Lowe’s Companies, Inc., also known as Lowe’s, is an American retail company specializing in home improvement in the United States and internationally. A line of products is produced by Lowe’s related to construction, repair, maintenance, decorating, and remodeling.
Lowe’s offers home improvement products in various categories, including décor, appliances, hardware, paint, lawn and garden, lumber and building materials, lighting, and other tools.
Along with these products, Lowe’s also provides installation services via independent contractors in numerous product categories such as repair services and extended protection plans.
Here is a brief overview of Lowe’s company profile.
|Company Name||Lowe’s Companies, Inc..|
|Founded||March 25, 1921|
|Key People||Marvin Ellison – Chairman, President and CEO, Bill Boltz –Executive Vice President, Merchandising, William Boltz – Executive Vice President, Merchandising, Ross McCanless – Executive Vice President, General Counsel and Corporate Secretary, David M.Denton – Executive Vice President, Chief Financial Officer|
|Headquarters||Mooresville, North Carolina, United States|
|Revenue||$89.6 B (FY, 2020)|
|Key Competitors||The Home Depot, Target, Costco, Walmart, Bed Bath and Beyond, Kingfisher, Best Buy|
What is Lowe’s? A Brief History
Lowe’s is a retailer offering products for home maintenance, construction, remodeling, decorating, and repair. The company provides its services online, in-store, and through contact centers.
The history of Lowe’s dates back to 1921 when its hardware store opened in the small town of North Wilkesboro, North Carolina, with the name Mr. L. S. Lowe’s North Wilkesboro Hardware. The owner of the store died and his son, James Lowe, took over the charge of the store.
As World War II started, James Lowe and his brother-in-law, Carl Buchan, left to serve in the US Army. During this time, the business was headed by Lowe’s sister and mother.
Later Buchan and then Lowe was discharged from the army and returned to North Wilkesboro to operate the hardware business. The two of them ran the business well and utilized the profits to purchase an automobile dealership and a cattle farm.
In 1952, Buchan opened a third store in Asheville, North Carolina, as he traded his interests in the two businesses for the Lowe’s interests in their two stores. Interestingly, Buchan did not replace Lowe’s name with his name on the store because of the famous slogan “Lowe’s low prices.”
During the period of 1952 to 1959, Buchan expanded the business a great deal. The sales of Lowe’s North Wilkesboro Hardware, Inc. increased from $4.1 million to $27 million. The post-World War II construction boom played a significant role in the sales increase.
By 1960, Buchan had managed to expand to 15 stores and had already become a vital force in the home-building market. The same year, the company was renamed Lowe’s Companies, Inc., and went public. The business kept growing and expanding to numerous cities, yet the layout was kept the same. By the end of the year, Lowe’s Companies, Inc. had over 50 stores, and sales amassed over the $100 million mark.
From 1971to 1979, Lowe’s revenues increased from $170 million to $900 million. The company suffered in 1980 as the housing starts decreased, and Lowe’s net income fell 24 percent. Later that year, the retail scenario had once again been transformed in the United States, and the period of the “big-box” warehouses had begun.
A formal shift was seen from being a chain of small stores to being a chain of enormous warehouse stores in 1989. From 1991 to 1993, the company focused explicitly on restructuring and made only model expansion decisions. 1997 was the year when the company opened its first store in an urban market. In 2004, Lowe’s surpassed the 1,000-mark in-store count.
In 2020, the total sales of $27.3 billion were reported for the May-July yearly quarter.
How Does Lowe’s Work and What Does it offer?
Lowe’s strives to provide its customers with everything they need for efficiently carrying out their home improvement project – be it home maintenance, repairs, decorating, or remodeling.
Lowe’s Companies, Inc. has an extensive selection of products and services brought to the customers from Lowe’s team of home improvement experts. Through the years, Lowe’s Companies, Inc. has been working hard to offer the best of services in the market and deliver value to the communities in which they operate.
A little sneak peek from the working of Lowe’s Companies, Inc. is as follows:
The company has more than 300k associates globally with over 2,200 home improvement and hardware stores. As we write, the company has successfully completed 100 years in business and serves 20 million customers every week!
As per the claims of the company, it bases its foundation on genuine relationships between associates, customers, and the communities it serves. The customer base of Lowe’s ranges from the starters to the pros in the business who just need quality materials to get the job done.
Lowe’s Companies, Inc. has got you covered with the products, solutions, and expertise you need.
Lowe’s Business Model
Lowe’s Companies, Inc. is a retail company. It operates an extensive network of retail outlets specializing in and selling home improvement products. The company targets customers that are interested in home improvement and DIY projects. The products also cater to the general consumers involved in the process of renovating and decorating their properties. Their product line also targets small businesses and individual professional contractors and workmen who visit Lowe’s stores to buy necessary tools and equipment.
Lowe’s run numerous retail stores across the United States that also make its home market. In fact, the majority of sales of the company are made in its home market, where it operates across all 50 states. Though, the customer base of Lowe’s Companies, Inc. extends across North America with a physical retail presence in both Canada and Mexico.
Lowe’s Unique Selling Proposition (USP)
The company forms one of the most accessible service providers in the domain of home improvement products. With an extensive network of physical retail outlets across the US, Mexico, and Canada, the accessibility makes one of the value propositions of Lowe’s Companies, Inc.
Lowe’s holds an impressive industry standing and reputation and is regarded as one of the largest and most recognizable retailers of home improvement products in North America.
Another strong point on Lowe’s is its broad catalog of products. The company provides reliable products and services across numerous categories catering to the customer’s home improvement needs.
An experienced team of industry executives provides advice on products and services, improving the overall working of the company and the quality of products.
How Does Lowe’s Make Money?
Lowe’s makes money through the sale of home improvement products. These products are purchased by the customers from both physical retail outlets and a digital sales channel. The principle revenue stream is derived in the form of sales fees and services fees that come from certain installations and other ancillary services. Also, the majority of the company’s sales are generated in the US.
SWOT Analysis of Lowe’s
Here is the SWOT analysis of Lowe’s to walk you through the crucial aspects of the company.
- Lowe’s Companies, Inc. has high accessibility through an extensive network of physical retail outlets across the US, Canada, and Mexico
- The company holds a track record of providing high-quality and reliable products and services
- It has a strong industry standing of over 100 years
- Lowe’s has a broad customer base mainly across the US
- The company has a broad catalog of products that extend across various categories, including flooring, bathroom fittings, electrical items, appliances, plumbing, and tools
- Lowe’s employees a team of experienced industry executives capable of providing valuable advice on products and services
- Lowe’s has a strong supplier power and makes up a large portion of the supplier’s sales
- According to Business Insider, Lewi’s face a bit of structural deficiency in terms of their store locations
- Customers in terms of home construction and renovation can be divided into two groups: professionals and do-it-yourself shoppers, and the professional contracts at Lowe’s account for 20% to 25% of the sales while that of Home Depot accounts for 45%
- International success is the key to the success of any retail company, and Lowe’s is yet to figure out the formula to get there.
- A better IT infrastructure and online marketing can improve Lowe’s ratings in online fulfillment
- In terms of market share, Lowe’s competitor, Home Depot, appears to be doing relatively well
- Home Depot rakes in more money than Lowe’s through stores sales on average
- Home Depot has triumphed abroad while Lowe’s is yet to see much international success
What is Lowe’s for pros number Over?
Based on Lowe’s website, you can contact pros number over the Phone: Call 1-877-GO-LOWES, and Lowe’s customer care associates will communicate with you and help you with the related issue and also help you in setting up your installation.