Another factor that accounts for Home Depot's sales advantage is its comparative popularity with home improvement professionals. In the home construction and renovation space, customers can generally be divided into two groups: professionals who work in the field, and do-it-yourself shoppers tackling projects on their own.
Basham said that professional contracts account for 35% of sales at Lowe's, while Home Depot accrues 40% of its sales from professional contracts.
So why do the pros tend to go to Home Depot? Basham said that part of the reason is that professionals are often more brand-conscious.
"They want to use products they know they can trust, and Home Depot has better brands," he said.
Other factors include Home Depot's superior stocking system and customer service processes, which include everything from giving pros access to "knowledgeable employees," helping them find products, and staging items for pick-up. According to Basham, Home Depot generally provides an "easy in, easy out" experience for pros.
And, while list pricing is the same across both companies, bulk pricing is slightly more competitive at Home Depot, according to Basham.
But don't count Lowe's out just yet. Basham said that Lowe's is "very focused" on boosting its pro business. He gave the example of the company's 2017 acquisition of Maintenance Supply HQ. Basham likened the move to Home Depot's 2015 acquisition of Interline Brands, which helped the home improvement retailer cross-sell to customers who previously flocked to Interline.
"It's strategic," Basham said. "Home Depot's had success since it acquired Interline in getting that cross sale to work. I think there's still room for that to work for Lowe's."