RetailWire Christmas Commercial Challenge: Home Depot vs. Lowe’s
A strong housing market has buoyed the performance of both Home Depot and Lowe’s this year. Even hurricanes benefitted the home improvement giants, which posted incremental gains during the third quarter.
Home Depot’s same-store sales increased 7.9 percent in the third quarter, well above the 5.9 percent expected by analysts, as hurricane-related sales added $282 million in revenues to its top line. Lowe’s same-store sales increased 5.7 percent as hurricane-related purchases were estimated to be in the $200 million neighborhood.
While Christmas may not be as critical to the annual performance of the two chains as the spring cleanup and planting season, that doesn’t mean Home Depot and Lowe’s are complacent when it comes to trying to attract customers for the holidays.
Home Depot’s “Holidays” spot talks to the “doers of Christmas.” The commercial looks at all the ways the chain can help customers celebrate the holidays — with lights and ornaments, appliances for making feasts, do-it-yourself classes and more. “Together,” the voice-over claims, “we make the magic happen.”
Lowe’s “Snowman” reaches out to its customers with humor. The spot follows a family’s reaction at the moment they realize their “snowman is melting and he’s not made of snow.” Lowe’s, of course, can help address the crisis.
- Holidays at The Home Depot – YouTube
- Lowe’s Snowman – iSpot.tv
- Home Depot lifts full-year forecasts as hurricanes spur demand – Reuters
- Lowe’s Reports Third Quarter Sales and Earnings Results – Lowe’s Companies, Inc./PRNewswire
DISCUSSION QUESTIONS: How would you compare the appeal of Home Depot’s “Holidays” to Lowe’s “Snowman”? Which do you think does a better job of connecting with each company’s core customers while reaching out to new shoppers?