By now I’m sure some of you have heard the news that Home Depot is canceling 50 stores they had slated to open and they’re also closing 15 existing stores.
There is little doubt this move is related to the current economic challenges… particularly the credit markets which likely drive much of the home improvement spending.
As of this writing, I haven’t seen or heard other home improvement chains like OSH or Lowes make any announcements similar to Home Depot’s.
And without sounding any unnecessary alarm bells or starting false rumors, it would not surprise me if they did… I hope not… but it goes without saying there is a lot of corrective action being taken in the market right now.
What does this mean for us DIY builders and your above ground pool deck project?
Well, while things might sound really tough… the actual numbers don’t forecast endless gloom and doom.
Much of the deep pain has already been priced into many of the financial, homebuilder, and home improvement retailer stocks. There could be some additional bumps in the road ahead, but the worst appears to be over.
Home Depot, for example, still plans to open 55 new stores this year. For 2009 and beyond, they still plan 1.5% growth in square footage. True, it’s less growth than 2007 but they’re still growing. Which is of course preferable to the alternative.
The company will reduce capital spending by $1 billion over the next three years. This puts them in a healthier position moving forward to preserve capital and spend it in ways that ultimately benefit you, i.e. enough quality tools, supplies, and lumber to still help you build a good deck around your pool for a reasonable price.
So what else can you do?
Remember, in addition to places like Lowes and OSH, there may be local lumberyards and smaller home improvement stores in your area... and the Internet. It’s always a good idea for you to shop around for the highest quality product with good prices, but now that’s especially true.
Challenging economics may make it seem like now is the wrong time for you to do something… like build a pool deck. But if you think about it, you can paralyze yourself with analysis at any time… strong economy or not.
Also, while a lot of people are understandably concerned about the economy… unless you’re a Home Depot employee, investor, or live near one of the closed stores their recent announcement isn't going to affect you much.
There will always be companies there to supply your need for quality DIY products.
With that said, if you’re reading this then it's safe to say you’re likely very interested in building a deck around your pool. So if you think the time is right for you, you should go for it!
As always, enjoy your pool!
Best regards,
Paul Ottaviano
Createyourdeck.com
P.S. – For those of you wondering which 15 stores are being closed, here is the list, as announced by Home Depot:
Store #2015 East Fort Wayne, Indiana
Store #2032 Marion, Indiana
Store #2310 Frankfort, Kentucky
Store #379 Opelousas, Louisiana
Store #2819 Cottage Grove, Minnesota
Store #6901 East Brunswick, New Jersey
Store #6904 Saddle Brook, New Jersey
Store #6171 Rome, New York
Store #3702 Bismarck, North Dakota
Store #3874 Findlay, Ohio
Store #3865 Lima, Ohio
Store #4552 Brattleboro, Vermont
Store #4932 Beaver Dam, Wisconsin
Store #4933 Fond du Lac, Wisconsin
Store #4913 NW Milwaukee, Wisconsin
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