What Is The Difference Between Home Depot And Lowe's
I. Overview Value Line Publishing is an investment survey firm wherein Carrie Galeotafiore presents a five-year financial forecast that shows Home Depot in a positive light. It also prepares to do the same with an analysis of Lowe's. Home depot and Lowe’s are merchandising companies which operate in the same market including initiatives aimed at bettering customer service, attracting professional customers and creating a more favorable merchandise mix.
II. Problems/Opportunities
1. Acquisition or Consolidation 1. In 1999 Lowe’s had acquired the 38-store, warehouse-format chain Eagle hardware in a $1.3 billion transaction. 2. Home Depot had acquired the plumbing wholesale distributor Apex Supply, the specialty-lighting …show more content…
Professional Market 2.1 Both Home Depot and Lowe’s had recently implemented initiatives o attract professional customers more efficiently, including stocking merchandise in larger quantities, training employees to deal with professional and carrying professional brands 2.2 Home Depot had developed Home Depot Supply and the “pro Stores” to reach out the small-professional market. The company was also on the track to install professional-specific desk at 950 stores by the end of 2002.
3. International Expansion 3.1 Home Depot had already developed some international presence with its acquisition of the Canadian Home-improvement retailer Aikenhead in 1994m and it continued to expand its reach in the market with 11 new stores opening in 2001. More recently the company had targeted the 12.5 billion home-improvement market in Mexico by acquiring the Mexican chain TotalHome and del Norte. By the end of 2001, 10% of Home Depot’s stores were located outside the United States. 3.2 Lowe’s did not yet have an international presence.
4. Alternative Retail Format 4.1 Lowe’s specifically targeted the professional customer with a section of its Web site: “Accent & Style” offered decorating and design tips on such subjects as kitchens and …show more content…
Alternative Products 5.1 Both Home Depot and Lowe’s were expanding into installation services. The “at-home” business for Home Depot was currently at $3 billion. 5.2 Home Depot expected its at-home business to grow at an annual rate of 30% in the near term.
6. Head to Head competition 6.1 Home Depot had traditionally focused on large metropolitan areas, while Lowe’s had concentrated on rural areas. To maintain its growth trajectory, Lowe’s had begun systematic expansion into metropolitan markets. 6.2 The investment community was becoming increasingly concerned about the eventuality of increased price competition.
III. Relevant Facts/ Data 1. Carrie Galeotafiore supports the changes proposed by the new Home Depot CEO and that would play a role in improving Home Depot's financial health in the home center and building industry. 2. Galeotafiore supports her by mentioning a number of sources that would help the growth of the two companies. She mentions the recent consolidation throughout the building industry with both Lowe's and Home Depot acquiring several smaller
II. Problems/Opportunities
1. Acquisition or Consolidation 1. In 1999 Lowe’s had acquired the 38-store, warehouse-format chain Eagle hardware in a $1.3 billion transaction. 2. Home Depot had acquired the plumbing wholesale distributor Apex Supply, the specialty-lighting …show more content…
Professional Market 2.1 Both Home Depot and Lowe’s had recently implemented initiatives o attract professional customers more efficiently, including stocking merchandise in larger quantities, training employees to deal with professional and carrying professional brands 2.2 Home Depot had developed Home Depot Supply and the “pro Stores” to reach out the small-professional market. The company was also on the track to install professional-specific desk at 950 stores by the end of 2002.
3. International Expansion 3.1 Home Depot had already developed some international presence with its acquisition of the Canadian Home-improvement retailer Aikenhead in 1994m and it continued to expand its reach in the market with 11 new stores opening in 2001. More recently the company had targeted the 12.5 billion home-improvement market in Mexico by acquiring the Mexican chain TotalHome and del Norte. By the end of 2001, 10% of Home Depot’s stores were located outside the United States. 3.2 Lowe’s did not yet have an international presence.
4. Alternative Retail Format 4.1 Lowe’s specifically targeted the professional customer with a section of its Web site: “Accent & Style” offered decorating and design tips on such subjects as kitchens and …show more content…
Alternative Products 5.1 Both Home Depot and Lowe’s were expanding into installation services. The “at-home” business for Home Depot was currently at $3 billion. 5.2 Home Depot expected its at-home business to grow at an annual rate of 30% in the near term.
6. Head to Head competition 6.1 Home Depot had traditionally focused on large metropolitan areas, while Lowe’s had concentrated on rural areas. To maintain its growth trajectory, Lowe’s had begun systematic expansion into metropolitan markets. 6.2 The investment community was becoming increasingly concerned about the eventuality of increased price competition.
III. Relevant Facts/ Data 1. Carrie Galeotafiore supports the changes proposed by the new Home Depot CEO and that would play a role in improving Home Depot's financial health in the home center and building industry. 2. Galeotafiore supports her by mentioning a number of sources that would help the growth of the two companies. She mentions the recent consolidation throughout the building industry with both Lowe's and Home Depot acquiring several smaller