Home Depot vs. Lowe’s Analysis
Home Depot vs. Lowe’s
Retail Home Improvement
Financial Analysis
Background
Introduction
The home improvement sector of the economy is large with two major players in the industry and with many smaller local and regional competitors. These two major competitors are Home Depot and Lowe’s. These two companies account for over $110 billion in total sales each year. Even though sales have gone down over the past few years due to the downturn in the economy they have not gone down nearly as much as home sales and this is due to more people deciding to do more home improvements to their own home then buying a new home. Both of these companies have been able to keep up sales and increase them year over year by improving current stores and at the same time expanding both here in the United States and overseas.
Company introduction
Home Depot
The Home Depot also known as Home Depot is a retailer of home improvement and construction products and services. The Home Depot was founded in 1978. The Home Depot operates 2,242 stores across the United States in all 50 U.S. states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam. Sales within the United States were over $77 billion in 2010. The Home Depot also operates internationally in Canada, Mexico and China.
Lowe’s
Lowe 's Companies, Inc. is a retail home improvement and appliance stores and also does construction. Lowe’s was founded in 1946 in North Wilkesboro, North Carolina. Lowe’s operates 1,710 stores in the United States and 20 in Canada. Lowe’s had sales of over $47 billion in sales in 2010. Lowe’s has also expanded to Mexico and has plans to expand to Australia.
Industry
Due to the economic expansion over the 90s, the home improvement industry has experienced a rapid growth. Due to the wealth effect, consumers spent high amounts of cash and credit on improving their most prized and expensive possession, their homes. As a result, the home improvement industry experienced
Retail Home Improvement
Financial Analysis
Background
Introduction
The home improvement sector of the economy is large with two major players in the industry and with many smaller local and regional competitors. These two major competitors are Home Depot and Lowe’s. These two companies account for over $110 billion in total sales each year. Even though sales have gone down over the past few years due to the downturn in the economy they have not gone down nearly as much as home sales and this is due to more people deciding to do more home improvements to their own home then buying a new home. Both of these companies have been able to keep up sales and increase them year over year by improving current stores and at the same time expanding both here in the United States and overseas.
Company introduction
Home Depot
The Home Depot also known as Home Depot is a retailer of home improvement and construction products and services. The Home Depot was founded in 1978. The Home Depot operates 2,242 stores across the United States in all 50 U.S. states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam. Sales within the United States were over $77 billion in 2010. The Home Depot also operates internationally in Canada, Mexico and China.
Lowe’s
Lowe 's Companies, Inc. is a retail home improvement and appliance stores and also does construction. Lowe’s was founded in 1946 in North Wilkesboro, North Carolina. Lowe’s operates 1,710 stores in the United States and 20 in Canada. Lowe’s had sales of over $47 billion in sales in 2010. Lowe’s has also expanded to Mexico and has plans to expand to Australia.
Industry
Due to the economic expansion over the 90s, the home improvement industry has experienced a rapid growth. Due to the wealth effect, consumers spent high amounts of cash and credit on improving their most prized and expensive possession, their homes. As a result, the home improvement industry experienced
Bibliography: Home Depot, Annual Reports, http://ir.homedepot.com/phoenix.zhtml?c=63646&p=irol-reportsAnnual Lowe’s, Annual Reports, http://investor.shareholder.com/lowes/annual.cfm