What is Home Depot doing differently from us that's making them do so much better in every aspect? They are clearly coming out as winners here, and we keep falling lower and lower.
I guess this is the best example of what good verses lousy management means for a company's success and survival.
Better web sites and better product selection online plus price is lower. Rarely see commercials on TV for Lowes but Home Depot is always advertising in advance for holidays, advertising about selling storage after Christmas, spring landscaping, etc. They also have short spots on shows such as the Weather Channel, etc. In the Atlanta area, they were always on the news stations telling a little about each season. Also get their name out there helping in community charitable efforts. They are much better at marketing. Our online is horrible. Can't even leave feedback on items I have tried to review. Not to mention the c-appy out of date systems in house. Stores open when there are no people shopping or just shop lifters in the store so that hurts bottom line plus paying bills to keep the store open when no customers but home depot across the street is smart by closing an hour earlier. Not enough people working so customers get angry and say they are going to Home Depot or we cannot deliver for weeks so that angers customers. There are many things and a lot are poor management, poor marketing, poor systems, poor treatment of employees, etc.
A significant contributor to Depot's success is their low store level payscale compared to Lowe's. Marvin is already cutting payroll. There's no magic formula to Depot's earnings.
Remember this, Lowe's is NOT a failing company. It's a company making a lot of money. They simply want to make more! At the end of the day, if they make 5 billion, then they'll want 10 billion, etc, etc, etc.
Ellison spent 2.375 million dollars on a 12000 square foot 10 bath 8 bedroom Charlotte mansion. Keeping in mind we are all in this together; how does that feel?
(Ugly house btw)
As a former employee of both, I think the key difference is HD is motivated by driving the market and creating the market for their product and services. Lowe’s responds to the market, making rash and often long term decisions on short term trends. HD-on offense, Lowe’s on defense.
Lowe’s over the last 10 years has invested billions (about $8B) in bad investments that have turned zero profit. Orchard , iris , Australia , Mexico, etc. the previous leaders (Robert , Richard) felt that was were the growth was. Depot on the other hand has pumped billions into their stores. Systems , signage , sets, tools for associates. Big difference in priorities. Lowes has neglected the stores while it chased shiny objects. Just listen to recent earnings calls and investor meetings. Also depot is far more demanding of associates. Very rigorous performance management , no corporate schedules , operations positions pay nothing. If you want to make money at depot u must be on sales floor and sell. Not like that at Lowe’s right now. It’s a hard truth but it is one.
Lowes decided many many years ago to cater to the female customer, mistake.
Depot doesn’t beat us in every aspect. The reason Depot kills Lowes in sales is because they have been established as the go to place for the pro customer for a long time. The biggest problem with Lowes is that they try to be Home Depot which will never work. There is room for 2 big box home improvement retailers in the country but not 2 who try to be identical to one another. Lowes needs to focus on the home owner and not simply dabble in it while trying to copy Depot on every move.
As for Depot, their safety numbers are much worse. Depot’s shrink numbers are much worse. Depot store conditions are far worse than Lowes. Employee morale at both places s---s but that’s retail in general these days.
My humble opinion is that Lowe’s falls short on authenticity. Their sole reason of survival is mimicking Depot. With no identity, they will slowly turn irrelevant.
They don’t have Ellison.