Lowe's 2012 Annual Report Download - page 4

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to simplify the customer’s decision, by having the right items available in sufficient quantities,
priced competitively and displayed in an inspiring manner, and by equipping our associates
with the tools and skills necessary to instill confidence and close sales.
Our transformation is a multi-year journey. In 2011, we focused on upgrading the information
technology within our stores. Store-based investments included expanding the data pipeline
into our stores to facilitate transmitting data-rich content, like inspirational project pictures,
installing wi-fi to enhance customers’ and associates’ ability to access data, and providing
iPhone technology to our associates to enhance their ability to serve customers. We also
began installing the foundational elements to allow customers to shop with us anytime and
anywhere. Customers can shop on their own terms, whether in a store or on a mobile device,
and have the product shipped directly to their home or to a store for pick-up. Or, they could
choose to have a Lowe’s associate visit them at home or at a jobsite, equipped with the tools
to generate a quote and close the sale all in one visit.
We are currently focused on two areas to protect retail relevance: Value Improvement and
Product Differentiation. In 2013, we expect to finish the line reviews and product resets that
make Value Improvement a reality for customers and to incorporate the Product Differentiation
resets into our base business. The processes and systems we’ve put in place will help us better
maintain and improve our product lines, in-stock levels and store presentation. Beyond 2013,
we expect to enhance our associates’ ability to sell seamlessly across channels, introduce
improved project management tools and expand fulfillment capabilities to cultivate personal
and simple connections with customers.
OUR ORGANIZATION
Naturally, as we transform the business model to better serve customers, our organization has
to adapt accordingly. Through the years we built a corporate infrastructure to support a single-
channel business. Today, our seamless, omni-channel strategy requires a different infrastructure.
We are transforming the way we plan and execute by redesigning processes to improve efficiency,
clarify decision rights and ensure that we have the right people in the right roles.
We recognize that to deliver seamless and simple customer experiences we must operate
seamlessly across channels. The first step in this effort was to align functional heads into
two distinct disciplines: Customer Experience and Operations. The Customer Experience
Lowe’s Companies, Inc. 2012 Annual Report page 2
“Even as we redefine our
business to become more
seamless and simple, we
must also protect retail
relevance, keeping what
customers love about us
and constantly improving
our retail operations.”
RETAIL
RELEVANCE