Here are 3 reasons we think this could be a make-or-break year for the Home Depot vs Lowe’s rivalry…
1. Both companies could benefit from a resurgence in home renovation demand
By now we all know that the pandemic created a home renovation boom as consumers became determined to improve the houses that they were spending so much time in.
In early 2022, we’re beginning to see some signal that home renovation demand is beginning to grow again, especially as supply chain concerns begin to wane.
We’ll keep a close eye on this metric as we head into the all-important Spring renovation season… another leg up in consumer demand could mean big things for both of these companies!
2. Home Depot consumer demand is growing faster than Lowe’s
Historically, Home Depot and Lowe’s have seen similar movements in consumer demand, so anytime there is a large difference on a quarter-over-quarter basis, I pay attention.
As you can see above, Home Depot has been doing something very right over the past 90 days, more than doubling the consumer demand growth levels of rival Lowe’s.
3. Home Depot customers are (barely) happier than Lowe’s
Again… these companies are so similar that even the smallest differences can add up to big shifts in future market share.
The fact that Home Depot is making customers happier than Lowe’s during the same period its consumer demand is outperforming by so much is a very, very big deal.