Home Depot has noticed a consistent pattern of behavior among shoppers that has led to a decrease in foot traffic in stores, despite sales numbers hitting expectations.
In a report from Yahoo! Finance, the home improvement store revealed U.S. sales increased by 1.4% year-over-year in its second-quarter earnings report for 2025. However, executives have noticed a decline in foot traffic in same-store locations by 2.6% compared to last year.
Home Depot CEO Ted Decker explained the results are “in line with our expectations.” He claims it’s due to a noticeable shift in customers putting more emphasis on smaller projects.
“The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects,” he explained.
While Home Depot still sees positive growth in sales in departments like storage, bath, hardware materials, indoor gardening, and appliances, the company reveals that customers are putting a hold on large-scale home improvement projects.
“We continue to see softer engagement in larger discretionary projects where customers typically use financing to fund the renovation project,” said Home Depot Executive Vice President of Merchandising Billy Bastick.
He explains relief on mortgage rates could help, with “the No. 1 reason for deferring the large project is general economic uncertainty.”
Foot traffic in Home Depot stores is not only due to customers focusing on small DIY projects.
Due to President Donald Trump’s stand on tariffs, Home Depot’s foot traffic and sales are also affected, with customers delaying nonessential purchases. Many look for more cost-effective solutions and lower-priced retailers.
As a result, Home Depot announced a rise in prices as some important goods are subject to tariffs.
“I think it’s important to keep in mind as well our customers tend to shop for the entire project, and you think about a small flooring project, tile, the grout, bathtub, and vanity, and a bath project,” said Bastick. “And so, we’re laser-focused on protecting the cost of the entire project. Our goal is to maintain the best value for our customers.”
