Home Depot Or Lowe’s — Who Is Operating More Efficiently?

-16.73%
Downside
243
Market
203
Trefis
LOW: Lowe's logo
LOW
Lowe's

Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) are the number one and two home improvement retailers in the U.S., holding 24% and 17% market shares, respectively. While Home Depot has more stores compared to Lowe’s, the latter has narrowed its store-count gap with its chief competitor in the last few years, opening over 100 stores between 2012-2015. However, Lowe’s hasn’t managed its running costs as effectively as Home Depot, whose total costs comprising SG&A costs and lease payments per square foot have remained relatively flat in the last three years.

HD Q&A 7-1

LOW Q&A 9-1

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The addition of Orchard stores, which are less spacious reduced the average store size for Lowe’s in 2013, but the total expenses per square foot still rose by 3%.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Lowe’s

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