In anticipation of its 2024 analyst and investor conference, Lowes Cos. shared its growth and productivity initiatives for the year ahead emphasizing e-commerce development, service to the professional community, more stores merchandised for rural consumers and the opening of additional locations.
The Lowe’s initiatives fall under five headings: Drive Pro Penetration, Accelerate Online Sales, Expand Home Services, Create a Loyalty Ecosystem, Increase Space Productivity.
Lowes announced it is harnessing the power of generative AI through a standardized development process designed to enhance the customer experience and unlock productivity. A robust AI platform will give the company the agility needed to create innovative solutions, the retailer said. In building on the experience gained from its success with early AI models that power online search and product recommendations, sourcing engines and demand planning tools, Lowe’s is piloting new solutions including empowering frontline associates in an effort to serve customers better and improve the in-store shopping experience.
In addition, Lowe’s is expanding the online assortment as the company ramps up the company’s e-commerce marketplace. Lowe’s is working with new sellers and existing suppliers to incorporate their full product catalogs, including products across price points that better satisfy both value-oriented and more affluent consumers. As such, the company expects to expand the selection of merchandise it offers without carrying additional inventory, managing pricing or investing in new online fulfillment centers
Lowe’s plans an early-2025 relaunch of its Pro loyalty program as MyLowe’s Pro Rewards, designed specifically for the small-to-medium building, gardening and related professionals. The company has made the relaunched program more intuitive, so it’s easier and faster for Pros to earn and redeem rewards. Pro customers who shop with their MyLowe’s Pro Rewards Credit Card save 5% every day on eligible purchases.
At the same time, Lowe’s is bringing its do-it-yourself and Pro loyalty programs into one ecosystem to create what it calls a simple, compelling value proposition for its diverse customers.
Through a direct interface with supplier systems, Lowe’s is initiating a program for large, special Pro orders. Lowe’s sales associates will have instant access to an expanded digital catalog including inventory availability, pricing and supplier services such as jobsite and rooftop delivery. With its expedited quoting process, Lowe’s expects to improve its close rate on larger orders, capturing more planned Pro spend while relying on suppliers to execute job site delivery.
Lowe’s plans to open 10 to 15 stores per year the next several years in rapidly growing U.S. markets, the company indicated. In planning this next phase of store expansion, Lowe’s expects to build on the success it has had with recent new store openings, while also leveraging its enhanced space productivity initiatives. With the new stores, Lowe’s expects to strengthen its brand position, boost the customer base and drive incremental sales and return on invested capital.
To better serve customers living in country communities, Lowe’s will extend its rural assortments to 150 more stores, bringing what’s needed for farm and home under one roof. Shoppers will find more options in categories such as pet, workwear, automotive supplies and utility vehicles. Given the challenges rural customers often face driving long distances to shop, Lowe’s is offering greater convenience by adding rural products to the full array of home improvement merchandise it provides.
“As we look ahead to the expected recovery in home improvement, we are making investments to position the company for long-term growth,” said Marvin Ellison, Lowe’s chairman, president and CEO. “We are evolving our Total Home strategy to help solve our customers’ total home improvement needs with more value and exceptional service. By leveraging leading technology solutions, we’re creating a best-in-class omnichannel shopping experience for all generations of homeowners. At the same time, we’re building on our momentum with Pros now that we’ve reached 30% Pro penetration.
