Recent findings from the Market Force 2025 Home Improvement Panel Study reveal that smaller chains like Ace Hardware and Menards are surpassing major competitors Home Depot and Lowe’s in customer service ratings. Consumers are increasingly valuing personalized service over the sheer scale offered by larger retailers. This shift reflects a growing emphasis on customer experience in the home improvement sector.
In the survey, Ace Hardware achieved a score of 58.0, while Menards followed closely with 57.7. These scores reflect the retailers’ strengths in customer loyalty, helpful staff, and trustworthiness. The study surveyed over 1,000 U.S. consumers with diverse DIY and professional purchasing backgrounds, highlighting a notable trend: nearly 70% of respondents reported household incomes exceeding $50,000, with about 50% identifying as DIY enthusiasts.
David Murray, Senior Director of Customer Experience Strategy at Market Force Information, emphasized the importance of customer experience, stating, “Shoppers reward brands that make their lives easier — clean stores, fast checkouts, helpful staff, and real value. That’s where Ace and Menards shine.”
While Home Depot remains a leader in market share, customer behavior suggests that service may be more crucial than size when it comes to brand loyalty. Rebecca Haas, Corporate Vice President of Ace Rewards & Marketing Analytics at Ace Hardware, noted that “loyalty is a growth driver, not just a rewards mechanism.” She highlighted that customers choose Ace because it enhances their shopping experience.
Key Findings from the Market Force Survey
The Market Force survey revealed several important insights into consumer perceptions of home improvement retailers. For instance, 45.5% of Ace Hardware customers expressed a positive view of the company’s brand image and values, compared to 31.69% at Home Depot and 35.69% at Lowe’s. Furthermore, 85.7% of Ace customers indicated they are likely to return, while 73.8% of Home Depot and 74.1% of Lowe’s customers shared the same sentiment.
In terms of recommendations, 71.4% of Ace customers stated they would recommend the store, in contrast to 59.2% for Home Depot and 66.1% for Lowe’s.
Changing Dynamics in Home Improvement Retail
The retail landscape for home improvement products is evolving as customer experience takes center stage. According to the J.D. Power 2025 U.S. Home Improvement Retailer Satisfaction Study, overall satisfaction among shoppers has increased significantly, with nearly two-thirds indicating they would shop again. This represents a nine percentage point increase since the previous year. Notably, while Lowe’s achieved the highest satisfaction score of 680 on a 1,000-point scale, Ace Hardware was close behind with a score of 672, illustrating how service and consumer trust can rival larger chains.
Data from Placer.ai indicates that traditional big-box retailers like Home Depot and Lowe’s have experienced declines in foot traffic amid economic uncertainty, with Home Depot down approximately 3.8% and Lowe’s down about 3.6% in the first quarter of 2025. This trend underscores the increasing pressure on larger chains, particularly as shoppers delay discretionary projects.
Menards has adopted a distinct approach to foster customer loyalty. As the third-largest home improvement chain in the U.S. with around 340 stores across 15 Midwestern states, it is particularly known for its rebate program, which, while not as expansive as in the past, continues to attract loyal customers. Menards has also performed well in categories such as store layout and product variety, which have contributed to its success in maintaining customer loyalty.
As the home improvement market continues to evolve, it is clear that customer service will play a pivotal role in determining which retailers succeed. The experiences of Ace Hardware and Menards serve as a reminder that in today’s retail environment, the quality of service can often outweigh the advantages of size and advertising.
