indicates how many consumers are considering purchasing from a brand – went from 45% to 43% between 2019 and 2023.
The retailer’s Value metric - which measures whether the brand represents poor or good value for customers’ money - slid from a net score of 42 to 38 in the observation period.
The Home Depot’s Recommend metric - which identifies brands that consumers tell their friends and colleagues to avoid and those they recommend to them - is down from a net score of 46 in 2019 to 41 in 2023.
Explore our living data - for free
Discover more retail content here
Want to run your own research? Run a survey now
Make smarter business decisions with better intelligence. Understand exactly what your audience is thinking by leveraging our panel of 20 million+ members. Speak with us today.
Methodology: YouGov BrandIndex collects data on thousands of brands every day. The Home Depot’s Index score is an overall measure of brand health, made up of General Impression, Customer Satisfaction, Quality, Value, Corporate Reputation and Recommendation and delivered as a net score between -100 and +100. Its Current Customer score is based on the question: Have you purchased products such as furnishings and home goods from any of the following brands/stores in the past 3 months? and delivered as a percentage. Its Consideration score is based on the question: When you are in the market next to purchase products such as furnishing and home goods, from which of the following would you consider purchasing? and delivered as a percentage. Its Value score is based on the question: Which of the following brands/stores do you think represents good value for money/poor value for money? and delivered as a net score between -100 and +100. Its Recommend score is based on the question: Which of the following brands/stores would you recommend to a friend or colleague? And which of the following brands/stores would you tell a friend or colleague to avoid? and delivered as a net score between -100 and +100. Scores are based on an average daily sample size of 26227 US adults between 2019 and 2023. Figures are based on a 52-week moving average. Learn more about BrandIndex.
Photo by Oxana Melis on Unsplash