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. Both companies are committed to allowing customers to move seamlessly between online and offline channels.
The Home Depot competitors include Ace Hardware, Hajoca Corporation, HHGregg, Walmart and Huttig Building Products. The Home Depot ranks 1st in Overall Culture Score on Comparably vs its competitors.
In 2022, Home Depot's annual sales amounted to over 157 billion U.S. dollars, whereas its main competitor, Lowe's, reached more than 97 billion U.S. dollars of sales.
According to analysis by Market Watch, The Home Depot possesses roughly 17 percent of the market share for home improvement retail. Lowe's comes in second with about 12 percent market share. In 2021, Home Depot's sales exceeded $130 billion, and Lowe's sales totaled about $89.6 billion.
Overall, we believe Home Depot has an advantage over Lowe's for the market leadership point as it has the highest market share in the home improvement retail market, slightly more revenue exposure to international business and better sales metrics in terms of revenue growth, store count, sales per average retail square ...
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.
Home Depot has ~250 more stores than Lowe's in the United States and has higher concentration in California, New York, and Georgia. Lowe's has higher store concentration in North Carolina and Ohio.
The Vanguard Group, Inc. is currently the company's largest shareholder with 9.4% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 7.5% of common stock, and Capital Research and Management Company holds about 5.2% of the company stock.
John Deaton | Executive Vice President – Supply Chain & Product Development | The Home Depot.
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.
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.
The Home Depot has been recognized on Fortune's 2023 Most Admired Companies list, ranking #1 in the specialty retail category and #20 overall. Fortune worked with Korn Ferry, surveying 1,500 companies and determined the best-regarded companies in 52 industries.
Some of the highest wages a worker can make at Home Depot are in the job titles Design Sales Consultant ($95,000), and title Cdl Driver ($58,388) which are the highest paying jobs at Home Depot.
Home Depot, the world's largest home improvement retailer, is investing significantly in all U.S. and Canadian hourly employees in 2023. The company announced last week that it would raise all hourly employees to at least $15 an hour, more than double the federal minimum wage of $7.25.
The Home Depot and Lowe's are two of the key retailers competing within the home improvement and do it yourself (DIY) industry in the United States. In 2018, each Home Depot store averaged about 49.4 million U.S. dollars' worth of sales.
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.
Will Lowe's beat Home Depot prices? Both Lowe's and Home Depot actually have price match policies that allow you to get a lower price at your favored retailer if you have proof that the exact product is on sale for a lower price at the other store.
While it is true that some chains have "sister stores" like Olive Garden and Red Lobster, it is false that there is any direct relationship between Lowe's and Home Depot management. There are similarities to be found in these home improvement giant retailers for sure, but there are also many differences.
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.
More than 50 years before Home Depot opened its doors, Lowe's began as a small-town North Carolina general store. In addition to sewing supplies, horse tack, and snuff, L.S. Lowe's original 1921 store also sold hardware and building materials.
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. Both companies are committed to allowing customers to move seamlessly between online and offline channels.