Lowe’s Cos. LOW, -0.17% Inc. has introduced a number of benefits to its professional clients, including a dedicated Pro Zone that will make high-demand items more accessible, free phone charging stations, and flexible credit. Store employees have also been equipped with technology to enhance the shopping experience for construction and home improvement professionals.
Lowe’s has become increasingly focused on the professional market in recent years, introducing more items that meet the needs of a professional customer and launching the Lowe’s for Pros loyalty program in 2020. As shoppers stayed close to home during the COVID-19, many shifted their expenses away from experiences to goods, particularly those that would make the home more comfortable and functional. Lowe’s, Home Depot Inc. HD, -0.33%, Walmart Inc. WMT, -0.24% and other “essential” retailers were the beneficiaries. While there is concern that businesses that performed well in 2020 will see declines as consumers venture out and shift their spending once again, there is confidence that home-based businesses will continue to perform well. Read: ‘Suburban Expansion’ Will Continue To Benefit Luxury Furniture Retailer RH: Cowen Y: Home Remodeling Trends: What’s Hot And What’s Out For 2021 “We still see the housing sector, the housing sector home improvement still very sparkling at the moment, in the Since demand remains strong across all categories and across all geographic markets, we continue to see interest rates, although they are going up, relatively at record lows, ”said David Denton, Lowe’s CFO, during UBS Global Consumer and Retail. Virtual conference last month, according to FactSet. “We see that the balance sheet for consumers is quite healthy, there is still a large savings rate from a consumer perspective, so cash is accumulating in consumer bank accounts.” And now that there is some distance between now and the beginning of COVID-19, when buyers wanted to isolate themselves as much as possible, work can be done with the participation of professionals. “At the beginning of the pandemic, consumers didn’t want anyone in their home,” Bill Boltz, Lowe’s executive vice president of merchandising, told MarketWatch. As time passed, Boltz said consumers have become more comfortable tackling these larger projects. Watch: COVID-19 May Accelerate These 3 Real Estate Trends “Outside projects like roofing are now prioritized with more convenience by having an in-home installer.” During its fourth-quarter earnings announcement, Lowe’s said DIY comparative sales “outperformed” professional comparative sales, but the professional business was still in the mid-range of 20% for the quarter and nearly 20% for the year. With so much uncertainty in the retail landscape, Boltz said the company is trying to control what it can, and company data shows that 90% of respondents who took on a project last year have plans to undertake another this year. In addition, professionals report that “their reserves are full.” “We know we still have a lot of room for growth, both online and at the store level,” Boltz said. The market is very fragmented, there is a lot of participation to get … There are many moving parts and they are the first entries in terms of being relevant to professionals. ”Lowe’s shares have gained 24.7% so far this year. year and more than doubled, 110.3% more than last year.The benchmark Dow Jones Industrial Average DJIA, -0.37%, has gained 9.7% for 2021 so far.