Lowe’s 2025 growth plans include store expansion, marketplace launch and more
Lowe’s Companies Inc. is launching a "Total Home Strategy" in 2025 to drive long-term growth and market share.
The home improvement giant’s new strategy involves driving pro penetration, accelerating online sales, expanding home services, creating a loyalty ecosystem and increasing space productivity. Lowe's outlined several initiatives to support the strategy, including store growth.
The retailer plans to open 10-15 stores per year during the next several years in fast-growing U.S. markets in a move to fuel-long term growth, expand its footprint and attract new DIY and Pro customers. With the new stores, the company said it expects to strengthen its brand position, build its customer base and drive incremental sales and return on invested capital.
Other initiatives to support Lowe's new strategy are below.
Launching first product marketplace in U.S. home improvement industry
Lowe’s has expanded its online assortment with the initial launch of the first product marketplace in the U.S home improvement industry and is now working with both new sellers and existing suppliers to offer their full product catalogs, including products across price points.
The new online offering will allow the company to offer a wider selection of products without carrying the inventory, managing pricing or investing in new online fulfillment centers.
Extending rural offering to 150 more stores
To better serve customers living in rural communities, Lowe's is planning to extend its rural assortment to 150 more stores, bringing its rural store count to nearly 500 locations. The Lowe’s rural assortment offers more options in categories such as pet, workwear, automotive supplies and utility vehicles, as well as a full array of home improvement products.
New AI framework
The company has developed a framework to harness generative AI through a standardized development process designed to enhance the customer experience and boost productivity.
Lowe’s says it is building on its experience building AI models it is using in areas such as online search and product recommendations, sourcing engines and demand planning to pilot new solutions that enable frontline associates to better serve customers and improve the in-store shopping experience.
[READ MORE: Lowe’s plans seasonal inventory with AI]
Lowe’s is developing AI solutions with leading tech platforms including Nvidia, OpenAI and Palantir.
Relaunching pro Loyalty program as MyLowe's Pro Rewards
In early 2025, the company is relaunching its Pro loyalty program for home improvement professionals as MyLowe's Pro Rewards, designed specifically for the small-to-medium industry professional. According to Lowe’s, the new program will be more intuitive to use, making it easier and faster for members to earn rewards and redeem them.
Launching Pro extended aisle to expand jobsite delivery
Through a direct interface with supplier systems, the company is creating a seamless solution for large, special Pro orders. Lowe's sales associates will have instant access to an expanded digital catalog, including inventory availability, pricing and supplier services like jobsite and rooftop delivery.
With the expedited quoting process, the company expects to improve its close rate on larger orders, capturing more planned Pro spend while relying on large suppliers to execute jobsite delivery.
Lowe’s is also affirming its outlook for full year 2024, including:
- Total sales of $83 to $83.5 billion
- Comparable sales expected to be down -3.0% to -3.5% as compared to prior year.
- Adjusted operating income as a percentage of sales (adjusted operating margin) of 12.3% to 12.4%.
- Net interest expense of approximately $1.3 billion.
- Adjusted effective income tax rate of approximately 24.5%.
- Adjusted diluted earnings per share of approximately $11.80 to $11.90.
- Capital expenditures of approximately $2 billion.
"As we look ahead to the expected recovery in home improvement, we are making investments to position the company for long-term growth," said Marvin R. Ellison, Lowe's chairman, president and CEO. "We are evolving our Total Home strategy to help solve our customers' total home improvement needs with more value and exceptional service. By leveraging leading technology solutions, we're creating a best-in-class omnichannel shopping experience for all generations of homeowners."
Based in Mooresville, N.C., Lowe's Companies Inc. operates more than 1,700 home improvement stores and employs approximately 300,000 associates.
