They're targeting the DIYer who thinks they need specialty tools and doesn't know any better, and the contractor in the middle of a job who can't find the tool he needs to finish, and will grab whatever he can quickly find to get the job done.
I think you are half right. The other is bottom line profits but if you keep messing with things you will end up like Sears, K-,mart, Pennies and a host of other stores that have gone under or are close. They are all loosing money because they carry cheaper quality, play games with huge sales and the stores with cloths that are going out have pure **** and bad styles. Penny's has upped their cloths line and lowered their prices.
As a contractor I only go in HD or Lowe's for things I need quick. I never buy lumber, tools, plumbing or electrical there. Even the small whole sale house plumbing houses will sell to anyone and they sell good products for 40% less or more than the big box stores. I buy whole sale and when I buy pipe and wire it is by the case. I save so much money. HD is the pits. If it is an open box you know it is broken or missing parts 100% of the time. It never fails. I buy fencing at a whole sale level. The only bad thing here in So California all the old lumber yard have gone out of business. There is one in my area and that cover a 40 mile area. They have carry every hard wood you would ever need. The sell nail guns, hammers, and a few construction tools but it is a very limited line of hardware and tools. The lumber is so much better quality.
The home centers are trying to be all things to all people. I don't want to buy cabinets and appliances at a lumber yard. I don't want to by plants there. I want to go to a nursery that really has a selection and good plants.
Speaking of Lowe's , I had 2 sets of their Kobalt 1/4" diver sockets. I paid $5 each for them new at the swap meet. I wanted to fill in the missing sizes.
I picked the up to get them home and the centers were full of steel. You could not slip them on the Hansen racks. They were very bad and off center. I got them replaced but You could not get me to buy their brand again for any reason. I was giving them as a gift. The person will not know the difference because he works on computers with small tools. Pox on Kobalt.
Outside of the ever fewer number of people like us who hang out on GJ, GG, and other tool forums, quality takes a back seat to dirt *** cheap pricing every time. I don't suppose any of us who have been paying attention are surprised. I fully expected a new line of Chinese made Kobalt electrical tools with components bearing the tensil strength of cheddar cheese. Guess i was half right. In a low population area such as mine, brick & mortar retailers and quality are never in the same location. You can still get Klein @ HD, but even they are slowly headed for the *******. Online shopping doesn't bother me. I buy Proto, Blackhawk, Channellock, and SK, and with the very rare exception, I know what I'm getting. If I do get a turd, these companies will stand behind their product and make it right. When I need a cheap solution I've grown fond of Tekton. Yes they are import tools, but they participate in the forums, their customer service is fantastic, and the have an absolute no hassle lifetime warranty. Lowe's can keep their junk, I'm doing just fine without them.