Tags: Lowe’s | cloud | home | LOW

Lowe’s Begins Year with Cloud Home Strategy

Monday, 16 Jan 2012 11:21 AM

By Meghan Sapp

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
For Lowe’s (LOW), 2011 was a year of hard lessons. The hardware retailer found itself taking hard hits from the competition. But management appears to have quickly turned to focus on more online offerings to drum up customer loyalty and to segment its buyers, and it rolled out a cloud home-automation line.

In October, Lowe’s announced the closure of 20 stores — 18 of which were five years old or less — and laid off 2,000. Third quarter net earnings down by more almost half on the year, while its main competitor Home Depot (HD) seemed to be just fine.

In early December, however, the company announced a change in strategy that would focus on long-term sales growth, increased profitability and enhanced shareholder value. Shortly thereafter, the company introduced its “smart home” concept and has been adding to it ever since.

“Smart home” is marketing products designed for intelligent networking of a house. At the start of the year, Lowe’s announced it had teamed with U.K. company AlertMe to sell start-up kits, including wireless thermostats and alarm systems that connect to a home network and are accessible via the cloud. Google’s (GOOG) Android@home program is a competitor.

Shortly after the AlertMe announcement, the company said it had teamed with California’s Genability, whose technology will be the foundation for Lowe’s energy management system. It will allow customers to not just control what energy they are using but also to know what their choices are costing them.

Bundled under the name Iris, this “smart home” system will be available in stores from mid-2012 and will be key to growth, management contends. It also will be the foundation for future products as Lowe’s pushes suppliers make sure new products are “smart.”

Shopping online

Lowe’s admits that only about 1 percent of its sales come from online purchases, so to expand significantly in the online arena, the company has bought Washington State’s ATG Stores. The company’s first purchase in 12 years, ATG is an online retailer that offers 3.5 million items on its sites, compared to just 220,000 on Lowes.com.

The acquisition allows Lowe’s and ATG Stores to capitalize on complementary strengths and employees’ extensive expertise by sharing best practices for online marketing and merchandising.

Collins Stewart downgraded its rating on LOW to neutral and changed its price target to $26.

The company next reports earnings on Feb. 27.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved