On its website, the company has added online scheduling capabilities which have led to a large number of customers seeking online appointments for these specialists. The company is advancing its omni-channel experience to make it easier for customers to engage with its interior and exterior home project specialists. Lowe’s is investing in an omni-channel retail strategy to enhance customer experience. We believe this acquisition is a key part of Lowe’s future growth strategy and should drive revenues for the company in the long term. The company expects that after this acquisition its multifamily maintenance, repairs, and operations business will generate more than $400 million in incremental annual sales. Through this acquisition, Lowe’s is likely to increase its focus on the professional segment. One of the key ways to grow its pro-customers is to offer a wider range of products to meet their requirements and the acquisition of Maintenance Supply Headquarters can help Lowe’s to increase its offerings significantly. Pro-customers account for nearly 40% of transactions above $500 at Lowe’s, and creating a loyal base of these customers can drive growth for the company in the long term. On the other hand, pro-customers account for only 30% of Lowe’s revenues, but they enter into big-ticket transactions and are usually repeat customers. While the do-it-yourself segment is lucrative and accounts for the bulk of Lowe’s revenues, these customers are small ticket buyers and many are just one time customers. Home Depot, on the other hand, has remained focused on the big-ticket professional segment which had driven growth for the company. However, Lowe’s growth has not been as stellar as Home Depot’s, primarily due to its focus on the do-it-yourself consumer segment. The recovery in the housing segment has benefited players such as Home Depot and Lowe’s. Professional customers place larger orders compared to the do-it-yourself segment and serving these customers better can boost revenues for Lowe’s in the long term. This acquisition is likely to give Lowe’s a better control over its “Professional Segment” – an area where its competitor Home Depot is currently ahead. Recently, Lowe’s announced that it had completed the $512 million acquisition of Maintenance Supply Headquarters, which is a leading distributor of maintenance, repair, and operations products, and primarily serves the multi-family housing industry.
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