Well, by itself, this is a startling headline (click here for the full story). The CNN story blames it on needing to catch up with Home Depot and also right-sizing their inventory (which is, admittedly, huge). Indeed, for several years, home remodeling has been the bright spot in the retail sector.
However, I’d also remind readers of my note about the remodeling sector from not long ago (click here for that story). The homebuilding and home sales sectors have been reporting some softness, mainly cost driven, and that’s inexorably tied to home remodeling. Intriguingly, the folks being laid off are generally in the assembly biz.
As a personal anecdote, I purchased a house in Key West not long ago, and immediately bought a new grill from Home Depot. Not withstanding my normal “do-it-yourself” attitude about things, this particular grill was a multi-person job. Home Depot was on the spot, and sent over a team to do the job (kuddo’s to the Home Depot in Key West, Florida!). Had I not bought a house there, I wouldn’t have bought the grill, and the assemblers wouldn’t have had a job. You do the math, folks….
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