Why You Need to Hear What Home Depot & Lowe’s Said Last Week

For many years, lighting showrooms without an electrical supply counter were advised to leave the DIY type of lighting basics to the home centers and concentrate on courting the mid- to higher-end consumer — and that was (and still is) good advice. However, during both companies’ Q2 2025 Earnings Conference Calls last week, the leadership at Home Depot and Lowe’s provided overarching views of what the companies have observed regarding their customers’ spending habits.

Both home improvement companies noted that customers have been more closely dividing their home improvement projects into two categories: “need to”  versus “want to.” Repairs, which are the most reliable driver of any home improvement business, remain strong. It’s the “want to” list of renovation projects on customers’ wish lists that have stalled. The reason is simple: larger projects require more money, which often means taking out a home equity loan or borrowing through another lending source at a time when interest rates are high. The result is that plans for dream kitchens, room additions, master bath expansions, and outdoor living areas are being set aside until the economy improves or the projects reach “need to” status.

It’s not just the home centers feeling the pinch; those large renovation projects are the type of business that lighting showrooms rely on. And guess what other profitable business stream showrooms count on? That’s right, home builders.

Both Home Depot and Lowe’s have spent 2025 shoring up their product offerings to better serve the professional market – home builders, contractors, and remodelers – by making strategic acquisitions.

On June 30, Home Depot announced that its specialty trade distribution subsidiary SRS Distribution, Inc. –  which it purchased in 2024 – will be acquiring GMS, Inc., a leading North American specialty building products distributor.  Home Depot’s strategy with these two acquisitions, its leadership noted in a statement, is to grow its customer base of trade professionals by providing “differentiated offerings and capabilities to better serve Pros across their entire project – from large, complex jobs to smaller renovations and repairs.”

Not to be outdone, on August 20 – during its Q2 2025 Earnings Conference Call – Lowe’s announced it has entered into a definitive agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion. According to Lowe’s statement, FBM is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation “and complementary products serving large residential and commercial professionals in both new construction and repair and remodel applications.”

In short, it’s the latest move to accelerate Lowe’s “Total Home strategy” by enhancing its offering to trade customers through expanded capabilities, faster fulfillment, improved digital tools, a robust trade credit platform, and significant cross-selling opportunities between FBM and Lowe’s.

Lowe’s began fast-tracking this strategy back in April, when it announced that it had  entered into an agreement to acquire Artisan Design Group (ADG) for $1.325 billion (the deal closed in June).

ADG, Lowe’s explained in a statement, is a leading nationwide provider of design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops, to national, regional and local homebuilders and property managers. With a reported network of 3,200 specialized installers and “long-standing relationships with single-family and multifamily homebuilders as well as property managers,” ADG is essentially the gateway to Lowe’s Pro entering a new distribution channel within what it calls “a highly fragmented” market.

At the time of the ADG announcement, Marvin R. Ellison, Lowe’s chairman, president and CEO, noted, “With more than 18 million homes needed in the United States by 2033, we expect new home construction will be a major driver of Pro planned spend for the next decade. The acquisition of ADG allows us to build on our momentum…and is expected to expand our total addressable market by approximately $50 billion. With its strong, customer-centric operating model, ADG has become an industry leader with best-in-class customer satisfaction scores from the top builders in the U.S.”

So rather than following the previous sage advice of letting the home centers commandeer the commodity and low-to-mid end decorative lighting products and ceiling fans, lighting showrooms need to be aware that Home Depot and Lowe’s have their sights set on taking market share from lighting showrooms’ most reliable customers for repeat business: builders, contractors, and remodelers.

In addition, Lowe’s is courting a younger demographic – specifically Gen Z and Millennials –with its June launch of what it calls a “home improvement creator network,” designed for social media digital content creators who bring DIY skills to life through projects, spaces and community. The program will reportedly help creators share project-driven stories that build affinity for their own brands and for Lowe’s. Among the first creators to join is MrBeast, who is known for building massive audiences through inspiring content and his philanthropic efforts. Through this partnership, Lowe’s and MrBeast are curating a dedicated storefront where fans can shop his favorite materials, tools and DIY projects.

Doubling down on appealing to younger consumers, Lowe’s executives said the company will continue its marketing partnership with renowned soccer player Lionel Messi and continue its sponsorship of the NFL as the official home improvement partner.

Lighting showrooms need to be aware of this more aggressive push from home centers to capture a significant share of customers seeking to make home upgrades and to plan accordingly in their marketing efforts to compete effectively for attention among these demographics.

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