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Lowe’s hosted its 2024 Analyst and Investor Conference, where it provided an update on its key growth and productivity initiatives, as well as both short-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,” says 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.”
From 2018-2024, Lowes sales grew 26%, splitting its sales 50% with DIY and pro customers. Lowe’s attributes its sales growth to home price appreciation, disposable personal income and an aging home stock. It says inflation, higher interest rates and an overall prioritizing of experiences over goods are the headwinds it sees affecting future sales data, among other factors.
Lowe’s sees the lowering of interest and mortgage rates, improving its customer experience and normalizing of spending on goods as cyclical factors in the market. In the future, Lowe’s hopes these factors will make homeowners re-engage in simple DIY and repair projects.
Lowe’s plans to leverage social media design inspiration from influencers in its new Lowe’s Creator storefronts, where influencers can link directly to Lowes’ website, driving traffic and sales.
Through the Lowe’s app, the company plans on guiding customers through complex purchases through a series of questions.
Lowe’s 2025 Total Home Strategy plans to address five growth initiatives.
- Drive Pro Penetration
- Accelerate Online Sales
- Expand Home Services
- Create a Loyal Ecosystem
- Increase Space Productivity
To support these initiatives, Lowe’s is announcing multiple growth opportunities.
New AI Framework
Lowe’s has developed a framework to harness the power of generative AI through a standardized development process designed to enhance the customer experience. After seeing how AI has transformed traditional online search engines, Lowe plans to implement AI in its online search and product recommendations on its website.
New Store Growth
Lowe’s plans to open 10-15 new stores per year over the next several years. With these new stores, Lowe’s is planning on extending its rural assortments to 150 more stores, bringing everything from farm to home under one roof. As many Lowe’s stores are based in cities and suburbs, Lowe’s says its rural customers face long driving distances to shop. By adding farm and ranch products, Lowe’s hopes to attract those customers by making their stores more appealing to other product categories.
Relaunches Pro Loyalty Program as MyLowe’s Pro Rewards
In early 2025, Lowe’s is relaunching its pro loyalty program, as MyLowe’s Pro Rewards. The new program will be more intuitive and users will be able to save 5% on eligible purchases. Lowe’s also plans to bring its pro loyalty program under its DIY program to a more cohesive product.
Launches Pro Extended Aisle to Expand Jobsite Delivery
Lowe’s sales associates will have instant access to an expanded digital catalog, including inventory
availability, pricing and supplier services like job site and rooftop delivery. With this expedited quoting process, Lowe’s expects to improve its close rate on larger orders, while relying on large suppliers to execute job site delivery.
Launches First Product Marketplace in U.S. Home Improvement Industry
Lowe’s has expanded its online assortment with the initial launch of the first product marketplace in the U.S. Home Improvement industry. By 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. The new marketplace will further position Lowe’s as a one-stop shop where customers can get everything they need for their homes.
Read the full report here.
