Lowe's and Home Depot Are Betting on Home-Maker Classes for Consumers

(Bloomberg) -- Americans are finally getting out of the house as pandemic restrictions melt away like the winter snow. But Lowe’s Cos. and Home Depot Inc. are betting they can keep consumers interested in home-improvement projects via online and in-person workshops on bathroom upgrades and lawn care.

Both retailers want to hold onto the customers that they gained during the two years of the Covid-19 pandemic, when homebound shoppers invested heavily in improving their living spaces. Now, that spending boom is expected to moderate as the outside world competes for attention -- but livestreams may help to keep the retailers’ momentum from flagging, and customers are now increasingly comfortable with online workshops.

“We did some virtual stuff. We saw success with it, so we wanted to keep that option,” said Bill Boltz, Lowe’s executive vice president of merchandising. Early registrations for the streamed workshops, part of an initiative the retailer calls DIY-U by Lowe’s, were fully booked, he said, while adding that customers are still looking forward to in-person events as well. 

Lowe’s on Wednesday announced it will offer livestreams during the spring selling season that will accommodate up to 1,000 viewers. Topics include adding pizazz to a home office and making bathroom improvements. The company is also offering an event for children on how to build a tabletop game. Rival Home Depot is also offering virtual “Homeowner 101” workshops on projects from boosting a home’s curb appeal to outdoor living spaces. 

Revenue jumped for both companies during the pandemic, sparking gains in the stock market. Home Depot shares have doubled in value over the last two years, while Lowe’s shares have tripled. 

The online and in-store events are part of efforts to boost spring sales -- a crucial season for home-improvement retailers as warmer weather sparks an increase in gardening and building projects. Livestreams are one way to keep consumers spending and companies will likely keep investing in them, said Ken Fenyo, president of research and advisory at Coresight Research.

It’s a format that’s clearly catching on: Americans spent about $5.6 billion on livestream shopping in 2020, according to data from Coresight. The firm estimates that the amount doubled to $11 billion last year and will reach $26 billion by 2023. As of 2021, about 30% of U.S. consumers had viewed livestreams. Among those, half have made purchases.

“We’re seeing it really emerge in the U.S.,” Fenyo said. “For a lot of companies we’re still in that test-and-learn period when a lot of the focus is on engaging customers.” Livestreams also attract younger customers, he said. 

That’s an important point, since many millennials became first-time homeowners over the course of the pandemic. Boltz said he sees them as a key audience for the livestreams and workshops that Lowe’s is offering. “There’s still a bunch of do-it-yourself business out there,” he said.

Even if livestreams don’t generate an immediate purchase, they can still help build customer loyalty down the line.

“It’s a chance for people who are excited about a topic,” Fenyo said. “It’s probably less important that it directly leads to sales. It will probably have a longer-term effect, but the livestream in some ways is a great way to build trust and build excitement that should lead to sales down the road.” 

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