Who is more successful Home Depot or Lowes, However both stores are know for home improvement and they also take a major lead in the sector but one is more superiors than the other.
In the United States, Home Depot and Lowe’s dominate the home-improvement retail sector.
However, there are several subtle differences between the two retailers. Furthermore, their performance has diverged slightly.
Home Depot appears to be doing well, easily outperforming its competitor in terms of market share.
Meanwhile, Lowe’s has experienced a string of setbacks, including the closure of stores in the United States, Canada, and Mexico, a downgrade from Moody’s, and a drop in traffic during the first nine months of 2018.
Home Depot rakes in more money than Lowe’s through store sales on average and company also boasted better operational efficiency.
Lowe’s disadvantages in sales and operations were partly “a function of how the company grew up.”
Lowe’s was founded in 1946, and Home Depot was founded in 1978. However, the newer store was the first to expand. Lowe’s growth streak in terms of new store openings happened after Home Depot’s.
Essentially, because Home Depot expanded its store presence before Lowe’s, it was given first dibs on location.
Lowe’s, according to Basham, has many “secondary real-estate locations” that aren’t ideal in terms of population flow or traffic patterns. Their store locations have a bit of a structural deficiency.
Home Depot Gets High Sales from Professionals
Another factor that contributes to Home Depot’s sales advantage is its popularity among home-improvement professionals.
Customers in home construction and renovation can be divided into two categories: professionals who work in the field and do-it-yourself shoppers who tackle projects on their own.
Professionals are often more brand-conscious, they want to use products they know they can trust, and Home Depot has better brands.
Other factors include Home Depot’s superior stocking system and customer-service processes, including giving pros access to “knowledgeable employees,” helping them find products, and staging items for pickup.
While both companies’ list prices are the same, Home Depot’s bulk pricing is slightly more competitive.
Home Depot’s had success since it acquired Interline in getting that cross-sale to work. I think there’s still room for that to work for Lowe’s.
Lowe’s Yet to Achieve International Success
Lowe’s has recently experienced a string of international setbacks, including store closures in Canada and Mexico, as well as a failed joint venture in Australia in 2016.
Home Depot already having success in some of those markets, as well as the infrastructure costs that it takes to run stores in different countries.
Lowe’s has never had international success. They haven’t figured out how to get there, while Home Depot, on the other hand, has triumphed abroad.
They have very profitable operations in both Canada and Mexico. For several years, comparable-store sales growth in those countries has been nearly as good as in the United States.
However, this was not always the case. Home Depot made an unsuccessful foray into Argentina, Brazil, Chile, and China in the late 1990s, so there is still hope for Lowe’s.
Home Depot Dominates Lowe’s in Online Present
Online fulfillment was an important area for both companies with Home Depot coming out on top. Home Depot has taken it to the next level by offering customers services like same-day delivery.
They are heavily investing in the infrastructure required to provide these types of delivery services. Lowe’s hasn’t gone down that road yet.
When it comes to other issues pertaining to e-commerce, Home Depot had a stronger IT infrastructure better online marketing, and an easy-to-navigate website.
Despite their distinct brands, the owners of Home Depot and Lowe’s consider themselves to be competitors for the same customers. From the above points one could say Home Depot is more successful than Lowe’s.