Home improvement could continue to have 'wallet share': Analyst

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Liz Suzuki, Bank of America Securities analyst, joins 'Power Lunch' to discuss why home improvement sector gains could be permanent.

Many Americans are reluctant to allow visitors inside their homes during the coronavirus pandemic. So Lowe’s is offering plumbers, electricians and other contractors a new way make visits virtually.

Starting Monday, professionals can use a video chat service from the home improvement retailer. By providing the service, called Lowe’s for Pros JobSight, the company is trying to encourage more pros to join its loyalty program — and inspire them to buy more tools and products at its stores.

Fred Stokes, Lowe’s senior vice president of pro sales and services, said professionals have had jobs canceled or postponed as clients put off services, such as measuring for new windows or flooring.

“Our goal with this customer is to keep them working,” he said. “If you keep them working, then it keeps them in your stores. It keeps the trips up, the spend up.”

Lowe’s is trying to attract more business from contractors and homebuilders as part of an effort to turn around the company. It has historically relied more on do-it-yourself customers. About 20% to 25% of its sales come from pros — less than Home Depot’s 45%. Lowe’s is also trying to grow by overhauling its website and e-commerce business.

Before the pandemic, Lowe’s tested its loyalty program, which launched nationwide in mid-March. Through the program, pros can log in to a website and access special features, such as tracking order history or getting personalized offers based on whether they’re a painter or electrician.

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