What strategies are companies in Home-Improvement Retailers using to win

In Home-Improvement Retailers, the following strategies are implemented by companies to win:

1. Deeply Cultivate the Professional (Pro) Customer

This strategy focuses on creating a dedicated ecosystem of products, services, and support tailored to the specific needs of professional contractors, remodelers, and tradespeople to capture a larger, more consistent share of their business.

Example: The Home Depot: Is aggressively expanding its Pro capabilities by "further developing its Pro ecosystem" and making strategic acquisitions like SRS Distribution to serve more complex project needs. They are also embedding Pro Customer Experience Managers into store leadership teams.

Example: Lowe's: Aims to "Drive Pro Penetration" through more organic, service-oriented initiatives. This includes enhancing its Pro product assortment, improving job-site delivery, and adding dedicated service levels in its stores.

2. Build a Seamless Omnichannel Experience

This involves integrating physical stores and digital platforms to allow customers to move fluidly between them. The goal is to provide a consistent and convenient experience for research, purchasing, and fulfillment.

Example: The Home Depot: Focuses on delivering a "Best in Class Interconnected Experience." Key initiatives include enhancing the mobile app's in-store navigation and transforming the front end of stores to expedite checkout.

Example: Lowe's: Aims to "Accelerate Online Sales" by leveraging technology to improve the customer journey. This includes launching digital tools like the "Style Your Space" AI design assistant and expanding same-day delivery options through gig platforms.

3. Weaponize the Supply Chain for Speed and Efficiency

This strategy treats the supply chain not just as a support function but as a core competitive weapon. The objective is to achieve the fastest, most reliable, and most cost-effective delivery of products to both DIY and Pro customers.

Example: The Home Depot: Explicitly aims to "Extend Our Low-Cost Provider Position" and achieve best-in-class delivery. They are doing this by automating rapid deployment centers and transitioning 100% of appliance deliveries to their own market delivery network.

Example: Lowe's: Focuses on "Operational Efficiency" through its network of over 120 supply chain facilities to enable flexible fulfillment, such as buy online, pick up in-store and improved job-site delivery for Pros.

4. Capture the Entire Project with Integrated Services and Loyalty

This strategy moves beyond selling individual products to selling complete project solutions. It involves offering installation services and building loyalty programs that increase customer retention and total spend.

Example: Lowe's: Excels here with two dedicated strategic pillars: "Expand Home Services" and "Create a Loyalty Ecosystem." They are creating a "High Value Simplified Installation Solution" with a remote "Central Selling Team" and note their MyLowe's Rewards members spend nearly 50% more than non-members.

Example: The Home Depot: Addresses this as part of its broader interconnected experience. Instead of a formal loyalty pillar, they focus on providing associates with enhanced tools like "MyView" to gain visibility into customer projects and proactively offer solutions.