Lowe’s, a home improvement giant in the US, has made a significant move to bolster its position in the professional market. The company recently announced the acquisition of Artisan Design Group (ADG) for a staggering $1.3 billion. This strategic purchase aims to expand Lowe’s service offerings to professional clients, a particularly shrewd move given the current economic climate. Inflation has dampened the residential remodeling and construction market, prompting Lowe’s to seek new avenues for growth.
ADG is a prominent player in interior design and installation, catering to a diverse clientele ranging from individual homeowners to large-scale property managers. Their reputation for high-quality service makes them a valuable asset to Lowe’s, representing a substantial investment in the professional sector. This acquisition allows Lowe’s to tap into a potentially massive market, estimated to be worth an additional $50 billion, according to Lowe’s CEO, Marvin R. Ellison. Ellison highlighted the projected growth in new home construction as a key driver of this expansion, emphasizing the synergy between ADG’s operational model and Lowe’s existing Pro services.
ADG boasts an impressive network of over 3,200 specialized installers and strong relationships with both single-family and multi-family home builders, as well as property managers. Their 2024 revenue alone reached approximately $1.8 billion, operating across 18 states. The acquisition will undoubtedly strengthen Lowe’s professional business, enhancing their loyalty program and expanding specialized services to provide more comprehensive solutions to builders and property managers.
This strategic move positions Lowe’s for direct competition with Home Depot, who acquired SRS Distribution (specializing in roofing, landscaping, and pool supplies) for nearly $18 billion last year. While the rivalry between Lowe’s and Home Depot is well-established, both companies share a common goal: capturing a larger share of the lucrative professional market, where higher margins and stronger client loyalty are achievable through integrated solutions and personalized service. Lowe’s, with its newly acquired network of over 130 centers and 3,000 installers across 18 states, is now a serious contender in the professional interior design and finishing market.
