Lowe's 2012 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 2012 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 88

  • 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
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

4
Our Services
Installed Sales
We offer installation services through independent contractors in many of our product categories, with Flooring, Millwork
and Cabinets & Countertops accounting for the majority of installed sales. Our Installed Sales model, which separates
selling and project administration tasks, allows our sales associates to maintain their focus on project selling, while project
managers ensure that the details related to installing the products are efficiently executed. Installed Sales, which includes
both product and labor, accounted for approximately 7% of total sales in fiscal 2012.
Pro Services
During 2012, we rebranded our commercial business program as Pro Services with the intent of re-energizing our focus on
the Pro customer. Pro Services employees are a dedicated team that supports the Pro customer. To meet the needs of our
Pro customer, we provide job lot quantities in categories such as Building Materials, Plumbing, Electrical, Hardware, Paint,
and Tools & Outdoor Power Equipment that are critical to the success of the Pro customer. In addition, we provide Pro
customers 5% off their purchases every day when they use Lowe’s proprietary credit.
Extended Protection Plans and Repair Services
We offer extended protection plans in Appliances and Tools & Outdoor Power Equipment. Lowe’s extended protection
plans provide customers with product protection that enhances or extends the manufacturer’s warranty. We provide in-
warranty and out-of-warranty repair services for major appliances, outdoor power equipment and tools through our stores
or in the home through our Lowe’s Authorized Service Repair Network. Our contact center takes the calls, diagnoses the
problems, and facilitates the resolutions making after-sales service simpler for customers because we manage the entire
process.
Credit Financing
We offer a proprietary consumer credit card for retail customers under an agreement with GE Capital Retail Bank. This
program provides Lowe’s consumer credit cardholders with 5% off their purchases every day. For purchases above $299,
customers have their choice of short-term no-interest financing or the 5% off value. For purchases above $3,500, customers
have their choice of 5.99% interest for 84 months or the 5% off value.
We also offer proprietary credit programs for Pro customers. They include a Lowe’s Business Account, which is ideal for
small to medium size businesses and offers minimum monthly payments, and Lowe’s Accounts Receivable, which is ideal
for medium to large size businesses that pay in full each month. These programs provide a 5% discount to Pro customers
when they use their Lowe’s commercial credit account. We also offer the Lowe’s Business Rewards Card from American
Express®, which also offers 5% off everyday purchases.
For additional information regarding our credit programs, see the summary of our significant accounting policies in Note 1
of the Notes to Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data”, of
this Annual Report on Form 10-K.
MyLowes
In 2011, we introduced MyLowes, a new online tool that is unique in the home improvement industry and makes
managing, maintaining and improving homes simpler and more intuitive. Using the capabilities provided by MyLowes,
customers can create home profiles, save room dimensions and paint colors, organize owners’ manuals and product
warranties, create shopping, to-do and wish lists for projects on the horizon, set recurring reminders for common
maintenance items and store purchase history from across all Lowe’s channels. Since the introduction in 2011, there have
been over 18 million unique key fob swipes, and over 5 million registered users on MyLowes.
Selling Channels
We have multiple channels through which we engage customers and sell our products and services, including in-store,
online, on-site and contact centers. Although we sell through all of these channels, our primary channel to fulfill customer
orders continues to be our retail home improvement stores. Regardless of the channel through which customers choose to
engage with us, we strive to provide them with a seamless experience and an endless aisle of products, enabled by our
flexible fulfillment capabilities.