Home Improvement (Lowe's, Rona, Home Depot)

[wopchop]

Ya it stuck me odd as well. Although the Lowe's side was big footprint and bigger markets, in a lot of departments the two lines were essentially competing with each other.

In the smaller markets, you need a solid relationship with the trades and have a credit/payment system that can accommodate their cash flow. I don't know about Lowe's but I know HD has struggled with this. Around here, Rona seems to have a decent presence on jobsites although not as prominent as Home Hardware Building Centres. In other small markets, they are also up against TimberMart which, in a lot of cases, are built on long-standing local private lumber yards.

Prices are basically the same, so you need to compete on service. The small players are just better at this than the big dogs.
For Home Depot or Lowes, I am not sure what percentage of their business that contractor services represents, but my guess is that for the other yards, it makes up a much higher percentage. In bigger markets like the GTA, there are still many players that have that same playbook but more or less cater to this market 100% (i.e. Central Fairbank, Cooksville Lumber, Hanford Lumber, Royal, Tamarack, etc.). So in those markets, the competition for the big box in the contractor market is fierce.

 

[lenaitch]

Prices are basically the same, so you need to compete on service. The small players are just better at this than the big dogs.
For Home Depot or Lowes, I am not sure what percentage of their business that contractor services represents, but my guess is that for the other yards, it makes up a much higher percentage. In bigger markets like the GTA, there are still many players that have that same playbook but more or less cater to this market 100% (i.e. Central Fairbank, Cooksville Lumber, Hanford Lumber, Royal, Tamarack, etc.). So in those markets, the competition for the big box in the contractor market is fierce.

You're probably right. It would be interesting to know what percentage of contractors use the big box stores for supplies and materials. I do see what, for all the world, look like contractors in our local HD but it may be a matter of 'crap, we need this now and I can't be bothered to order it through our regular yard', or the customer is adamant that they want 'this' Hampton Bay fan.

In terms of lumber and sheet goods (plywood, etc.), I actually do find enough difference in prices that if it more than couple of pieces I will shop it around. The local yards are also usually more amenable (and helpful) in picking through the pile. I also find that the in-store selection of sheet goods at HD to be fairly limited, but our local store is one of the smaller footprint ones.

 

[wopchop]

In terms of lumber and sheet goods (plywood, etc.), I actually do find enough difference in prices that if it more than couple of pieces I will shop it around. The local yards are also usually more amenable (and helpful) in picking through the pile. I also find that the in-store selection of sheet goods at HD to be fairly limited, but our local store is one of the smaller footprint ones.

Just to clarify, when I say prices are the same, I basically mean the prices that the lumber yards will quote you, not the shelf price at the big box.