Merchandise highlights at Lowe's
Lowe’s CEO Marvin Ellison repeated that Lowes.com is “still under construction.” That means the company’s 2.6% comp-store sales growth for the fourth quarter was driven almost entirely by its brick and mortar stores.
Bill Boltz
The sales number was lower than expected, and compared unfavorable to that of its orange rival. But Lowe’s still was able to point to success stories and momentum. Highlights in the aisles for the fourth quarter included the Craftsman brand, paint and the activity of its merchandising service teams (or MSTs).
Executive VP Bill Boltz shared a handful of merchandise successes with analysts during the company’s latest earnings call. He pointed to above-average comps in appliances, décor, hardware, lawn and garden, LBM, millwork, paint and tools.
Paint is on a roll, he said. “As we continue to grow our paint business, we will continue to work closely with our suppliers to introduce an improved pro paint offering to better serve the repair remodelers who need paint to complete a larger project such as a kitchen or bathroom remodel,” he explained.
The retailer is seeing positive results from the Craftsman brand, which is exclusive to Lowe’s among big box retailers.
And while sales of appliances were softer than expected in November, the appliance comp was above the company average for the quarter -- “leveraging our position as the leading appliance retailer in the U.S.”
Looking ahead, Boltz said Lowe’s will add some 7,000 new vendor-funded merchandising service teams to stores in the first half of 2020. These teams help make the stores hum, with end-cap maintenance and other reset execution duties.
“We’ll also leverage our field merchandising team to drive customized assortments at the store level and improve our space productivity,” he said.
Other points from Boltz’s update:
“We entered 2020 in a position superior to last year,” Boltz told analysts. “And we're excited to take our positive momentum into the all-important spring season.”
Bill BoltzThe sales number was lower than expected, and compared unfavorable to that of its orange rival. But Lowe’s still was able to point to success stories and momentum. Highlights in the aisles for the fourth quarter included the Craftsman brand, paint and the activity of its merchandising service teams (or MSTs).
Executive VP Bill Boltz shared a handful of merchandise successes with analysts during the company’s latest earnings call. He pointed to above-average comps in appliances, décor, hardware, lawn and garden, LBM, millwork, paint and tools.
Paint is on a roll, he said. “As we continue to grow our paint business, we will continue to work closely with our suppliers to introduce an improved pro paint offering to better serve the repair remodelers who need paint to complete a larger project such as a kitchen or bathroom remodel,” he explained.
The retailer is seeing positive results from the Craftsman brand, which is exclusive to Lowe’s among big box retailers.
And while sales of appliances were softer than expected in November, the appliance comp was above the company average for the quarter -- “leveraging our position as the leading appliance retailer in the U.S.”
Looking ahead, Boltz said Lowe’s will add some 7,000 new vendor-funded merchandising service teams to stores in the first half of 2020. These teams help make the stores hum, with end-cap maintenance and other reset execution duties.
“We’ll also leverage our field merchandising team to drive customized assortments at the store level and improve our space productivity,” he said.
Other points from Boltz’s update:
- Store design I: In the fourth quarter, the stores made room for selling space in the front of the store for seasonal merchandise – a “critically important seasonal pad at the front of our stores,” said Boltz.
- Store design 2: For the first time in more than 15 years, Lowe’s will rollout new signs in the stores to help customers find what they need. The signage package should be in place in the first half of the year. Surveys of customers in pilot stores point to a better customer experience he said.
- New products: Boltz expressed enthusiasm for the incoming Weber SmokeFire Pellet Grills, Weber’s initial entry into pellet grilling. Honda outdoor power equipment is joining the Lowe’s lineup, as well as the Arians brand of zero-turn mowers. “These two new brands further strengthen Lowe’s position as the number one destination for outdoor power equipment in the U.S.,” he said.
- Yeti sightings: Boltz also welcomed a “national home center roll out of Yeti,” the upscale cooler brand.
“We entered 2020 in a position superior to last year,” Boltz told analysts. “And we're excited to take our positive momentum into the all-important spring season.”