Lowe’s Companies, Inc. (LOW – Free Report) continues making investments in omnichannel capabilities to boost growth and enrich its customer experience. In latest developments, the company and Petco Health + Wellness Company unveiled the expansion of their pilot program, offering trusted products, services, and expertise for home and pets. Lowe’s and Petco’s pilot program will be expanded into a one-stop shop, which will offer trusted products, services and expertise to customers, thus taking the company 15 outlets to almost 300 locations by the year end.
The latest expansion offers convenience to shoppers and provides access to pet supplies and veterinary care. The expansion also fulfills DIY and Pro customers’ home- improvement needs. As part of Lowe’s rural strategy, this expansion takes care of the needs of the increasing number of pet owners across the nation. The extended rural store assortments will comprise feed, pet and outdoor products like troughs, farm implements, livestock fencing, utility vehicles and specialized hardware coupled with Carhartt apparel across select stores along with the expansion of Wrangler apparel across the rural outlets.
Lowe’s Petco store-in-stores will boast a wider range of products from nutrition and supplies. The products consist of Petco’s private brands like EveryYay, Leaps & Bounds, So Phresh and WholeHearted along with national brands such as Advantage II Cat, BARK Toys, Blue Buffalo, ChuckIt, Frontline, K9 Advantix, Purina One and Seresto. Also, Petco’s Vetco Clinics providing vaccinations, microchipping and preventative medicine will be available once a month across 75 of the company’s stores.
This alliance will enable the company to continue elevating and localizing its assortment to provide the right products across the right markets. The company will be able to provide more tailored products and services to cater to the requirements of rural and remote areas consumers, thus enriching their shopping experience.
Lowes is gaining traction with its Total Home strategy which includes providing complete solutions for various types of home repair and improvement needs. The strategy is an extension of the company’s retail-fundamentals approach. Recently, the company has expanded its same-day delivery service throughout the nation, in collaboration with OneRail, a major omnichannel fulfillment solution. This latest delivery option will surely boost customers’ omnichannel experience with quick and convenient delivery. We note that the company started piloting same-day delivery with OneRail across select markets in 2022.
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A strong digital base has been aiding this Zacks Rank #3 (Hold) player’s performance for a while. Management continues making investments in omnichannel capabilities to drive growth. These areas include expanding the online assortment, boosting the user experience and improving fulfillment. Meanwhile, its focus on the perpetual productivity improvement initiative, has also been yielding results. Impressively, Lowe’s shares have gained 9.5% in the past three months compared with the industry’s 6.1% growth.
Solid Picks in Retail
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch (ANF – Free Report) , Urban Outfitters (URBN – Free Report) and American Eagle Outfitters (AEO – Free Report) .
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1(Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and earnings per share (EPS) suggests growth of 3.4% and 732%, respectively, from the year-ago reported figures. ANF delivered an average trailing four-quarter earnings surprise of 480.6%.
Urban Outfitters, a sporting goods retailer, currently flaunts a Zacks Rank of 1. The company has an average trailing four-quarter earnings surprise of 12.2%.
The consensus estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 5.1% and 57.1%, respectively, from the year-ago reported figures.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently carries a Zacks Rank #2 (Buy). AEO delivered an average trailing four-quarter earnings surprise of 9.2%.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year EPS suggests growth of 4.1%, from the year-ago reported figure.