Giving itself a new face lift, Lowe’s Companies Inc. (LOW), the world’s second largest home improvement retailer, spelled out a new tag line “Never Stop Improving” replacing the old “Let’s Build Something Together”, thus mirroring the company’s new brand strategy.
Lowe’s hinted that the new tag line reflects the company’s effort of improving and developing innovative ideas to cater to the constant changing demands and preferences of consumers. We believe that the new tag line “Never Stop Improving” would assist the company to foster a sense a confidence among its consumers.
The company commenced a new advertising campaign on September 19, 2011, as a part of its new brand positioning.
The new tag line promises intriguing ideas and striking innovations that will capture the market in the coming years. Lowe’s will also shortly launch an online tool, “MyLowes”, to aid consumers better manage their homes and other home remodeling projects.
However, with the global economic environment still struggling, we believe that spending on big home improvement projects will likely remain under pressure until the housing market stabilizes, inventory levels normalize and consumer-spending rebounds. However, “Never Stop Improving” campaign and “MyLowes” may help Lowe’s in gaining a competitive advantage.
Lowe’s boasts a proven strategy of investing in stores to enhance customer-shopping experience by improving point-of-sale and directional signage, and adding a wider range of products. The company’s sustained focus on Everyday Low Prices, New Lower Price, Go Local and Specialty Sales initiatives, have helped it to grow its market share.
Earlier, Lowe’s had announced reformation of its store and merchandising operations to enliven competence, augment operational efficiencies and enrich the shopping experience for customers. Lowe’s will now operate under three divisions in the U.S. – North, South and West. Moreover, the company also curbed its divisional structure to 14 regions from 21 regions before. (Refer the article: Lowe's Reorganizes, Eyes Growth).
Currently, we have a long-term ‘Neutral’ rating on the stock. Moreover, Lowe’s, which faces stiff competition from The Home Depot Inc. (HD), holds a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.
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