Lowe's said it is navigating a "challenging industry backdrop for the homeowner" with technology projects that drive productivity, enable omnichannel retailing and customer experiences.
On Lowe's second quarter earnings conference call, the company outlined a bevy of technology projects even as it reported mixed results and cut its fiscal 2024 outlook.
Here's a look at some of the technology projects outlined by Lowe's.
Apple Vision Pro. Lowe's CEO Marvin Ellison said the company is working with Apple to help customers visualize and design new kitchens. "This past quarter, we piloted an in-store design experience for our customers in three test markets, where with the help from a Lowe's associate, customers could wear the Apple Vision Pro and use the Lowe's Style Studio app to explore and customize hundreds of kitchen designs in 3D using products, fixtures and appliances all available at Lowe's," said Ellison.
Leveraging AI to improve customer and associate experiences as well as "improve how we sell, shop and how we work." Ellison cited partnerships with Nvidia, OpenAI and Palantir. Lowe's used Palantir's AIP as a customer service engine. Here's how Palantir AIP navigates a customer journey and what's on tap.
Lowe's is also creating custom GPTs for product recommendations with OpenAI and digital twins with Nvidia technology.
Perpetual productivity improvement (PPI). Those AI investments fall under Lowe's PPI efforts. The company cited its In-Store Mode on its mobile app where they can navigate detailed product and location information. Lowe's also said it has used technology to reduce returns to historic lows, said Joe McFarland, Executive Vice President, Lowe's Stores.
"We're only in the middle innings of the productivity journey, a lot of runway still in front of us. I've talked about things in the past, front-end transformation," said McFarland. "We're not even 50% through our front-end transformation. This is not only focused on the operations side, but also the sales side."
Enterprises start to harvest AI-driven exponential efficiency efforts
Associates are using quick-scan devices that immediately account for returns. In addition, Lowe's is collecting information on why an item was returned to collaborate with vendors. Lowe's is also reducing damage on more fragile items in the supply chain.
Lowe's CFO Brandon Sink noted that Lowe's has offset more than $500 million in associate wages, inflation and strategic investments with PPI.
Delivery service integrations. Lowe's said it has added Uber Eats as a delivery service to go with DoorDash, Shipt and Instacart as well as its OneRail last-mile technology partner. "As we continue to involve our omnichannel strategy, we've learned that having multiple delivery platforms extend our reach into both urban and suburban areas and helps us drive incremental sales with different types of customers, especially younger generations who are more digitally savvy," said Ellison.
More retail, experiences and technology.
- Starbucks lands new CEO from Chipotle: Here’s how digital strategy could change
- Walmart's genAI, automation, omnichannel initiatives pay off in Q2
