Business Units or Product Lines

Lowe's Companies, Inc. operates primarily in two business segments: Home Improvement and Professional Services. The Home Improvement segment includes a wide range of products for home decoration, repair, and improvement, such as tools, appliances, building materials, and garden products. The Professional Services segment focuses on services for professionals in the construction and maintenance industries.

Business Models for Each Product Line

In the Home Improvement segment, Lowe's generates revenue from retail sales both in physical stores and online, relying on a vast supply chain and vendor relationships to stock products. Major expenses include cost of goods sold, labor, and logistics. The Professional Services segment generates revenue through specialized offerings designed for business clients, contractors, and home improvement professionals, including loyalty programs and bulk purchase discounts. Expenses in this segment include specialized inventory management and marketing efforts targeted at professional clients.

Future Opportunities for Growth

Lowe's plans to capitalize on the growing trend of DIY home improvement and renovation, as well as increasing its e-commerce presence to meet changing consumer preferences. Expansion into the professional contractor market and commercial sales represents another growth opportunity, as does leveraging technology for better supply chain efficiency and customer engagement.

Potential Major Risks

Potential risks include vulnerability to fluctuations in the housing market, changes in consumer spending habits, and competition from other home improvement retailers and e-commerce giants. Supply chain disruptions posed by global events and potential increased costs due to tariffs or labor shortages also pose significant risks. Additionally, there is a risk of technological disruptions impacting both store operations and online sales performance.