Lowe’s has announced a new strategy designed to capture a larger share of the home improvement market.
Billed as the Total Home strategy, the plan is also expected to drive bigger sales in the pro business, e-commerce, and installation services.
"At Lowe's we will be committed to offering everything a homeowner needs to provide a 'total home solution' across every area in the home,” Marvin Ellison, Lowe's president and CEO, said in a company statement released today. “This includes products and services for everything needed to repair and improve the home, for DIY and pro customers alike, across all décor categories including paint, as well as simple and complex installations.”
Ellison also said, “Our Total Home strategy will enhance customer engagement and grow market share by intensifying our focus on the pro customer, expanding our online business, modernizing installation services, improving localization efforts and elevating our product assortment."
Regarding its performance in 2020, Lowe’s has forecast total sales to increase 22% and a comparable sales increase of 23% for the full year. Lowe’s has sales of $72.1 billion in 2019.
"As we drive market share gains and focus on targeted productivity initiatives, we expect to improve operating efficiency and generate robust levels of free cash flow," said David Denton, Lowe's executive vice president and CFO. "We are committed to investing in the business, including expanding our supply chain network to enhance our omnichannel capabilities. Through our disciplined capital allocation program, we are allocating cash to enhance returns and drive long-term shareholder value creation."
Additionally, Lowe’s reported that its board of directors has authorized a new $15 billion common stock repurchase program. This new repurchase program has no expiration date and adds to the previous program's balance, which was $4.7 billion as of December 8, 2020.
Lowe’s operates or services more than 2,200 stores and hardware stores in the United States and Canada.