3-5 percent lower than even the industry averages. This depict that the company has an inefficient management which is not handling the resources of the company properly. The long term effect of this problem can be the loss in the confidence amongst the stakeholders and the shareholders.
Recently in the last quarter of 2007, the company reported negative performance but in the first quarter of 2008 is showing considerable improvement. This indicated that the company has directed effected by the changes taking place in the housing industry in United States. “Lowe’s continues to win a larger share of the home improvement market. And the chain’s long-term strengths its fast growth and its reputation for good service and attractive stores won’t be sacrificed for short-term savings.” (Steverman, 2008) Similarly the Home Depot company is also directly linked with the housing industry but the reputation, strong market position, its diverse range of products and target market as well as the its extensive financial might has aided the company in being the leader in the market in its industry.