Lowe’s iPhone App Makes Home Improvement Planning Mobile
Lowe’s (NYSE: LOW), the world’s second largest home improvement retailer, recently announced its Lowe’s App for iPhone. Lowe’s has been aggressively focusing on its improving its online presence. The app would strengthen its plans on selling more home repair and materials for do-it-yourself (DIY) projects online. Lowe’s competes with Home Depot (NYSE:HD) and other players such as Builders FirstSource (NASDAQ:BLDR), Sherwin Williams (NYSE:SHW) and Sears (NASDAQ:SHLD).
We currently have a $23 Trefis price estimate for Lowe’s Companies, which is about 20% ahead of the current market price.
iPhone App to Drive Up User Engagement
To strengthen its online presence and boost web sales, Lowe’s has announced the launch a renewed e-commerce website in 2011. The improved website will have features to allow customers manage their home improvement projects with extensive interactive content and state-of-the-art technology infrastructure. We wrote about it recently – Lowe’s Wants to Light up Sales Online.
Lowe’s iPhone application is the next logical step to ease and drive up engagement with existing and potential customers, leveraging the popularity of iPhone, iPad and iPod touch. It will provide customers a convenient way to track their transaction histories and project information for their home improvement projects. The app has features to help customers research and purchase products, view inspiration galleries, locate nearest stores via GPS, watch how-to videos for do-it-yourself (DIY) projects and access product ratings and reviews.
Web sales to galvanize future growth
Online sales are gradually taking a larger share in many retail categories. They already account for 15% apparel and 30% consumer electronic sales in the U.S.
Presenting more information and catalogs online will not only help customers plan home improvement projects, it will also increase footfall and sales in its physical locations. Web sales also provide Lowe’s with higher profit margins than store-based sales. Home Depot has also recently rolled out its “Buy Online Pickup In-Store” capability. We wrote about this in a recent note Home Depot Takes Home Improvement Shopping Online.