So you‘re gearing up for a big home improvement project in 2024. As you prepare your shopping list, you know you‘ll likely be heading to home improvement giant Home Depot, the iconic orange-branded retail store that‘s become synonymous with DIY projects and contractors‘ supplies.
With over 2,000 locations across North America and over $110 billion in annual revenue, Home Depot dominates the market. But before you assume Home Depot is your one-stop-shop, it‘s worth exploring some of its major competitors.
See, Home Depot has grown so massive, it can be easy to overlook some compelling alternative stores in the home improvement space. From long-time big box rivals to emerging ecommerce players, Home Depot faces increasing competition fighting for its market share.
As a savvy shopper, it pays to understand who Home Depot‘s competitors are, where they excel or fall short, and who ultimately deserves your business.
Ready to expand your home improvement horizons? Let‘s dive into the 15 leading Home Depot competitors every consumer should know.
Overview of the Home Improvement Retail Market
Before analyzing specific brands, it helps to understand the broader home improvement industry. This market covers retail sales of products used for home repairs, maintenance, remodeling, and decoration.
According to IBISWorld research, the home improvement retail sector generates over $412 billion in annual revenues in the US alone. Products classified under home improvement retail include:
- Building materials: Lumber, flooring, paint, wallpaper, lighting, storage
- Tools: Hand tools, power tools, garden tools
- Hardware: Plumbing, electrical, general hardware
- Lawn & garden: Outdoor power equipment, plants, outdoor decor
- Kitchen & bath: Faucets, sinks, countertops, cabinets
- Appliances: Major kitchen and laundry appliances
Demand in the industry is driven by homeownership rates, existing home sales, and trends in remodeling and renovation spending. As millennials enter peak homebuying years and older generations remodel aging homes, the industry sees consistent growth.
Home Depot leads the market with a 23.4% share of industry revenues. Its closest competitor, Lowe‘s, holds 13.7% market share. Beyond these dominant chains, competitors range from big box general retailers to local hardware stores and ecommerce pure-plays.
Now let‘s analyze the 15 leading brands giving Home Depot a run for its money:
1. Lowe‘s
Without question, Lowe‘s is Home Depot‘s biggest competitor. Lowe‘s offers nearly identical products and services in the home improvement space. Like Home Depot, Lowe‘s focuses on lumber, tools, appliances, lawn & garden equipment, and general home improvement items for both DIY customers and professional contractors.
Lowe‘s operates over 1,970 locations across the United States and Canada, second only to Home Depot‘s 2,200+ stores. In 2020 Lowe‘s reported $72 billion in total sales revenue, compared to Home Depot‘s $110 billion.
When it comes to competition between the two chains, it often comes down to pricing, product selection, brand loyalty programs, and convenience of locations. Home Depot tends to edge out Lowe‘s in tool selection, while Lowe‘s competes on appliances like Whirlpool. Geographically, Lowe‘s has stronger penetration in the Southeast US compared to Home Depot‘s strength in the Northeast.
Ultimately, Lowe‘s is the closest match to Home Depot in product offering and stores. For comparable items, savvy shoppers recommend comparing prices between the two.
2. Menard‘s
Founded in Wisconsin and concentrated in the Midwestern US, Menard‘s operates over 320 home improvement stores across 14 states. Menard‘s product selection closely mirrors that of Home Depot, from lumber and flooring to appliances, paint, and garden supplies.
As a wholesaler, Menard‘s is able to offer lower prices than Home Depot on many big ticket purchases like lumber, cabinets, and roofing. This makes Menard‘s a popular option for contractors and homeowners alike looking to complete major home projects on a budget.
Beyond retail locations, Menard‘s has its own manufacturing facilities, truss plants, and interior design centers. 2020 annual revenues exceeded $8 billion. The geographic concentration of stores gives Menard‘s dominance in the Midwest; it trails Home Depot in nationwide presence.
3. Ace Hardware
With over 5,300 independently owned hardware stores worldwide, Ace Hardware adopts a unique decentralized, local business model compared to corporate giants like Home Depot. While limited in inventory of major power tools and appliances, Ace provides knowledgeable service and convenience for homeowners‘ basic repair and maintenance needs.
The familiar neighborhood hardware store format allows Ace retailers to build relationships with customers in the community. Though sizes vary, Ace stores tend to be smaller in square footage than massive big box Home Depot locations. Under the Ace brand, stores can still compete with national chains by uniting for purchasing power and marketing.
In 2020, Ace Hardware stores worldwide generated over $7 billion in total revenues. Ace has an advantage competing in localized markets, while Home Depot wins on one-stop expansive product selection.
4. True Value
Similar to Ace Hardware, True Value functions as a hardware wholesaler and retailer with over 4,500 affiliated stores, primarily in North America. True Value Company is retailer-owned, providing branded products and services to independent shop owners.
Store owners leverage the True Value brand, while tailoring inventory to local market demand. Most stores are smaller than big box formats and highlight outstanding customer service. In 2019, total retail sales across True Value stores exceeded $2.5 billion.
While limited in huge capital purchases like riding lawnmowers, True Value competes with Home Depot for general home repair items like paint supplies, hand tools, hardware, and garden accessories. Independent retailers benefit from the True Value distribution network and marketing resources.
5. Canadian Tire
Shifting focus north of the border, Canadian Tire is one of the largest general retailers in Canada. With 2020 revenues exceeding $13 billion CAD and 500 stores across the country, Canadian Tire has a major presence in hardware, tools, sporting goods, housewares, and automotive accessories.
Canadian Tire competes head-to-head with Home Depot in Canada on home improvement offerings like lumber, flooring, paint, lighting, major appliances, outdoor power equipment, and hardware. Brands often overlap between the two retailers.
Home Depot does maintain an advantage in Canada with almost 200 locations compared to 500 Canadian Tire stores. Home Depot also offers some greater selection on professional contractor supplies. For most homeowners though, Canadian Tire provides a viable alternative to Home Depot.
6. Walmart
Known as the world‘s largest retailer, Walmart is not traditionally a home improvement store. However, Walmart offers a surprisingly wide range of home-related products across its over 10,500 stores worldwide, including 5,000+ locations in the US.
Relevant Walmart home offerings include furniture, home decor, storage solutions, small kitchen appliances, limited hardware supplies, and outdoor/gardening products. With its massive size and negotiating power, Walmart competes heavily on price against Home Depot.
Walmart earned over $559 billion in total revenue in 2020, though home improvement makes up a smaller percentage. Walmart lacks the depth of inventory on tools, lumber, and contractor supplies that Home Depot is known for. But for household goods and basic homeowner needs, Walmart‘s convenience and prices make it a contender.
7. Amazon
Expanding beyond brick-and-mortar, ecommerce giant Amazon has quickly become a top Home Depot competitor online. Offering virtually endless aisle space, customers can purchase a vast spectrum of home improvement products through Amazon.
Top home categories where Amazon threatens Home Depot include power tools, hardware, smart home technology, outdoor furniture and equipment, and home decor. Amazon‘s Prime perks like free 1-2 day shipping also makes it convenient for quick home projects.
While limited in available in-person expertise, Amazon competes aggressively on price with algorithms that adjust listings to undercut competitors. In 2020 alone, Amazon‘s total revenues exceeded $386 billion. With its growing delivery network, Amazon can get DIY supplies to your door faster than a trip to Home Depot.
8. Target
Yet another big box general retailer, Target has over 1,900 stores across the United States stocking everything from groceries to apparel to home goods. In the home category, Target sells furniture, kitchenware, small appliances, bathroom accessories, outdoor patio items, storage solutions, and more.
While limited compared to Home Depot, Target provides an alternative for some appliances, home organization items, furniture, and decor – often at lower prices. With 2020 revenues surpassing $93 billion, Target leverages its tremendous purchasing power to undercut specialty retailers on home-related merchandise.
9. Williams Sonoma
Representing premium home products, Williams Sonoma is a specialty retailer focused on high-end cooking essentials, kitchenware, and home furnishings. Stores offer in-depth culinary and decorating expertise with concierge design services.
Product selection zeroes in on quality, durability, and aesthetics versus the mass market approach of Home Depot. Price points are accordingly higher at Williams Sonoma, which operates over 600 store locations and ecommerce sites. 2020 annual revenues exceeded $6 billion.
For luxury kitchen remodels or furnishing a home with upscale decor, Williams Sonoma competes as the premier destination over Home Depot‘s mainstream assortment and budget-conscious pricing.
10. Mohawk Industries
Shifting to flooring, Mohawk Industries is the world‘s largest flooring manufacturer. All flooring products are designed and produced under the Mohawk brand or one of its subsidiaries like Karastan, Marazzi, or Pergo. Mohawk competes directly with Home Depot‘s flooring department.
Mohawk offers a greater range of flooring options including carpet, ceramic tile, laminate, vinyl, wood, and more. With over $9 billion in 2020 sales revenue, Mohawk supplies flooring for residential and commercial applications. Mohawk retailers can provide full-service installation not offered through Home Depot.
For selection and expertise in new floors or flooring repair, Mohawk Brand retailers are the specialist choice over Home Depot‘s convenient flooring aisles.
11. Best Buy
In the world of consumer electronics and appliances, Best Buy is a major player with over 1,100 locations across the US, Canada, and Mexico. While not a traditional home improvement store, Best Buy intersects with Home Depot on major appliances like refrigerators, washing machines, and ranges.
Expanding further, Best Buy is on the leading edge of the smart home and connected devices movement. Home automation tools like video doorbells, smart thermostats, WiFi cameras, and voice assistants are Best Buy specialties versus Home Depot‘s limited electronics assortment.
For major appliance purchases and creating an integrated smart home, Best Buy competes directly with Home Depot as a electronics and tech specialist. 2020 revenues for Best Buy exceeded $47 billion.
12. Wayfair
Representing a new generation of ecommerce retailers, Wayfair has become a top destination for home furnishings, decor, and goods online. Wayfair carries over 18 million products across home categories like furniture, lighting, kitchenware, rugs, and more.
As an online-only retailer, Wayfair competes through endless aisle inventory, aggressive pricing algorithms, and tremendous shipping convenience. Wayfair drop-ships products directly from suppliers, cutting costs. Free shipping on most orders over $35 gives Wayfair an edge over Home Depot.
Wayfair‘s stock price skyrocketed in 2020 as consumers shifted to online shopping. Annual net revenues topped $14 billion, reflecting explosive growth. For selection and convenience, Wayfair has become a fierce Home Depot rival.
13. Bed Bath & Beyond
Specializing in products for the bedroom, bathroom, and kitchen, Bed Bath & Beyond operates over 1,500 retail locations across the US, Canada, and Puerto Rico. Stores offer an extensive selection of bedding, bath items, kitchenware, small appliances, storage solutions, and cleaning supplies.
Bed Bath & Beyond provides specialty home goods for nearly every room of the house. Store brand exclusives like Squared Away storage containers and Simply Essential kitchen gadgets avoid competing directly with national brands at Home Depot.
For affordable and stylish home decor, organization tools, linens, and college dorm furnishings, Bed Bath & Beyond carves out a unique niche from Home Depot‘s hardware-centric offerings.
14. At Home
Headquartered in Texas, retail chain At Home specializes in home decor, furniture, garden items, and unique seasonal goods across over 200 superstore locations. At Home stores are vast warehouses stocked with affordably priced merchandise for decorating every area of home and outdoor space.
Rapid growth has fueled At Home‘s rise as a competitor in home furnishing sales. At Home reported over $1.7 billion in net sales for 2020. Helped by an acquistion of struggling retail chain Garden Ridge, At Home plans to open dozens of new superstores in coming years.
For major furniture pieces, housewares, and decor, At Home‘s huge in-store selection and low prices give it increasing appeal over Home Depot‘s limited home furnishing aisles.
15. Northern Tool + Equipment
Rounding out the list, Northern Tool + Equipment carries over 85,000 products across hardware, tools, and equipment for home, farm, ranch, pet, auto, and yard care. Over 60 retail locations are concentrated in the Midwest, but Northern Tool does business nationwide through ecommerce orders.
Northern Tool positions itself as offering products for home improvement professionals and hobbyists who demand durability and reliability. This includes major tool brands absent from general big box retailers.
For specialty tools and industrial equipment, Northern Tool competes directly against Home Depot‘s power tools and hardware assortment. Northern Tool‘s 2020 revenues exceeded $1 billion through its hybrid online and offline model.
Choosing the Best Home Improvement Retailer For You
In reviewing Home Depot‘s top national and regional competitors, you gain tremendous power as a shopper to evaluate all your options. While Home Depot leads with its brand recognition, broad assortment, and convenient locations, competitors like Menard‘s, Ace Hardware, and Canadian Tire offer unique advantages in their markets.
Online players like Amazon and Wayfair compete aggressively on price and delivery speed. Category specialists like Williams Sonoma and Mohawk sell premium products with custom services. Even unexpected giants like Walmart and Target warrant consideration for home goods.
Ultimately, choosing where to spend your home improvement dollars depends on your specific project needs and priorities:
- Price – For guaranteed low prices across the board, discount mass retailers like Walmart and Target are tough to beat.
- Selection – Home Depot and Lowe‘s are hard to rival when you need both common hardware and appliances under one roof.
- Quality & Durability – Invest in luxury brands like Williams Sonoma or verified pro-grade tools from Northern Tool.
- Convenience – Ace Hardware‘s neighborly service and plentiful locations simplify shopping.
- Speed – Amazon Prime offers fast doorstep delivery for urgent DIY repairs when time is tight.
- Pro Installs – Flooring from specialist Mohawk comes with professional installation options Home Depot can‘t match.
Doing your homework pays – always evaluate the retailers in your area. Take time to browse options, consult reviews, and confirm prices. Don‘t assume Home Depot always comes out on top.
With this overview as your guide, you can approach home projects as an informed shopper ready to select the right retailer for every job. Now grab your tape measure and let‘s get building!
