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Lowe's (LOW) Takes Measures to Boost Pro Shopping Experience

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Lowe's Companies, Inc. (LOW - Free Report) is committed toward driving growth across its Pro category. In latest developments, Lowe's took a significant step regarding the New Home for Pros as it launched a tailored store shopping experience for the Pros. This enhanced capability is currently rolled out nationwide, with various new offerings like The Pro Zone, Pro Trailer Parking, Pro Checkout, Flexible Credit Options and more. These upgrades will help Lowe's efficiently cater to the needs of the Pro customers.

These upgrades will also help Pro customers to conveniently and quickly avail the items they require. Additionally, Lowe's rolled out new technology offering insights that will aid associates engage with Pro customers and boost their relationship with them. Over the recent years, Lowe's has been enhancing its Pro offerings and improved Pro fundamentals including job lot inventory quantities and enhanced store service. It also rolled out Lowe's For Pros Loyalty program as well as services like Lowe's Tool Rental.

Markedly, all these enhanced capabilities will help Lowe's tap the approximately $400-billion Pro product market. In fact, management expects the Pro product market to develop faster than the overall U.S. home improvement market in the future. We note that Pro customers have been a significant growth driver for the company. To continue augmenting sales from Pro customers, the company has been enhancing pro-focused brands.

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Notably, pro sales were solid with mid-20s comps during the fourth quarter of fiscal 2020. This was driven by the company’s measures to tailor service offering for customers with the redesigning of the stores’ footprint to facilitate a fast shopping experience for its small and medium-sized Pro customers. Management is focused on boosting greater Pro penetration via the recently-launched Pro Customer Relationship Management or CRM tool. This has been rolled out across all stores in late January. The latest technology offers Pro desk with the tools to grow and retain Pro accounts via consistent and data-driven selling actions. Earlier, Lowe’s had refurbished its pro-service business website, LowesForPros.com, in order to give special attention to the needs of its Pro-customers.



Moving on, Lowe’s is well positioned to capitalize the demand in the home improvement market backed by investments in technology, merchandise category and strength in Pro business. In addition, the company’s total home strategy that includes providing complete solutions for various types of home repair and improvement needs bodes well. The strategy is an extension of the company’s retail-fundamentals approach. Encouragingly, shares of this Zacks Rank #3 (Hold) company increased 16.5% in the past three months compared with the industry’s 13% rally.

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