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Lowe's (LOW) Appears Good on Digital Strength & Pro Business
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Lowe's Companies, Inc. (LOW - Free Report) seems well poised for growth, thanks to its constant investments in the technology and merchandise category as well as sturdy Pro and digital businesses. LOW’s Total Home strategy, which includes complete solutions for various types of home improvement needs, appears encouraging as well.
Let’s delve deeper.
Strategic Details
Lowe's solid digital base has been aiding its performance for a while now. Management has been making investments in omni-channel capabilities for a while, including expanding online assortment, boosting user experience and improving fulfillment. LOW continues expanding its Lowes.com assortment to meet customers' design and lifestyle. LOW is focused on enhancing its omni-channel retailing capabilities in store operations, website and supply chain, with an aim to resonate well with customers’ demand to shop however, whenever and wherever they like.
Lowe's focus on perpetual productivity improvement or the PPI initiative has also been yielding results so far as LOW leverages store payroll by using technology to lower tasking hours, improve customer service and drive sales productivity. During the fourth quarter of fiscal 2021, sales at Lowes.com increased 11.5% on a two-year basis. This represents an 11% sales penetration and two-year comps of 147%.
Now talking about Lowe’s pro business, it has been a significant driver. LOW has been augmenting its pro-focused brands to fuel sales from pro customers. Earlier, Lowe’s had refurbished its pro-service business website, LowesForPros.com, to aggressively cater to the needs of Pro-customers. Moreover, prudent partnerships are helping LOW provide pro customers with a broad range of assortments that suit their specific home improvement and maintenance needs.
In fact, a continued focus on the Pro category is a very significant component of the Total Home strategy. Management is quite focused on enhancing the Pro offering across Lowe’s stores and online with improved service levels, deeper inventory quantities, intuitive store layout and more Pro national brands.
During the fiscal fourth quarter, pro sales jumped 23% year over year and 54% on a two-year basis. To retain momentum in the Pro category, management is on track to launch the Pro loyalty program, MVPs Pro Rewards and Partnership Program. The Pro segment is expected to continue its momentum ahead with improved in-stock inventory levels, enhanced service offerings and the new Pro loyalty program.
Lowe’s, which shares space with Home Depot (HD - Free Report) , Builders FirstSource (BLDR - Free Report) and Fastenal (FAST - Free Report) , is also benefiting from its Total Home strategy. The strategy is an extension of LOW’s retail-fundamentals approach, and aims at strengthening its customer engagement, market share and focus on Pro customers. Moreover, the initiative encompasses improvement in online business, revamp of installation services as well as enhancement of localization efforts.
Wrapping up, Lowe’s is likely to continue performing well based on all the aforesaid strategies.
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Lowe's (LOW) Appears Good on Digital Strength & Pro Business
Lowe's Companies, Inc. (LOW - Free Report) seems well poised for growth, thanks to its constant investments in the technology and merchandise category as well as sturdy Pro and digital businesses. LOW’s Total Home strategy, which includes complete solutions for various types of home improvement needs, appears encouraging as well.
Let’s delve deeper.
Strategic Details
Lowe's solid digital base has been aiding its performance for a while now. Management has been making investments in omni-channel capabilities for a while, including expanding online assortment, boosting user experience and improving fulfillment. LOW continues expanding its Lowes.com assortment to meet customers' design and lifestyle. LOW is focused on enhancing its omni-channel retailing capabilities in store operations, website and supply chain, with an aim to resonate well with customers’ demand to shop however, whenever and wherever they like.
Lowe's focus on perpetual productivity improvement or the PPI initiative has also been yielding results so far as LOW leverages store payroll by using technology to lower tasking hours, improve customer service and drive sales productivity. During the fourth quarter of fiscal 2021, sales at Lowes.com increased 11.5% on a two-year basis. This represents an 11% sales penetration and two-year comps of 147%.
Now talking about Lowe’s pro business, it has been a significant driver. LOW has been augmenting its pro-focused brands to fuel sales from pro customers. Earlier, Lowe’s had refurbished its pro-service business website, LowesForPros.com, to aggressively cater to the needs of Pro-customers. Moreover, prudent partnerships are helping LOW provide pro customers with a broad range of assortments that suit their specific home improvement and maintenance needs.
In fact, a continued focus on the Pro category is a very significant component of the Total Home strategy. Management is quite focused on enhancing the Pro offering across Lowe’s stores and online with improved service levels, deeper inventory quantities, intuitive store layout and more Pro national brands.
During the fiscal fourth quarter, pro sales jumped 23% year over year and 54% on a two-year basis. To retain momentum in the Pro category, management is on track to launch the Pro loyalty program, MVPs Pro Rewards and Partnership Program. The Pro segment is expected to continue its momentum ahead with improved in-stock inventory levels, enhanced service offerings and the new Pro loyalty program.
Lowe’s, which shares space with Home Depot (HD - Free Report) , Builders FirstSource (BLDR - Free Report) and Fastenal (FAST - Free Report) , is also benefiting from its Total Home strategy. The strategy is an extension of LOW’s retail-fundamentals approach, and aims at strengthening its customer engagement, market share and focus on Pro customers. Moreover, the initiative encompasses improvement in online business, revamp of installation services as well as enhancement of localization efforts.
Wrapping up, Lowe’s is likely to continue performing well based on all the aforesaid strategies.