Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Placer Bytes: Home Improvement Soars, Wholesale Competition?

By 
Ethan Chernofsky
May 5, 2020
Placer Bytes: Home Improvement Soars, Wholesale Competition?
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

In this Placer Bytes, we dive into tight battles in the Home Improvement sector and the potential for a true challenger to Costco’s dominance.

Home Improvement Heavyweights

Admittedly, we expected Home Depot and Lowe’s, along with the wider sector, to do well post-coronavirus. What we did not see coming was the exceptional performance during the crisis. Home Depot and Lowe’s were able to drive year-over-year growth looking at Q1 2020 with visits rising 1.2% and 1.9% respectively even with the pandemic. This positioned both retailers far ahead of competitors like Menards and IKEA.

But, the dominance they’re both showing has blown past our expectations. Home Depot saw weekly visits rise 31.3% above the baseline for the week beginning April 20th when analyzing the period from January 2019 through April 27th. This was the company’s third-best week for visits since the start of 2019, only losing out to two weeks in May 2019, Home Depot’s peak season. 

Yet, the true winner may be Lowe’s. The brand saw visits rise 71.8% above the weekly baseline for the same period during the week of April 20th, 28.8% better than any week in 2019. And this is following a week where visits rose 61.4% above, which would have set the same mark as a new peak one week prior.

This is changing the face of the competition between the two brands. For the first time since Placer began analyzing location data in January 2017, Lowe’s saw visits that have outpaced Home Depot’s. And, even more impressively, this isn’t during a period where Home Depot is struggling, but the last two weeks from April 13th to 27th, when both brands had strong performances.

Looking longer-term, Home Depot still has a few key advantages, namely an ability to drive high traffic peaks in the holiday season and 8.8% greater customer loyalty during this same period. But, Lowe’s has certainly made the direct competition between the two an even more interesting battle to watch.

Wholesale Competition

Costco is one of the dominant forces in offline retail and has been the clear category leader in the wholesale sector. But, there are signs that the COVID-19 pandemic may have enabled competitors to close the gap. Looking at nationwide data for Costco, Sam’s Club and BJ’s shows that Sam’s Club has closed the visits gap to its closest level in years in recent weeks.

And much of this centers around the direct impact of the coronavirus and social distancing measures. While Costco saw strong growth early, several factors have led to declines in terms of year-over-year traffic on a weekly basis. Self-imposed restrictions and a geographic orientation towards the harder hit coasts could have hit the industry leader more than its rising competitors.

BJ’s Wholesale Club, on the other hand, has seen consistent YoY growth throughout the crisis, a clear benefit of their wholesale orientation, and people are taking notice. Since seeing weekly visits grow nearly 90% year over year in the second week of March, the brand saw a similar drop as other players but is seeing another period of sharp growth aligned with loosening distancing restrictions nationwide.

Sam’s Club too, is in the midst of a powerful turnaround, is driving strong growth after a less than stellar 2019.

Can the Home Improvement sector maintain its torrid pace? Can BJ’s and Sam’s Club sustain their rise when ‘normalcy’ returns? Or will Costco’s huge lead and consistent performance keep them in the pole position? 

Visit Placer.ai to find out.

Learn how downtown regions across US cities are measuring up with our free tools.
Check out the latest trends for
No items found.

Related Topics

Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
SHARE
Get 3 brand & industry
breakdowns every week
Subscribe to the newsletter
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.

Recent Publications

Get 3 brand & industry breakdowns every week

Subscribe to the newsletter
Home Depot and Lowe’s Heading Into the Holidays
Starbucks and Dutch Bros: Short Visits Lead the Way
Planet Fitness: Raising the Bar(bell)
Checking in With Full-Service Restaurants: First Watch, Chili’s, and Outback Steakhouse
RBI and Yum!: QSR Resilience in 2024
Boot Barn and DSW: Stepping Up Their Game
Target’s October Circle Week: A Data-Driven Snapshot
Chipotle, Shake Shack & Wingstop: Dining Success in Q3 2024
Playa Bowls and Tropical Smoothie Cafe: Berry Big Business
Cheesecake Factory & BJ’s Restaurants: Full-Service Success
Checking in on McDonald's and Wendy's 
Sprouts Farmers Market: A Specialty Grocer With a Traditional Twist
CAVA: The Craze Continues
Placer.ai Reaches $100M Annual Recurring Revenue
Catching Up With Carter's 
A Texas Roadhouse and LongHorn Steakhouse Showdown
Placer.ai Mall Index: September 2024 Recap – Labor Day Peaks and Holiday Season Predictions
Albertsons Q3 Check-In
Looking Ahead to the 2024 Holiday Season
Trader Joe's: Continuing to Thrive in 2024
Bowlero and AMF: A Ten-Pin Knockout
Recreational Retail: Store Performance in 2024
Placer.ai White Paper Recap – September 2024
A QSR and Fast-Casual Face-Off
Sam’s Club’s In-Store Retail Media Network Opportunity
The Rising Stars: Six Metro Areas Welcoming Young Professionals
Costco in 2024: A Deep Dive
Sherwin-Williams in 2024: Brighter Than a New Lick of Paint
Life Time and Orangetheory: Premium Fitness Flourishing
C-Stores: More Than A Pit Stop
Darden: Dining Dominance Undeterred 
Placer 100 Index for Retail and Dining: August 2024 Recap
Placer.ai Office Index: August 2024 Recap
Placer.ai Mall Index: August 2024 Recap – Back-To-School In Full Swing
Auto Parts Retailers: The Traffic Continues
Pumpkin Spice Works its Magic Once Again
School Season Sparks Retail Growth
Placer.ai White Paper Recap – July & August 2024
Big Lots’ Big Rightsizing Move in Four Data Points
Fun Away From The Sun: Checking in With Eatertainment
Domestic Migration and Population Growth: Strong Currents Off The Carolina Coast
The Civic Impact of Summer Events
Retail Trends in College Towns: A Back-to-School Snapshot
Five Below and Ollie’s Bargain Outlet: Consumers Still on the Hunt for Discounts
Macy’s & Bloomingdale’s: Into 2024 and Beyond
Limited Time Only: The Trend Continues
Beauty in 2024: Many Ways to Win
Dollar General & Dollar Tree: Powering Ahead in Q2 2024
The Home Depot and Lowe's Foot Traffic Remodel in Q2 2024
Superstore Update: Summer Savings Spree
Placer.ai Mall Index: July 2024 Recap – From Fourth of July to Back-to-School
Placer.ai Office Index: July 2024 Recap
Summer Movie Madness: Blockbuster Films Boost Foot Traffic
Driving Success: Toyota in 2024
Denny’s and IHOP: An All-Day Breakfast Matchup
Warby Parker: Seeing Clearly Now
Planet Fitness at the 2024 Halfway Point
Serving Summer 2024: RBI and Yum! Brands Q2 Foot Traffic
Starbucks, Dutch Bros., Dunkin’: Finding Summer Success
Fast Food and Fast Casual Favorites, Plus CosMc’s Takeoff
Chipotle and Sweetgreen: Fast-Casual in Q2 2024
First Watch, Texas Roadhouse, and Applebee’s: An FSR Roundup
Albertsons Companies: H1 2024 Recap
Teaming Up For Success: Sports Stadium Sponsorships
Limited Time Offers: Price Wars Boost Visits
Placer 100 Index for Retail & Dining: June 2024 Recap
Placer.ai Mall Index: June 2024 Recap
Placer.ai Office Index: June 2024 Recap
Inside Out 2: The New Blockbuster Bringing Crowds Back to Theaters
Petco and PetSmart: A Head to Head
Frozen Delights: Exploring Ice Cream Chains Across America
Placer.ai White Paper Recap – June 2024
Barnes & Noble: Writing a New Story
Small Format Stores - Sprouting, Blooming, and Expanding
Retail and Dining on Father’s Day
Thrift Store Visit Scores
Charting Value Grocery’s Visit Growth
Placer 100 Index for Retail & Dining: Introduction and May 2024 Recap
Digging Into Darden: Q2 2024 Update
2024 Retail and Dining Trends Update
TRU and avid: Midscale Hotels on the Rise 
Diving Into Kroger: A Strong Start to 2024
Placer.ai Mall Index: May 2024 Recap – Mall Visits on the Rebound
Placer.ai Office Index: May 2024 Recap
2024 Memorial Day Recap
Las Vegas: A Tourism and Migration Deep Dive
Eatertainment Chains: Full on Food, Fun, and Foot Traffic
The Promise of Luxury Apparel
Catching Up With Ulta Beauty & Gap Brands
Ollie’s Bargain Outlet and Five Below: Q1 2024 Treasure Troves
CAVA Still Going Strong
Driving Success: Auto Parts Chains in 2024
Checking in With DICK’S Sporting Goods
Mother’s Day Shopping and Dining Trends
Placer.ai Mall Index: April 2024 Recap – Retail Resilience Heading into Spring
Dollar Stores Still Gaining Momentum
Off-Price Apparel Chains After Q1 2024: Demographics in the Balance
Walmart, Target, and Wholesale Clubs Continue to Thrive
Home Improvement and Decor Check In
Placer.ai Office Index: April 2024 Recap – Recovery Continues