How Lowe's is Prioritizing Omnichannel Investments

Seemantini Godbole, executive vice president, chief digital and information officer, joined Lowe's in 2018. In a discussion this week at NRF's 2024 Big Show with Scott Rankin, principal and global head of strategy at KPMG, Godbole said when she was brought into the company, "there was a lot of things to be desired from a technology standpoint."

"Five years ago, one of the things we talked about was that the whole company outlook had to change," recalled Godbole.

The COVID-19 pandemic certainly jump-started that shift in outlook — Godbole said the onset of the pandemic caused homes to become extremely important, which obviously benefited home improvement retailers like Lowe's. That's when the retailer began to prioritize investments in omnichannel experiences that would help the customer throughout their shopping journey.

Godbole described Lowe's investments in omnichannel as a "difficult, multiyear journey," a "transformation" and an "ecosystem." Lowe's introduced its Total Home Strategy, which provides a full complement of products and services for pro and do-it-yourself consumers alike, enabling a total home solution for every need in the home. Foundational to this strategy is providing shoppers one of the world’s most customer-centric, omnichannel retail experiences. Lowe's reported that its Total Home Strategy is driving growth for its online business, as well as the market share of professionals who buy from Lowe’s.

Godbole noted that when the pandemic began, returns and pickups were not one of Lowe's strengths. Therefore, the company made investments in technology that made picking and servicing, as well as buy online, pick up in-store (BOPIS) easier and more convenient. Lowe's changed the physical layout of stores, reorganized in-store checkout, and implemented seamless technology that powers both online and in-store checkout.

Godbole said Lowe's store associates sit in the center of all of this transformation. "Our tech team ... they have been on this relentless journey to make our associates into super associates."

Most customers' questions are quite complex at Lowe's — after all, they're looking for help with their home improvement projects. How much paint do they need to cover a certain-sized room? What are the different kinds of blinds Lowe's offers?

"We want to take all of the friction out of home improvement and put all the fun prominently right front and center," said Godbole. "What we want is store associates to be totally empowered to give you all the help [you need]."

To that end, Lowe's app provides a personalized experience to both its pro customers and DIY customers (the DIY consumer drives about 75 percent of Lowe's revenue, according to a 2023 Yahoo! Finance article). The pro customer view of the app allows users to see all of their purchase orders, create lists and view shared lists, shop frequently purchased items, and obtain real-time order tracking.

Godbole said one problem Lowe's was trying to solve for was the amount of time it would take at the store for pro customers to get purchase approval from their supervisors. Therefore, Lowe's introduced Purchase Authorization on its app, which allows business owners to save credit card information and set purchase limits, so the customer only has to pull up a QR code on the app to pay for the supplies that have already been approved by their boss.

As Lowe's look to the future, Godbole said the way the company — and all retailers — think about shopping has to continue to shift.

"We really need to think about shopping as not a discreet activity," Godbole said. "We should start thinking about how it's all integrated into our lives. How do we integrate all of these shopping activities in our everyday life in a frictionless matter?"