Lowe's Unveils Growth Strategy, Reaffirms 2024 Guidance, Sets Sights on 2025 Initiatives

Lowe's outlined its 2025 Total Home Strategy, focusing on Pro Penetration, online sales, home services, loyalty, and space productivity. The company is developing an AI framework to enhance customer experience and launched a US home improvement industry-first product marketplace. Lowe's plans to relaunch its Pro loyalty program and expand its rural offering to 500 stores. The company reaffirmed its 2024 guidance, projecting total sales between $83.0 and $83.5 billion and adjusted diluted earnings per share between $11.80 and $11.90.

Lowe's Companies, Inc. (LOW), the second-largest home improvement retailer in the United States, recently unveiled its 2025 Total Home Strategy during its annual Analyst and Investor Conference [1]. This comprehensive plan focuses on enhancing customer experience, expanding online sales, and boosting space productivity.

According to Marvin R. Ellison, Lowe's chairman, president, and CEO, the company aims to "position the company for long-term growth by leveraging leading technology solutions and creating a best-in-class omnichannel shopping experience for all generations of homeowners" [1]. To achieve this, Lowe's has identified five key growth initiatives:

1. Drive Pro Penetration: With 30% of its sales coming from professional customers, Lowe's aims to increase this percentage further by enhancing its services and offerings to professionals [1].
2. Accelerate Online Sales: As more consumers turn to online shopping, Lowe's plans to expand its online assortment and improve its digital capabilities to better serve customers [1].
3. Expand Home Services: Lowe's is investing in home services to provide more comprehensive solutions to customers, from installation to maintenance [1].
4. Create a Loyalty Ecosystem: The company aims to build a loyalty ecosystem that rewards customers for their repeat business and encourages them to engage with Lowe's [1].
5. Increase Space Productivity: By optimizing its store layouts and improving inventory management, Lowe's aims to increase space productivity and reduce costs [1].

To support these initiatives, Lowe's is developing an AI framework to enhance customer experience and drive productivity [1]. The company has already seen success with early AI models that power its online search and product recommendations, sourcing engines, and demand planning tools [1].

In addition, Lowe's has launched the first product marketplace in the U.S. home improvement industry, expanding its online assortment and providing customers with more choices [1]. The company is also planning to relaunch its Pro loyalty program and expand its rural offering to 500 stores [1].

Despite the challenges posed by the ongoing pandemic, Lowe's remains optimistic about its future prospects. The company reaffirmed its 2024 guidance, projecting total sales between $83.0 and $83.5 billion and adjusted diluted earnings per share between $11.80 and $11.90 [1].

References:
[1] Lowe's Unveils 2025 Total Home Strategy to Drive Long-Term Growth and Market Share. (2024, December 11). PR Newswire. https://www.prnewswire.com/news-releases/lowes-unveils-2025-total-home-strategy-to-drive-long-term-growth-and-market-share-302328216.html