Consumers’ views on the economy are diverging—and their behaviors are, too . While demand for professional trades services remains steady, discretionary spending patterns vary among consumers. How is inflation and changing consumer preferences impacting retailers and home improvement businesses? By understanding these trends, businesses can make informed decisions to navigate the current economic landscape successfully.
Changing Retail Landscape
Retailers like Target and Walmart have observed a noticeable decline in discretionary purchases across the board. Inflationary pressures have compelled consumers to allocate more of their budgets towards essential items such as groceries, leaving less room for clothing and home goods. Consequently, these retailers have reported a downturn in sales, reflecting the cautious spending habits of budget-conscious consumers.
Impact on Home Improvement Retailers
The effects of reduced discretionary spending are also evident in the home improvement sector. Companies like Lowes and Home Depot have experienced a decline in their discretionary DIY segments, prompting them to revise their sales and profit outlook for the year. As consumers tighten their belts, they are opting for necessary repairs, replacements, and professional home improvement services over discretionary projects.
Home Trades Services: A Resilient Industry
Despite the challenges faced by retailers, home trades services have proven to be a winner in the current economic climate. ServiceTitan, a leading provider in this sector, witnessed steady growth in Q1, with certain geographic regions outperforming others in terms of revenue growth compared to the previous year. The demand for non-discretionary home repairs, replacements, and improvements requiring professional assistance is expected to continue rising due to weather events, population migration within the US, and elective renovations by homeowners who are less affected by income inflation.
The Benchmark Report - powered by Titan Intelligence
ServiceTitan customers can read more by going to TitanAdvisor to access their Benchmark Report powered by TI (Titan Intelligence). Coming this fall, ServiceTitan is adding a new industry benchmark for their customers. Check out a sneak preview of CBR: Call Booking Rate & CGV - Call Growth Velocity.
