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Lowe’s Companies, Inc. hosted its 2024 Analyst and Investor Conference last week, providing an update on its key growth and productivity initiatives and near-term and long-term financial targets.
“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. “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.”
Lowe’s 2025 Total Home Strategy spans five growth initiatives:
• Drive Pro Penetration
• Accelerate Online Sales
• Expand Home Services
• Create a Loyalty Ecosystem
• Increase Space Productivity
To support these Total Home initiatives, the company has developed a framework to harness the new power of generative AI through a standardized development process, designed to enhance the customer experience and unlock productivity. With a robust AI platform, the company has the agility needed to create innovative solutions alongside many of the leading tech platforms.
Leveraging the experience gained from its success with early AI models that power its online search and product recommendations, sourcing engines, and demand planning tools, the company is now piloting new solutions to empower frontline associates to better serve customers and improve the in-store shopping experience.
Lowe’s also expanded its online assortment with the initial launch of the first product marketplace in the U.S home improvement industry. It is working with both new sellers and existing suppliers to offer their full product catalogs, including products across price points to better serve both value-oriented and more affluent consumers. This allows the company to offer a wider selection of products without carrying the inventory, managing pricing or investing in new online fulfillment centers.
Early this year, the chain will relaunch its pro loyalty program as MyLowe’s Pro Rewards, designed specifically for the small-to-medium pro. The 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.
The company is bringing its DIY and pro loyalty programs into one ecosystem, under a single currency, to create a simple yet compelling value proposition for these different customers.
Through a direct interface with supplier systems, the company is creating a seamless solution 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 like jobsite and rooftop delivery. With this expedited quoting process, the company expects to improve its close rate on larger orders, capturing more planned Pro spend, while relying on large suppliers to execute job site delivery.
To fuel long-term growth, expand its footprint and attract new DIY and Pro customers to the brand, Lowe’s plans to open 10-15 stores per year over the next several years in fast-growing markets in the U.S.
To better serve customers living in rural communities, Lowe’s is planning to extend its rural assortments to 150 more stores, bringing everything needed for farm and home under one roof. Within a convenient shopping experience, customers can expect to find more options in categories such as pet, workwear, automotive supplies, and utility vehicles.
