Lowe's introduces digital tools aimed at professional clients
In the competitive landscape of the home improvement industry, both Lowe's and Home Depot are making significant strides to court professional customers, with each company adopting unique strategies to meet the needs of this critical customer base.
Recent internal research by Lowe's revealed that 61% of its Pro members are eager for retailers to facilitate quick shopping, enabling them to complete their work as swiftly as possible. In response, Lowe's has introduced its suite of MVPs Business Tools, designed to streamline the shopping experience for pro customers. These digital tools, available on Lowe's website and mobile app, allow customers to get quotes online, re-order frequently purchased products, and track their orders with ease.
To further enhance the pro offering, Lowe's has brought back Klein Tools to its assortment and launched a Pro Fulfillment Center in Charlotte, North Carolina, providing same- and next-day deliveries. The tools are also intended to complement the MVP Pro Rewards and Partnership Program, allowing members to earn bonus points on select items, "paint rewards," and more.
Lowe's reported net sales of $22.4 billion for Q4, marking a 5.2% year-over-year increase. However, the company's net income dipped by 8% for Q4 and 16% for the full year. Despite these mixed results, Lowe's continues to focus on courting professional customers with new services and incentives.
Tony Hurst, senior vice president of Pro and Services, stated that new technologies like the MVPs Business Tools help Pros be more efficient and stay focused on their business. Lowe's has also made a strategic acquisition of ADG, a move that positions the company to accelerate growth in the professional segment and expand into a fragmented $50 billion adjacent distribution market. ADG's capabilities in managing projects from fulfillment through installation allow Lowe's to offer a more comprehensive value proposition that goes beyond product sales to include services and scale tailored for Pro clients.
Meanwhile, Home Depot has doubled down on serving professional customers by acquiring SRS Distribution for $18.25 billion and GMS for $4.3 billion. These acquisitions have expanded Home Depot's presence in the professional supply chain and brought the overall opportunity to about $1 trillion. The company has also opened specialized distribution centers focused on large-format products such as lumber, insulation, and roofing materials tailored for professional contractors.
Home Depot reported strong Q1 2025 results, with professional customer comparable sales outperforming the DIY segment, highlighting continuing strength in the Pro channel despite housing market headwinds. The company has also appointed experienced leadership specifically for pro operations, demonstrating its strategic focus on the segment.
In summary, both Lowe's and Home Depot are aggressively competing in the professional customer segment, with Lowe's focusing on service depth and project execution, while Home Depot emphasizes scale, distribution, and financing support. This competition reflects the growing importance of professional contractors as a critical customer base in the home improvement industry.
| Aspect | Lowe’s | Home Depot | |--------|--------|------------| | Recent Major Acquisition | ADG (project fulfillment and installation services, $50B market) | SRS Distribution ($18.25B, $50B market) and GMS ($4.3B) | | Strategy Focus | Enhancing services and comprehensive solutions for pros | Expanding supply chain scale, credit programs, and distribution centers | | Infrastructure | Project execution and installation integration | New specialized distribution centers for large-format pro products | | Leadership | Focus on integrating professional services | Dedicated EVP for pro operations | | Market Impact | Positioning for growth in professional planned spend | Large-scale market expansion and strong Q1 Pro sales growth |
As the competition between Lowe's and Home Depot heats up, pro customers can expect to benefit from an array of new services and incentives designed to streamline their shopping experience and help them stay focused on their business.
- Lowe's is reacting to the research revealing professional customers want quick shopping, thus introducing MVPs Business Tools to streamline the shopping experience.
- To complement the MVP Pro Rewards and Partnership Program, Lowe's has brought back Klein Tools and opened a Pro Fulfillment Center in Charlotte, offering same-day deliveries.
- Home Depot is emphasizing scale, distribution, and financing support, having acquired SRS Distribution and GMS, expanding their presence in the professional supply chain.
- Home Depot has also seen strong Q1 2025 results, with professional customer sales outperforming the DIY segment, signifying continued strength in the Pro channel.
- Artificial Intelligence (AI) and technology will play a significant role in both companies' strategies, as they seek to offer smart gadgets, smartphones, and innovative technology solutions to attract professional customers.
- As the competition intensifies, breaking news in the home improvement industry might revolve around subsequent policy changes, technological advancements, or business development that further benefit professional customers.
