Home Depot has come a long way when it comes to renting out tools, and it’s a sign that the retailer is working hard to woo home-improvement professionals.
“We know that 90% of pros rent tools, but several years ago, only about one out of 10 pros rented from us,” Home Depot CEO Craig Minear told investors during the company’s earnings call on Tuesday. “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.”
Those improvements could come about in the form of continuous investments in rental offerings and ensuring that stores are consistently stocked with enough “brands that pros care about,” Minear said.
The company’s decision to double down on rental comes with a major payoff. According to Minear, pro builders who rent tools from Home Depot also tend to spend more money at the store.
“The theme here is about driving engagement,” Minear added. “The more dimensional the relationship is with our pro customers, the more they spend.”
But offering up rentals isn’t just about the bottom line. It’s part of the company’s ongoing drive to court the important and lucrative pro market, which Minear said “outpaced” do-it-yourself consumers when it came to dropping money on home improvement during the quarter.
“Pros tell us that they’re busier than ever. This is why investing in a portfolio of options to help them manage their businesses efficiently and remove friction from their shopping experience are critical,” Minear said.