Home Depot has established itself as a leading home improvement retailer in the world, with its customers making a total of over one and a half billion transactions on average every year.
But what category of customers does Home Depot serve? What are its target markets and demographics? I’ve done the research, and here is everything I’ve found out about this!
Home Depot Target Market And Demographics In 2022
Home Depot’s target market focuses on people working on Do-It-Yourself projects, professional contractors, and those seeking Do-It-For-Me services as of 2022. With an average age of 50, the store’s customer base has consisted mostly of male Baby Boomers. However, more women and millennials are also now shopping at Home Depot.
If you want to learn more about the demographics of Home Depot’s customers according to race, age, and gender, and how much the average customer spends, keep on reading!
What Is The Average Age Of Home Depot Customers?
Baby Boomers, or the generation born immediately after the Second World War, are the most important customers at Home Depot, bringing in the most revenue.
This age group accounts for around 40% of homeowners in the US, and so are more likely to be shopping for home improvement supplies and spending more in the process.
Despite this, the average age of a Home Depot customer is actually around 50 years of age.
This is due to the younger, Do-It-Yourself (DIY) shoppers who fall into the millennial age range and pull down the average.
What Are The Racial Demographics Of Home Depot Customers?
Recently, a survey reported that 69% of Home Depot’s customers were white.
The next largest customer representation was Hispanic, making up 15.3% of Home Depot’s customers.
Finally, a further 8.5% of customers were African-American, and 5.5% were Asian.
Which Gender Is Most Likely To Shop At Home Depot?
Home Depot is considered a male-friendly store since male shoppers are more attractive customers to home improvement stores in general as they spend 30% more on average.
In recent years, Home Depot has begun to cater more to women after considering the gender behind the decisions made on home improvement.
Similarly, the uptick in female shoppers in the online home improvements market has pushed the store to shift its gender focus.
What Is The Average Household Income Of The Home Depot Customer?
In 2018, a survey found that the average income for a Home Depot shopper was around $60,800.
This is significantly more than the median income of around $31,000 in the U.S., indicating that people in the middle to upper classes generally spend at Home Depot.
What Is Home Depot’s Target Market?
Home Depot splits its target market into three distinct groups, which are described as follows:
This is formed primarily of the younger customers at Home Depot who are looking to improve their homes themselves, with DIY being the most affordable option.
This group consists of both young and older people within Home Depot’s customer base and is made up of customers who utilize Home Depot’s home delivery and installation services.
Instead of saving costs by doing everything themselves, these people choose the ease of having the heavy-lifting done for them when renovating their home.
Professionals, consisting of contractors, plumbers, painters, builders, and other home improvement experts, are responsible for a large segment of Home Depot’s revenue.
What Percentage Of Home Depot Sales Are Via Contractors?
One of Home Depot’s target customer groups focuses on professional customers.
Although this group only makes up around 5% of the company’s customer base, it brings in a huge amount of revenue.
At Home Depot, contractors are responsible for around 45% of the revenue brought in by the retailer.
Additionally, Home Depot is looking to engage more with these customers by developing online and in-store marketing to attract more professionals.
How Frequently Do Home Depot Customers Shop In-Store?
A typical Home Depot customer will visit the store, on average, around 4 to 6 times a year.
However, Home Depot is making a push for online sales as well, with its customer base increasingly moving to online purchases.
The move online has also increased the need for a smooth transition between online and offline customer service since many customers browse online and shop in-store.
How Many People Shop At Home Depot Yearly?
On average, 1.756 billion customer transactions were carried out at Home Depot stores across the nation.
This was up from recent years when 1.616 billion customer transactions were taken by the retailer.
How Much Does The Average Customer Spend At Home Depot?
On average, a customer spends around $75 at Home Depot upon each visit to the store.
Note that this is slightly less than the average spend for its competitor, Lowe’s, where customers spend an average of $85 per transaction.
Home Depot’s average customer is most likely to be a white male, aged around 50 years old.
Their yearly household income will sit around $60,800 and they are likely to visit the store 4 – 6 times a year, spending an average of $75 per visit.
The target market for Home Depot is split into three categories, do-it-yourself, do-it-for-me, and professionals.
Even though they only make up a small percentage of the customer base, the pros are responsible for the most revenue at Home Depot.