Lowe’s (LOW) Oppenheimer's 24th Annual Consumer Growth and E-Commerce Conference summary

Consumer and market trends

• DIY customers remain cautious, especially on large discretionary purchases, due to inflation and high mortgage rates, leading to a focus on smaller projects and value.

• Pro customers, particularly small to medium-sized, show resilience with consistent project backlogs and are expected to grow at twice the market rate.

• Demand trends are stable compared to last year, with no significant inflection points; weather remains a key variable impacting seasonal categories.

• Appliances are performing well as promotional pressures ease, while big-ticket interior categories like decor and flooring remain soft.

Strategic initiatives and transformation

• The Total Home strategy focuses on retail fundamentals, pro loyalty, brand lineup, inventory depth, and omnichannel capabilities.

• Pro penetration has increased from 19% to over 25% through investments in loyalty and digital tools.

• Store localization, rural initiatives, and perpetual productivity improvements have driven operating profit from under 9% to over 13%.

• Continued investments in supply chain, IT, and omni experience are planned for the next 3–5 years.

Loyalty programs and customer engagement

• DIY loyalty program launched in March aims to increase store visits and personalized marketing; early results show strong enrollments and repeat visits.

• Pro loyalty program, now 18+ months old, is paired with CRM to better understand and serve pro customers, driving positive comps and higher penetration.

• Loyalty members shop more frequently, spend more, and have higher program penetration, with data enabling more anticipatory and relevant offers.