Lowe’s The Example of Retailers’ Apocalypse or Renaissance?
Lowe’s home improvement stores have made a couple of big announcements that are sure to impact the market. As they hired former JCPenney CEO Marvin Ellison in the last months. Ellison practically leaving a sinking ship and boarding one that may be on the verge. It’s kind of odd to hire someone from a failing enterprise to come and save you! That being said they are also taking steps to cut down on store stock and even close down some stores. This cut their sales outlook for the year pretty deeply. They are also planning to bring on current CVS CFO David Denton. While eliminating other key administrative positions completely. The plan is to remove low performing items from stores and rationalize the stock. This will probably mean a couple of cutbacks in other jobs as well. Its stock is actually up with the announcement of these moves. While Lowe’s is looking to cut down on its costs to stay alive other retailers are booming!
The Online Era Is Not The Only Way To Go
We’ve constantly covered the shift that many retailers had to endure. Moving towards the online age. Those with decent online stores have managed to remain relevant. Such is the case with stores like Target and Walmart. Strapping down on in-store inventory may be a good idea for Lowe’s to cut costs. It will only translate to better sales numbers though if you can replace that with online sales. The way to do that may be to convert some of the current stores into warehouses from which to store and ship products. It’s unclear though if Lowe’s plans to do this. Stores like Kohl’s on the other hand plan to invest more in their current stores. Rather than cut down costs. Maybe hoping that it’s competitors just off of the map. Which sadly has been happening. Online shopping is without a doubt were things are headed. What does this mean for the future of retail shopping? Lowe’s seems to be preparing to purposely tank!