The Home Depot, Inc., often simply referred to as Home Depot, is an American multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals. Home Depot is the largest home improvement retailer in the United States.
Home Depot makes money by selling consumer goods and related services in the home improvement sector. The company earns through selling products and offering installation and fitment services to its clients.
As the world's first and second-largest home improvement retailers, Home Depot and Lowe's share many similarities. They compete for a shared customer base across the U.S. and Canada.
Reasons for Success
The Home Depot's success can be attributed to strategic acquisitions and a concentrated effort to grow into one category. As the e-commerce business has grown, The Home Depot has strategized and acquired companies that have helped them to grow in this segment as well.
Weaknesses (Internal Factors)
The following are Home Depot's weaknesses: Limited corporate influence on the supply chain. Imitable business format. Limited geographic footprint relative to the global retail market.
They also offer professional installation for a variety of products supplied through the sales programs. Customers who are professionals: Professional renovators, contractors, small business owners comprise most of the home depot clientele.
Home Depot is also more profitable, but the gap here is shrinking. Lowe's boosted operating margin in 2022 and is projecting another uptick this year, to between 13.6% of sales and 13.8% of sales.
The average size of a Home Depot location is around 104,000 square feet of indoor retail space and 24,000 square feet of garden center space. Lowe's locations are typically a bit larger at an average of about 112,000 square feet of indoor retail space and 32,000 square feet of garden center space.
Home Depot often has lower prices on building materials and tools, while Lowe's may have better deals on appliances and home décor items. Both stores offer price matching policies, so if you find a lower price on an identical item at a local competitor, they will match the price.
No commission, dependent on ASM's and managers for working environment. 1. Supportive Work Environment: The work culture at Home Depot is exceptional. The team-oriented atmosphere fosters collaboration and camaraderie, making it a pleasure to come to work every day.
Home Depot is primarily owned by institutional investors like The Vanguard Group (9%) and BlackRock (6.8%) while top individual investors comprise Craig A. Menear, chairman, and the former chief executive officer; and chair, president, and CEO Edward P. Decker.
Home Depot Inc. announced Monday that it was closing its 34 upscale Expo and other home specialty centers and laying off 7,000 people as a result of the crumbling U.S. housing market and worldwide economic downturn.
June 22 - The first two Home Depot stores opened on Memorial Drive and Buford Highway in Atlanta, GA. By the end of 1979, The Home Depot had three stores, 200 associates and average weekly sales of $81,700.
Home Depot offers its products under the brands of HDX, Husky, Hampton Bay, Home Decorators Collection, Glacier Bay, Vigoro, Everbilt, The Home Depot, LifeProof, and PetProof.
The Home Depot makes $431.2M in a day.
For instance, Home Depot often offers better prices than Lowe's but may not carry some specialty items, whereas Lowe's tends to carry more niche products but generally charges higher prices overall compared to Home Depot.
So why do the pros tend to go to Home Depot? Basham said that part of the reason was that professionals are often more brand-conscious. "They want to use products they know they can trust, and Home Depot has better brands," he said.
Based on the table, Home Depot had higher revenues than Lowe's and a higher 10-year growth rate. Besides that, Home Depot was superior to Lowe's in all sales metrics except average ticket size, with higher sales per store, sales per retail square foot and customer transactions.
Home Depot revenue for the twelve months ending April 30, 2023 was $155.752B, a 2.09% increase year-over-year. Home Depot annual revenue for 2023 was $157.403B, a 4.13% increase from 2022. Home Depot annual revenue for 2022 was $151.157B, a 14.42% increase from 2021.
Home Depot shoppers have a higher average income, at $60,800, compared with $54,000 for Lowe's customers.
53% of The Home Depot employees are between the ages of 20-30 years. The least common age range of The Home Depot employees is less than 18 years.
Numerator found that Home Depot's typical shopper is a middle-aged white man, who is married without children at home. They tend to live in the suburbs, have a college education, and earn more than $80,000 per year. The store is also especially popular among Hispanic or Latino shoppers.