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The home improvement sector continues to face challenges in 2025, and category leaders Lowe’s and The Home Depot continue to navigate shifting demand. Yet signs of resilience are beginning to emerge as both brands report strength across key mid-range categories and identify opportunities to drive the next phase of growth.
We dove into the data for The Home Depot and Lowe’s to find out what location analytics reveals about their performance and evolving strategy.
Reason For Optimism in the Industry
In their recent Q2 2025 reportings, both Lowe’s and The Home Depot underscored an important dynamic – while comparable sales and average ticket size increased, comparable transactions declined. Both retailers attributed this pattern to a shift in the mix of projects. Although the quarter saw notable strength in seasonal items, repair and maintenance supplies, and some bigger-ticket items, consumers continued to defer large discretionary renovation projects that typically require financing. This aligns with both retailer’s modest YoY traffic declines during most months since November 2024, since larger projects tend to require more store visits than smaller upgrades or repair projects.
Yet, both companies remain cautiously optimistic. Since July 2025, YoY visits to The Home Depot and Lowe’s have remained near, and in some cases exceeded, 2024 levels – which should bode well for the companies’ upcoming reportings. The nation’s housing stock is older than ever and underlying demand for new construction remains strong. Meanwhile, many homeowners have deferred larger discretionary renovations in recent years, creating a buildup of latent demand. Once economic conditions improve and financing becomes more accessible, that pipeline of major projects is poised to reopen, driving a new wave of growth for the home improvement sector.
Gen Z Holds The Key
Another source of future home improvement demand may come from Gen Z, a cohort that is quickly growing within the renter and homeowner populations. As this generation enters new life stages – moving into first apartments, buying starter homes, and taking on their own improvement projects – its influence on the category will expand.
Both Lowe’s and The Home Depot are already positioning for this shift. Each recently launched creator programs designed to highlight how their brands can empower the next generation of DIYers and design enthusiasts, while tapping into the reach and authenticity of influencers’ online communities.
As shown in the chart below, both the Home Depot and Lowe’s currently see smaller shares of visits from the Spatial.ai: PersonaLive segments “Adulting” and “College” within their captured markets, compared to national benchmarks. This suggests a significant opportunity for both retailers to capture untapped demand from younger consumers living independently. If the brands’ creator initiatives succeed in driving greater engagement with Gen Z, their shares of these segments could grow in the years ahead.
Lowe’s and The Home Depot Look Ahead
The home improvement sector remains in transition in 2025, as Lowe’s and The Home Depot adapt to shifting consumer priorities. Still, both retailers are finding bright spots – from solid performance in mid-range categories to fresh opportunities that could drive the next phase of growth.
For more data-driven retail insights, visit Placer.ai/anchor.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
