Lowe's 1998 Annual Report Download - page 4

Customer response has
been overwhelming: in
1998 we sold more than
four times the amount
of installed products
when compared to
1997.
About the same
time, we overhauled our
Special Order Sales
(SOS) program. For
years, we offered this
service to customers
who expressed interest
in unique products they
didn’t see among the
40,000+ items on our shelves. Although we offered
hundreds of thousands of specialty products, the
process at times didn’t work smoothly; ordering was
cumbersome, delivery was slow. As a result, in 1997 only
23% of our customers had ever special-ordered
products from Lowe’s.
We invested the time and resources to redesign our
SOS system, to make it faster, easier, friendlier and
significantly more reliable. In June, we installed Special
Order kiosks in all stores 85,000 square feet and larger
– and saw dramatic results almost overnight. Customers
enjoy easy access to what seems like an unlimited array
of products — and possibilities — in Fashion Plumbing,
Electrical & Lighting, Tools, Home Decor, Outdoor Living,
and more. By the end of 1998, the number of customers
who had special-ordered products increased by nearly
50% over 1997 and, for the year, our special order
business was up 33% compared to an overall sales
increase of 21%.
Lowe’s third major initiative in 1998 centered
around our integral Commercial Business Customer
(CBC), those who earn their living from the products we
sell: remodelers, property managers, painters,
landscapers, electricians, plumbers and so forth.
Unlike many retail customers, CBC’s shop as
frequently as once or twice a week — some even more
often. Their work is less
cyclical, and more
predictable, than that of
retail customers and
they tend to shop
different hours — early
weekday mornings or
late afternoons — than
do-it-yourself-ers. These
attributes suit our
stores perfectly and
lead to better
productivity per store.
Last year, we refocused
our energies on the
Commercial Business
Customer, offering the brands and services they’ve told
us they want. Contractor Pack savings are available for
those buying in bulk, and the CBC can get
knowledgeable, professional assistance from Lowe’s
Pros — home improvement professionals who now put
their expertise and know-how to work for Lowe’s
customers. CBC’s also value our “ Ready to Go” fax and
phone ordering, as well as delivery within 24 hours.
We marketed this particular program heavily,
spreading the word through trade publications, early
morning radio advertising, and special CBC breakfasts.
The results have been positive: 1998 sales on our
Lowe’s Business Card were up 26%.
We’re excited about the initial success of these
three programs, but we believe the best is yet to come.
In addition to successfully launching these initiatives in
1998, we’re continuing to raise customer awareness of
these services and products through ongoing marketing
campaigns that will generate increasing sales for
many years.
Increasing sales is a good thing.
But Lowe’s intends to do more than “ good.” We
plan to become the best at what we do — and to get
there quickly.
Already we are breaking away from the pack,
setting ourselves apart from the competition in a variety
Brandon Rogers, an employee of Low e’s Cary, NC store, will compete in the 1999
Special Olympics (see story on page 10). He w as presented with a new racing
bike at Lowe’s National Sales M eeting. Pictured are (l - r) Greg Wessling, Mike
Beeson (Brandon’s coach), Brandon Rogers, Bob Tillman, Greg Rogers (Brandon’s
father) and Bill Pelon.
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