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How Does Menards Market Share Compare to National Retailers?

April 9, 2021
Ashley Jefferson Author 4 mins read
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With people being forced to spend much more time at home during COVID, many have taken up new home improvement projects to keep themselves sane. However, between an increase in demand for products and a slowed supply line, not everything has been readily available when and where consumers are most used to making purchases. Consumers have handled this change not only by conducting more ecommerce, but also by increasing their shopping at regional retailers like Menards. Competing with national retailers is a challenge, however a rising tide lifts all boats.

David vs Goliath: Menards holds its own against National Retailers

Looking at only national performance runs the risk of overlooking key regional players like Menards. Nationally, Menards wins 3 percent market share for 2020. But by focusing only on the DMAs where Menards is located, a more nuanced view of the chain’s performance develops. For example, in the DMAs where the retailer is located, Menards leads unit share when it comes to all products sold at home improvement stores (16 percent TY 2020). While their share year over year (YoY) remained flat versus 2019, they maintained that lead over Home Depot, Walmart, and Lowe’s. All three retailers were all also flat or significantly down from 2019.

Bar graph comparing Menards market share to its competitors in the DMAs where Menards is active
Comparing Total Store unit shares in DMAs where Menards is active between 2019 and 2020

What’s more—consumers’ decision to shop at Menards over other retailers isn’t just due to pandemic necessities. While most consumers cite price as the primary reason they select a retailer, Menards shoppers are significantly more likely to cite price as a deciding factor compared to shoppers at THD or Lowe’s. And much like Home Depot, product selection is another common factor for where consumers at those retailers shop.

Breaking down performance by specific product categories, highlights categories in which Menards excels, and also products where they have opportunity to gain on their National retail competitors.

Where Does Menards Beat THD or Lowe’s for Market Share?

When going toe-to-toe with national Home Improvement retailers, there are a few places where Menards really shines in the regions where it operates. For example, Menards’ market share for lighting and fans has a strong lead on other retailers. Menards’ 24 percent marketing share in lighting and fans is up directionally YoY for 2020. The retailer experienced significant growth for Building Materials as well (rising from 35 to 38 percent YoY for 2020). This helped increase its lead over Home Depot. In Menard’s DMAs, Home Depot lost significant share among consumers in Building Materials. In flooring, despite being directionally down YoY, Menards still maintained its lead over other retailers with 23 percent unit share.

Where Does Menards Have Opportunities to Grow its Market Share?

Despite Menards having the chance to shine when looking at specific DMAs, there are spots where national retailers like Home Depot and Lowe’s still take the lead.

In some categories, like Paint (traditionally a category where Menards performs well) and Appliances, YoY growth was not enough to push Menards to number one for Menard’s regions. Nevertheless, Menards did see significant YoY growth in the Appliance category. Despite this, Lowe’s remained the number one retailer nationally for Appliances.

Menards saw YoY declines in categories such as power tools, hand tools, and nursery products. In cases like Hand Tools, this significant decline meant that they lost the lead they had to Home Depot. Additionally, Walmart is quickly catching up.

Even in cases where Menards held steady from 2019 to 2020, such as in Lawn and Garden, national retailer Home Depot remains ahead of the regional retailer. Other rivals like Lowe’s and Walmart had more difficult years and were both significantly down.

Quick Summary on Menards Market Share TY 2020

In regions where Menards is active, it has proven that it can compete directly with national Home Improvement retailers such as Lowe’s and Home Depot. COVID-driven home improvement projects propelled consumers to new heights as they looked for tools to complete their designs. Because of this, regional players were able to benefit as much as national players.

  • When examining the DMAs where Menards is active, the retailer leads unit share among all outlets.
    • This is flat from TY 2019.
    • Home Depot, Walmart, and Lowe’s are all also directionally down or flat from 2019 to 2020.
  • Looking at individual categories, Menards takes market share lead in the following:
    • Building Materials.
    • Flooring.
    • Lighting and Fans.
  • Categories where Menards has opportunities to grow its market share include:
    • Power tools, where they take 3rd place.
    • Appliances, where they take 4th place.
    • Hand Tools, where they take 2nd place.
    • Lawn and Garden, where they take 2nd place.

Are you curious about how regional retailers are affecting the market in your area? Contact one of our Account Executives today to learn about how TraQline can help you develop a more nuanced understanding of the market.