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 \u2014 and that was (and still is) good advice. However, during both companies\u2019 Q2 2025 Earnings Conference Calls last week, the leadership at Home Depot and Lowe\u2019s provided overarching views of what the companies have observed regarding their customers\u2019 spending habits.<\/p>\n\n\n\n
Both home improvement companies noted that customers have been more closely dividing their home improvement projects into two categories: \u201cneed to\u201d versus \u201cwant to.\u201d Repairs, which are the most reliable driver of any home improvement business, remain strong. It\u2019s the \u201cwant to\u201d list of renovation projects on customers\u2019 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 \u201cneed to\u201d status.<\/p>\n\n\n\n
It\u2019s 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\u2019s right, home builders.<\/p>\n\n\n\n
Both Home Depot and Lowe\u2019s have spent 2025 shoring up their product offerings to better serve the professional market \u2013 home builders, contractors, and remodelers \u2013 by making strategic acquisitions.<\/p>\n\n\n\n
On June 30, Home Depot announced that its specialty trade distribution subsidiary SRS Distribution, Inc. \u2013 which it purchased in 2024 \u2013 will be acquiring GMS, Inc., a leading North American specialty building products distributor. Home Depot\u2019s strategy with these two acquisitions, its leadership noted in a statement, is to grow its customer base of trade professionals by providing \u201cdifferentiated offerings and capabilities to better serve Pros across their entire project \u2013 from large, complex jobs to smaller renovations and repairs.\u201d<\/p>\n\n\n\n
Not to be outdone, on August 20 \u2013 during its Q2 2025 Earnings Conference Call \u2013 Lowe\u2019s announced it has entered into a definitive agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion. According to Lowe\u2019s statement, FBM is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation \u201cand complementary products serving large residential and commercial professionals in both new construction and repair and remodel applications.\u201d<\/p>\n\n\n\n
In short, it\u2019s the latest move to accelerate Lowe\u2019s \u201cTotal Home strategy\u201d 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\u2019s.<\/p>\n\n\n\n
Lowe\u2019s 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).<\/p>\n\n\n\n
ADG, Lowe\u2019s 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 \u201clong-standing relationships with single-family and multifamily homebuilders as well as property managers,\u201d ADG is essentially the gateway to Lowe\u2019s Pro entering a new distribution channel within what it calls \u201ca highly fragmented\u201d market.<\/p>\n\n\n\n
At the time of the ADG announcement, Marvin R. Ellison, Lowe\u2019s chairman, president and CEO, noted, \u201cWith 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\u2026and 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.\u201d<\/p>\n\n\n\n
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\u2019s have their sights set on taking market share from lighting showrooms\u2019 most reliable customers for repeat business: builders, contractors, and remodelers.<\/p>\n\n\n\n
In addition, Lowe\u2019s is courting a younger demographic \u2013 specifically Gen Z and Millennials \u2013with its June launch of what it calls a \u201chome improvement creator network,\u201d 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\u2019s. 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\u2019s and MrBeast are curating a dedicated storefront where fans can shop his favorite materials, tools and DIY projects.<\/p>\n\n\n\n
Doubling down on appealing to younger consumers, Lowe\u2019s 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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n