The aging Baby Boomer generation has prompted Home Depot to turn its focus on catering to professional contractors.
At a recently held conference, company executives said they will now concentrate on bringing more small contractors who can be hired by the aging Boomers. This means anyone from an independent professional to small and mid-sized businesses can hope to gain.
For years, Home Depot has nurtured a loyal customer base of Baby Boomers enthusiastic about tackling home improvement project themselves. The do-it-yourselfers have been a key demographic for the retail company, which has said that majority of its non-professional customers are baby boomers.
But for this target audience, priorities are now different.
“Their expectations of the Home Depot are changing,” said Marc Powers, Home Depot’s executive vice president of U.S. stores. “Now, people like me have less time and less energy to do it myself like the Home Depot taught us to do. Now, I want someone to do it for me.”
Regardless of their old age, Home Depot executives are certain that baby boomers would still want to invest in home improvements. The company, therefore, is keen on adapting itself to meet the growing demand.
Win-Win Situation for Small Businesses
Independent contractors are likely to benefit the most from the current situation. Since Home Depot is serious about wooing the baby boomers, it is going to rely more on professional contractors who can do the job well.
Small businesses that can capitalize on this growing demand will be able to make the most of this scenario.
It’s also worth noting that it’s not just Home Depot that is setting eyes on small contractors. Competitor Lowe’s has also been serious about finding the right professionals. The company provides vendor-sponsored training opportunities, more consistent work flow and fast payment terms to attract professional service providers.
Housing Market Brings Hope
Recovery in the U.S. housing market has put Home Depot back on the growth track. The company is doing well financially and exploring different opportunities to continue growing. It recently acquired Interline, a distributor and direct marketer of maintenance and repair products to reach millennials, who live in multi-family housing.
Home Depot is also focusing on its digital business and online marketing to connect with the millennials.
The market is upbeat and that’s good news for small businesses operating in this industry. Growing demand will boost business and create more opportunities.
The Home Depot Photo via Shutterstock