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Lowes Application: Company still in development progress

Without a doubt, Lowe’s companies development confirms there are still challenges ahead during its report of 2018 fourth-quarter and full-year results. During fourth-quarter, Lowe’s sales incline in a total amount of $15.6 billion. That of which is a 1 percent increase year over year, adjusting earning per share (EPS) increases to $0.80, a year over year increase of about 8.1 percent.

However, currently, the company faces some headwinds. That includes increasing competition and the shifting retail landscape. Moreover, it certainly clears that Marvin Ellison, the new CEO has work cut out for him.

The Pros

Within the home improvement industry, there are more important things than taking care of the “Pro” customers. Those of which Lowe’s identify as its annual 10-K filings because those are in construction trades or the MRO (maintenance, repair & operations) industry. To Clarify, these customers are important for they often make more higher-spending visits than the DIY customers working for a personal weekend project. Moreover, Home Depot shows up in Lowe’s main competitors. It has batter catering to customers’ needs and getting far more of the Pro customer market share.

Elsewhere, during a conference call, Ellison says, “We want to have a more intentional focus on the Pro because we know that a more intentional focus on the Pro will improve transactions, it will improve ticket, and it will improve overall productivity from a sales-per-square-foot perspective.”

Lowe’s actions to address such capacities are just simple steps. That includes having enough in-store inventories which are for the larger jobs that the Pros handle. The company also dedicates its loaders to serve Pro customers. As a result, any bulky products they buy could easily and quickly load at the store. In addition, there will be department supervisors that will assist Pro customers.

The Digital Sales

Year over year during the fourth quarter, Lowe’s online sales increase by 11 percent. That was obviously higher than the company’s sales growth. At the same time, it is lower than the Home Depot’s online sales in which grew 24 percent year over year, coming off a much higher base. In addition, Lowe’s online infrastructure still experiences problems. That includes outages during the Black Friday weekend, which is the largest shopping event every year.

Furthermore, company management still believes it can turn things around if they concentrate on three main key areas. One, its site, making it more user-friendly. Two, getting store associates using the company’s online presence as “endless aisle in our (Lowe’s) stores.” Three, working closely with the vendors, which could improve online product selection.

Company Delivery

Subsequently, Ellison recognizes that Lowe’s needs to prove omnichannel capabilities to compete against the current retail world. To do so, Lowe’s must improve it’s delivery and logistics system. According to Ellison, Lowe’s is good at getting products in its stores, yet it has to improve its deliveries to job sites and residences. Lowe’s also opened its very first direct fulfillment center with plans to open its second at the West Coast.

Development of business

Most retailers face an existential crisis, especially when adapting to the changing habits of its consumers, the online competitors, and own failure in making wise investments in the current retail landscape. Meanwhile, Lowe’s obstacles aren’t that terrible. However, the pressures remain, as these difficulties are not minor nor easy to fix. Whenever shareholders take comfort in it, it’s now up to Ellison ail to handle the company.

Still, subjects remain questionable, if the company will be able to fill in the prescriptions it’s writing. Elsewhere speculating results show that the company might. During January, the company’s sales incline at about 5.8 percent more compared to last year.

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