Lowe's (LOW -0.9%) has a little internal repair to do before it can take on rival Home Depot,...


Lowe's (LOW -0.9%) has a little internal repair to do before it can take on rival Home Depot, writes the WSJ's Justin Lahart. He argues that the company built stores that are on average 13% larger than Home Depot did and had a tendency to saturate areas where the market saw the biggest swings from boom to bust - two counts which makes its lower valuation somewhat logical.
From other sites
Comments (1)
  • hayekvonfriedman
    , contributor
    Comments (1003) | Send Message
     
    Have you been in a HOme Depot and then a Lowes. HD IS small, the stores cluttered and dirty, and product selection on display is slim.

     

    The bigger footprint of Lowes not only adds aesthetic appeal thereby enhancing the expereince whihc adds value at the margin. The depth and breadth of product selection at LOWES is noticeably superior.

     

    If, and I do mean if, not when, the Lowes alleged strategic disadvantage in "saturation" will add value that will surpass HD.
    7 Jun 2012, 10:21 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs