Lowe’s is adding new shopping categories this holiday season, in an effort to boost sales amid the coronavirus pandemic. Yahoo Finance’s Sibile Marcellus joins Akiko Fujita to discuss.
Video Transcript
AKIKO FUJITA: Well, Lowe’s may be known for home improvement goods, but it is betting big on some new product categories in hopes of drumming up sales for the holiday season. Sibile Marcellus is following that story for us. And Sibile, before the break, we were saying electric scooters, backyard movie theaters. What’s the strategy behind expanding their product line?
SIBILE MARCELLUS: So what Lowe’s has actually been doing– and this is as the pandemic was happening– is focusing on the fact that many Americans are going to be at home and want to do a lot of home improvement. So they wanted to grow their business there, but they also added other items that they don’t usually have, selling them online, such as blankets, air fryer, sheets, scooters, movie projectors, equipment to help you exercise.
Because they realized that things were changing for a lot of Americans. And obviously, they want Americans’ business. So what we’re seeing is that Lowe’s with the holiday shopping season, they’re offering a lot more online. They don’t really want to offer incentives for people to rush to the store. They want to try to avoid those crowds, obviously, with the pandemic ongoing.
But we’re seeing Lowe’s really giving Home Depot a run for their money. Those two rivals are really competing hard for Americans’ cash. And we’re seeing when it comes to their performance, if you compare them, Lowe’s is up 48% year to date. The stock Home Depot, it’s up 32% year to date.
Lowe’s, what they’re doing, for example, is pro-vember. So in November, they’re appealing specifically to professionals, so contractors, plumbers, giving them deals. They’re also– Lowe’s– offering people to get their Christmas tree shipped to their home for free if it costs 45 bucks or more.
And of course, you’re seeing Home Depot. They’re not going to give it up. They’re also extending their Black Friday sales by about two months. So it’s going to be a very interesting shopping season and a lot to offer for Americans who want to improve their homes.
AKIKO FUJITA: Yeah, that is interesting, Sibile. I never thought I’d say Lowe’s or Home Depot would be a one-stop-shop for the holidays, but I guess if we spend so much time at home, increasingly, there are more and more products to buy there. Thanks so much for that.
