Reaching out to consumers
Lowe’s (LOW) markets products to its customers (XLY) via print and digital media. Digital benchmarking site L2 ranked Lowe’s number ten among the list of big box retailers in terms of its digital performance in 2015. Rival Home Depot (HD) was ranked number one, followed by Walmart (WMT) and Best Buy (BBY). Bed Bath & Beyond (BBBY) was ranked number 12.
Recently, Lowe’s has been evaluating and applying the most optimal media spending options for reaching out to its customers. Transitioning to a more effective media mix has resulted in savings on the advertising side. SG&A (or selling, general, and administrative) expenses saw a reduction by 15 basis points in the first nine months of fiscal 2016, which resulted from these productivity enhancements.
First retailer to launch a 3D printer in space
Through its Lowe’s Innovation Lab, Lowe’s has launched several futuristic products designed to provide a better product and customer experience. The company recently made a number of announcements regarding improved technology for its customers. In October 2015, Lowe’s partnered with Made in Space to become the first retailer to launch a 3D printer into space. The printer allows astronauts to manufacture tools and parts on demand.
Holoroom and virtual reality
Lowe’s also implemented its Holoroom technology in select US stores. Holoroom enables Lowe’s customers to visualize the impact of potential home improvement projects in the kitchen and bathroom in virtual reality. The technology also allows the customer to make changes to the planned project in the Holoroom.
The Holoroom is an improvement over the MyLowes feature on its web portal that we discussed in the last article, which allows the customer to store room dimensions online and visualize the impact of design changes.