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Lowe’s Success Story - The largest home improvement retailers in the world


The retail industry is one of the most prominent industries that involves the sale of goods and services directly to consumers. It plays a crucial role in the economy, driving employment and consumer spending.

Lowe's Companies, Inc. is a notable player within this industry, operating a network of home improvement stores and providing a wide range of products and services to customers.

In this article, we'll explore Lowe's story, business model, funding, acquisitions, and more.

Lowe's - Company Highlights
Company Name- Lowe's Companies, Inc.
Headquarters - Mooresville, North Carolina, United States
Sector- Retail
Founder- Lucius Smith Lowe
Founded- 1921
Website-  lowes.com

Lowe's - About
Lowe's Companies, Inc. is an American retail company that operates as a retailer and wholesaler worldwide. It is the world's second-largest home improvement retailer, after The Home Depot. Lowe’s was founded in 1946 by Lucious Lowe in North Wilkesboro, North Carolina, as a small hardware store. Over the years, it has grown to become one of the largest public home improvement companies in the world, with stores located throughout the United States and Canada.

Lowe's - Industry
The US retail industry is a vital part of the US economy. Retailing merchandise and services is a major part of the retail trade sector, which includes store retailers, department stores, discount stores, supermarkets, and others. The sector comprises establishments that sell products to consumers directly or through sales workers in a pleasant shopping environment. Retail sales account for a significant portion of total retail trade in the US and have grown steadily over the years. Retail stores offer an array of products as well as sales services to meet customers' needs efficiently while providing them with an enjoyable shopping experience.

In 2022, US retail sales reached a record-high $7.1 trillion. This represents an 8.2% annual increase, and it is expected to keep rising in the coming years. This amount is higher than any other retail trade industry around the world, and this market size has been consistently increasing since 2011.

Lowe's - Founder and Team
Lucius Smith Lowe was the founder of Lowe's.

Lowe’s first store was opened in North Wilkesboro, North Carolina as North Wilkesboro Hardware in 1921. The first store was opened by Lucius Smith Lowe, the founder of the company. When Lowe died in 1940, the company was inherited by his daughter, Ruth Buchan, which she sold to her brother James Lowe in the same year. James and his brother-in-law Carl Buchan ran the company under partnership from 1943.

Marvin Ellison

Marvin Ellison is the Chairman, President, and CEO of Lowe's Companies, Inc. With extensive experience in the home improvement industry, he held senior-level operations roles at Home Depot Inc. for 12 years and served as the executive vice president of U.S. stores. Prior to joining Lowe's, Marvin was the CEO and Chairman of J.C. Penney Co. He holds a bachelor's degree in business administration from the University of Memphis, an MBA from Emory University, and serves on the boards of FedEx Corporation and the Retail Industry Leaders Association.

Lowe's - Startup Story
The first Lowe's store opened in North Wilkesboro, North Carolina, in 1921, selling hardware and building materials. From that initial store, the company has grown to become the second-largest home improvement retailer in the United States, with stores located across many states as well as in Canada. With its headquarters still based in North Carolina, Lowe's has seen a dramatic increase in stores over the years since the end of World War II, now with over 2,200 locations.

Lowe's Companies is a leader in the home improvement retail store industry, with a strong market share and a strong profit margin. This is due to its dedication to providing customers with excellent store experiences, competitive sales promotions, and a comprehensive product selection. Lowe's has the largest market share of home improvement hardware stores, with total industry revenue of more than $156 billion in 2019. Lowe's continues to lead through innovation and has been successful in both their traditional hardware store concept as well as their home improvement stores. They have achieved this by focusing on customer needs while also offering excellent value-for-money products.

Lowe’s Companies, Inc. is an American chain of retail home improvement and appliance stores. Founded in 1946, Lowe’s has grown to become one of the largest hardware stores in the United States, with over 2,000 locations across the country. The store leadership ensures that all customers receive quality customer service by placing an emphasis on safety and security as well as providing a wide selection of products. Each store also has a manager who oversees safety and asset protection to ensure that any issues are addressed quickly and effectively.

Lowe's - Mission and Vision
The mission and vision statements of the company define the organization’s business motto and the functioning of the organization.

The mission that guides Lowe’s processes is "Together, deliver the right home improvement products, with the best service and value, across every channel and community we serve".

The vision of the company is to provide customer-valued solutions with the best prices, products, and services to make Lowe’s the first choice for home improvement.

Lowe's - Name, Tagline, and Logo

The company is named after its founder, Lucious Smith Lowe. The company’s slogan says, Do it right for less. Start with Lowe's.

The logo shape of the company gives a hint of specialization of the company. The shape depicts a house that has a dark blue building, and the letters show Lowe’s. The company modifies its logo at certain intervals, but the basic palette and shape haven’t changed.

Lowe's - Business and Revenue Model
Lowe's Companies is a multinational retailer with physical stores located throughout the United States and Canada. Lowe’s Companies has a strong presence in online merchandise purchases through its official website and several online sales channels. Lowe’s also offers DIY customers an array of products for home improvement projects and individual professional contractors alike. The company generates net sales primarily from product revenues derived from both small businesses and individual consumers. Lowe’s Companies has been successful in acquiring smaller companies to strengthen its business model and revenue model which has helped the company stay competitive in this fast-paced retail environment.

Here are the key aspects of the company's business and revenue model:

Retail Stores: Throughout the United States and Canada, Lowe's runs a network of real-world retail locations. These shops sell a variety of things for home remodeling, such as furniture, decor, appliances, and building supplies. Customers are welcome to browse the stores and buy the supplies they require for their home improvement projects.
E-commerce: In addition to having physical locations, Lowe's also has an online store where customers may browse and buy products. The e-commerce channel offers clients who prefer to shop online or want to discover a wider choice of products convenience and accessibility.
Professional Services: Lowe's provides consumers with a range of professional services, including remodeling, installation, and repair.
Pro and Commercial Sales: Lowe's places a strong emphasis on catering to commercial clients, professional builders, and contractors. Bulk purchasing, volume discounts, and customized assistance are just a few of the unique services and incentives they provide that are catered to these clients' needs.
Private Brands: Lowe's distributes goods under private labels and exclusive brands that are owned by the company. This enables them to provide a distinctive range of items, set themselves apart from rivals, and possibly generate larger margins.
Credit Services: To make purchases easier and increase client loyalty, Lowe's offers consumer financing choices like credit cards and finance plans. Through interest and other fees related to financing transactions, these credit services generate income.
Lowe's primarily focuses on selling tools, appliances, and other products for home improvement projects. The company has achieved significant success by leveraging its strong consumer base to drive sales growth and shareholder value over the past decade.

Lowe's - Employees

The home improvement company offers a lot of benefits to its employees. The benefits include health insurance, life insurance, dental insurance, vision insurance, temporary disability insurance, prepaid legal, long-term disability insurance, and severance pay.

Lowe's - Competitors
Home improvement and retailing is a vast industry and no doubt there are too many competitors in the field. The top competitors for the company include:
  • The Home Depot
  • Target
  • Sam’s Club
  • Kingfisher plc
  • Bed Bath & Beyond
Among these, Home Depot is the constant and very close competitor for the company as they both share a lot of similarities.

FAQs

What does Lowe's do?
Lowe's Companies, Inc. is an American retail company that operates as a retailer and wholesaler worldwide.

Who is the founder of Lowe's?
Lucius Smith Lowe was the founder of Lowe's.

Who is the CEO of Lowe's?
Marvin Ellison is the Chairman, President, and CEO of Lowe's Companies, Inc.

Who are the top competitors for Lowe's?
The top competitors for the company include:
  • The Home Depot
  • Target
  • Sam’s Club
  • Kingfisher plc
  • Bed Bath & Beyond

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