For More on Lowe’s
Hear Lowe’s president and CEO, Marvin Ellison, share his vision for strengthening the home improvement retailer through a relentless focus on operational excellence and retail fundamentals at the NRF Big Show 2019 session “Fortunes in the Fundamentals: Leveraging Operational Prowess as a Strategic Advantage.” He will discuss his approach – from taking a fresh look at personnel in senior-most positions to simplifying the business.
For more on NRF's yearly expo, check out the RIS’ editors guide "Next Stop: the NRF Big Show" and get a short glimpse into the speakers and sessions that will define The Big Show 2019.
“Despite the favorable macro environment, we have not performed to our potential as a company,” noted president and CEO Marvin Ellison. “Therefore, we believe that we have a significant opportunity to grow market share by addressing our poor execution.”
Ellison noted that Lowe’s lost expertise in store operations and in merchandising, and failed to keep up with advancements in e-commerce, IT and supply chain.
“Our challenging IT infrastructure was evident on Black Friday when we experienced system outages,” he noted. “This system failure presented to the outside world what our associates deal with on a daily basis.”
Going forward Ellison said Lowe’s will solve issues and quickly modernize the business through a newly assembled leadership team with subject matter expertise and deep experience and the ability to reallocate capital to invest in its core retail business.
Today, Lowe’s EVP of Merchandising, Bill Boltz and EVP of Storage, Joe McFarland, have a combined 55 years of home improvement experience. Its EVP of Supply Chain, Donald Frieson has over 30 years of supply chain experience.
Lowe’s has also developed a new mission statement, “delivering the right home improvement products with the best service and value across every channel and community we serve,” and said it will achieve this by focusing on four key areas: merchandising excellence, omnichannel, operational efficiency and customer engagement. Every initiative has a designated captain supported by cross-functional team. Lowe’s expects these initiatives will help it deliver over the next several years an operating margin of 12% and return on invested capital of 35%.
“What you see here is our operational plan,” said Ellison.
Here are seven key ways Lowe’s will improve operational efficiency: