Home Depot 'Trouncing' Lowe's in Battle for Pro Customers - Modern Distribution Management

Log In

Home Depot ‘Trouncing’ Lowe’s in Battle for Pro Customers

Report: Big-box competition for B2B business a blowout so far.

In an escalating battle for pro customers among relatively new players in the B2B space, Home Depot is “consistently trouncing Lowe’s,” according to recent analysis from Yahoo Finance.

“Home Depot has catered more aggressively to what’s known as the professional customer, which includes remodelers, general contractors and small business owners,” writes the article’s author, Nicole Sinclair. “In fact, 40 percent of Home Depot’s sales come from this customer category, which tends to spend more, take more trips to the store and conduct bigger projects. In contrast, Lowe’s only gets about 30 percent of sales from this category.”

Home Depot’s second-quarter sales were $28.1 billion, a 6.2 percent increase over the same period a year ago. It reported nearly 10 percent sales growth to pro customers compared to 4.6 percent sales growth to DIY customers, while Lowe’s most recent pro sales were estimated at just 4 percent, according to analysis from Wedbush. Lowe’s today reported its second-quarter sales.

MDM has written extensively about Home Depot’s 2015 blockbuster acquisition of Interline and its decision to go “all in” on MRO business, as President and CEO Craig Menear claimed on an earnings call last year.

Competition heated up just a few months ago when Lowe’s bought Houston, TX-based Maintenance Supply Headquarters, a distributor of MRO products to the multifamily housing industry. That acquisition followed previous purchases of RONA Inc., a Canadian retailer and distributor of hardware, building materials and home renovation products, and Central Wholesalers, an MRO distributor in the Mid-Atlantic and Northeast.

These moves have changed the competitive landscape in MRO distribution, but they might have also helped the two big-box giants – especially Home Depot – insulate themselves from such threats as Amazon.

“Serving pros while big-ticket items have been in focus as these areas are seen as more immune to encroachment by online retailers,” Sinclair writes. “Home Depot has continued to drive share in these categories with more exclusive products, more financing options and more delivery alternatives.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.