Top 10 Home Depot Competitors in 2022 (2022)

The Home Depot is the retail chaindedicated to home improvement products, that was created in 1978 by BernieMarcus and Arthur Blank in the United States, under the vision of offeringone-stop shopping for the “do-it-yourselfers”. Today it has 2,287stores in Canada, Mexico, and the United States. In its large stores -theycover an average of 104,000 feet plus 24,000 feet in the garden side- itprovides materials for construction and home repairment, decoration andgardening products. It also offers installation services and rental of toolsand machinery.

Positioned as the largest hardware store chain in the world, in 2018, ittotaled 400,000 employees with revenues reaching $ 108.2 billion. Its strategy wasalways based on improving customer experience and offering quality products. Inaddition, he has worked on the development of an eCommerce platform with morethan 1 million products in catalog to respond to the demands of customers, whoare looking to buy when, where and how they want.

The Home Depot clientele can be divided into three categories:Do-It-Yourself (DIY) customers, professional contractors and the so-calledDo-It-For-Me (DIFM), to whom it provides installation services.

NAMETheHome Depot
FOUNDED1978
HEADQUARTERSAtlanta, Georgia, USA
SIC CODE5251
STATUSPublic IndependentCompany of NYSE
INDUSTRY SECTORHardware stores
EMPLOYEES400,000
TRADING SYMBOLNASDAQ:HD

Contents

The Home Depotsimilar companies:

Lowe’s, Menards, Mohawk Industries, Williams-Sonoma, True Value, Ace Hardware, Canadian Tire, Home Hardware, ILDC, Sodimac Homecenter, Northern Tool Equipment, and At Home.

How the company makes money

HOME RENOVATIONPRODUCTS SALE

The main source of income of The Home Depot isthe sale of products, materials, tools, and machinery for construction, homerenovation, as well as for decoration and gardening. This segment targets DIYcustomers, who make their own facilities; professional contractors, who do itfor their own customers and include remodelers, masons, electricians, plumbers,and interior decorators, among others; and the rest of the public. They buy thematerials and also hire their installation.

The brand operates this segment both throughits physical stores and the online platform. The strategy is supported by thecustomer experience, competitive prices, quality, availability, variety ofproducts and delivery options.

INSTALLATION SERVICES

The company offers a range of solutions for customers who do not do the installations themselves, but who purchase the products and hire the services of Home Depot to complete the projects. There is a wide variety of installation and online services, such as flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows. For this segment of customers, Home Depot acts as a general contractor who in turn hires professionals to do the work.

LOWE’S

Top 10 Home Depot Competitors in 2022 (1)

Lowe’s Companies is an American chainthat offers home improvement products and services, founded in 1946 inMooresville, North Carolina, that went public in 1961. The company serves 18million customers per week through its 2,200 stores that are located in theUnited States, Canada, and Mexico, although it announced the closure of its 13stores in the latter country. In 2018, it reached revenues of $ 71.3 billion and employed 300,000people.

Lowe’s is the maincompetitor of The Home Depot, ranking second in the home improvement retailersmarket worldwide. In each of its locations, it stores an average of 34,000products for construction, maintenance, repair, remodeling, and decoration. Italso offers installation services, as well as protection and repair plans. Ithas developed an online platform and mobile applications for eCommerce thatwork 24/7.

MENARDS

Top 10 Home Depot Competitors in 2022 (2)

Menards is the third retailchain of construction materials and articles for the renovation and decorationof the home of the United States, which was inaugurated in 1958 by John MenardJr. Today, it is a family company based in Wisconsin, which operates more than300 stores in 14 states in the Midwest of the country. It employs 45,000 peopleand in 2018, it obtained revenues for $ 10 billion.

The offer includes products forhome improvement such as hardware, tools, and paint. He also has business inthe residential real estate market, with many subdivisions such as constructionand development. Its strategy focuses on saving money with the popular slogan“Save Big Money!”. As an added value, it offers support to clients in theirprojects on issues such as calculations, design, and response to inquiries.

TRUEVALUE

Top 10 Home Depot Competitors in 2022 (3)

True Value is a brand of hardware andconstruction items that has existed since 1932 in the United States but it wasnot until it joined the retail group created by John Cotter in 1948 that beganto acquire the relevance it has today. This chain, known as Cotter & Company,integrated about 30 independently operated businesses and was in constantexpansion. It is currently a growing hardline wholesaler with 4,500 storesspread in 60 countries, with 13 regional distribution centers.

The True Value strategy is basedon offering locally relevant products at competitive prices, generating greatmarketing support and an eCommerce ship-to-store model that aims to improve theshopping experience of its customers around the world. Thus, with its more than1,500 employees it generates annual sales for $ 8 billion. Due to its enormousworldwide expansion and its large number of businesses, it is one of the maincompetitors of Home Depot, located in fourth place in terms of revenue.

ACE HARDWARE

Top 10 Home Depot Competitors in 2022 (4)

Ace Hardware is a hardware retailer thatopened its first warehouse in Chicago in 1924 and grew to have 5,300 locationsin 70 countries. It operates an extensive distribution network in its country,and has services in China, Panama, and Dubai, among other countries. With 6,900employees, its revenues in 2018 reached $ 6.1 billion. In a market of highcompetition such as home improvement in the United States, Ace Hardware is thethird most important rival of Home Depot in terms of revenues, although in thenumber of premises, it surpasses HD by more than double.

Its strategy is based onremaining as a local store, as opposed to large impersonal chains, seeking aclose relationship with customers. Stores are of all kinds of size, in urbanand rural areas, where it has large facilities. Ace Hardware provides all kindsof products for the construction and home remodeling, such as paint, tools andgarden items.

CANADIANTIRE

Top 10 Home Depot Competitors in 2022 (5)

Canadian Tire Corporation is a retail chainfrom Canada that, through its different brands, commercializes products for thehome, automotive, articles and sportswear. With headquarters in Toronto, thegroup was born when the brothers J.W. and A.J. Billies acquired Hamilton Tire& Garage in 1922 and five years later they began operating under the namethat is currently known. It is one of the companies with the best reputationamong Canadians.

The group owns the SportChek,Sports Experts and Pro Hockey Life brands, among other categories, that aredistributed in 1,700 stores throughout the country. It also operates financialand real estate services; together they generate annual revenues for $ 5.6 billion (2019) and employ31,500 people. The home improvement business, Canadian Tire, competes directly with HomeDepot only in the Canadian market, ranking fourth and operating 504 locationsin addition to its eCommerce platform.

HOME HARDWARE

Top 10 Home Depot Competitors in 2022 (6)

Home Hardware is the largest chain ofconstruction and renovation materials in Canada, with more than 1,100 storesdistributed throughout the country and about 2,100 employees. The brand wascreated in 1964 when 122 independent retailer hardware joined to purchaseHollinger Hardware from St. Jacobs, Ontario, thereafter forming a completedealer-owner business model. In 2019, it was in the fourth position within theranking of the ten most reliable brands in the country.

Home Hardware is one of the maindirect competitors of Home Depot in the Canadian market, ranking third behindLowe’s and with annual revenues of $ 4.98 billion. Its offer includestools, plumbing and painting materials, masonry and gardening items, and has aspecial segment dedicated to the automotive part.

ILDC

Top 10 Home Depot Competitors in 2022 (7)

ILDC (Independent Lumber Dealers Co-operative) is one of the largest cooperatives dedicated to the sale of building materials and tools located in Canada, which was created in 1964. The association is made up of 21 of the main organizations in the field of construction and home renovation materials, each operating under their own brand. ILDC belongs to the hardlines buying group Spancan.

With more than 600 locationsacross the country, both in urban and rural areas, ILDC is among the four mostimportant home improvement sales players in terms of revenues, competing withmultinational giants such as Home Depot and Lowe’s. Its annual sales reach $ 4.3 billion.

SODIMACHOMECENTER

Top 10 Home Depot Competitors in 2022 (8)

Sodimac Homecenter is a chain of retailers ofconstruction and home improvement materials from Chile, which is part of theFalabella group and is operated in six Latin American countries. The brand wasborn in 1952 as a local cooperative until in 1982, it was acquired by José LuisDel Río Rondanelli, who started to administer it under the name we know today.Six years later it became a chain with regional presence.

Considering all its branches,Sodimac generates annual revenues of $ 1.84 billion and employs 43,000people among its 257 stores. It is the main competitor of Home Depot in Mexico,where it operates six stores. The chain provides all kinds of products andservices, equipment and tools for renovation and decoration, aimed atprofessionals and contractors but also at the do it yourself segment.

NORTHERNTOOL + EQUIPMENT

Top 10 Home Depot Competitors in 2022 (9)

Northern Tool + Equipment is an Americanretailer of equipment, tools, and materials for construction founded in 1981 byDon Kotula that has remained a private company in the hands of the family ofits founder. With more than 100 stores in 20 states, its main customers arebuilding contractors, automotive shops, the US military, and the public knownas do-it-yourself.

Northern’s strategy is based onoffering top-of-the-range tools and providing support and advice to itscustomers. It has a catalog of 40,000 products and sells both through physicalstores and on the eCommerce platform available 24/7. It has 3,000 employees andgenerates an income of about $ 1.4 billion. With these figures,it is the ninth competitor of Home Depot in the Home Revenue market.

ATHOME

Top 10 Home Depot Competitors in 2022 (10)

At Home is a decoration superstore that was created in 1979 in Garden Ridge, Texas and acquired by the AEA Investors investment group in 2011. Today, it operates 180 stores in 37 states and employs 5,300 people. With annual revenues of $ 1.1 billion, it is a constantly growing brand that competes with Home Depot only in the decoration segment.

Its strategy is based on offeringa wide variety of decorative items and home furnishings for all types ofbudgets. Its deployment points to a specialized in-store merchandising withvisual navigation elements and a self-service modality that minimizes staffingneeds.

CONCLUSION

The top 10 Home Depot competitors are: Lowe’s, Menards, True Value, Ace Hardware, Canadian Tire, Home Hardware, ILDC, Sodimac Homecenter, Northern Tool + Equipment, and At Home. Together they have raised over 114.6B between their estimated 450,800 employees. Home Depot has 400,000 employees and is ranked 1st among its top 10 competitors. The top 10 competitors average 45,080 employees.

COMPETITORS STATS

NAMEFOUNDEDHEADQUARTERSEMPLOYEES
Lowe’s1946Bentonville, AR, USA310k
Menards1958Eau Claire, WI, USA45k
True Value1948Chicago, IL, USA2.5k
Ace Hardware1924Oak Brook, IL, USA6.9k
Canadian Tire1927Toronto, Ontario, Canada31.5k
Home Hardware1964St. Jacobs, Ontario, Canada2.1k
ILDC1964Ajax, Ontario, Canada1.5k
Sodimac Homecenter1952Santiago de Chile, Chile43k
Northern Tool + Equipment1981Burnsville, MI, USA3k
At Home1979Plano, TX, USA5.3k

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