Lowe's e-commerce sales increased 70%, traffic rose 22%, conversion rates jumped 35% in 2011 following increased web investment, improvements to company website, says CEO
March 6, 2012
– Robert Niblock, the chief executive officer of Lowe’s Cos. Inc., said the company’s e-commerce sales increased 70% in 2011 following increased web investments and improvements to the company website, Internet Retailer reported March 5.
During this same period, web traffic increased 22% and conversion rates jumped 35%, Niblock added.
“At the end of the fourth quarter, we had over 250,000 items available online and our mobile app, which launched this past August, is one of the highest-rated retail apps in the Apple Store,” said Niblock.
During the year, Lowe’s made incremental improvements to its website and unveiled new tools such as MyLowes.com and a tool that allows users to view their cross-channel purchasing history. MyLowes.com allows customers to create and store personalized room designs, pursue available store and web inventory, and create folders to store ideas, products or projects.
Niblock said that Lowe’s acquisition of online retailing company Allied Trade Group, Inc. (trade name ATGStores.com) towards the end of 2011 for an undisclosed sum did not have an affect upon Lowe’s online growth in 2011.
“Specific to 2011's 70% increase it had zero impact from the acquisition of ATG Stores because that was all based on more items online, more multichannel sales,” said Niblock, “As we think about growing that business going forward, we have a target of roughly double the number of SKUs online in 2012 relative to 2011. ATG is certainly is going to help us. We bought a very interesting technology company that has a lot of good things going, that has roughly 3.5 million items online, a number of which we'll make available on Lowes.com in 2012.
Lowes reported that full-year 2011 sales rose approximately 2.9% year-over-year from US$48.81 billion to $50.20 billion, and that comparable-store sales rose 3.4%. Net earnings fell roughly 9% from $2.01 billion to $1.83 billion.
The primary source of this article is Internet Retailer, Chicago, Illinois, on March 5, 2012.