Relationship between Home Depot and Lowe’s Under Impact of Major Events

Abstract

Home Depot and Lowe’s are two of the world’s largest home building materials retailers. We analyze whether the two are in a competitive relationship or the same dilemma under the impact of major events by using the obvious structural breakpoints and combining them with the event research method. An empirical study of the major events is conducted corresponding to the major events at the time node where the obvious structural breakpoints are located. Based on the revenue and profit data from 1996 to 2021, the two companies are compared for the changes in revenue and profits under the impact of the same major event. The results show that the major events affect the development of the entire home building materials retail industry and the company's operation. The internal impact prompts both parties to actively adjust their internal business to be competitive, and several events affect only individual companies. However, certain significant events have little impact on the company’s revenue.