Home Depot just crushed earnings. We visited a store and saw first-hand why.

Home Depot just reported a successful quarter with $38 billion in sales, blowing away analyst expectations. I headed to my local store to understand why it's continuing to dominate.

Source: CNBC

The parking lot was busy on a Tuesday afternoon, and as I walked in I noticed a sign directing curbside pickup customers.

Many retailers, including Home Depot, added or expanded curbside offerings that experts credit with helping them survive the pandemic.

Source: Insider

Walking up to the store, I was struck by how much greenery was everywhere, from flowering plants to vegetable seedlings.

Home Depot, at least at my location, essentially doubles in size in the spring, when the nursery spills outside into a large uncovered area, plus the gardening section and in front of the store.

Home Depot is typically associated with home improvement, but there was plenty to look at for a completely non-handy person with a green thumb.

Plants were arranged by variety and growing zone, which is helpful for anyone from experts to novices.

The rows and rows of plants looked nearly endless.

The planting season is important for Home Depot. CEO and president Ted Decker said the the company expects " tremendous" sales in the garden business to report next quarter.

As you walk through the patio plant area, you enter the garden section, which is covered but still open to the outside.

That section stocks all kinds of gardening supplies, like pots, fertilizers, and garden hoes.

That section also contains mulch and other landscaping supplies.

The garden center also has its own cashier, so customers only interested in the outdoor area don't have to go in the main store.

Next I walked into the main part of the store.

Home Depot is a huge warehouse store with dozens of aisles stacked to the ceiling with home improvement supplies.

Aisles are divided by the area of the home they pertain to.

Besides standard light bulbs, all different kinds of light fixtures hang from the tall shelves on display.

You could get everything to outfit a house besides furniture there, from flooring to ceiling light fixtures.

Carpet samples are available to touch and make color comparisons.

The same goes for flooring, which has multiple aisles dedicated to the different types.

There are more practical, less design-oriented elements of home improvement too, like caulking.

A section in the center of the store is dedicated to appliances, with mock setups showing how different cupboards, cabinets, and light fixtures look alongside them.

There are also ovens, microwaves, and dishwashers.

Side by side refrigerators make it easy to compare specifications and find the right one.

Home Depot replicates that with washing machines and other appliances, with desks for sales people to work with customers nearby.

The far end of the store seems more oriented towards contractors and other home improvement professionals, with aisles containing piles and piles of wood.

There are carts and ladders all over.

Lumber prices have been highly impacted by inflation, and Decker said in the earnings call that he expects lumber sales to go up in the second quarter.

Home Depot markets and sells to both professional and amateur home improvement customers.

For both types of customers, the "vast majority" of purchases are for homes, rather than rentals or other projects, Decker said.

Over 90% of DIY customers are homeowners, Executive VP and CFO Richard McPhail said in the call.

Climbing home prices are good for Home Depot's bottom line, McPhail said.

According to McPhail, Home Depot's homeowner customers are more likely to invest in improving their homes as values increase, and prices have increased at the fastest rate in over 40 years.

Source: Insider

End caps and smaller sections near the checkout seem more aimed towards amateurs, like different types of toolsets.

There's a selection of vacuums in that area, too.

Across from the vacuums, there are push lawn mowers out on display.

There are also a few patio furniture displays set up, with other accessories like fire pits.

The grills are lined up beside the lawn furniture, showing off how a backyard could be arranged.

After my visit, I can see why the chain is so successful.

The chain is able to successfully appeal to both professionals and amateurs by having small, accessible displays and higher-end materials.

There were many Home Depot workers around the store available to answer questions and help customers, which likely also makes it less intimidating for the DIY customers.

In the future, however, some experts are predicting a slowdown coming for the housing market, which could have an impact on Home Depot's bread and butter business of home improvement.

Source: CNBC

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.