Lowe's 2001 Annual Report Download - page 6

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products. These brands are sho wcased in an efficient sto re enviro nment that’s clean, safe, well lit and well
staffed. A sto re where friendly, info rmed and accessible emplo yees are the rule, no t the exceptio n; where
standards are maintained and unifo rmity is embraced; and where the merc handise o ffering is seamlessly
integrated into a unique and co nsistently executed co llectio n o f suppo rting services.
Offering quality pro ducts at co mpetitive prices, under the banner o f a reco gnizable and dependable
natio nal brand, available o nly at Lowe’s, is a fundamental element in answering the “Why Lo we’s?” questio n.
Clearly, exc lusive brands play an impo rtant ro le in differentiating Lo we’s fro m o thers. To day, within the Ho me
Impro vement Wareho use channel, Lo we’s pro udly pro motes great names and exclusive pro ducts manufactured
o r licensed by: KitchenAid® and Whirlpo o l® appliances; Husqvarna® o utdo o r po wer equipment; Jenn-Air®
gas grills; Pella® do o rs & windo ws; Cub Cadet® lawn mo wers & tracto rs; Miracle- Gro ® plants; Olympic® paint;
Tro ybilt® tillers & tracto rs; Weyerhaeuser® ChoiceDek
TM
co mpo site lumber; Alexander Julian® and Laura
Ashley® rugs, wallpaper & windo w treatments and many mo re.
Ano ther impo rtant merchandising and sto re o peratio ns initiative is o ur “Up The Co ntinuum” strategy.
To day, mo re than ever, o ur ho meo wner custo mers are spending mo re time in, and mo ney o n, their single
mo st valuable asset …their ho me. And fo r the mo st part, they think o f their expenditures as investments,
which pro vide bo th current enjo yment as well as financial return.
Up The Co ntinuum is simply reco gnizing the co nsumer’s migratio n to quality when it co mes to investing in
their ho me. Custo mers tell us they want, and are willing to pay fo r, quality, brand-name merchandise that’s
unique, co nsistent with their lifestyle and tastes, and lasts lo nger and perfo rms better. Lo we’s merchants are
shifting the pro duct mix away fro m o ur histo rical dependency o n o pening- price-po int merchandise o n o ne
end o f the co ntinuum to a mo re balanced mix within the middle and upper end of the lines, by pro filing and
marketing o ur asso rtments differently. We’re no t abando ning o ur o pening price po ints, just fo cusing mo re of
o ur reso urces ( flo o r space, invento ry investment and advertising) fro m the “Go o d” merchandise to the
“Better, Best and Premium” pro ducts. This shift translates to a mo re profitable mix fo r bo th Lo we’s and o ur
vendo rs …and mo st impo rtantly, a mo re satisfacto ry experience fo r o ur custo mers.
The “Why Lo we’s?” sto ry of differentiatio n isn’t co mplete witho ut the c o mmitment and suppo rt of o ur
110,000-plus sales asso ciates. Having the right pro ducts, in sto ck, at the right prices is “the c o st o f entry”
into the co nsumer’s wallet. Pro viding them accessible and knowledgeable assistance is essential to earn their
lo yalty and repeat business. We reach o ut to help o ur custo mers in many ways.
Our nearly 40 millio n ho useho ld database, with co mplete custo mer profiles matched to item-specific
purc hasing behavio r, pro vides Lo we’s a wealth o f info rmatio n. This kno wledge is used to co mmunicate
timely and pertinent anno uncements abo ut new pro ducts o r services, o r advice abo ut pro jects the custo mer
may be co nsidering.
Ano ther way in which we co mmunic ate with o ur custo mers is thro ugh o ur natio nal, netwo rk televisio n
campaign. Our successful “Impro ving Ho me Impro vement”
TM
theme is mo re than an advertising tag line.
“Impro ving Ho me Impro vement” is a co mmitment we take serio usly in helping o ur custo mers realize their full
po tential in maintaining, repairing o r impro ving their homes. Fo r example, o ur marketing pro g rams are designed
to co mmunicate why certain pro ducts o r brands are better than o thers in specific applicatio ns o r situatio ns.
Our two mo st effective co mmunicatio ns vehicles are o ur custo mers and emplo yees. We listen to o ur
custo mers. We are very tuned into their likes and dislikes. What the y need and what we need to serve them
better. Our co nsumer research and custo mer feedback pro grams are seco nd to no ne in retailing. And we use
them. Custo mer po lls are co nducted every day in every sto re, and everyo ne, fro m sto re management to sales
asso ciates are financially rewarded fo r pro viding superio r custo mer service.