Retail

Homeowners Favor Lowe’s to Home Depot

Image Credit: Photo by Rustic Vegan on Unsplash

Lowe’s beat the street in the 4th quarter of 2018, sparking a 26% rise in the company’s stock price to date, and prompting some analysts to wonder if the company was poised to overtake Home Depot.

On May 22, the company will announce its 1st quarter results for 2019, with analysts expecting earnings of $1.36 a share, representing a robust growth of 14% year-over-year.   

Taking the pulse of American consumers’ favorability with Lowe’s over the last five months, a CivicScience study found 54% of U.S. adults have a favorable view of the company, while only 9% have an unfavorable view. These are enviable numbers for any sector.

CivicScience also took a peek back a year and found the ratings to be exactly the same. Lowe’s seems to be in a good and solid place when it comes to favorability among American adults.

If there’s any dim light to this news, it would be generational, as Lowe’s is more popular among older age groups, peaking at a 62% favorability among Americans 55 and older, and bottoming out at 26% with those 18-24. Millennials jump up to having a 43% favorability ranking, and Gen X clocks in at 54%.

Notable, as well, are the neutral ratings, especially among Millennials and Generation Z. There is clearly plenty of room for Lowe’s to garner fans in those segments.

Millennials, it would seem, are primed to be the population Lowe’s should be going after. They are now all entering the home-buying (or at least apartment-renting) stage of their lives and will need to keep up with the Joneses.

Shown below, Millennials – at least those who are OK with Lowe’s – think the economy is in good enough shape to consider making a major purchase. These Millennials who are neutral towards Lowe’s and who think it’s an average time to make a major purchase could be a new target for Lowe’s to go after.

And overall, Americans who think now is a good time to make a major purchase have a whopping 70% favorability rating toward Lowe’s. Only 37% of Americans who think the economy is not a good space have a similar feeling for the home improvement giant.

Of course, Lowe’s caters mostly to homeowners, and so somewhat unsurprisingly, that group favors Lowe’s at a 53% higher clip than non-homeowners.

What’s more is, though American adults show nearly identical rates of favorability to Lowe’s and Home Depot, homeowners are more favorable to Lowe’s than Home Depot by a big stretch.

One last notable finding in the study deals with people looking for deals. American adults who sometimes or always compare prices before making a purchase have a 55% and 56%, respectively, favorable opinion about Lowe’s, while only 18% of Americans who don’t check prices feel the same.

Overall, Lowe’s favorability seems to be headed in the right direction, and if Millennials come on board, things might be looking very high for this home improvement company.

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