$Home Depot(HD)$ Warning: Consumers are locking up their wallets when it comes to big ticket discretionary projects. With higher interest rates freezing the market, people are not buying new homes. The era of unplanned renovations has paused.
Contractors are reporting shorter backlogs, proving that the pros are feeling the pinch of increased borrowing costs.
$Wal-Mart(WMT)$ is more consumer defensive resilient. People may delay a renovation project but they still have to buy eggs, milk & meat. Walmart is the largest US retailer. Its dominance is acting as a shock absorber for the entire retail sector.
The retail sector isn't signalling an economic collapse but it is delivering a reality check.
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- GabrielleSusan·08-18TOPContractor backlog shrinking matters more than it looks. That usually hits building materials inventory next, and the suppliers often show the stress before HD does1Report