It is no secret that Home Depot and Lowe’s dominate the U.S. home improvement retail market, despite rising competition from companies such as Ace Hardware and Amazon, which have been attracting customers by making their services more convenient through digitalization efforts. 

Currently, Home Depot has 51% of the home improvement retail market share. In comparison, Lowe’s has 28.8% and Menards has only 4.6%, according to recent data from market research firm IBISWorld, which was shared with TheStreet. 

Even though Home Depot beats Lowe’s in market share, it falls behind Lowe’s and other competitors in consumer satisfaction, according to a recent J.D. Power survey.

Home improvement retail consumer satisfaction scores:

  • The average consumer satisfaction score for home improvement retail is 671 (on a 1,000-point scale)
  • Lowe’s ranks the highest in the segment with a satisfaction score of 680. 
  • Ace Hardware takes second place with a 672 score. 
  • Menard’s trails behind Ace Hardware with a satisfaction score of 669.
  • Home Depot, however, takes fourth place with an average satisfaction score of 641.
    Source: J.D. Power 

In the survey, many consumers flag that the level of assistance from employees is a main factor in their satisfaction with home improvement retailers. 

“The collaborative nature of customers and employees essentially working together toward the same goal has improved the shopping experience,” said Michael Taylor, senior managing director of the retail intelligence practice at J.D. Power, in a statement. 

“Customers are coming into stores with greater knowledge of what they want, if store employees can make helpful suggestions, it increases the likelihood that customers will return to that store,” he added.

Lowe’s beats Home Depot in consumer satisfaction.

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Home Depot and Lowe’s rival set to make U.S. debut

Amid tough competition for consumer dollars, Home Depot and Lowe’s now have another major rival on their hands that could make this task even more difficult. 

Vevor, a China-based home improvement retail brand, is set to make its U.S. debut on Feb. 9, according to a recent press release.

The retail chain is famous for its budget-friendly home improvement products, such as power and repair tools, kitchen essentials, and even automotive equipment. 

Vevor specifically targets DIY and professional consumers and already has a strong online presence and stores in more than 200 countries worldwide. It also has more than 60 warehouses in Germany, Australia, the United Kingdom, Canada, and the U.S. 

Related: Lowe’s rolls out free offers for customers amid challenges

Vevor’s first U.S. store, which will be 32,000 square feet, will open in Houston, Texas. Unlike its competitors, it will have a buy online, pick up in-store model “that connects Vevor’s digital platform with a solution-driven in-store experience.”

The store will hire 60 full- and part-time employees, and will host “product training sessions, DIY workshops, and creator-led activities.” Customers will also be able to test certain tools in the store and see how they perform in “hands-on demonstration areas.”

“As more customers want to see, test, and understand tools before buying, this store helps bridge that gap by offering hands-on product experiences while maintaining the accessibility and value customers expect from Vevor,” said Vevor Brand Director Gavin Wu in the press release. 

“For us, it’s about being a helpful, reliable presence in the Houston community, giving families and home creators a place to explore tools, ask questions, and feel confident about improving their homes,” he continued. 

Vevor said that this upcoming store is “the first step” in expanding its physical retail presence in other major cities.

Home Depot and Lowe’s are battling low demand

Vevor’s U.S. debut comes during a time when Home Depot and Lowe’s have been struggling with low sales, as consumers face economic pressures such as higher prices from tariffs and an uncertain U.S. housing market.

In Home Depot’s latest earnings report, it revealed that its U.S. comparable sales increased by a measly 0.1% year over year in the third quarter of 2025. 

Also, recent data from Placer.ai showed that foot traffic at Home Depot’s same-store locations dropped by 0.4% during the quarter, compared to the same time period in 2024. 

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“What’s impacting us and home improvement is the ongoing pressure in housing, in incremental consumer uncertainty,” said Home Depot CEO Ted Decker during an earnings call in November.

Lowe’s most recent earnings report showed that its comparable sales rose only 0.4% year over year in the third quarter of last year. Additionally, recent data from Placer.ai revealed that foot traffic at Lowe’s stores during the quarter decreased by 0.1% year over year.

Lowe’s CEO Marvin Ellison also highlighted during an earnings call in November that affordability concerns and high interest rates in the housing market are pushing home improvement retail consumers to cut back their spending.

“Affordability and uncertainty in the broader economy continue to weigh on consumer confidence, particularly when it comes to larger discretionary purchases, as borrowing costs have been elevated for longer than originally anticipated,” said Ellison.

Since 2022, the average 30-year mortgage rate in the U.S. has remained above 6%, prompting many consumers to delay new home purchases. Despite recent headwinds, the U.S. housing market is slowly recovering as interest rates have decreased over the past few months.

How the U.S. housing market performed in December 2025:

  • The average 30-year fixed-rate mortgage in December was 6.19%, down from 6.24% in November.
  • Existing-home sales increased by 5.1% month over month, but are only up 1.4% year over year.
  • Month-over-month U.S. home sales rose in all regions; however, year-over-year sales increased in the South, remained stagnant in the Midwest and West, and decreased in the Northeast.
    Sources: National Association of Realtors, Freddie Mac

“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said NAR Chief Economist Lawrence Yun in a press release. “However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years.”

“Inventory levels remain tight,” Yun added. “With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February.”

Related: Home Depot raises alarm bells with unexpected closure, layoffs