Predicting slow growth According to analysts at Retail Forward, retail sales growth for the U.S. home channel will slow in the years ahead. The compound annual growth rate for the entire United States over 2001-2006 was 8.4 percent, and for the upcoming 2006-2011 period, Retail Forward predicts 4.6 percent growth. For Home Depot, growth over the same periods will slow from 7.5 percent to 3.4 percent, and for Lowe’s, from 16.2 percent to 5.5 percent. In making the forecast, the management consulting firm cites factors such as the tough housing market and no sign of a quick turnaround.
Ahalf empty crystal ball Total sales for home improvement retailers, Home Depot and Lowe’s, in $billions, with five-year forecast Source: TNS Retail Forward