Lowe’s goes for pros

The philosophy behind Lowe’s ambitions in the pro market was summed up during an interview with Joe Donora, director of Lowe’s ProServices Programs.

"We always want to improve," Donora told HBSDealer.

The Mooresville, North Carolina-based retail giant finished 2015 with total sales of $59.1 billion. The company says about 30% of those sales come from pros or contractors. And like national home center rival Home Depot, Lowe’s is working to channel its significant retail power into the pro market. Smaller builders and remodelers are the sweet spot. "Over time, we want to continue to see that grow,” he said.

One example of Lowe’s efforts to build its LBM business is the strengthening of its outside sales staff. The company boosted this staff by 25% in 2015 over 2014, he said.

In an interview during the International Builders’ Show in Las Vegas, Donora also pointed to its support and involvement with the National Association of Home Builders, organizers of the show. For years, the retailer has set up a carnival like atmosphere in its booth with giveaways (including fresh backed chocolate chip cookies) contests, demos and product displays.

But more than that, Lowe's offers an Account Receivable affinity program with the NAHB. Members receive the standard 5% discount, plus an additional 2% discount when shopping at Lowe's. This year is Lowe's fifth year as education sponsor for NAHB Progress Design program.

"The NAHB is a great partner of Lowe's," he said. "We believe that we have to continue to invest in this industry, especially with today's labor shortage and transition to the next generation of customers."

One of the retailer’s signature initiatives for pros lies in the digital realm – a revamped LowesForPros.com. Relaunched in August, the tool for pro customers allows them to make and track purchases. It’s optimized across platforms, allowing pros to buy online and pick up in store, or have orders delivered directly to the job site.

"We designed it for the professional buyer," Donora said. "It's a much different user experience than Lowe's.com."

Lowe's is also minority stakeholder in porch.com, the referral service that connects homeowners to remodelers

While these initiatives play out, Donora explained that he and his team were grounded in the idea that pro performance begins with people.

"We continue to experiment with the pro desk. But even more crucial is the coaching and teaching of team members that is a part of our culture,” Donora said. “Relationships make stores what they are."