Have you noticed that Walmart and Lowe’s are located next to each other? Are you wondering if the same company owns them?
Let’s find out if Walmart owns Lowe’s and what the relationship is between these two stores right now.
Does Walmart Own Lowe’s?
Walmart does not own Lowe’s. In fact, the two companies have no affiliation. You see Lowe’s and Walmart stores next to each other because they are both large stores that are attracted to the same retail space and benefit from being in the same vicinity.
KEY TAKEAWAYS
- Walmart does not own Lowe’s.
- The companies build properties next to each other due to similar needs in retail space.
- Lowe’s and Walmart are direct competitors, but Walmart is a much larger company.
In this article, we will answer why there always is a Lowe’s next to Walmart, as well as if Walmart owns Lowe’s, and so much more.
So keep reading if you want to understand these two stores and why you find them so close together.
Why Do Lowe’s and Walmart Build Their Properties Next to Each Other?
Walmart does not own Lowe’s; however, you often see the two stores directly next to each other or in the same vicinity.
There are essentially 2 reasons why Lowe’s and Walmart are usually next to each other:
- The two stores are large warehouses and use the same retail space.
- It benefits both stores financially to be close to each other.
Now, we will go through each of these reasons to understand why Lowe’s and Walmart are usually so close together.
1. Using the Same Retail Space
When you walk into a Lowe’s or Walmart, you may notice that the setup inside is extremely similar. A large warehouse with high ceilings separated into big aisles for easy customer access.
For this reason, Walmart and Lowe’s stores are often next to each other. They both need large retail spaces to operate their stores and, therefore, are drawn to the same areas.
There are also likely limited options for stores as big as Walmart and Lowe’s. The two might be next due to each other entirely for convenience.
2. Both Stores Benefit Financially
Studies support and negate the fact that building competitive businesses side by side will benefit the companies financially.
However, many reports state that offering the consumer options in one area will increase sales as the side-by-side stores will be more frequent than those that are solitary or out of the way.
No statement from Walmart or Lowe’s confirms they use this tactic when deciding where their stores will be. But it is safe to guess that it just might be why!
Who Is Lowe’s Owned By?
Lowe’s is a publicly traded LLC with many owners. Technically, Marvin Ellison is chairman, president, and chief executive officer of Lowe’s Companies Inc. and owns part of the company.
The company with the majority of stock holdings of Lowe’s Companies Inc. is the Vanguard Group, with 8.92%.
The Lowe’s company owns several other small companies, including ATG, Orchard Supply Hardware, RONA, and Boomerang Commerce.
Is Lowe’s a Competitor to Walmart?
Lowe’s is a direct competitor to Walmart, offering many of the same products and services.
But, although the two companies compete for consumers, Walmart is 3x as large as Lowe’s.
Lowe’s operates almost 2,200 stores and 300,000 employees throughout the USA. In comparison, Walmart has more than 10,500 throughout the country and around the world, with over 2.3 million employees worldwide.
Also, Walmart Superstores offer much more than Lowe’s hardware stores. In addition to the same products Lowe’s offers, Walmart also provides groceries, clothes, toiletries, auto care, and so much more.
Overall, Walmart is generally more popular than Lowe’s for its wide selection and incredibly low price tags.
Why Has Walmart Not Bought Lowe’s?
Now, you may be wondering: If Walmart is so big, why hasn’t it bought Lowe’s?
There is no official comment from Walmart on why they have not bought Lowe’s.
We can only assume that the conglomerate either feels that the price tag for Lowe’s Companies Inc. is too high to be worth the purchase. Or that Walmart simply does not need or want the company under its umbrella!
Conclusion
Walmart does not own Lowe’s. You will notice the two stores next to each other, but only because of the need for ample retail space and the strive to increase profits.
Lowe’s Companies Inc. is a publicly traded company with several owners, but Walmart does not own any shares.
While these two stores are direct competitors, Walmart is a far larger company with many more products and services.
