Lowe’s move to acquire Artisan Design Group (ADG) for $1.325 billion marks a pivotal step in the company’s long-term strategic shift toward serving the professional contractor market, Lowe’s says.
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While the home improvement retailer built its reputation catering to the do-it-yourself (DIY) consumer, this multibillion-dollar transaction signals a deeper commitment to the Pro segment—contractors, builders, remodelers, and property managers—whose business needs are reshaping the retail home improvement industry, say Lowe’s executives and industry analysts.
Expecting to close by June and pending regulatory approval, the acquisition gives Lowe’s instant national scale in design and installation services for interior finishes. ADG, headquartered in Dallas, operates 132 facilities across 18 states, employs over 3,000 people, and manages a network of 3,200 independent installers. It generated $1.8 billion in revenue in fiscal 2024 by providing bundled services for flooring, cabinetry, and countertops to national and regional homebuilders, multi-family property managers, and institutional buyers.
“This isn’t just about scale,” says Marvin Ellison, Lowe’s chairman, president, and CEO. “It’s about becoming a full-service provider to Pro customers, helping them plan, manage, and complete jobs more efficiently.”
Lowe’s is making this move at a time of fundamental change in the home improvement sector. The company reported $83.7 billion in total revenue in fiscal 2024, an 11% decline from $97.1 billion in 2023. A cooling housing market, high interest rates, and lower discretionary spending have all contributed to softness in DIY consumer sales.
In contrast, professional spending has remained resilient. Pro customers—who range from independent contractors and remodelers to facilities managers and institutional developers—now account for 20% to 25% of Lowe’s annual revenue, the retailer says. That proportion has grown steadily in recent years and is now considered a cornerstone of Lowe’s growth strategy. Ellison has repeatedly emphasized that “our Pro business is growing,” even as other segments contract.
Pro customers not only shop more frequently than DIY consumers, but they also spend significantly more per transaction and often return for multiple phases of a project, the retailer says. They rely on consistent availability, logistics, and service—factors that make them more likely to consolidate suppliers and build long-term relationships when properly supported, according to Lowe’s.
The ADG acquisition builds on years of investment by Lowe’s to create a Pro-friendly business model. That effort includes overhauling the in-store experience with dedicated Pro zones, faster checkout lanes, and tailored inventory. Lowe’s has also upgraded its jobsite logistics capabilities, expanded tool rental options, and introduced jobsite and rooftop delivery services for heavier and more complex materials.
The company’s “Pro Extended Aisle” platform is another major investment—giving contractors access to a broader range of SKUs online, complete with real-time inventory, pricing, and availability across regions. Lowe’s has also built out its credit offerings for Pros and now provides flexible financing, bulk purchasing discounts, and a loyalty program—Lowe’s for Pros—that rewards repeat business.
On the digital side, Lowe’s is working to build what Ellison calls a “best-in-class omnichannel shopping experience.” That includes not only ecommerce upgrades but also project visualization tools and order tracking systems geared toward jobsite coordination. ADG’s proprietary Design Central Solution, which allows contractors to visualize and customize finishing interior products in a 360-degree environment, will fit neatly into this infrastructure—giving Lowe’s new capabilities in digital planning and design that are increasingly demanded by Pro customers, the retailer says.
“We are evolving our Total Home strategy to help solve our customers’ total home improvement needs with more value and exceptional service,” Ellison says. “By leveraging leading technology solutions, we’re creating a best-in-class omnichannel shopping experience for all generations of homeowners. At the same time, we’re building on our momentum with Pros now that we’ve reached 30% Pro penetration.”
Wall Street sees the ADG acquisition as a logical and timely expansion of Lowe’s Pro focus. Jefferies analyst Jonathan Matuszewski described the move as a “platform play” that will enable Lowe’s to scale quickly in high-touch services like design and installation. “ADG’s operational footprint across 18 states and its installer network provide Lowe’s the infrastructure to expand its service-based offering without having to build it from scratch,” he says.
Analysts have also pointed out the value of integrating Lowe’s proprietary brands—like Stainmaster Flooring into ADG’s service offerings to create top-line product combinations. And with ADG already embedded in the workflows of many regional and national builders, Lowe’s gains access to a channel that could yield recurring revenue streams insulated from consumer volatility, the retailer says.
Lowe’s estimates that the Pro segment represents an incremental $50 billion market opportunity. The acquisition of ADG puts it in a stronger position to compete for that business by enabling it to offer bundled product-and-labor solutions on a scale.
“We’re confident that there is still a great deal of opportunity for us to grow market share with both Pro and DIY customers,” Ellison says, “by building loyalty with our current customers and winning new customers looking for a friction-free shopping experience within home improvement.”
The ADG deal also represents a direct challenge to rival Home Depot, which has long been a major competitor in the contractor market. Home Depot reported $159.5 billion in total revenue in fiscal 2024, up 4.5% from the prior year, and estimates that professional customers account for about 50% of its business—$79.75 billion.
To maintain its edge, Home Depot has made several aggressive moves of its own. In June 2024, it completed the $18.25 billion acquisition of SRS Distribution, a major distributor of roofing and exterior building materials with a robust ecommerce platform, RoofHub.pro. The acquisition expanded Home Depot’s addressable market by another $50 billion and gave it greater control over delivery infrastructure and last-mile fulfillment for Pro-heavy categories.
Leadership changes have further reinforced Home Depot’s focus on the Pro market. Jordan Broggi, formerly president of online, in 2024 was promoted to executive vice president of customer experience and will oversee all digital and physical channels. And Ann-Marie Campbell was named senior executive vice president of outside Pro sales and installation services while continuing to oversee North American operations.
While Home Depot leans heavily on supply chain scale and infrastructure, Lowe’s is positioning itself with a more service-oriented model that blends retail accessibility with design, labor coordination, and digital planning tools. ADG’s integration adds significant differentiation on that front, Lowe’s says.
The strategic relevance of the ADG acquisition also intersects with broader market themes, including sustainability and environmental performance. With Earth Day 2025 shining a spotlight on energy efficiency, carbon reduction, and sustainable construction practices, both institutional and individual buyers are placing greater value on vendors who can help them build smarter and greener, Lowe’s says.
By controlling both product and installation, Lowe’s says it gains the ability to promote and deliver higher-efficiency materials, waste-reducing installation processes, and digitally planned projects that minimize over-ordering and rework. These capabilities are particularly attractive to large-scale property developers and managers under increasing pressure to meet ESG benchmarks, according to Lowe’s.
Lowe’s has already begun piloting programs aimed at reducing packaging waste, optimizing transportation logistics, and promoting products that meet sustainability certifications. Through ADG, it will now be able to align those initiatives directly with on-the-ground installation and design practices, strengthening its ability to compete in an increasingly ESG-conscious market, the retailer notes.
Analysts such as The ADG acquisition is more than a standalone transaction—it’s a signal of Lowe’s long-term ambition to become a full-cycle partner for Pro customers, not just a product supplier. The Pro customer doesn’t just want a competitive price, they want speed, convenience, labor, financing, digital tools, and service on which they can rely. That level of service has traditionally come from specialized dealers and wholesalers. Lowe’s says it is betting that it can bring those capabilities into the big-box environment—at scale.
For small and mid-sized contractors, who often lack the back-office and logistical capacity of larger firms, Lowe’s is building a platform that solves multiple pain points: procurement, delivery, labor coordination, and design. This model creates opportunities for stickier relationships and higher lifetime customer value, the retailer says.
As Ellison put it, “As we look ahead to the expected recovery in home improvement, we are making investments to position the company for long-term growth.”
That recovery may still be on the horizon, but with ADG in its portfolio and a sharpened Pro strategy already in motion, Lowe’s is positioning itself now to win the next cycle—one contractor at the same time, says USB retail analyst Michael Lasser in a recent note. “The acquisition will function as a foundation for Lowe’s to enhance its relationships with both existing and new professional customers,” he writes. This investment could yield significant benefits for Lowe’s as it continues to target the professional customer base, a strategy that could differentiate the company from its competitors.”
