Lowe's Companies

Lowe’s is the second largest operator in the US home improvement marketplace behind Home Depot and, given the strong underlying fundamentals of both the US economy and its housing market, this is an attractive position to occupy. The company has worked hard to build a strong consumer brand and its commitment to excellent service engenders great customer loyalty.

Lowe’s supports the communities it serves through programmes focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trades people and providing disaster relief to communities in need, e.g. in hurricane season. 

It’s extensive store footprint offers a competitive advantage in a sector where people often still want to see or try items before purchasing or even receive reputable advice at the point of sale. With reliable cash flows and a very strong balance sheet, Lowe’s has a fine record of creating long-term shareholder value.

As a substantial retailer, Lowe’s processes large amounts of transaction data, employee records, and vendor details. It also holds some customer information on their systems where accounts are maintained for customers, particularly trade accounts.

Cybersecurity is therefore a newer but rapidly growing risk area. Data breaches could occur through point-of-sale vulnerabilities or cyberattacks. The risks stemming from this include financial losses, reputational damage, regulatory penalties under privacy laws, and a loss of customer trust.

Lowe’s relies on a global network of suppliers and manufacturers to stock its vast inventory, making it vulnerable to disruptions caused by geopolitical events, pandemics, or logistics issues. IT increasingly controls stock ordering, so responsible sourcing and robust controls are needed to prevent product shortages, increased costs, or lost sales.

Additionally, ensuring ethical labour and human rights practices across its suppliers and within its own workforce is essential for ensuring worker dignity, protecting brand reputation and complying with regulations.