Home Depot is continuing to benefit from its rental program, CEO Craig Menear told a conference call of investors following the company’s announcement of its first quarter results last week. Menear said that the retailer’s sales to its “pro” customer base continues to outpace its DIY customer segment and that the company continues to make traction with investments in capabilities such as tool rental, which is doing well with the pro customer community.
“We know that 90 percent of pros rent tools,” Menear said. “But several years ago, only about one out of 10 pros rented from us. Today, that number has improved to one out of four, yet there remains opportunity for further growth as we continue to invest in our tool rental experience. We know that when pros rent tools from us, their spend increases.”
Home Depot reported sales for the first quarter of $26.4 billion, a 5.7-percent increase from last year. Still, sales were less than expected for the quarter as a result of wet weather in February – the second wettest February for the United States on record – as well as a drop in lumber prices which negatively impacted Home Depot sales by about $200 million.
Home Depot now has tool and equipment rental in more than 1350 locations in the U.S. and Canada. No. 4 on the RER 100, Home Depot Rentals reported $940 million in rental revenue in 2018 and is growing the heavy equipment and moving truck portions of its rental business.