Lowe’s aims to expand its professional business

Lowe's is aiming for a targeted expansion of its professional customer business. The sales penetration for DIY and DIFM (do-it-for-me) customers is currently 75 to 80 per cent, while pro customers account for 20 to 25 per cent. However, the entire home improvement product market is geared half-and-half to DIY and pro customers. The company perceives a significant opportunity to grow pro sales, as became clear at the latest analyst conference in December.
Lowe's also intends to invest in new distribution centres to optimise fulfilment and delivery. The number of regional distribution centres and flatbed distribution centres supplying the stores, which currently stands at 15, will not increase for the time being, but the portfolio of eleven bulk distribution centres is to be boosted to more than 20. Instead of the five cross-dock delivery terminals currently in existence, there will be 90 of these in future to improve the delivery of bulk articles to end customers. The parcel service for customer delivery is to be upgraded by the addition of a second direct fulfilment centre.