Facebook with Latestnigeriannews  Twieet with latestnigeriannews  RSS Page Feed
Home  |  All Headlines  |  Punch  |  Thisday  |  Daily Sun  |  Vanguard   |  Guardian  |  The Nation  |  Daily Times  |  Daily Trust  |  Daily Independent
World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  More Channels...

Viewing Mode:

Archive:

  1.     Tool Tips    
  2.    Collapsible   
  3.    Collapsed     
Click to view all Entertainment headlines today

Click to view all Sports headlines today

A financial analyst breaks down the biggest differences between Home Depot and Lowe's 'and explains which retailer has the edge (HD, LOW)

Published by Business Insider on Tue, 18 Dec 2018


Home Depot and Lowe's are the two biggest players in US home improvement retail.Seth Basham, managing director of equity research at Wedbush Securities, spoke with Business Insider about what differentiates the two companies.He said that in many ways, Home Depot has an edge over its competitor.But he added that Lowe's CEO Marvin Ellison is on a mission to "Home Depot-ize" Lowe's.Home Depot and Lowe's dominate the home renovation retail sector in the United States.But both retailers exhibit a number of subtle traits that set them apart from one another. What's more, the performance of these retail competitors has diverged somewhat.Home Depot appears to be doing relatively well, easily besting its rival in terms of market share. Meanwhile, Lowe's has undergone a series of hiccups, shutting down stores in the US, Canada, and Mexico, receiving a downgrade from Moody's, and losing traffic during the first nine months of 2018.Business Insider recently spoke to Seth Basham, the managing director of equity research at Wedbush Securities, to get a better idea of the differences between Home Depot and Lowe's.He said that, while Home Depot currently has the upper hand, no one should give up on Lowe'sor its new CEO Marvin Ellison.SEE ALSO:From entire lawn sets to used toilets, these are the most ridiculous returns employees from Costco, Walmart, and Target say they've ever gottenDON'T MISS:Americans are pumping the brakes on home remodeling, and that might spell bad news for Home Depot and Lowe'sSEE ALSO:Home Depot is bucking a major retail trend and staying closed on Thanksgiving, but it'll get its sales going early on Black FridayHome Depot can point to higher average sales numbers in its stores.According to Basham, Home Depot rakes in more money than Lowe's through store sales on average. He added that the company also boasts better operational efficiency, whereas Lowe's runs the risk of "producing costs tremendously" thanks to its reduced operational efficiency.Compared to its rival, Lowe's is a bit like the new kid on the block.Basham explained that Lowe's sales and operational disadvantage is partly "a function of how the company grew up."Technically, Lowe's was founded in 1946, while Home Depot was established in 1978. But the newer store embarked on its expansion first."Lowe's' growth streak in terms of opening new stores happened after Home Depot's," Basham said.Basically, because Home Depot expanded its store presence before Lowe's, it got the first pick when it came to store locations. Basham described Lowe's as occupying many "secondary real estate locations" that aren't ideal in terms of population flow or traffic patterns."There's a bit of a structural deficiency in terms of their store locations," he said.Home Depot gets a greater share of its sales from professionals.Another factor that accounts for Home Depot's sales advantage is its comparative popularity with home improvement professionals. In the home construction and renovation space, customers can generally be divided into two groups: professionals who work in the field, and do-it-yourself shoppers tackling projects on their own.Basham said that professional contracts account for 35% of sales at Lowe's, while Home Depot accrues 40% of its sales from professional contracts.So why do the pros tend to go to Home Depot' Basham said that part of the reason is 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.Other factors include Home Depot's superior stocking system and customer service processes, which include everything from giving pros access to "knowledgeable employees," helping them find products, and staging items for pick-up. According to Basham, Home Depot generally provides an "easy in, easy out" experience for pros.And, while list pricing is the same across both companies, bulk pricing is slightly more competitive at Home Depot, according to Basham.But don't count Lowe's out just yet. Basham said that Lowe's is "very focused" on boosting its pro business. He gave the example of the company's 2017 acquisition of Maintenance Supply HQ. Basham likened the move to Home Depot's 2015 acquisition of Interline Brands, which helped the home improvement retailer cross-sell to customers who previously flocked to Interline."It's strategic," Basham said. "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."See the rest of the story at Business Insider
Click here to read full news..

All Channels Nigerian Dailies: Punch  |  Vanguard   |  The Nation  |  Thisday  |  Daily Sun  |  Guardian  |  Daily Times  |  Daily Trust  |  Daily Independent  |   The Herald  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  New Telegraph  |  Peoples Daily  |  Blueprint  |  Nigerian Pilot  |  Sahara Reporters  |  Premium Times  |  The Cable  |  PM News  |  APO Africa Newsroom

Categories Today: World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Columns  |  All Headlines Today

Entertainment (Local): Linda Ikeji  |  Bella Naija  |  Tori  |  Pulse  |  The NET  |  DailyPost  |  Information Nigeria  |  Gistlover  |  Lailas Blog  |  Miss Petite  |  Olufamous  |  Stella Dimoko Korkus Blog  |  Ynaija  |  All Entertainment News Today

Entertainment (World): TMZ  |  Daily Mail  |  Huffington Post

Sports: Goal  |  African Football  |  Bleacher Report  |  FTBpro  |  Kickoff  |  All Sports Headlines Today

Business & Finance: Nairametrics  |  Nigerian Tenders  |  Business Insider  |  Forbes  |  Entrepreneur  |  The Economist  |  BusinessTech  |  Financial Watch  |  BusinessDay  |  All Business News Headlines Today

Technology (Local): Techpoint  |  TechMoran  |  TechCity  |  Innovation Village  |  IT News Africa  |  Technology Times  |  Technext  |  Techcabal  |  All Technology News Headlines Today

Technology (World): Techcrunch  |  Techmeme  |  Slashdot  |  Wired  |  Hackers News  |  Engadget  |  Pocket Lint  |  The Verge

International Networks:   |  CNN  |  BBC  |  Al Jazeera  |  Yahoo

Forum:   |  Nairaland  |  Naij

Other Links: Home   |  Nigerian Jobs