Lowe's Business Model
What Does Lowe's offer?
Lowe’s Companies, Inc. is the world’s second largest home improvement retailer. The company offers home improvement products in the following categories: Lumber & Building Materials, Appliances, Seasonal & Outdoor Living, Rough Plumbing & Electrical, Millwork, Lawn & Garden, Flooring, and Kitchens.
As of February 1, 2019, Lowe’s operated 2,015 home improvement and hardware stores. These operations included 1,723 stores located across 50 U.S. states, as well as 279 stores in Canada. The Canadian stores include RONA inc stores. (RONA) which was acquired by Lowe’s in 2016. RONA operates 212 stores in Canada as of February 1, 2019, as well as services approximately 231 dealer-owned stores. Further, Lowe’s is currently in process of exiting Mexico by selling the assets of the business.
2 Primary Customer Groups:DIY Customers:
These customers are typically home owners who purchase products and complete their own projects and installations. The associates assist these customers both in stores and through online resources and other media designed to provide product and project knowledge. The company also offer a variety of clinics and workshops both to share knowledge and build an emotional connection with the DIY customers.Professional Customers (or “Pros”):
These customers are primarily professional renovators/remodelers, general contractors, handymen, property managers, building service contractors and specialty tradesmen, such as electricians, plumbers and painters. These customers build, renovate, remodel, repair and maintain residential properties, multifamily properties, hospitality properties and commercial facilities, including education facilities, healthcare facilities, government buildings and office buildings.
What Are The Alternatives?
Major competitors are companies like Home Depot's and other home improvement stores.
What Is The Basis of Competition?
The competition is primarily based on customer experience, price, quality, availability, product assortment, and delivery options. It is also based on store location and appearance as well as presentation of merchandise. Further, online and multichannel retailers are increasingly focusing on delivery services, with customers seeking faster, guaranteed delivery times and low-price or free shipping.
DISAGREE WITH OUR FORECASTS? CREATE YOUR OWN
1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.