Melody the industry standard for the home improvement
Braxton Introduction to Marketing October 18, 2011 HOME DEPOT V. LOWES An industry of competition, and tight margins The Home Depot and Lowes Company are still at the tip of their game. Both of these companies stand now as the industry standard for the home improvement sector. Both companies have extremely strong financial positions and a long future in the home improvement industry. Competition is good for the retailer, but even better for the customer.
Each company has its strengths and limitations. The Home Leader –vs- Improving Home Improvements. The Home DepotThe company was founded in 1978 in Atlanta Georgia and has since become the world’s largest home improvement retailer, operating more than 1,500 stores across North America. Home Depot caters to both do-it-yourself and professional customers who serve the home improvement construction and building maintenance market segments. The Home Depot currently operates in sixty U. S. States and in the District of Columbia.
Home Depot’s key success factors are excellent management, competitive prices, superior customer service, full range of product and expansive distribution channels.It has also invested and committed to build its web presence and e-commerce strategy to counter the new entries of many home improvement retailers. Lowes Lowes has been helping customers improve the places they call home for more than sixty years. Founded in 1946, Lowes has grown from a small hardware store to the second largest home improvement retailer worldwide. Lowes is a $26 billion dollar retailer with a complete line of home improvement products and equipment.
The company serves more than $7 million do-it-yourself products and equipment, operating more than 870 stores in 45 tates. Lowes is the world’s second largest home improvement retailer and the 14th largest retailer in the United States. Industry Due to economic expansion over the 1990’s, the home improvement industry has experienced a rapid growth. Due to the wealth effect, consumers spent high amount of cash and credit on improving their most prized and expensive possession, their homes. As a result, the home improvement industry experienced rapid expansion and growth. Both stores offer one stop shopping, low price, convenient locations and excellent customer service.They both also have the super store concept, many local competitors and provide customer quality care.
However, presentation counts at Lowes. Its warehouse-style stores are laid out so that two shopping carts can pass in comfort, a feature has helped Lowe’s appeal to women shoppers. Lowes target women because more home projects are initiated by females. The chain is attracting more and more non-professional home improvement shoppers. Home Depot has traditionally relied on low prices, lots of selection and sales of building material to professional contractors. Some of the new stores are now in urban areas like Brooklyn, NY and Chicago, IL.
Both stores are able to do what’s right for the customers and employees. Both Home Depot and Lowes provide customer-value solutions with the best prices, products and service as the first choice for home improvement. Over the years thanks to competition it seems that the big stores like Home Depot and Lowes have gotten progressively better with their customers service. Why? Well two reasons; one is competition and the other is because the customers have demanded it and by delivering better customer service the customers come back to shop more often and have a better shopping experience.