The housing market is not fully recovered. America does not have a glut of housing. As interest rates rise homeowners will start defaulting again and construction will dry up yet again.
Supply chain improvements and IT enhancements will catapult competitors into the leading pole position and hurt profitability.
If Home Depot slows down new openings Lowes and other competitors may improve market share in certain regions. Most products are commodities where scale is crucial. The tipping point may go against Home Depot.
George Gutowski writes from a caveat emptor perspective.