Lowe's Listens to its Omnichannel Shoppers

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Lowe's Listens to its Omnichannel Shoppers

By Jamie Grill-Goodman - 09/21/2015
Lowe's Companies, Inc. has been listening to its target omnichannel shoppers and is evolving to meet the behaviors and needs of this segment. The strategy appears to be working, as Lowe's  2015 second quarter sales were $17.3 billion, an increase of 4.5%.

The sales increase was driven by both ticket and transactions with total average ticket up 3.3% to $67.83, while total customer transactions grew 1.2%. During the second quarter Lowe's recorded its strongest performance in big ticket categories, such as appliances, kitchens, outdoor power equipment, and seasonal living.

"This is a reflection of consumers' increasing desire to invest in their homes, as well as the strength of our product offerings in these categories, and our evolving omnichannel capabilities," said COO Rick Damron.

In appliances, Lowe's drove double digit comps for the third consecutive quarter. According to Damron, more than 80% of customers start shopping for appliances online, and an understanding of that statistic led to the company enhancing its presentation on Lowes.com. Some of the new features include improved product search, enhanced videos, simplified product groupings, and improved presentation, such as 360-degree views.

This quarter, Lowe's also drove above average comps in kitchens through a combination of targeted promotions, and investment in project specialists, who meet customers in their homes.

"These employees represent another important element of our omnichannel strategy," said Damron. "We now have project specialists who focus on the exterior of the home available across all U.S. stores, and we're expanding our interior project specialist program into another 470 stores, reaching over three-quarters of our stores by year end.

"With our ability to coordinate style, provide design expertise, and find the right contractor to do the job, we are rapidly becoming the project authority in home improvement."

Lowe's also officially re-launched lowesforpros.com at the beginning of the second quarter. So far, the company has been promoting lowesforpros online and through pro's social media. The company also drove productivity in marketing by increasing its presence in targeted digital media, and leveraging investment in MyLowe's.

"Our key priorities in 2015 should allow us to capitalize on opportunities within an improving economy," said Robert Niblock, Chairman, President and CEO. "We are pursuing further top line growth through continued development of omnichannel capabilities, differentiating ourselves through better customer experiences, and improving our product and service offering for the pro customer."