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Lowe's (LOW) Buys STAINMASTER, Total Home Strategy on Track

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Lowe's Companies, Inc. (LOW - Free Report) progresses with its Total Home strategy, which offers complete solutions for various types of home repair and improvements needs. In the latest developments, the company has bought the STAINMASTER brand, acquiring the entire brand-related intellectual property with related trademarks and sub-brands from Invista, the parent company. However, terms of the deal have been kept under wraps.

Markedly, the popular carpet brand — STAINMASTER — will combine with the buyer’s private brands alongside names like allen + roth, Project Source and Harbor Breeze. The deal helps Lowe's strengthen its decade-long position as the exclusive home-improvement retailer nationally to carry STAINMASTER carpet. We note that the latest deal accelerates Lowe's Total Home strategy by elevating its assortment to offer customers trusted and required brands. Through this deal, management looks to extend the high-performance products into other categories.

Meanwhile, Lowe's Total Home strategy is focused on boosting market share via accelerating investments across pro, online, installation services, localization and product assortment. This strategy is an extension of the company’s retail-fundamentals approach.

What’s More?

Lowe's has been benefiting from its robust strategic endeavors, including Pro customer strategy, omni-channel endeavors and merchandising initiatives. Amid the pandemic, the company has also been experiencing favorable home improvement market trends, with consumers increasingly motivated to invest in homes. Its digital strength includes enhancing the omni-channel retailing capabilities across store operations, website and supply chain with an aim to resonate well with customers’ demand to shop, whenever and wherever they like. It is also expanding the fulfillment capabilities to diligently support the hike in demand. The company has also rolled out curbside pickup and launched touch BOPIS lockers across stores.

Strength in Lowe's Pro business is also acting as a key catalyst. Recently, the company 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 and Flexible Credit Options. These upgrades will help Pro customers conveniently and quickly avail the items they require. It is also enhancing pro-focused brands to drive sales. Markedly, these factors will help Lowe's tap the approximately $400-billion Pro product market.

Encouragingly, shares of the Zacks Rank #3 (Hold) company have surged 106.6% in the past year, outperforming the industry’s 63.5% rally.

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