Dec 14, 2022
Lowe’s final week up to date its plan to drive market share progress within the house enchancment class.
The chain’s “Whole House Technique” seeks to attain progress throughout 5 areas: skilled contractors and development professionals, on-line gross sales, set up companies, localization and elevated product assortment.
Lowe’s final month reported a 3 p.c achieve in U.S. same-store gross sales within the third quarter ending Oct. 28.
“These better-than-expected gross sales have been pushed by improved DIY demand supported by fall nesting traits as journey slowed down and youngsters returned to highschool,” Marvin Ellison, chairman and CEO of Lowe’s, instructed analysts on the earnings name. “We additionally noticed continued momentum in Professional, reflecting the success of our Professional initiatives and the resilience of house enchancment demand.”
Lowe’s stated that gross sales to the skilled market achieved 16 p.c year-over-year progress within the final quarter, bringing its streak of quarterly double digit features to 10.
Mr. Ellison stated that the retailer just lately accomplished its Professional pulse survey of shoppers within the skilled market and located that they’re optimistic about their prospects heading into 2023. Over 70 p.c instructed Lowe’s that they anticipate to have “much more work” in 2023 than they did this yr.
On-line gross sales made a larger contribution to Lowe’s leads to the third quarter, as nicely. The retailer stated that on-line gross sales have been up 12 p.c and that continued enhancements within the person expertise and achievement will assist it obtain larger share going ahead.
Mr. Ellison stated that Lowe’s “made vital strides” rolling out its market supply mannequin for “huge and ponderous” objects within the quarter. The system, which presently provides clients at greater than half the chain’s shops, is predicted to be totally in place by the tip of 2023.
“This can be a centerpiece of our provide chain transformation because the market supply mannequin will allow us to additional consolidate our trade management place in home equipment and place us for worthwhile progress in different huge and ponderous merchandise like grills, driving garden mowers, inventory cupboards, and vanities,” stated Mr. Ellison. “This additionally improves the client expertise by means of expanded achievement choices and a seamless omnichannel buying expertise powered by know-how.”
The Nationwide Retail Federation just lately introduced that Mr. Ellison would be the recipient of The Visionary award on the eight annual NRF Basis Honors subsequent month in New York. Mr. Ellison is being acknowledged for “his stewardship to drive optimistic change inside the retail trade.”
DISCUSSION QUESTIONS: What are the keys to Lowe’s reaching the objectives of its Whole House Technique? How will it obtain differentiation from rivals who’ve related strategic priorities?
“Improved buyer expertise is the hallmark of the Lowe’s technique, whether or not within the professional market or with shoppers.”
“Lowe’s is firing on all cylinders with a give attention to buyer expertise, provide chain and omni-channel buying.”
“Shade me a skeptic. Sure, Lowe’s is doing job executing within the shops. Nevertheless specializing in 5 areas dilutes the supposed focus.”
