(02-28-2019, 11:47 AM)crimsonghost747 Wrote:(02-28-2019, 10:10 AM)Roadmap2Retire Wrote: I havent really dug too deep into this, but is there any push from management to expand globally? Seems like the HD (and LOW) are too focused on the N.American market and international expansion would help with the growth.
From what I can remember, LOW has tried it in Canada, Mexico and Australia. None of those have really worked out.
This is accurate. The disposable income for your average household in Mexico doesn't fit their business model so well. The true necessities are low margin commodity products. I spent a few months on a cash register at HD and I assure you 75% of the items in the basket are luxury purchases you can do without if necessary. Not sure about Canada, other than the very frequent brutal winters. That is hard on home construction products. The garden centers are very profitable for both companies as well. That works a lot better with an extended gardening season. Establishing the logistics of moving heavy items around in a day or two would be very expensive. Part of the secret to success is HD and LOW's ability to move stuff fast for calamity of the month. Plywood for hurricanes, sump pumps for floods, ice melt for ridiculous winters etc. That's a lot easier with thousands of stores, and many regional warehouses. Reasonably easy to move emergency supplies around when it's only a few hundred miles. It can and does happen in just a few days.