Lowe’s Companies has revealed how its investment in the digital technology is enhancing online sales and customer experience.
Lowe’s Companies has reported 5.1 percent drop in sales to $23.6 billion in Q2 2024 despite achieving 2.9 percent rise in sales on online platforms.
Lowe’s has achieved growth in online sales thanks to improvement in digital user experience. Last year, it expanded the use of artificial intelligence to improve how it sells, shops and works – like the launch of our ChatGPT plugin that helps homeowners find the right products for their DIY projects.
Seemantini Godbole is the Chief Digital and Information Officer of Lowe’s. Margrethe R. Vagell is the Executive Vice President, Supply Chain at Lowe’s.
Lowe’s said its online sales have achieved growth across all three business areas, driven by improvement in conversion rates as e-commerce customers responded to compelling offers and to expanded same-day delivery options that are now available on multiple platforms.
In Q2, Lowe’s added Uber Eats to its list of delivery partners, which also includes DoorDash, Shipt, and Instacart. Lowe’s has also partnered with lifestyle technology partner, OneRail, to provide integrated solution on Lowes.com and in store.
Lowe’s says the availability of multiple delivery platforms extends its reach into both urban and suburban areas and helps in driving incremental sales with different types of customers, especially younger generations who are more digitally savvy.
Lowe’s has tied up with sports icons like Lionel Messi to enhance customer base and making a deeper connection with new and existing customers through marketing campaigns. Lowe’s used partnership with Messi to gain exposure to new DIY loyalty program, MyLowe’s Rewards.
MyLowe’s Rewards loyalty program, launched nationwide in March, is enabling the company to learn more about customers’ lifestyle and purchasing trends. Lowe’s is working with Apple to help customers visualize and design their dream kitchens using Apple Vision Pro.
Lowe’s also piloted an in-store design experience for customers in three test markets. With the help from a Lowe’s associate, customers could wear the Apple Vision Pro and use the Lowe’s Style Studio app to explore and customize kitchen designs in 3D using products, and appliances.
Lowe’s Style Studio, available at launch in the App Store in visionOS, gives users an immersive space to remodel kitchen remodeling process more intuitive.
Seemantini Godbole, Chief Digital and Information Officer, says Lowe’s Style Studio offers a new level of immersive, intuitive visualization.
Lowe’s is also working with platforms like NVIDIA, OpenAI, and Palantir to develop AI solutions for both customers and associates.
INVESTMENT
Lowe’s aims at improving operational efficiency through PPI initiatives and making the right investments in Total Home Strategy. Accelerating online business is a top priority of Lowe’s.
Lowe’s said capital expenditures totaled $426 million in Q2 2024 as it made investment in modernizing technology infrastructure and strategic growth priorities. Lowe’s did not reveal its specific spending in digital transformation.
“We’re encouraged to see results from our ongoing investments in our Total Home Strategy this quarter, allowing us to deliver mid-single-digit positive comps in Pro and 2.9 percent comparable sales growth online,” Marvin R. Ellison, Chair, President, and Chief Executive Officer of Lowe’s, said.
Lowe’s Companies has lowered its sales target to $82.7 billion – $83.2 billion (down 3.5 percent to down 4 percent) for 2024, despite believing that its strategic investments as part of its Total Home Strategy are gaining traction.
Baburajan Kizhakedath
