Back to top

Image: Bigstock

Lowe's (LOW) Continues Same-Day Delivery Expansion With OneRail

Read MoreHide Full Article

Lowe’s Companies, Inc. (LOW - Free Report) continues making investments in omnichannel capabilities to drive growth and enrich the customer experience. In latest developments, the company has been expanding its same-day delivery service throughout the nation in collaboration with OneRail, a major omnichannel fulfillment solution. This latest delivery option will surely boost customers' omnichannel experience with quick and convenient delivery. We note that the company started piloting same-day delivery with OneRail across select markets in 2022.

Customers can buy thousands of products, which include building materials, decor, seasonal and outdoor living items, and much more, at any nearby store. The eligible orders made by 2 p.m. local time will be delivered the same day, and those after 2 p.m. will get delivered the next day.  The company’s more than 1,700 stores are available for online delivery. This delivery expansion is well in sync with the Total Home strategy to expand omnichannel shopping facilities to DIYers and Pros alike.

Within the supply chain, the company continued to roll out its market delivery model, bringing it to 12 geographic regions in the country. It remains on schedule to roll out market delivery by 2023. Management is on track with advancing the same-day and next-day fulfillment capabilities. It constantly pilots various gig network solutions, such as partnering with Instacart across many markets with same-day DIY home delivery. Meanwhile, its focus on the perpetual productivity improvement initiative has also been yielding results.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

What’s More?

Lowe's is gaining traction with its Total Home strategy which includes providing complete solutions for various types of home repair and improvement needs. The strategy is an extension of the company’s retail-fundamentals approach. Management highlighted that the new strategy focuses on strengthening customer engagement and market share, especially through an intensified focus on Pro customers. Moreover, the initiative encompasses improving the online business, refurbishing installation services and enhancing localization efforts.

Pro customers have been a significant driver in this Zacks Rank #3 (Hold) company’s business growth. Management is quite focused on enhancing the Pro offering across the company’s stores and online with improved service levels, deeper inventory quantities, intuitive store layout and more Pro national brands. The Pro segment is expected to continue its momentum. Shares of this home-improvement retailer have risen 8.6% in the past three months, compared with the industry’s 6.6% increase.

Solid Picks in Retail

We have highlighted three better-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , Urban Outfitters (URBN - Free Report) and American Eagle Outfitters (AEO - Free Report) .

Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and earnings per share (EPS) suggests growth of 3.4% and 732%, respectively, from the year-ago reported figures. ANF delivered an average trailing four-quarter earnings surprise of 480.6%.

Urban Outfitters, a sporting goods retailer, currently flaunts a Zacks Rank of 1. The company has an average trailing four-quarter earnings surprise of 12.2%.

The consensus estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 5.1% and 57.1%, respectively, from the year-ago reported figures.

American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently carries a Zacks Rank #2 (Buy). AEO delivered an average trailing four-quarter earnings surprise of 9.2%.

The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year EPS suggests growth of 4.1%, from the year-ago reported figure.

Published in