Lowe's 2010 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2010 Lowe's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 58

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58

LOWE’S 2010 ANNUAL REPORT 13
products and quantities to offer in each store
based on market requirements, demographics,
customer shopping preferences and local store
employee knowledge. We expect to begin realiz-
ing the benefits of IP&E’s clustering and assorting
capabilities as we perform line reviews and
product resets in 2011. Further benefits will
be realized when we tie together assortment
planning, store layout and planograms, as well
as our financial models and logistics systems,
to even more efficiently supply the right products
and inventory to meet customer demand.
Further, during the economic downturn we have
effectively managed payroll while maintaining
the service levels customers expect in our stores.
To further improve our staffing efficiency we
are implementing a new staffing software tool,
which provides detailed scheduling forecasts
based on each store’s customer traffic patterns,
incorporates each store’s penetration of specialty
business into that forecast and provides managers
with improved visibility to daily staffing needs
by department.
Finally, we also continue to refine our supply chain.
Over the past six years, on a comparable-volume
basis, we have increased our trailer utilization
and have reduced over-the-road miles by over
550 million. Over that same period, these
efficiencies have reduced our fuel consumption
by over 100 million gallons and our carbon
emissions by over one million tons.
SEAMLESS
We must provide customers the ability to shop
Lowe’s wherever and whenever they choose,
creating a seamless customer experience.
Customers are shopping at Lowe’s, whether
that includes a single store, multiple stores,
Lowes.com, over the phone or with an in-home
sales specialist.
Lowes.com is important as an independent sales
channel and also because a large portion of our
sales are influenced online. Customers can now
find over 350 how-to videos to start them on their
next project or help them complete one they have
already started. We offer the full continuum of
products on Lowes.com, from opening price
points to premium quality products. We have
over 140,000 items online, and each week we
are adding over 1,000 items. Further, customers
shopping Lowes.com can have the item shipped
GOING LOCAL AND OPTIMIZING
OPERATIONS DRIVE PERFORMANCE
retail excellence