Lowe’s vs. Home Depot Financial Comparison ; Analysis Essay Example

improvement projects. The industry is characterized by big competition from Home Depot ; Lowe’s, each with a large chunk of the market. With the concept of ‘everything under one roof’, home improvement retailers are continually expanding their store sizes.

The do-it-yourself market has driven demand in past years. As tome continues, however, the aging population requires someone to do-it-for-me, industry operators may need to offer additional services in order to maintain growth.

Industry resources show us that consumers of home improvement products are continually growing and demanding new products at lower costs (HIRI. org, Home Improvement Research Institute 2010). The growing trending of “GREEN” products is a technology demand placed upon Home Improvement stores to provide more consumer based earth friendly home improvement products.

The consumers of Home Improvement products demand to be offered higher value products at lower prices, which create interesting challenges for Home Depot and Lowe’s.

Consumers demand the following – one stop shopping, lower prices, convenient locations to stores, and excellent customer service. Home Depot and Lowe’s have responded in kind with – super stores carrying a wide product line, price driven products, slight expansion and acquisition of new stores, and increasing sales force education. HOME DEPOT: BACKGROUND ; OVERVIEW Home Depot was founded in 1978 in Atlanta, Georgia and has earned the ranking of number one as the largest home improvement retailer, operating 2,233 Home Depot stores located throughout the United States including the Commonwealth f Puerto Rico and the territories of the US Virgin Islands and Guam, Canada, China and Mexico. In addition, at the end of fiscal 2008, Home Depot operated 34 EXPO Design Center stores, two THD

Design Center stores and five Yardbirds stores.

On January 26, 2009 Home Depot announced the planned closing of EXPO, THD Design Center, and Yardbird stores as part of the continued focus on core business (Home Depot, 2008 Annual Report P. 1).

The Home Depot mission statement reads as follows: “The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight values include the following: excellent customer service, taking care of our people, giving back, doing the “right” things, creating shareholder value, respect for all people, entrepreneurial spirit, and building strong relationships. ” Home Depot caters to the three categories of customers.

Do-It-Yourself Customers (DIY): These customers are typically home owners who purchase products and complete their own projects and installations. Do-It-For-Me Customers (DIFM): These customers are typically home owners who purchase materials themselves and hire third parties to complete the project or installation, or both. Home Depot arranges for the installation of a variety of The Home Depot products through qualified independent contractors. Professional Customers: These customers are professional remodelers, general contractors, repairmen, small business owners and tradesmen.

In many stores, Home Depot offers a variety of programs to these customers, including delivery and will-call services, dedicated staff, extensive merchandise selections and expanded credit programs, all of which they believe will increase sales to these customers. Home Depot provides for various contributions to charities.

In 2002 Home Depot established The Home Depot Foundation to further the community building goals of The Home Depot by providing additional resources to

assist nonprofit organizations throughout the United States and Canada.