On Presidents Day, many elect to shop, despite prices
On Presidents Day, many elect to shop, despite prices
Presidents Day is famous for shopping, and a Home Depot in east Baltimore was doing a brisk business Monday.
Oscar and Tika Weaver were holding hands as they exited the store. They’d bought a hammer and also spotted a deal on a fridge, so they might be back later — even though they said they don’t really need a fridge right now.
“Just want one that dispenses ice and water,” Oscar said.
Tika said the current one works just fine. “I’d rather have a Gucci bag,” she added.
Right now, there are more shoppers like Tika than Oscar. Clothing store sales were up 2.5% in January from the month before. Sales at building materials stores were mostly flat, up 0.3%. Retail sales across the board were up 3% from December, according to the Commerce Department.
People bought a lot of homes and building supplies early in the pandemic, pointed out Natalie Kotlyar with the advisory firm BDO. But now, interest rates are higher.
“Consumers are putting their new homebuying plans aside, and they’re pivoting and they’re focusing more on home improvement and redecorating,” Kotlyar said.
For a retailer like Home Depot, someone who’s redecorating likely won’t bring in as much money as a builder doing a gut renovation. The store needs consumers to buy everything from hammers to refrigerators and the proverbial kitchen sink.
“You’re going to need them to do massive home renovations — $10,000, $20,000 transactions across a number of different categories,” said Sucharita Kodali, a retail analyst with Forrester.
Back at Home Depot in Baltimore, construction worker Steven Washington had a shopping cart full of gray tiles to use in a backsplash for a kitchen he’s renovating.
“Wasn’t on sale, though,” he said. “We always shop here. Sometimes while we’re here, there might be a sale. We’re here regardless, sale and not.”
Washington said business is pretty good, adding that that’s because people have to live somewhere. And that somewhere might as well have a new backsplash and a nice fridge.
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