Lowe’s, one of America’s largest hardware parts stores, is starting to rival their prime competitor, Home Depot, in recent years after they started to do what they hadn’t really done that much in the past, and that is paying more attention and offering more incentives to professional contractors as part of their new business plan.
One of their strategies is that allowing more people to sign up a “pro” customer helps to greatly increase their growth, as pro customers may get a discount, but will most often buy more products because they get discounts on it. By the end of the most recent quarter, Lowe’s admitted to hiring roughly thirty-five thousand pro customers and of course would not give exact numerical details. Home detail announced that it reached a million pro customers.
With the increase however, Lowe’s locations all across the United States ended up rising approximately 3 percent compared to the 3 percent rise that Home Depot’s stores ended up earning. They ended up also growing more in a quarter than Home Depot, making more than ten percent profit than they had originally ended up getting last year. While they’re still under Home Depot in total sales at $1.67 billion, Home Depot’s profits actually almost fell an entire percentage, and they made 3.48 billion dollars.
If the percentages for Lowe’s keep rising like this, then they’re looking at increasing their profit margin and eventually beating Home Depot. They’re even incorporating paints in the market because a lot of the company’s growth had been actually the contractors’ needs for paint.