Home Depot has established itself as a leading home improvement retailer in the world, with its customers making an average of over one and a half billion transactions every year.
But what category of customers does Home Depot serve? What are its target markets and demographics? I’ve researched, and here is everything I’ve learned about this!
Home Depot Target Market And Demographics
Home Depot’s target market focuses on people working on Do-It-Yourself projects, professional contractors, and those seeking Do-It-For-Me services. 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 US homeowners and 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?
In recent years, Home Depot has begun to cater more to women after considering the gender behind the decisions made on home improvement.
What Is The Average Household Income Of The Home Depot Customer?
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?
This is formed primarily of the younger Home Depot customers looking to improve their homes themselves, with DIY being the most affordable option.
This group comprises young and older people within Home Depot’s customer base and comprises 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 homes.
What Percentage Of Home Depot Sales Are Via Contractors?
One of Home Depot’s target customer groups focuses on professional customers.
At Home Depot, contractors are responsible for around 45% of the revenue brought in by the retailer.
How Frequently Do Home Depot Customers Shop In-Store?
However, Home Depot is also pushing for online sales, 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 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.