Home Depot remodels its business
The home-improvement giant is moving to get its house in order.
Seeking big spenders
That's about $10 less than at Lowe's, highlighting a big challenge for Home Depot: attracting large customers. In fact, purchases of $900 or more fell nearly 5% in the second quarter.
That's in part because contractors, who account for 30% of sales, are getting less work and buying fewer building materials. Home Depot is trying to woo more pros by assuring them that specialized employees will cater to their needs.
But what will ultimately drive sales is a better market. UBS analyst William Truelove notes that more Home Depot stores than Lowe's are located in the top half of housing markets, where prices have begun to stabilize.
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Last updated September 24 2010: 10:04 AM ET
Source: UBS Investment Research's general contractor survey for July.
