1) removed 50+ negative growth stores from the books so they didn't do it by outselling Depot with Pro. Lowes will never outsell Depot on the Pro because Depot has so much cash on hand they lend it out to get new accounts: typical line of credit at Depot 20,000 to 30,000. Lowes has to use standard credit channels or American Express but typically opens at 10,000. They don't have the cash that Depot has in reserve (its been said Depot could outright buy Lowes for cash!) for seeding new business.
2) They don't hire construction estimators, or if they do they leave because they end up spending their whole shift in understaffed lumber or on the register. That NEVER happens at Depot. Again Lowe's under-capitalizes its labor budget (probably to boost earnings) and suffers at 7am with no loader no pulled deliveries and maybe 1 cashier. Depot delivery truck is gone at 7am, 2 cashiers and dedicated overnight puller and dedicated loader with license.
3) Lowe's doesn't have strong special sales vendors. I can get over-sized beams and specialty hardware at Depot, Lowe's works product catalogs. Product processing takes seconds at Depot. Lowe's processing is inefficient and clumsy (i'm being nice) and creates product errors.
4) Depot offers drop ship to work-site with backup store vehicle for missed items, plus rental equipment. Lowe's offers flatbed from store and 1 rental truck (3/4 ton max) no backup house vehicle.
No way Lowe's increased sales growth in Pro against Home Depot. Sure they put more names in their dbase but sales gains came from changes in store count. Lowe's added Yorktown a store in
New York....sales growth unlimited by the combined math, but not sustained growth.
The problem is you can't beat Depot, they can buy you outright or out spend you. They pay their bills aged differently (faster) , they don't pay finance fees for on- hand appliances (they don't stock them)
and they don't give away money for mistakes in installs at store level.
If Lowe's thinks they can manufacture more capital by being like Depot they will lose. Before Niblock
tried to introduce voodoo retail, Lowes kicked retail. Why? Customer Satisfaction, When? 24/7 Who?
Every associate What? Whatever they wanted. That's not money assets that's people assets! Lowe's drove business and sales with great people who loved their higher wage retail job.
Corporate after 2003 demeaned this asset, marginalized it then discarded it. But it was always about the customer til Marvin came along. I hope he's got a big pile of cash in the vault, but the salaries and stock buy backs for c-suiters and activists have already strained that notion!