Does Home Depot Own Lowe‘s In 2022? (Not What You Think)

If you sell products related to home improvement, tools, appliances, decor, and more on Amazon, you likely consider Home Depot and Lowe’s important retail partners.

But you may be wondering – does Home Depot actually own Lowe’s? Or are they completely separate competitors?

As an experienced Amazon seller, I can tell you that no, Home Depot does not own Lowe’s.

In this detailed guide, I’ll clear up the relationship between the two home improvement giants and what it means for your selling strategy.

Here’s what we’ll cover:

• Brief histories of Home Depot and Lowe’s
• Current ownership and shareholders
• What brands Home Depot owns
• How Home Depot and Lowe‘s compete
• Pros and cons of selling through each company
• Other major competitors

Understanding the Home Depot vs. Lowe’s competitive landscape will help you make smart decisions as a seller about doing retail arbitrage, getting vendor accounts, advertising, and optimizing your listings.

Let’s dive in!

How Home Depot and Lowe‘s Started and Evolved

Home Depot and Lowe’s have taken different paths to become the #1 and #2 home improvement retailers in the US today:

The Home Depot Story

• Founded in 1978 in Atlanta by Bernard Marcus and Arthur Blank after they were fired from Handy Dan home improvement chain.
• Focus was big-box format stores catering to DIY customers and professionals.
• Expanded quickly across the Southern US through the 1980s.
• Went public in 1981, raising $4 million.
• Opened 100th store in 1989 in California. Hit $1 billion in sales in 1990.
• Acquired multiple companies through 1990s and 2000s to expand offerings – including Home Decorators Collection, Hughes Supply, Interline Brands.
• Today, has over 2,000 stores, ~400,000 employees, and hit $132 billion in revenue in 2020.

The Evolution of Lowe‘s

• Started as a small hardware store in 1921 in North Wilkesboro, NC founded by Lucius Lowe.
• In 1940, Jim Lowe took over after his father‘s death. Partnered with brother-in-law Carl Buchan.
• Buchan bought out Jim Lowe in 1952 and incorporated as Lowe’s Companies, Inc., shifting focus to home improvement.
• Went public in 1961 at $12.25 per share. Listed on NYSE in 1979.
• Hit $1 billion in sales in 1983. Opened 100th store in 1985.
• Grew through acquisitions of Eagle Hardware, Rent-A-Tool, and Contractors Hand Tools in the 1990s.
• Today operates over 1,700 stores, has ~220,000 employees, and reported $89 billion in 2020 revenue.

As you can see, both followed a steady growth trajectory over 40+ years through store expansion, acquisitions, and focus on home improvement. Next let‘s look at current ownership.

Who Owns Lowe‘s and Home Depot Stock Today?

Given their longevity, you might guess that Lowe’s and Home Depot are each owned by their founding families or individuals. But both are actually public companies owned by stockholders:

Lowe‘s Ownership

• Trades on NYSE under ticker LOW
• Market cap of $135 billion as of March 2022
• No majority owner, widely held by institutional and retail investors

Top shareholders:

• The Vanguard Group – 8.8%
• BlackRock Fund Advisors – 7.2%
• State Street Global Advisors – 4.8%
• Fidelity Management & Research – 4.1%

Home Depot Ownership

• Trades on NYSE under ticker HD
• Market cap around $315 billion
• Also no single majority owner, widely held

Top shareholders:

• The Vanguard Group – 8.1%
• State Street Global Advisors – 4.3%
• BlackRock Fund Advisors – 4.2%
• Capital Research & Management – 3.8%

So while the founders of Lowe‘s and Home Depot were instrumental in the early days, both companies now have a diverse base of public shareholders.

You’ll notice Vanguard, BlackRock, State Street and Fidelity are top shareholders in both companies. But each remains independent, with no cross-ownership.

What Brands Does Home Depot Own?

While Home Depot doesn’t own Lowe’s, it has acquired several other companies over the years:

• The Company Store – Sells home goods and furnishings. Great private label opportunity.
• Compact Power Equipment – Equipment rentals. Could source here.
• Interline Brands – Supplies for professional tradespeople. Possible wholesaler.
• HD Supply – Wholesale distribution for contractors. Good for bulk orders.
• Home Decorators Collection – Furniture and decor brands. Manage listings.
• Blinds.com – Window shades retailer. Potential vendor account.

These subsidiaries expand Home Depot’s offerings beyond just DIY retail into wholesale, B2B, equipment rentals, home furnishings, and more.

For sellers, they represent additional opportunities to potentially source, sell wholesale, or retail arbitrage. But Home Depot still doesn’t own direct rival Lowe’s.

How Home Depot and Lowe‘s Compete

So if they’re not owned by the same company, how exactly do Home Depot and Lowe’s compete?

For sellers, it’s useful to understand their similarities and differences:

Store formats

• Both operate large-format warehouse-style stores focused on DIY/home improvement. Similar layouts.
• Lowe’s has more rural locations while Home Depot targets urban.
• Home Depot stores are on average 5,000 square feet larger.

Product assortment

• Extensive overlap in tools, lumber, home goods, appliances, garden.
• Lowe’s has larger lawn & garden selection. Home Depot bigger in tools.
• Both carry major national brands like Whirlpool, GE, Weber.

Prices

• Generally price match each other on identical items.
• Lowe‘s seen as more promotional; Home Depot focuses on everyday low prices.

Technology

• Lowe‘s investing heavily in omni-channel initiatives, revamped web and apps.
• Home Depot established itself earlier as leader in ecommerce, supply chain tech.

Pro customers

• Home Depot has greater focus on contractors, pros. Operates Pro Xtra loyalty program.
• Lowe‘s expanding Pro offering, acquired Maintenance Supply Headquarters.

Private labels

• Home Depot has several exclusive in-house brands like Hampton Bay, Home Decorators Collection, LifeProof.
• Lowe’s key private labels include Project Source, Allen + Roth, Blue Hawk, Garden Treasures.

International presence

• Home Depot has over 400 stores in Canada, Mexico, China.
• Lowe’s currently focused exclusively on North America.

This gives you a sense of how they position themselves and cater to different customer segments.

Pros and Cons of Selling Through Home Depot vs. Lowe’s

As an Amazon seller, is one retailer better to focus on than the other? Here are some pros and cons to consider:

Home Depot

Pros

• Larger stores offer more product selection for retail arbitrage.
• Focus on contractor customers provides wholesale opportunities.
• Established third party marketplace for sellers.

Cons

• Strict limits on inventory quantity for retail arbitrage purchases.
• Getting vendor approval can be challenging.

Lowe‘s

Pros

• Encourages larger retail arbitrage purchases with fewer limits.
• New Lowe’s Marketplace launching in 2022 for third party sellers.
• Large lawn & garden category selection.

Cons

• Smaller average store size than Home Depot.
• Does not have an established wholesale program currently.

Every seller’s strategy and product mix is different. But in general, Home Depot offers more maturity while Lowe’s provides exciting new potential.

Diversifying across both retail giants where possible is a smart approach. Take advantage of each company‘s strengths.

Other Major Competitors

Beyond each other, Home Depot and Lowe’s compete with a range of other national and regional players:

• Menards – Third largest home improvement chain after Home Depot and Lowe‘s. Focused in Midwest and parts of the South. Operates around 300 stores generating over $10 billion in annual sales. Owned by private company Menard Inc.

• Ace Hardware – Cooperatively owned by thousands of independent retailers. Operates over 4,500 locations in the US. Known for excellent customer service from local store owners. Competes on convenience rather than one-stop shopping.

• True Value – Similar to Ace, a retail cooperative representing over 4,000 locally owned stores. Strongest in the Northeast, Upper Midwest and West Coast.

• Lumber Liquidators – Specialty retailer focused exclusively on hardwood flooring. Operates around 400 stores with ecommerce presence. Annual sales around $1 billion.

Several other regional chains like 84 Lumber, Carter Lumber, and Stock Building Supply compete in portions of the US as well.

Key Takeaways: Home Depot Doesn‘t Own Lowe‘s

Let‘s recap the key points on the relationship between the home improvement giants:

• Home Depot and Lowe‘s are independent, publicly traded companies and direct competitors.

• They have distinct histories, with Home Depot founded in 1978 and Lowe‘s dating back to 1921.

• The companies have no cross-ownership. Their major shareholders are mutual fund firms like Vanguard and BlackRock.

• Home Depot has acquired complementary brands like Blinds.com and The Company Store but not Lowe‘s.

• Both retailers have strengths that sellers can leverage, like Lowe‘s omni-channel push and Home Depot‘s contractor focus.

• Beyond each other, they still compete with regional and specialty players like Menards, Ace Hardware, and Lumber Liquidators.

Understanding that Home Depot does not own Lowe‘s, and their competitive dynamics, allows you to make informed decisions as a seller.

You can determine which retailer fits better for retail arbitrage, white label opportunities, advertising, and optimizing your product listings.

Differentiate your approach based on their strengths to maximize sales across both Home Depot and Lowe’s.