Lowe’s Companies, Inc. and subsidiaries (Lowe’s) operates as a home improvement retailer worldwide.
As of January 31, 2025, Lowe’s operated various home improvement stores and outlets in the United States, representing approximately 195 million square feet of retail selling space.
Strategy
Lowe’s is an omnichannel retailer whose focus is on helping customers solve problems and fulfill dreams for their homes by providing an excellent customer experience, creating a great place to work for its...
Lowe’s Companies, Inc. and subsidiaries (Lowe’s) operates as a home improvement retailer worldwide.
As of January 31, 2025, Lowe’s operated various home improvement stores and outlets in the United States, representing approximately 195 million square feet of retail selling space.
Strategy
Lowe’s is an omnichannel retailer whose focus is on helping customers solve problems and fulfill dreams for their homes by providing an excellent customer experience, creating a great place to work for its associates, and improving communities. In fiscal 2024, the company continued to execute on its Total Home strategy that was introduced in 2020, by focusing on serving the professional customer (Pro customer), accelerating its online business, expanding installation services, improving localization efforts; and elevating its product assortment. In December 2024, the company updated its Total Home strategy, aligned with the key drivers of home improvement demand, to help customers solve their home improvement needs with more value and exceptional service. The five pillars of the company's Total Home strategy are as follows:
The company continues to transform its Pro offerings to drive Pro penetration by enhancing its Pro product assortment, investing in inventory of high-volume Pro products, launching its redesigned loyalty program, improving job site delivery capabilities, and rolling out its new Pro extended aisle.
The company is investing in its omnichannel retail capabilities to accelerate its online business through project design tools and its online product marketplace.
The company is expanding its installation services to create a high-value simplified installation solution, which is provided by its network of independent installers or outsourced to its third-party model that sells, furnishes, and installs both smaller refresh projects and more complex projects.
The company is creating a loyalty ecosystem that drives brand preference and includes building out its MyLowe’s Rewards infrastructure for both Pro and do-it-yourself (DIY) customers.
Finally, the company is increasing space productivity by optimizing its assortments and tailoring them to local markets, while balancing its value-oriented private brands with its national brands.
Customers and Market
The home improvement market in which the company operates is highly fragmented, serving Pro customers, individual homeowners, and renters completing a wide array of projects that vary along the spectrum of DIY and do-it-for-me (DIFM). The Pro customer at Lowe’s is primarily the small to medium sized Pro, which includes three broad categories: tradespeople, repair and remodelers, and property managers.
Omnichannel Capabilities
The company is committed to meeting customer demand to shop however, whenever, and wherever they choose. Its omnichannel network provides a single view of the customer, no matter where they place their order, whether in-store, online, on-site, or through the contact center. This allows its customers to move from channel to channel with simple and seamless transitions even within the same transaction. For example, for many projects, the majority of its customers conduct research online before making an in-store purchase. The company’s ability to sell products in-store, online, on-site, or through its contact centers speaks to its leverage of its existing infrastructure with the omnichannel capabilities the company continues to introduce.
In-Store
The company operates various Lowe’s-branded home improvement stores and outlet stores, which are generally open seven days per week and average approximately 112,000 square feet of retail selling space, plus approximately 32,000 square feet of outdoor garden center selling space. Its home improvement stores offer similar products and services, with certain variations based on localization, along with a dedicated team of knowledgeable and friendly frontline associates available to assist customers. The company continues to develop and implement productivity tools, including its front-end transformation and freight flow optimization initiatives, to enhance the efficiency of its sales associates and improve the customer experience. The company's Lowe’s Outlet stores have a smaller format and offer value to customers through incremental savings on discontinued, overstocked, or scratch and dent items.
Online
Through its websites and mobile applications, the company seeks to empower consumers by providing a 24/7 shopping experience, product information, customer ratings and reviews, buying guides, how-to videos, and other information. These tools help consumers make more informed purchasing decisions and give them increased confidence to undertake home improvement projects. The company enables customers to choose from a variety of fulfillment options, including buying online and picking up in-store, curbside pick-up, same-day delivery through its gig network, and shipment to their homes or businesses. Furthermore, the company also offers digital inspiration, design, and project management tools across its destination home improvement categories.
On-Site
The company has on-site specialists available for retail and Pro customers to assist them in selecting products and services for their projects. Its Pro sales managers meet with Pro customers at their place of business or on a job site and leverage nearby stores and the company's distribution network to ensure it meets customer needs for products and resources. In addition, the company's In-Home Sales program is available in the majority of its stores to discuss various exterior projects, such as windows, doors, and fencing, whose characteristics lend themselves to an in-home consultative sales approach.
Contact Centers
Lowe’s operates contact centers utilizing a combination of internal staffing and third-party providers. These contact centers help Lowe’s enable an omnichannel customer experience by providing the ability to tender sales, assist with order management, coordinate deliveries, manage after-sale installations, and answer general customer questions via phone, mail, e-mail, live chat, and social media.
Products
Product Selection
To meet customers’ varying needs, the company offers a complete line of products for construction, maintenance, repair, remodeling, and decorating. The company provides home improvement products in the following categories: Appliances, Seasonal & Outdoor Living, Lumber, Lawn & Garden, Kitchens & Bath, Hardware, Building Materials, Millwork, Paint, Rough Plumbing, Tools, Electrical, Flooring, and Decor. A typical Lowe’s-branded home improvement store stocks approximately 40,000 items, with additional items available through the company's online selling channel. The product assortments offered in-store strive to meet the needs of the local market for both Pro and DIY customers.
The company is committed to offering a wide selection of national brand-name merchandise complemented by its selection of high-value private brands. The company is balancing its value-oriented private brands with its national power brands, intensifying its localization efforts, and expanding its rural assortment. In addition, the company is dedicated to selling products sourced in a socially responsible and efficient manner.
Services
Installed Sales
The company offers installation services through independent contractors in many of its product categories, with Kitchen & Bath, Flooring, Appliances, Millwork, and Rough Plumbing accounting for the majority of installed sales. The company's installed sales model, which separates selling and project administration tasks, allows its sales associates to focus on project selling, while project managers ensure that the details related to installing the products are efficiently executed. Installed sales, which includes both product and labor, accounted for approximately 5% of total sales in fiscal 2024.
Lowe’s Protection Plans and Repair Services
The company offers extended protection plans for certain products within the Appliances, Kitchens & Bath, Decor, Millwork, Rough Plumbing, Electrical, Seasonal & Outdoor Living, Tools, and Hardware categories. These protection plans provide customers with product protection that enhances the coverage offered by the manufacturer’s warranty and provides additional benefits and repair services that extend beyond the manufacturer’s warranty.
Seasonality
Historically, the company has realized the highest volume of sales during its second fiscal quarter (May, June, and July) and the lowest volume of sales during its fourth fiscal quarter (November, December, and January). Accordingly, the company’s working capital requirements have historically been greater during its fourth fiscal quarter as it builds inventory in the anticipation of the spring selling season and as it experiences lower fourth fiscal quarter (year ended January 2025) sales volumes.
Intellectual Property
The name Lowe’s is a registered service mark of one of the company's wholly owned subsidiaries. The company considers this mark and logo and the accompanying goodwill and name recognition to be valuable to its business. This subsidiary owns and maintains various additional registered and unregistered trademarks, service marks, and trade names, including private brand product names, such as Kobalt, STAINMASTER, and allen+roth. This subsidiary also maintains various Internet domain names that are important to the company’s business, and the company also owns registered and unregistered copyrights.
History
Lowe's Companies, Inc. was founded in 1921. The company was incorporated in North Carolina in 1952.