Lowe’s builds on Total Home strategy
Lowe’s plans to increase its store count, increase pro outreach, and expand its online marketplace, the company announced recently during its investor conference.
“As we look ahead to the expected recovery in home improvement, we are making investments to position the company for long-term growth. We are evolving our Total Home strategy to help solve our customers’ total home improvement needs with more value and exceptional service,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.
New store growth
In its latest financial reporting, Lowe’s said that comparable same-store sales were down compared to the prior year and online sales increase. To grow, the company must add new stores, attract new buyers, and expand its ecommerce offerings. The mass merchant said it plans to open 10-15 stores per year over the next several years in fast-growing markets in the U.S. The company also plans to extend its “rural assortments” to 150 more stores. That includes product categories such as pet, workwear, automotive supplies and utility vehicles.
Online product marketplace
The company also said it is launching the first product marketplace in the U.S Home Improvement industry. This will include products across a range of price points from both new and existing suppliers to better serve both value-oriented and more affluent consumers. This way, Lowe’s can expand its product offerings without carrying the inventory, managing pricing or investing in new online fulfillment centers.
Updated pro loyalty program
Lowe’s is relaunching, in early 2025, its Pro loyalty program as MyLowe’s Pro Rewards, designed specifically for the small-to-medium Pro. The company said its new program will be more intuitive to use, making it easier and faster for Pros to earn rewards and redeem them. Additionally, Pro customers who shop with their MyLowe’s Pro Rewards Credit Card will save 5% every day on eligible purchases, just like non-pro customers do today.
New plan for cost savings
The company is providing scenario planning details for its 2025 financial performance to offer increased transparency in a macroeconomic environment that remains uncertain. It will also outline the next set of enterprise-wide Perpetual Productivity Improvement or PPI initiatives, which are expected to generate approximately $1 billion in annual cost savings.
“By leveraging leading technology solutions, we’re creating a best-in-class omnichannel shopping experience for all generations of homeowners,” CEO Marvin Ellison said in a press release. “At the same time, we’re building on our momentum with pros now that we’ve reached 30% pro penetration.”
