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Lowe's to Hire 20,000 Staff, Pay Bonuses of $100 million

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Lowe's Companies, Inc. (LOW - Free Report) is all set to make the most of this festive season. Per the recent development, it looks to hire about 20,000 associates at its U.S. stores and regional distribution centers to address customer demand this holiday period and beyond. The company has been filling permanent full-time and part-time positions at stores and adding 2,500 team members across regional distribution centers throughout the nation.     

The available supply-chain openings consist of day, night, weekend and overnight shifts for team members whereas the store 12 positions include cashiers, receivers, unloaders, load pullers, customer service employees and sales specialists. Lowe's hired above 155,000 associates via seasonal hiring process throughout such tough times. Majority of such workers transitioned to permanent roles.

Markedly, the company commits a discretionary bonus of another $100 million, with respect to acknowledging its front-line hourly associates’ efforts in such trying times. While the full-time hourly staff will receive $300, the part-time and seasonal employees are entitled to receive $150.

Notably, the active hourly staff across the U.S. stores, distribution centers and call centers are entitled to receive the bonus on Nov 13. We note that Lowe's spent over $775 million to support employees amid the pandemic.

We note that Lowe’s has been benefiting from its retail-fundamentals strategy with improved technology and operational channels. Industry experts point out that consumer spending on home improvement products are likely to remain favorable in the near term.

Safety concerns and continued work-at-home practice amid the pandemic have compelled individuals to stay inside. As a result, DIY projects for remodeling, decorating as well as maintenance of furniture and fixtures are being widely undertaken. We expect Lowe’s to keep gaining from such trends.

Lowe’s is investing toward boosting its omni-channel operations for a while. When shopping preferences began witnessing a major shift with the onset of the pandemic, Lowe's accelerated its efforts to expand digital offerings. Notably, sales at grew 135% in fiscal second quarter.

Encouragingly, shares of the Zacks Rank #2 (Buy) company have gained 48.3% in the past six months, outperforming the industry’s 28.7% rally.

A Few More Solid Picks

Dollar General (DG - Free Report) has a long-term earnings-growth rate of 11.1% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Best Buy (BBY - Free Report) , also a Zacks Rank #2 stock, has a long-term earnings-growth rate of 7.7%.

Target (TGT - Free Report) has a long-term earnings-growth rate of 7.2%. Currently, it carries a Zacks Rank #2.

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