Home improvement giant Lowe’s has made two significant acquisitions, Artisan Design Services for $1.3 billion and Foundation Building Materials for $8.8 billion, marking a strategic move upstream into the contractor segment for interior finishes and professional builders. These acquisitions reflect Lowe’s assessment that growth requires increasing its touch points with a broader range of potential purchasers, including professional builders and contractors.
The moves also position Lowe’s to capitalize on resurging home building activity and provide a first-look opportunity to sell products to professionals in the industry. This strategy is not new, but it is gaining traction in the wake of inconsistent consumer demand. Across the home furnishings industry, companies are reassessing their traditional channel strategies and exploring ways to get in front of new potential purchasers.
One approach being taken by furniture dealers is to collaborate with interior designers, offering “to-the-trade” pricing or working with local designers to expand their touchpoints with end consumers. This trend is expected to be explored further at Furniture Today’s upcoming Leadership Conference, which will feature a new merchandising track focused on this expanding practice.
The industry’s shift towards developing alternative outlets and targeting new purchasers is a response to the current economic climate, where consumer demand has been inconsistent. By adapting to these changes, companies like Lowe’s are positioning themselves for growth and increased market share.
Image Courtesy: Business Insider
