Back to top

Image: Bigstock

Lowe's, (LOW) Petco's Pilot Store Model to Aid Home & Pet Supply

Read MoreHide Full Article

Lowe's Companies, Inc. (LOW - Free Report) has always been making stupendous efforts to make guests’ experience seamless. Recently, this home improvement retailer in collaboration with Petco Health and Wellness Company, Inc. (WOOF - Free Report) unveiled a pilot store-in-store program looking to offer products, services and expertise for home and pets under one roof at its select locations.

This first store-in-store concept — Lowe's + Petco — is slated to open at the company’s Alamo Ranch, TX, location in early February. Management intends to introduce 14 more locations in Texas, North Carolina and South Carolina by this March-end.

We note that Lowe's + Petco stores will provide a curated assortment of the latter's top-quality pet nutrition, and health and wellness services. The supplies will include Petco's owned brands like WholeHearted, EveryYay, Youly, Leaps & Bounds and So Phresh in addition to several renowned national brands. Products can be availed in store or on Lowes.com via curbside pickup, contactless pickup lockers or at the Customer Service desk at LOW’s pilot locations. Customers can also avail the retailer’s pet-friendly products along with STAINMASTER PetProtect carpet, dog beds, dog doors and cleaning supplies.

Amid the pandemic, people have been indulging in pet adoption for a while, leading to rising demand for pet-related products. This new and unique store-in-store concept looks forward to resonate well with the needs of pet parents, offering them healthy pet nutrition and services. Petco's pet care skills, valuable products, and veterinary and grooming services to Lowe's are likely to make homes healthy and happy for pets and their enthusiasts.

Bill Boltz, Lowe's executive vice president of merchandising said, "This partnership enhances the total home solution we offer them by bringing home improvement and pet care products, services and expertise together under one roof."

What’s More?

Lowe's looks well poised for growth on the back of its technology advancements, merchandise category and strength in Pro business. LOW is steadily benefiting from a strong execution of its strategies, including the Total Home strategy. The strategy is focused on boosting its productivity and enriching the integrated omni-channel shopping experience. It is likely to grab a higher market share across Lowe’s DIY and Pro categories.

Lowe’s is focused on enhancing its omni-channel retailing capabilities with respect to in-store operations, website and supply chain to resonate well with its customers’ demand to shop, whenever and wherever they like.

Management launched Lowe's' One Roof Media Network, aiming to boost digital advertising. Pro business is a significant driver for Lowe's. Management is continuously strengthening the pro-focused brands and had earlier refurbished the pro-service business website LowesForPros.com.

LOW is also on track to build out the Pro power tool accessory program, including launches from Spyder and DEWALT.

All the aforesaid initiatives have aided this currently Zacks Rank #3 (Hold) stock to increase 22.7% in the past year compared with its industry’s 12.1% rally.

2 Picks You Can’t Miss out

Some better-ranked stocks are Zumiez (ZUMZ - Free Report) and Tapestry (TPR - Free Report) .

Zumiez, a global lifestyle retailer, currently flaunts a Zacks Rank #1 (Strong Buy). ZUMZ has a trailing four-quarter earnings surprise of 2,560.4%, on average. You can see see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Zumiez’s fiscal 2022 sales suggests growth of 0.4% from the year-ago fiscal’s reading.

Tapestry, the leading accessories’ designer, presently carries a Zacks Rank #2 (Buy). TPR has a trailing four-quarter earnings surprise of 29%, on average.

The Zacks Consensus Estimate for Tapestry’s fiscal 2022 sales and earnings per share (EPS) suggests growth of 14.8% and 18.2%, respectively, from the corresponding year-ago period’s levels. TPR has an expected EPS growth rate of 12.3% for three-five years.

Published in