Consumers can have about 20,000 Lowe's items across the appliances, building supplies, light fixtures, garden and outdoor essentials categories, and more, delivered from the store to their door. Same-day delivery will first be available in Boston and Charlotte, but the company plans to expand to other locations in the coming months.
"Online is a key piece of our omnichannel strategy, and the combination of Lowe's home improvement expertise and Instacart's ability to help deliver right to your door within hours offers a new, convenient way to shop," said Mike Shady, Lowe's senior vice president of online, in a statement.
Pros Segment Overtaking DIY
Lowe’s said it expects its Pro base to outpace DIY in 2022. Customer sales for Pros increased by 23% in Q4.
In early February, the company announced an updated loyalty program — MVPs Pro Rewards and Partnership Program — solely targeting its Pro consumers.
“We redesigned our loyalty program based on feedback from our Pro customers who expressed a desire for a business partnership rather than a series of stand-alone transactions,” said Ellison.
Ellison stated that Pros who leverage the company’s loyalty and credit offering spend 300% more than Pros not engaged in the programs.
Streamlined Operations Trickle Down to the End Consumer
In an effort to improve efficiency across its business cycle, and thus provide a more cohesive consumer experience, Lowe’s has invested in several back-end solutions.
The company stated it has launched a new inventory management system across its stores, providing added visibility into inventory in the home bay location and product in the top stock, endcap, off-shelf and back stock room.
“This new system will eliminate the countless nonproductive hours associates have been spending looking for products,” said Joe McFarland, executive vice president of stores at Lowe’s, during the earnings call.
This combined with a new training process is expected to drive $100 million in productivity this year, according to the company.
Additionally, the company’s partnership with Instacart is a larger part of its market-based delivery model, moving away from the store delivery model, where each store acts as its own distribution and transportation center for these products.
“As we continue to expand our market-based delivery model, we're freeing up space in our 10,000-square-foot store back rooms, which on average are considerably larger than our competition,” said Ellison. “And we are testing out different options to drive both greater in-store fulfillment and expanded delivery alternatives for both Pro and DIY customers."