The Home Depot is the retail chain
dedicated to home improvement products, that was created in 1978 by Bernie
Marcus and Arthur Blank in the United States, under the vision of offering
one-stop shopping for the “do-it-yourselfers”. Today it has 2,287
stores in Canada, Mexico, and the United States. In its large stores -they
cover an average of 104,000 feet plus 24,000 feet in the garden side- it
provides materials for construction and home repairment, decoration and
gardening products. It also offers installation services and rental of tools
Positioned as the largest hardware store chain in the world, in 2018, it
totaled 400,000 employees with revenues reaching $ 108.2 billion. Its strategy was
always based on improving customer experience and offering quality products. In
addition, he has worked on the development of an eCommerce platform with more
than 1 million products in catalog to respond to the demands of customers, who
are looking to buy when, where and how they want.
The Home Depot clientele can be divided into three categories:
Do-It-Yourself (DIY) customers, professional contractors and the so-called
Do-It-For-Me (DIFM), to whom it provides installation services.
Atlanta, Georgia, USA
Company of NYSE
The Home Depot similar companies:
Lowe’s, Menards, Mohawk Industries, Williams-Sonoma, True Value, Ace Hardware, Canadian Tire, Home Hardware, ILDC, Sodimac Homecenter, Northern Tool Equipment, and At Home.
How the company makes money
The main source of income of The Home Depot is
the sale of products, materials, tools, and machinery for construction, home
renovation, as well as for decoration and gardening. This segment targets DIY
customers, who make their own facilities; professional contractors, who do it
for their own customers and include remodelers, masons, electricians, plumbers,
and interior decorators, among others; and the rest of the public. They buy the
materials and also hire their installation.
The brand operates this segment both through
its physical stores and the online platform. The strategy is supported by the
customer experience, competitive prices, quality, availability, variety of
products and delivery options.
The company offers a range of solutions for customers who do not do the installations themselves, but who purchase the products and hire the services of Home Depot to complete the projects. There is a wide variety of installation and online services, such as flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows. For this segment of customers, Home Depot acts as a general contractor who in turn hires professionals to do the work.
Lowe’s Companies is an American chain
that offers home improvement products and services, founded in 1946 in
Mooresville, North Carolina, that went public in 1961. The company serves 18
million customers per week through its 2,200 stores that are located in the
United States, Canada, and Mexico, although it announced the closure of its 13
stores in the latter country. In 2018, it reached revenues of $ 71.3 billion and employed 300,000
Lowe’s is the main
competitor of The Home Depot, ranking second in the home improvement retailers
market worldwide. In each of its locations, it stores an average of 34,000
products for construction, maintenance, repair, remodeling, and decoration. It
also offers installation services, as well as protection and repair plans. It
has developed an online platform and mobile applications for eCommerce that
Menards is the third retail
chain of construction materials and articles for the renovation and decoration
of the home of the United States, which was inaugurated in 1958 by John Menard
Jr. Today, it is a family company based in Wisconsin, which operates more than
300 stores in 14 states in the Midwest of the country. It employs 45,000 people
and in 2018, it obtained revenues for $ 10 billion.
The offer includes products for
home improvement such as hardware, tools, and paint. He also has business in
the residential real estate market, with many subdivisions such as construction
and development. Its strategy focuses on saving money with the popular slogan
“Save Big Money!”. As an added value, it offers support to clients in their
projects on issues such as calculations, design, and response to inquiries.
True Value is a brand of hardware and
construction items that has existed since 1932 in the United States but it was
not until it joined the retail group created by John Cotter in 1948 that began
to acquire the relevance it has today. This chain, known as Cotter & Company,
integrated about 30 independently operated businesses and was in constant
expansion. It is currently a growing hardline wholesaler with 4,500 stores
spread in 60 countries, with 13 regional distribution centers.
The True Value strategy is based
on offering locally relevant products at competitive prices, generating great
marketing support and an eCommerce ship-to-store model that aims to improve the
shopping experience of its customers around the world. Thus, with its more than
1,500 employees it generates annual sales for $ 8 billion. Due to its enormous
worldwide expansion and its large number of businesses, it is one of the main
competitors of Home Depot, located in fourth place in terms of revenue.
Ace Hardware is a hardware retailer that
opened its first warehouse in Chicago in 1924 and grew to have 5,300 locations
in 70 countries. It operates an extensive distribution network in its country,
and has services in China, Panama, and Dubai, among other countries. With 6,900
employees, its revenues in 2018 reached $ 6.1 billion. In a market of high
competition such as home improvement in the United States, Ace Hardware is the
third most important rival of Home Depot in terms of revenues, although in the
number of premises, it surpasses HD by more than double.
Its strategy is based on
remaining as a local store, as opposed to large impersonal chains, seeking a
close relationship with customers. Stores are of all kinds of size, in urban
and rural areas, where it has large facilities. Ace Hardware provides all kinds
of products for the construction and home remodeling, such as paint, tools and
Canadian Tire Corporation is a retail chain
from Canada that, through its different brands, commercializes products for the
home, automotive, articles and sportswear. With headquarters in Toronto, the
group was born when the brothers J.W. and A.J. Billies acquired Hamilton Tire
& Garage in 1922 and five years later they began operating under the name
that is currently known. It is one of the companies with the best reputation
The group owns the SportChek,
Sports Experts and Pro Hockey Life brands, among other categories, that are
distributed in 1,700 stores throughout the country. It also operates financial
and real estate services; together they generate annual revenues for $ 5.6 billion (2019) and employ
31,500 people. The home improvement business, Canadian Tire, competes directly with Home
Depot only in the Canadian market, ranking fourth and operating 504 locations
in addition to its eCommerce platform.
Home Hardware is the largest chain of
construction and renovation materials in Canada, with more than 1,100 stores
distributed throughout the country and about 2,100 employees. The brand was
created in 1964 when 122 independent retailer hardware joined to purchase
Hollinger Hardware from St. Jacobs, Ontario, thereafter forming a complete
dealer-owner business model. In 2019, it was in the fourth position within the
ranking of the ten most reliable brands in the country.
Home Hardware is one of the main
direct competitors of Home Depot in the Canadian market, ranking third behind
Lowe’s and with annual revenues of $ 4.98 billion. Its offer includes
tools, plumbing and painting materials, masonry and gardening items, and has a
special segment dedicated to the automotive part.
ILDC (Independent Lumber Dealers Co-operative) is one of the largest cooperatives dedicated to the sale of building materials and tools located in Canada, which was created in 1964. The association is made up of 21 of the main organizations in the field of construction and home renovation materials, each operating under their own brand. ILDC belongs to the hardlines buying group Spancan.
With more than 600 locations
across the country, both in urban and rural areas, ILDC is among the four most
important home improvement sales players in terms of revenues, competing with
multinational giants such as Home Depot and Lowe’s. Its annual sales reach $ 4.3 billion.
Sodimac Homecenter is a chain of retailers of
construction and home improvement materials from Chile, which is part of the
Falabella group and is operated in six Latin American countries. The brand was
born in 1952 as a local cooperative until in 1982, it was acquired by José Luis
Del Río Rondanelli, who started to administer it under the name we know today.
Six years later it became a chain with regional presence.
Considering all its branches,
Sodimac generates annual revenues of $ 1.84 billion and employs 43,000
people among its 257 stores. It is the main competitor of Home Depot in Mexico,
where it operates six stores. The chain provides all kinds of products and
services, equipment and tools for renovation and decoration, aimed at
professionals and contractors but also at the do it yourself segment.
TOOL + EQUIPMENT
Northern Tool + Equipment is an American
retailer of equipment, tools, and materials for construction founded in 1981 by
Don Kotula that has remained a private company in the hands of the family of
its founder. With more than 100 stores in 20 states, its main customers are
building contractors, automotive shops, the US military, and the public known
Northern’s strategy is based on
offering top-of-the-range tools and providing support and advice to its
customers. It has a catalog of 40,000 products and sells both through physical
stores and on the eCommerce platform available 24/7. It has 3,000 employees and
generates an income of about $ 1.4 billion. With these figures,
it is the ninth competitor of Home Depot in the Home Revenue market.
At Home is a decoration superstore that was created in 1979 in Garden Ridge, Texas and acquired by the AEA Investors investment group in 2011. Today, it operates 180 stores in 37 states and employs 5,300 people. With annual revenues of $ 1.1 billion, it is a constantly growing brand that competes with Home Depot only in the decoration segment.
Its strategy is based on offering
a wide variety of decorative items and home furnishings for all types of
budgets. Its deployment points to a specialized in-store merchandising with
visual navigation elements and a self-service modality that minimizes staffing
The top 10 Home Depot competitors are: Lowe’s, Menards, True Value, Ace Hardware, Canadian Tire, Home Hardware, ILDC, Sodimac Homecenter, Northern Tool + Equipment, and At Home. Together they have raised over 114.6B between their estimated 450,800 employees. Home Depot has 400,000 employees and is ranked 1st among its top 10 competitors. The top 10 competitors average 45,080 employees.
Bentonville, AR, USA
Eau Claire, WI, USA
Chicago, IL, USA
Oak Brook, IL, USA
Toronto, Ontario, Canada
St. Jacobs, Ontario, Canada
Ajax, Ontario, Canada
Santiago de Chile, Chile
Northern Tool + Equipment
Burnsville, MI, USA
Plano, TX, USA
Home Depot Competitor Crossword
Content from this and other articles on this website can be used as a crossword clue
Darrell Burges - Business Analyst & Technical Writer
Darrell Burges is a skilled business analyst and a technical writer for WCS. Based on his 5+ years of experience, he writes in-depth articles about competing companies and encourages individuals to explore alternatives in the business world. He is the one who knows how to engage you in the world of competitors and explain complex concepts in simple terms.