Lowe’s Companies, Inc. (LOW), The Home Depot, Inc. (HD): Housing Market Jump-Starts Home Improvement Retailers

Bed Bath & Beyond Inc. (NASDAQ:BBBY) is already on the rise, recently reporting a 14-percent increase in its fourth quarter. The company cautioned, however, that its current quarter might not show such fruitful results. One analyst cited low margins on online sales, a growing part of Bed Bath and Beyond’s monthly business, as a reason to keep expectations low.

Competition from lower-priced retailer Wal-Mart will likely also continue to impact Bed Bath & Beyond Inc. (NASDAQ:BBBY)’s business. The company has done well during the recession, as budget-strapped consumers sought to save money. However, an improvement in the economy likely won’t have most consumers rushing out to spend more. Wal-Mart is still the biggest non-Internet retailer in the world, commanding 25 percent of America’s grocery budget, according to Forbes magazine.

The Home Depot, Inc. (NYSE:HD) and Lowe’s Companies, Inc. (NYSE:LOW) will likely continue to battle it out, alongside smaller hardware retailers like Harbor Freight and Ace Hardware. For each retailer, it will be important to provide quality customer service and a large selection of the best products in order to stand out.

The article Housing Market Jump-Starts Home Improvement Retailers originally appeared on Fool.com and is written by Stephanie Faris.

Stephanie Faris has no position in any stocks mentioned. The Motley Fool recommends Bed Bath & Beyond, Home Depot, and Lowe’s. Stephanie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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