The bar has definatley been raised with the Lowes and Home Depots. There are a lot more factors than having reasonable prices though. How inviting is the store layout? How knowledgeable are the employees? Has he asked his customers why they shop with him? Maybe he has an advantage the big box stores dont and he needs to push that. (Hopefully there are enough people in the market who want that service.)
Have him talk with a Small Business Development Center
America's Small Business Development Center Network or the Service Corps of Retired Executives
SCORE "Counselors to America's Small Business" | SCORE. They provide free help for new and existing businesses.