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Walmart Getting Serious About Tools in 2026?

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four.cycle

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Joined
Oct 19, 2015
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29,469
Location
Tacoma, Washington
Tools probably make up an infinitesimally small amount of Walmarts profits
More to the point:
Hand tools were always one of the lower margin items sold in a retail setting.
Traditionally, that's the way the pricing was structured:
Hand tools = you were lucky to clear a 40% net margin
Air freshners, car wax, chrome widgets = 70% - 80%
It's still that way, just not set up the same as far as distribution levels.
Not as much money to be made on tools as on laundry detergent, diapers, and coffee pots.
Retailer will always go where the profit is.
Tools are just a "sideline" thing they offer as a convenience in an attempt to keep all of that customer's purchases "in house".
 

zendriver

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Joined
Dec 10, 2014
Messages
30,294
Location
Indiana
I don’t go to Lowe’s often but when I do, it seems like they have the same dust covered piles of craftsman tools. They had there the last time.

Walmart is a discount retailer and I’m hard-pressed tell a company that has 550 billion a year revenue. They don’t know what they’re doing.

Besides, we all know that nowadays,the name, “craftsman”evokes emotion and very little else

Besides Walmart slaps the name “hyper tough “on all kinds of inexpensive tools and sells them relatively cheap prices

That’s pretty much what Walmart does.
 

JeepYJ

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Joined
Dec 25, 2015
Messages
9,133
We didn't get Walmart in California until the 90s and by then they were certainly going for cheap, but I don't think that was always their model.
Walmart has always been a discount retailer. High volume low margin has always been their thing.
 

Steel_Rain

Well-known member
Joined
Apr 23, 2024
Messages
1,457
FYI, this little Hyper Tough tool is great:

IMG_1824.jpeg
IMG_1825.jpeg

It’s the tiny handheld blower Milwaukee should make using M12. It’s tiny! Compared to my Makita for scale:

IMG_1826.jpeg

I’ll keep it on the bench at home and may pickup another for work. USB-C charging pack and good build quality. I was impressed with the airflow for such a small tool but more impressive is the tiny size and great form factor. It’s my first Hyper Tough tool.


11:15
 
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LOW1

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Jul 20, 2018
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Location
ontario
Rightly or Wrongly I suspect that DeWalt refuses to sell to Walmart out of its desire to protect the perceived quality of its brand.
 

milkovich

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Joined
Oct 15, 2007
Messages
691
Location
Akron Ohio
Rightly or Wrongly I suspect that DeWalt refuses to sell to Walmart out of its desire to protect the perceived quality of its brand.
DeWalt is just a house brand for HD at this point. SBD painted themselves into a corner chasing this quarters numbers over and over while screwing all their other distributors to push more through HD. It's so bad, someone with the buying power of Menard's doesn't even bother with Dewalt even though they carry Irwin/Bostich/etc.
 

WhataTool

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Joined
Sep 8, 2015
Messages
476
DeWalt is just a house brand for HD at this point. SBD painted themselves into a corner chasing this quarters numbers over and over while screwing all their other distributors to push more through HD. It's so bad, someone with the buying power of Menard's doesn't even bother with Dewalt even though they carry Irwin/Bostich/etc.
There's tons of DeWALT at Lowes
 

milkovich

Well-known member
Joined
Oct 15, 2007
Messages
691
Location
Akron Ohio
For some reason I always think of HD as Milwaukee and Ryobi. Lowe’s is more of a Dewalt store along with smaller chains like Ace and farm stores.
I believe TTI has an even higher proportion of their business going through HD, but at least they treat their other distributors well. I think it's more like a Mexican standoff between TTI and HD, each needs the other whereas SBD and HD is more like an abusive relationship. Interestingly, ChatGPT seems to think Amazon is a larger outlet for DeWalt than HD but I kind of doubt that. There are 3rd party sellers and knockoffs as well as SBD and Amazon themselves selling on Amazon, it'd be interesting to see the real numbers. What I do know for a fact is that SBD quarterly promo prices to distributors are above HD's retail "on sale" price in many cases making it pretty pointless to try to sell 20v product even at the 10-15% margin online retailers try to survive on and HD moves about 50-60% more DeWalt than Lowes.
 

liliysdad

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Joined
Jul 18, 2008
Messages
5,539
I can buy DeWalt at four different stores in town, each of them have a very large selection and competitive pricing, and none of them are Lowe’s or Home Depot.
 

zendriver

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Joined
Dec 10, 2014
Messages
30,294
Location
Indiana
Rightly or Wrongly I suspect that DeWalt refuses to sell to Walmart out of its desire to protect the perceived quality of its brand.
Walmart is a discounter.

Why would DeWalt want to dilute their already cutthroat-pricing product market further?
 
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