Who is Home Depot’s largest competitor based on primarily customer service, price, store location and appearance, quality, availability and assortment of merchandise?.
Although there are currently the world’s largest home improvement retailer, there are a number of other home improvement stores, electrical, plumbing, and building materials supply houses, and lumber yards in each of the markets they serve.
They compete with specialty design stores, showrooms, discount stores, local, regional, and national hardware stores, mail order firms, warehouse clubs, independent building supply stores, and, to a lesser extent, other retailers, as well as home improvement product installers, for some products and services.
Furthermore, as their customers increasingly use computers, tablets, smart phones, and other mobile devices to shop online and compare prices and products, they face increasing competition from online and multichannel retailers.
Home Depot’s Largest Competitor
There are many competitors in the home improvement market. Home Depot competes with Lowe’s, Ace Hardware, Menard’s and Amazon just to name but a few.
Lowe’s is a home improvement and supply retailer based in the United States that was founded in 1946. It is based in North Carolina and sells furniture, appliances, home improvement tools, and electronic products like computers and software.
It also offers installation services, as well as repair and maintenance on all of the items listed above.
Lowe’s operates 2197 stores in North America and has about 340,000 employees. It controls about 12 percent of the home improvement market share compared to Home Depot’s 17 percent.
This makes it the second-largest competitor to Home Depot, with a presence in the U.S. and Canada. Both retailers target the same market with similar offerings.
Lowe’s market share is primarily driven by its sales promotions and coupons, as well as a diverse range of online and offline product categories.
Lowe’s consolidated sales increased by 25.9 percent in the first quarter of 2021. Consolidated sales in the United States increased by 24.4 percent to $16.3 billion.
Lowe’s has a total asset base of $46.735 billion and will have over 2197 stores open by 2021.
Lowe’s is broadening its acquisition strategy in order to capitalize on growth opportunities and enter new markets.
The purchase of Rona Inc. in Canada is expected to increase the company’s market share in that country.
Furthermore, participation in the e-commerce segment will have a significant impact on its sales, with a greater emphasis on special offers and discounts for online shoppers.
How Home Depot Differs From Its Rivals
Home Depot is a pioneer in the home improvement industry, and it continues to set new service delivery standards.
Home Depot, unlike its competitors, strategically separates its online channel from its physical stores in order to maintain a customer base that is loyal to both channels.
The retailer invests heavily in infrastructure in an attempt to improve customer experience across all channels.
To improve customer satisfaction, it maximizes its existing infrastructure capabilities by strengthening supply chain reliability, operational excellence, and technological advancements.
Furthermore, Home Depot’s international expansion strategy includes repositioning itself as a leader in the home improvement space across different geographies by leveraging its expertise and technological innovations.
To gain incremental revenue from existing customers who want a broader product range, the retailer has established successful partnerships with local retailers in Mexico and Canada.