Will Home Depot and Lowes ever merge, you may ask? The companies have several similarities, and some analysts say they should. Lowe’s Pro business is growing faster than Home Depot’s. And both companies have a competitive edge in the home improvement industry. While Lowe’s has fewer stores than Home Depot, its overall revenue is more than double that of Home Depot’s. That’s good news for consumers, but it may spell disaster for Home Depot.
Neither Home Depot nor Lowe’s owns the other, and the two companies are publicly traded. While they compete for a large segment of the home improvement market, they’re not direct competitors. Lowe’s and Home Depot both have subsidiaries, and both have separate ownership structure. If they merge, the merger will likely benefit shareholders. A merger will create better quality products and lower prices for customers. But before merging, the two companies should consider a merger.
Both companies have a lot in common, and that includes price. While they offer similar products, Home Depot and Lowe’s engage in price wars on a daily basis. In fact, the same product can cost a penny more at one store than it would at another. By combining online and offline purchases into one, businesses can purchase materials cheaper. However, this may not be as easy as it sounds.
Both companies are changing their culture, and the new CEO of Lowe’s, Marisa Thalberg, is the right person to bring that change. The incoming CEO will need to make the company different from Home Depot. Whether they merge or not, the changes are inevitable. If so, it will be a good thing. If Home Depot and Lowes merge, the future looks bright.