Lowe's 1997 Annual Report Download - page 10

products. They can come to Lowe’s and
find a Kohler bathtub, Price-Pfister faucets,
and fabulous granite, solid surface, or tile
countertops; they should be able to step over
to related home décor areas and find match-
ing fashions and quality in our soft lines.
“ We used to tell our soft line suppliers ‘Just
give us a selection of your best-selling items;’
but that shotgun approach isn’t good enough
anymore. We have a new fashion design
manager, and we recently joined the Color
Marketing Association and Accessories Re-
source Team to help us keep our colors and
designs current. We’re taking a giant step
toward the front lines of fashion, and new
advertising will promote the idea that you can
pull a whole look together at Lowe’s.”
Lowe’s product offering is significantly
amplified by our Special Order System (S.O.S.),
which received a major upgrade in 1997.
“ Our customers want access to premium-
quality items such as mahogany front doors,
Palladian windows, and patio furniture,” says
Larry Stone, Chief Operating Officer, “ but we
can’t afford to keep those items in stock in
every store. Lowe’s S.O.S. enables us to offer a
greatly expanded selection.
“ All orders are entered into the system the
same way now, whether an item is in stock or
not, and the system determines the best way
to fill each order. Some items will be shipped
directly from the manufacturer to the cus-
tomer; some orders will be filled from one of
our regional distribution centers, where we
can stock the best-selling special order mer-
chandise. Customers don’t care about our
behind-the-scene processes; what matters to
them is lead-time. If we promise an item in
seven days, we’d better deliver.
“ As an added benefit, this initiative will
increase turnover and reduce Lowe’s invest-
ment in inventory.”
Speedy delivery has always been important
to Lowe’s commercial business customers, the
professionals who perform a growing number
of services for homeowners. These customers
aren’t new to Lowe’s: we’ve been selling to
painters, plumbers, electricians, property
managers and specialty contractors (such as
fencing contractors and landscapers) for more
than fifty years, and these customers have
always accounted for a significant portion of
Lowe’s sales. Nevertheless, says Dale Pond,
“ We’ve been getting a relatively small ‘share
of wallet’ from this big and growing customer
group.
“ By offering commercial grade products
and brands, by stocking the right assortments
in job lot quantities, and by marketing directly
to these customers (who are already in our
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