Home Depot and Lowe’s are often mentioned in identical sentences. These two stores are located in almost the same place for many citizens, sometimes even next door.
These similarities have fueled rumours about Home Depot and Lowe’s. For example, Snopes notes a popular urban myth claiming the two vendors were once the same shop. The shop was said to be owned by a married couple who became involved in a contentious divorce.
Each received a home improvement chain as part of the division of assets, with the agreement reportedly requiring both to establish stores in proximity so that each would have an opportunity to succeed in the industry.
While it is true that some chains have “sister shops,” such as Olive Garden and Red Lobster, it is wrong to claim any direct relationship between Lowe’s and the Home Depot administration.
There are similarities and many differences among these big home improvement retailers. Some of those differences might amaze you.
Overall Corporate Comparison Between Lowe's & Home Depot
Lowe’s and Home Depot have some meaningful differences at the corporate level. According to Comparably, based on consumer ratings, Lowe’s ranks #127 in the International Top 1000 Brands, while Home Depot ranks #85 in the Top 100.
Lowe’s has a market cap of $136.7 billion, while Home Depot’s is $301.06 billion.
Employees generally rate Home Depot’s corporate culture, CEO, and essential working conditions higher than those at Lowe’s, though neither store has many negative marks.
The Difference In Stores & Real Estate
As of March 2020, Home Depot owned 2,287 stores across the U.S., Canada, U.S. territories, and Mexico. Home Depot also had stores in China, but these closed in 2012.
Lowe’s has 2,002 stores in Canada and the United States, and closed its overseas operations in Australia in 2016. While Lowe’s has more store space, Home Depot has more stores.
Lowe operates 15 mechanised distribution hubs in the United States and 7 in Canada. According to the company journals, Home Depot runs 20 distribution centres in Texas alone.
Lowe’s has been operating with modern automation for a long time, while Home Depot began its modernisation in 2009.
The Difference In Revenue & Sales
Lowe’s may have more stores and space, but Home Depot leads in earnings and sales.
Statista shows that this revenue gap sets the two brands apart in the long term. In 2020, Home Depot made $132.11 billion in sales, while Lowe’s made $89.6 billion.
That’s a $42.51 billion contrast. In 2016, Home Depot reported $94.06 billion, compared to Lowe’s $65.02 billion, and in 2011, Home Depot reported $70.4 billion, compared to Lowe’s $50.21 billion in deals. While Lowe's may lead in terms of numbers, both brands are powerful and growing.
The Difference In Commercial Services
Skilled and retail services can account for a significant share of a vendor’s income, as seen at Home Depot and Lowe’s.
To understand the scale of these deals, consider the cost difference between a single DIY restroom and a contractor renovating an entire flat building.
Lowe’s declares about 20% to 25% of deals in professional contracts, while Home Depot reports 45% in matching professional agreements.
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The Difference In Product Lines
This might be a great reason to choose one store if you feel strongly about a specific line. For example, Lowe’s offers the mixed decking line ChoiceDek, while Home Depot and Lowe’s carry the competing line, Trex, according to Consumer Reports.
The Spruce also states that each store has its own exclusive tool line. Lowe’s carries Kobalt and Task Force, while Home Depot stocks Husky and Ryobi.
Kobalt and Husky’s tools contribute to many 1-star reviews at each shop, once again skewing the stores’ permission ratings.