Lowe’s Deploys Digital Tools to Power Growing B2B Sales

Home improvement company Lowe’s saw growth in its Pro, online and Home Services businesses in the fourth quarter while the do-it-yourself business remained muted.

Consumers remained reluctant to make significant investments in their homes amid the current economic uncertainty, so they continued to delay big-ticket, discretionary DIY projects, Lowe’s Chairman, President and CEO Marvin Ellison said Wednesday (Feb. 25) during the company’s fourth-quarter earnings call.

Lowe’s said its Pro business grew, though the company did not break out those results from its overall results. An infographic released Wednesday said that in the fourth quarter, the company saw: “Positive Pro comp sales driven by broad-based growth across categories and regions.”

Joseph M. McFarland III, executive vice president, stores at Lowe’s, said during the call: “Looking ahead, in our recent survey, our core Pro customers indicate they continue to work on smaller-ticket repair projects and that their backlogs remain stable.”

The latest additions to Lowe’s Pro offerings include a relaunched MyLowe’s Pro Rewards, according to the infographic.

The company also rolled out an artificial intelligence-enabled Pro Companion, which provides information that helps Pro sales team members prepare for conversations with Pro customers, and a Pro Extended Aisle, which provides sales associates at the Pro desk with direct access to suppliers’ catalogs, McFarland said during the call.

Ellison said during the call: “Our Pro customers are responding to our compelling brand and product assortment, investments in inventory, job site delivery, enhanced service levels and a tailored digital experience.”

Rival home improvement company Home Depot reported Tuesday (Feb. 24) that its Pro business continues to expand rapidly and now accounts for nearly half of its total revenue.

Home Depot’s growth was otherwise muted, with CEO Ted Decker pointing to “ongoing consumer uncertainty and pressure in housing.”

Lowe’s online business remained strong in the fourth quarter, Ellison said during Wednesday’s call. The company’s online sales were up 10.5% year over year in the fourth quarter, outpacing its comp sales which were up 1.3%, according to the infographic.

“Both DIY and Pro customers continue to shift their shopping online as our enhanced user experience and fulfillment options offer the ease and convenience that they are seeking,” Ellison said during the call.

The third driver of Lowe’s sales growth in the fourth quarter was its Home Services business, which saw “high-single-digit growth,” Ellison said. This offering includes home installation services and assembly services provided by local independent installers who work with Lowe’s, according to the company’s website.

“This is another example of a customer experience that we have overhauled at Lowe’s by removing the friction from what was a time-consuming process through digital tools and enhanced service to create an intuitive installation solution for our do-it-for-me customers,” Ellison said.