Lowe's making drastic store change to beat Home Depot

The retail chain isn't just improving its stores.

May 26, 2025 - 15:34

Lowe's making drastic store change to beat Home Depot

One of the hardest things to do as a retailer is to differentiate yourself from the competition.

Even if you're certain that what you have to offer is distinct from everybody else, convincing customers that this is the case — and that you're worth their business — is no small task.

That's because most customers are busy, and if you aren't a household name or known for something catchy, sticking in a market can be an uphill battle.

That's why most retailers rely on one or two central identifying features and remind us of them constantly.

For some, that's low prices. For others, it's a memorable motto or slogan. Others might try to closely identify with a color scheme, branded words, celebrities, or target demographics.

A great example of this is Walmart, which has a store within 10 miles of 90% of the U.S. population, making it an accessible household name.

And it's known for its Everyday Low Prices, a memorable slogan that also conveniently touts its typically-unbeatable prices.

Lowe's is growing its third-party marketplace.
Image source: Scott Olson/Getty Images

Home improvement stores compete differently

It's challenging for a retailer to convince customers that its household essentials are worth the purchase.

At the end of the day, though, most of us need to buy our toilet paper, shampoo, pet food, and groceries from somewhere.

It's a harder sell for stores like Lowes (LOW) or Home Depot (HD) to convince customers to make the trip.

More Home Depot & Lowe’s:

It's even more difficult to convince customers why one home-improvement retailer is worth visiting over the other guy.

Part of this is because they cater increasingly to professionals. Contractors, laborers, and remodelers often know exactly what they're looking for.

And getting those necessary materials — whether it's lumber, plumbing, or a new appliance, often comes down to wherever is closer.

Everyday customers also usually opt for whichever location is closer and has what they're looking for.

Differentiation, therefore, is hardly necessary in the consumer space, but has never been more crucial from a business perspective.

Lowe's makes a big change

This has forced Home Depot and Lowe's to work creatively for customer acquisition.

As both retailers grow their e-commerce efforts, Lowe's is making a leap to expand one key business angle.

The North Carolina-based home improvement store is growing its third-party marketplace, where online sellers can offer customers products directly.

This is a winning business model and used by some of the biggest leaders in retail, including Amazon and Walmart.

It gives customers access to more inventory, and expands a company's reach without having to take on excessive amounts of inventory.

The third-party marketplace, which specifically aims to help small businesses get exposure, will offer a variety of household supples, including:

Indoor and outdoor furniture
Kitchen accessories
Bathroom needs
Interior and outdoor decor
Power and hand tools

"Reach millions of DIY and Pro customers across the United States," Lowe's writes on its Marketplace page, adding that its partners can "increase recognition for your brand and products by partnering with one of the largest home-improvement retailers."