Lowe's 2011 Annual Report Download - page 4

Lowe’s Companies, Inc. 2011 Annual Report
We also reviewed our organization and made changes in our field-based store opera-
tions and human resources organizations to help us become more nimble, improve
execution and support changing customer expectations. We continue to review how we
operate on a cross-functional basis to ensure consistent and connected execution, while
also evaluating our organization structure to streamline decision-making and place the
right people in the right roles throughout the organization.
To ensure an engaging store experience, we have been reinvigorating our merchandising
efforts through value improvement and product differentiation. The unprecedented
utilization of technology in our everyday lives and the simplicity of online shopping mean
the consumer knows what and where the best price is. As a result, we must ensure that
we are priced competitively across channels every day. We must deliver everyday low
prices by working collaboratively with our vendors to obtain everyday low costs.
Additionally, we continue to improve our assorting by market and evaluate ways to
revitalize our store presentation and improve price perception as well as present Lowe’s
as new, fresh and innovative. In 2011, we reset nearly one-third of our stores with a
concept that highlights innovation, brands and value, and creates flexible merchandising
space, making it easier for customers to find value and inspiration.
Seamless
Beyond revitalizing our stores, we have taken bold steps to meet customers where they
are—and where they’re going—across all stages of the home improvement process.
To do this, Lowe’s must be available anytime and anywhere, seamlessly providing
possibilities, support and value whether in store, online, by phone, at the customer’s
home, or place of business. In 2011 we implemented systems to share information
across these channels. These included an upgrade to our store information technology
infrastructure, better tools and greater access to information for our contact center
employees, and equipping our on-site selling specialists with tools to help customers
visualize a project, provide a real-time quote and tender a sale on site. We also increased
the “endless aisle” of products available on Lowes.com. This “endless aisle” is
supported by Flexible Fulfillment, which allows us to ship products from the most effi-
cient location—whether store, distribution center or vendor—directly to the customer’s
home, usually within two days. Flexible Fulfillment helps us optimize our store-by-store
investment in inventory while providing customers access to the greater depth and
breadth of products offered across the company.
Simple
We have also implemented new capabilities to simplify home improvement by providing
better knowledge and support. For instance, in 2011 we completed the roll out of Repair
Services, providing customers with enhanced support from Lowe’s representatives who
have better information and authority to effectively address customers’ repair needs for
major appliances, outdoor power equipment and tools.
Introducing mylowes this past fall is another way we have simplified the customer
experience. mylowes is a revolutionary new online tool that is unique in the home
improvement industry. It makes managing, maintaining and improving homes simpler
and more intuitive than it’s ever been. Likewise, we have also made it simpler for our
See how
we provide
“Seamless
and Simple”
solutions for
customers.