fixer-upper

Home Depot vs. Lowe's: Which is the Better Investment?

I buy fixer-uppers, finish em up and sell (sometimes rent in todays market). I have shopped both HD and lowes in the Atlanta area. I am always pressed for time when I shop (because my list is long and I have workers I pay by the hour). I find the instock condition of Lowes better and service component of HD better.

The four pillars of any retailer are in-stock, service, price and ease of shopping (navigability).

INSTOCK: Lowes is better hands-down. The employees at HD tell me that Lowes has better logistics set-up and they can get small quantities of knick-knack items quickly. HD lacks this infrastructure and it takes them several days to get back in stock. Also their on-hands are often wrong. So it takes a few days and a customer to ask for the item for HD to realize that their on-hands are wrong and they really cant find it!!

SERVICE: HD is marginally better. They seem to have a few more employees who care vs Lowes. Every store is different but I generally find employees who are more empowered to take care of me than Lowes. However when I complain about a rude employee to management, Lowes seems to react quicker. I am told HD stores have HR managers who protect the employees who dont care about customers instead of firing them.

PRICE: Overall HD is slightly better and they have just launched a price reduction campaign. The quality of the products is better at HD and they have more recognizable brands. The main competitor for both retailers from a price standpoint is Amazon.com. Their margins are lot lower and hence they charge the customers less then HD and Lowes. When you have a planned purchase, give Amazon a try (for tools and stuff).

CONVENIENCE: HD is more convenient for me from a location standpoint. Lowes is a lot more cleaner on the inside and I guess female friendly but I dont care for that. I am very satisfied with the cleanliness of HD stores I visit. I once stepped into an old HD in Duluth, GA and man it was old!!

I would say, HD is winning the battle slowly but surely.