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Home Depot launches new product to fix alarming customer problems

TheStreet
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Home Depot launches new product to fix alarming customer problems

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Those who grew up with handy fathers, enjoy do-it-yourself home renovations, or work in construction are all too familiar with the task of gathering supplies. For many, one retailer stands out above all others. Home Depot is the world's largest home improvement chain, operating over 2,300 stores across the U.S., Canada, and Mexico. It offers more than 35,000 products in-store and 1 million online, spanning everything from lawn supplies to building materials.For nearly five decades, Home Depot has held a special place in American home improvement culture. Its bright orange logo, the smell of lumber upon entering its doors, and associates' iconic aprons have created a nostalgic connection for many.However, despite its loyal following, the retailer is now struggling with serious headwinds. A troubled housing market, pressured by high home prices, rising unemployment, and ongoing economic uncertainty, has weakened demand.To make matters worse, its store visits declined by 0.4% in the third quarter of 2025, according to Placer.ai.With no anticipated rebound anytime soon, Home Depot is looking for new ways to keep consumers engaged.Home Depot debuts The Home Depot Creator PortalHome Depot (HD) has launched its new Creator portal, a platform to help digital creators monetize their home improvement content and collaborate with the brand. The portal provides them with campaign opportunities, creative inspiration, and expert guidance to help them develop engaging content.Through the platform, creators will also receive product recommendations from the Home Depot brand and its suppliers, can earn commissions through shoppable links, and obtain access to tools that help maximize opportunities and track their performance.Applications are now open on The Home Depot Creator website, and thousands of creators have already enrolled. Accepted participants will receive onboarding with training resources, best practices, branded hashtags, curated collections, and product catalogs. Additional perks include storefront capabilities, exclusive benefits, and product gifting."The Home Depot Creator portal isn't just a website – it's a community that drives meaningful engagement with current and future customers through talented personalities who give them confidence to tackle their home improvement projects," said Home Depot CMO Molly Battin in a press release.To promote the program, Home Depot has partnered with well-known renovation and lifestyle creators, who will share tailored soccer-themed content ahead of the FIFA World Cup.The Starting Lineup Dude PerfectTrinity RodmanDad Advice from BoGlam DapperDIY HuntressCarlos FloresOPE ProsTony HenryAnothony VidalGrill Dads Home Depot launches The Home Depot Creator portal to win back customers and boost sales amid an industry slowdown.

Shutterstock Home Depot's launch rivals Lowe's creator programThe launch of The Home Depot Creator portal follows the debut of Lowe's Creator Program in June, which was promoted by the massive social media influencer MrBeast. Lowe's (LOW) platform offers a very similar model, allowing creators to earn commissions, build their digital brand, and grow a community.For Home Depot, the timing is strategic. With high interest rates and softening housing demand, homeowners are postponing major projects, and professionals are not spending as much as they did before.More Retail Strategy News:Cracker Barrel takes McDonald’s strategy to win back lost customersAriZona Beverages saves rivals shut down factoryLululemon makes major changes, adds surprising new partnerAlthough Home Depot's net sales rose 2.8% year over year, comparable transactions fell 1.6% in the third quarter of fiscal 2025. Comparable sales also experienced minimal growth, increasing 0.2% overall and only 0.1% in the U.S."While underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialize," said Home Depot CEO Ted Decker in an earnings call. "We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand."In an effort to strengthen its position with professionals and contractors, Home Depot also acquired specialty building products distributor GMS for $4.3 billion in September.Home-improvement market strugglesThe home-improvement sector has faced ongoing struggles throughout 2025, as shifting housing dynamics and economic pressures reshape consumer spending. Younger generations face more barriers to becoming homeowners, yet homeownership rates among Gen Z are still growing, making them a key demographic for long-term growth.In 2024, more than 26% of Gen Zers (19-27 years old) owned a home, according to Redfin News.Home Depot and Lowe's shift toward creator-driven content reflects a change in retailers' strategies, as they seek to reach younger audiences who are increasingly relying on social media, especially as more Gen Zers enter homeownership.Despite the challenges, there is still hope for the home-improvement sector."Many homeowners have deferred larger discretionary renovations in recent years, creating a buildup of latent demand," said Placer.ai analysts. "Once economic conditions improve and financing becomes more accessible, that pipeline of major projects is poised to reopen, driving a new wave of growth for the home improvement sector."Innovations like The Home Depot Creator portal and supplier partnerships position the retailer to capture that potential future growth. Still, analysts caution that the turnaround will take time."The Home Depot's business hasn't gotten worse, but importantly, it's not getting better," said Oppenheimer Analyst Brian Nagel in a CNBC interview. "For a long time now, there have been these expectations that we'll get some type of recovery in home improvement, and what Home Depot said... That's not yet happening."TD Cowen analysts describe the company's outlook as "a reasonable starting point" that could set the stage for a recovery once housing and large-scale projects regain momentum, as reported by Reuters.Related: Target slashes prices on holiday essentials

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