Home-improvement retailer Lowe’s launched the Total Home strategy, designed to help the company capture a larger share of the home improvement market. Lowe’s expects the plan to drive bigger sales in the pro business, e-commerce, and installation services.
“At Lowe’s we will be committed to offering everything a homeowner needs to provide a ‘total home solution’ across every area in the home,” president and CEO Marvin Ellison said in a prepared statement. “This includes products and services for everything needed to repair and improve the home, for DIY and pro customers alike, across all decor categories including paint, as well as simple and complex installations.”
Ellison said the Total Home strategy will enhance customer engagement and grow market share for Lowe’s by increasing the company’s focus on the pro customer. As part of the strategy, Lowe’s will expand its online business, modernize its installation services, improve localization efforts, and elevate its product assortment.
Lowe’s forecast total sales will increase 22% in 2020 compared to 2019 and comparable sales will increase 23% for the full year compared to the previous fiscal year.
“As we drive market share gains and focus on targeted productivity initiatives, we expect to improve operating efficiency and generate robust levels of free cash flow,” David Denton, Lowe’s executive vice president and CFO, said. “We are committed to investing in business, including expanding our supply chain network to enhance our omnichannel capabilities. Through our disciplined capital allocation program, we are allocating cash to enhance returns and drive long-term shareholder value creation.
In the same release, Lowe’s reported its board of directors authorized a new $15 billion common stock repurchase program. The repurchase program has no expiration date and adds to the previous program’s balance, which was $4.7 billion as of December 8. 2020.
