U.S. Markets close in 4 hrs 52 mins

Lowe's, (LOW) Instacart Expand Same-Day Delivery Nationwide

·4 min read

Lowe's Companies, Inc. LOW has been making smart moves for a while to offer its customers a seamless shopping experience. Recently, LOW announced its partnership with Instacart to make same-day delivery available across its more than 1,700 stores nationwide. Now, customers can order around 30,000 items for delivery and avail the same as fast as in an hour.

This partnership makes Lowe's one of the first retailers on the Instacart App to offer same-day and scheduled delivery for huge items of about 3x3x5 feet and 60 pounds. Consumers can also order small Halloween inflatables, fire pit essentials and small portable grills. In fact, they can purchase holiday gifts like smart home products, hand tools and electronics, and accessories, including pillows, blankets and outdoor string lights, from LOW’s local stores.

We note that this currently Zacks Rank #3 (Hold) player provides same-day delivery from stores in all the 50 states and Washington D.C. Management expanded the assortment of household, and home and garden needs. Via Instacart, the retailer also sells non-mixed paint, non-tinted paint and assorted paint supplies. Lowe's and Instacart started offering same-day delivery across select markets in February.

What’s More?

Shares of this key home-improvement retailer have increased 13.5%, outperforming the industry’s 8.1% growth. LOW is well-positioned on the back of constant investments in the technology and merchandise category as well as sturdy Pro and digital businesses. LOW is steadily benefiting from a strong execution of strategies, including the Total Home strategy. The strategy is focused on boosting its productivity and enriching the integrated omni-channel shopping experience. It is likely to grab a higher market share across Lowe’s DIY and Pro categories.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

A strong digital base has been aiding Lowe’s performance for a while. Management has been expanding assortment for a while at Lowes.com to resonate well with the customers' design and lifestyle. LOW is focused on enhancing its omni-channel retailing capabilities, in-store operations, website and supply chain, with an aim to resonate well with the customers’ demand to shop. Apparently, sales at Lowes.com increased 7% year over year in the second quarter of fiscal 2022, representing about 10% sales penetration.

In addition, Pro customers have been a significant driver for Lowe's business. Management is quite focused on enhancing the Pro offering across LOW’s stores and online with improved service levels, deeper inventory quantities, intuitive store layout and more Pro national brands. During the fiscal second quarter, Pro sales jumped 13% year over year and 37% on a two-year basis. Pro business contributed around 25% to sales in the fiscal second quarter.

Don’t Miss These Solid Bets

Here we highlighted three better-ranked stocks, namely, Designer Brands DBI, Buckle BKE and Capri Holdings CPRI.

Designer Brands designs, manufactures, and retails footwear and accessories. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Designer Brands’ current financial-year revenues and EPS suggests growth of 6.9% and 23.5%, respectively, from the corresponding year-ago reported figures. DBI has a trailing four-quarter earnings surprise of 55.1%, on average.

Buckle is a renowned retailer of on-trend apparel, footwear and accessories. BKE currently has a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Buckle’s current financial-year revenues and EPS suggests growth of 6.8% and 4.5%, respectively, from the corresponding year-ago reported figures. BKE has a trailing four-quarter earnings surprise of 12.7%, on average.

Capri Holdings, a global fashion luxury group consisting of iconic brands Versace, Jimmy Choo and Michael Kors, carries a Zacks Rank of 2 at present. CPRI has an expected EPS growth rate of 10.1% for three-five years.

The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and EPS suggests growth of 3.3% and 10.1%, respectively, from the corresponding year-ago reported numbers. CPRI has a trailing four-quarter earnings surprise of 32.4%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
Buckle, Inc. The (BKE) : Free Stock Analysis Report
Capri Holdings Limited (CPRI) : Free Stock Analysis Report
Designer Brands Inc. (DBI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research