Lowe’s Cos. Inc., a leading home improvement retailer, is prioritizing the growth of its professional contractor (Pro) business and adopting artificial intelligence (AI) technologies to optimize customer service and operations.
Lowe’s is No. 11 in the Top 1000, Digital Commerce 360’s database ranking North America’s biggest online retailers. The retailer is in the Hardware & Home Improvement category. Digital Commerce 360 projects that Lowe’s online sales will reach $11.33 billion in 2024.
Here are five priorities for Lowe’s AI integration and Pro customers going into 2025.
1. Lowe’s ups its focus on Pro Customers
At its recent investor day in New York, Lowe’s outlined its strategy to strengthen its offerings for professional contractors, who currently represent 30% of its customer base. CEO Marvin Ellison emphasized the company’s commitment to improving its omnichannel shopping experience to better serve this segment.
2. AI integration enhances Lowe’s customer interactions
In addition to focusing on Pro customers, Lowe’s has introduced an AI framework designed to enhance customer interactions and operational efficiency. The company is collaborating with technology providers such as Nvidia, OpenAI, and Palantir to further develop its AI capabilities.
Building on existing applications for online search, product recommendations, demand planning, and sourcing, Lowe’s is piloting new AI-powered tools aimed at assisting in-store associates. These tools are expected to improve customer service and streamline the shopping experience.
3. Enhancements to Pro loyalty program
In early 2025, Lowe’s will relaunch its Pro loyalty program as MyLowe’s Pro Rewards. The updated program will offer enhanced usability and rewards tailored to small- and medium-sized professional contractors. Pro customers who use an associated credit card will benefit from a 5% discount on eligible purchases.
The new loyalty program will integrate the DIY and Pro customer systems into a unified platform, simplifying rewards management for all customers.
4. Introduction of Pro extended aisle
Lowe’s is also launching Pro Extended Aisle, a program designed to provide professional customers with access to an expanded digital catalog that includes real-time inventory and pricing information. Additionally, the system offers supplier services such as job site and rooftop delivery to facilitate larger orders. This initiative aims to improve efficiency and attract larger contracts by streamlining the quoting and ordering processes.
For fiscal 2024, Lowe’s projects sales between $83 billion and $83.5 billion, with adjusted earnings per share (EPS) estimated at $11.80 to $11.90. Analysts surveyed by FactSet forecast EPS of $11.89 on $83.3 billion in revenue.
Looking ahead to fiscal 2025, Lowe’s anticipates sales in the range of $82 billion to $87 billion, contingent on the performance of the home improvement market. Analysts have estimated revenue of $83.3 billion for the year.
5. Online sales growth
In the third quarter, Lowe’s reported a 6% year-over-year increase in online sales, building on a 2.9% increase in the second quarter. The growth has been supported by the popularity of Lowe’s mobile app, which continues to drive both traffic and conversions.
Ellison noted that strong online performance is helping to offset challenges in the DIY segment, reaffirming the importance of digital innovation in sustaining sales momentum.
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