Home Depot sales after mass deportations

Photo by Justin Sullivan | David Sherdil | Lariat

After the most recent round of mass deportations, spillover effects are being felt in industries far distant from immigration enforcement. One of the most obvious is at local Home Depot stores, where operations and sales both are being reshaped by the sudden shift in the labor market. Increased material costs, reduced inventories of skilled labor, and changing patterns of consumer behavior are all converging to create a new normal.

Basic building materials from wood to drywall are higher in price as supply chains tighten and labor shortages impact delivery. Contractors are encountering higher bids and project delays.
“The cost of getting even simple projects done is increasing on all fronts,” said Jim Copp, a contractor and longtime Home Depot Pro Member. I could walk into here and buy what I need and be certain my guys would have it completed in a certain amount of time. Now, I’m paying extra for the same material and sometimes waiting a couple of days or weeks for shipments that came two or three days before.”. It’s become more difficult to get labor too and the individuals I do have working for me want more money because there’s just not enough people willing to take these jobs anymore. It throws the whole cycle of running a small contracting company into chaos.

For those who are working in the store, the differences are acutely felt but not necessarily desperate. We certainly have seen some change in purchasing behavior. According to Brendan Sanchez, Merchandising Assistant Manager at Home Depot. “Many of our professional contractor customers have backed off from bulk purchasing, and that takes a chunk of sales out of some categories. But there’s also been an uptick in do-it-yourself customers. Customers are walking in and saying, ‘If I can’t afford to pay a contractor, I’m going to do it myself.” Which is translating to us selling more individual tools, small quantities of materials, and do it yourself items. It’s not as heavy as that professional purchase, but it’s propelling pieces of the store. From a merchandising standpoint, we’re continually reorganizing displays and inventory to adjust to where the demand is shifting.

For front-line workers, the story is no simpler. You can feel the wrath of the customers more than ever, Graham Paulo, a Home Depot associate stated that, “People will come up to me and ask me why the same sheet of plywood costs ten dollars more than it did a few months ago or why paint products have a small price increased.” A few individuals become upset when we tell them there’s a backorder on certain tools or parts. I’ve wasted so much more time going over price increases and delays, and it doesn’t go over with everybody. On the other hand, I’ve had a whole lot more homeowners try DIY projects. They’ll appear with questions about flooring, plumbing, or even electrical components they would otherwise sub out. So, it’s harder in some ways, but you get to see customers learn and try to become more involved with their projects.

The intersection of immigration policy and neighborhood business practice highlights just how integrated the economy has become. Home Depot, traditionally used as a bellwether for trends in home construction and remodeling, is now caught up in the crosscurrent of rising costs and changing consumer behavior.

For managers, contractors, and associates alike, the news bites. Whether the current do-it-yourself mania will be enough to offset contractor slowdowns or whether the shortage of labor creates larger system changes time will tell. One thing’s certain: the effects of the deportations are being felt on the shelves at Home Depot.

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